It is difficult to see what the damage looks like from the photo, but it appears to be just on the lower part of the trunk and very damaged.  I can't be sure, but it looks like physical damage -- something hitting the trunk and ripping up the bark.  Since it looks like it is in lawn or grassy area, does the mower bump against the bark?  Does something occur in that grassy area that may be hitting or scrapping the trunk? Is it a play area? dog run?  It looks like a fairly young tree.  Was it healthy when you first planted it?

Before thinking about treating or replacing, you need to find out what, specifically, is causing the damage. If you can't think of something causing physical damage, please take a close photo of the bark cuts and damage and re-post with more information.

Sorry I can't be more helpful.  Need more info.