Under Armour are a prominent manufacturer, marketer, and retailer of trendy clothes, footwear, and accessories. The company has succeeded by fulfilling a demand for goods that concentrate on efficiency by employing price elasticity and supply and demand concept. However, Under Amor has not effectively addressed this key element of microeconomics. Considering that price elasticity of demand is an economic measure aimed at establishing the change in the quantity demand or purchased product with regard to its price change, Under Amor fails to establish why there has been a considerable drop in the demand for its products in relation to its prices.
The sustainability of Under Amor has recently been affected, given the low sales in its products. The core reason points out to the proponent of price elasticity demand. As stated by (Guirguis, 2019), the demand elasticity of supply tests the response to the quantity of a product or service after a shifting price of a specific commodity. Even though there is a rising demand for athletic wear that has increased revenue for clothing manufacturers and retailers selling sporty apparel, both in the exercise room and on the streets, setting market prices and meeting the demands of consumers are at stake. The supply or demand changes for sportswear have changed over the years prompting for changes in products. When the demand price elasticity is entirely elastic, any rise in prices, regardless of how small, causes the required quantities to fall to zero for the products. Then the net profit falls to zero if the amount is increased.
I intend to work in the hotel industry. I intend to use the demand price elasticity concept to achieve the organizational goals by measuring the change in the quantity demand or purchase of products in relation to their prices. Price elasticity tests the reaction to a shift in the amount of the quantity requested or received for the products. This is determined as the increase in the requested percentage (or supplied) by the change in price percentages. Elastic products are more responsive to price changes, whereas inelastic products are less sensitive.