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Puma SWOT and PESTLE Analysis

ID : 52530853| May 2023| 19 pages

COMPANY PROFILE -Puma

Business Sector :Sports apparel and footwear

Operating Geography :Germany, Europe, Global

About Puma :

Puma SE is a German designer and manufacturer of sport and casual footwear, clothing and accessories and the third largest sportswear manufacturer globally. The company products are distributed in more than 120 countries. The company was founded by Rudolf Dassler in 1948 following a split with his brother Adolf Dassler. This split led to the parent company Gebrüder Dassler Schuhfabrik (Dassler Brothers Shoe Factory) being divided in Puma and Adidas. It has its headquarters located in Herzogenaurach, Bavaria, Germany. Puma has 16,000 people working for it. According to the most recent ranking by magazine Business of Fashion, which ranked the 30 biggest companies in the fashion industry, sports company PUMA is the most sustainable brand in the sector. The partnership between AC Milan and PUMA, a major global sports brand, will be extended for a considerable amount of time beginning in June 2022. Along with AC Milan, PUMA will continue to serve as the company's Principal Partner, Global Technical Supplier, and Official Licensed Partner as they plan to open the "PUMA House of Football" training facility.

The USP of PUMA lies in it being the third largest sportswear manufacturer in the world. PUMA’s mission statement is “Forever Faster”, through which it aims at giving athletes the necessary advantage to reach their full potential and express themselves through their own style of play.

Puma Revenue :


€6,805.4 million - FY ending December 31, 2021 (y-o-y growth of 32%)
€5234.4 million - FY ending December 31, 2020

Competitive Analysis of Puma

SWOT
PESTLE
The SWOT analysis of Puma is presented below:
Strengths
Weaknesses
1. Investments in marketing to strengthen brand reach
2. Global presence in key Sports Performance and Sport Style accounts
3. Investments in operations and technology infrastructure
4. Licensing strategy complementing and enhancing PUMA’s products
5. Strong focus on being locally relevant
6. Continuous quality improvement of distribution system
1. Image as a cheaper alternative to the big sports brands
2. Major sourcing concentrated in the Asian continent
Opportunities
Threats
1. Focus on the women’s segment
2. Growth potential in global market for sports and fitness clothing
3. Strong sales growth due to normalization after the end of lockdowns
4. Stepping into metaverse will drive growth
1. Competition from larger brands and new entrants
2. Amazon challenge to sportswear retail
3. Increasing threat from counterfeit products
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Detailed SWOT Analysis of Puma

Strength

1. Investments in marketing to strengthen the brand reach: Puma is continuously investing in marketing to boost its brand identity. In order to connect to the trend-setting audiences, the marketing team is working with several cultural, music and fashion figures who are great influencers for the brand. Storytelling by influencers through social media has particularly proved to be a boon for the brand. This has made PUMA earn a coveted position among the hottest sports and lifestyle brands for young buyers. The brand also bolstered its relation with the leading retailers who have proved to be a stable and strong partner for them. This facilitated the improvement in the performance of PUMA helping them to cross the 5 billion sales mark once again in 2020 despite the economic climate. 2. Global presence in key sports performance and sport style accounts: PUMA has been affiliated with some of the greatest sports legends like Pelé, Maradona, Tommie Smith, Boris Becker, Lothar Matthäus, Linford Christie and several others. PUMA is also involved in improving the quality of its distribution and has broadened its presence in the sphere of Sports Performance and Sports Style around the world. The focus of the marketing expenses continues be on sports performance partnerships, such as those with the world’s fastest athletes like Usain Bolt and Andre De Grasse, iconic footballers like Antoine Griezmann and Sergio Agüero, ace golfers like Lexi Thompson and Rickie Fowler, popular football federations like Italy, Switzerland and Uruguay, football clubs like Arsenal FC, Borussia Dortmund and Chivas, the Jamaican and Cuban Olympic Federations and many others. New partners like Olympique de Marseille, Borussia Mönchengladbach and A.C. Milan have also been added to the PUMA family. It is also delivering ultra-modern, performance-ready golf clothing, footwear and accessories to the market. COBRA PUMA Golf engages in supplying technologically advanced golf equipment. MERCEDES AMG PETRONAS, Scuderia FERRARI and RED BULL RACING sponsored by PUMA dominated the phenomenal season of Formula One which proved to be the major driver of PUMA’s motorsport category. The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.
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References used in Puma SWOT & PESTLE Analysis Report

1. Annual Report - https://annual-report.puma.com/2021/en/index.html
2. Puma to Join Metaverse Trend with Own Initiative - https://www.coinspeaker.com/puma-metaverse-trend-initiative/
3. Puma makes big Web3 push as sports brands go all-in on the metaverse - https://www.voguebusiness.com/technology/puma-makes-big-web3-push-as-sports-brands-go-all-in-on-the-metaverse
4. Newsroom - https://about.puma.com/en/newsroom/newsroom-frontpage
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Puma SWOT and PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2024). Puma SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/puma/ [Accessed 14 Sep, 2024].

In-text: (SWOT & PESTLE.com, 2024)

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