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Puma SWOT & PESTLE Analysis

ID : 52530853| Feb 2021| 15 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. According to 2019 data, Puma has 13000 people working for it.
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 :


€4,648 million – FY ending December 31, 2018 (y-o-y growth 12.4%)
€4,136 million - FY ending December 31, 2017

Competitive Analysis of Puma

SWOT
PESTLE
The SWOT analysis of Puma is presented below:
Strengths
Weaknesses
1. Investments in marketing to strengthen the 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
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
1. Competition from larger brands and new entrants
2. Amazon challenge to sportswear retail
3. Increasing threat from counterfeit products
SWOT & PESTLE (combined)
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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 4 billion sales mark for the first time in Financial year of 2017, with all regions recording double –digit growth

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 Sports Performance and Sport 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, greatest footballers like Antoine Griezmann and Sergio Agüero, golfers like Lexi Thompson and Rickie Fowler, 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.

3. Investments in operations and technology infrastructure: PUMA has accelerated and enhanced its operational processes and systems by upping PUMA’s International Trading Organization, launching new product development systems, benchmarking of ERP systems and advances to the overall IT infrastructure. With the revival of the www.puma.com, the Company has enhanced its existence in the field of ecommerce. Business Intelligence, Planning and IT Security are the major focus of PUMA’s 2018 investments in IT infrastructure. In this regard, a new Security Operations Center was formed to maximize protection from outside threats. Additional focus has been put on the development of a new ERP system slated to be running in fiscal 2019.

The remaining section of "Strength" is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threat

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References used in Puma SWOT & PESTLE Analysis Report

1. Puma 2017 Sustainability Report: https://annual-report-2017.puma.com/wp-content/uploads/PUMAGB2017_EN_Sustainability.pdf

2. Puma 2017 Annual Report: https://annual-report-2017.puma.com/wp-content/uploads/PUMAGB2017_EN.pdf

3. https://www.cbi.eu/node/1814/pdf

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Puma SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2021). Puma SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/puma/ [Accessed 27 Oct, 2021].

In-text: (SWOT & PESTLE.com, 2021)

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