SWOT ANALYSIS: Strength -PUMA is very competitive organization. -Financial growth is phenomenal. -More diversified from its competition. -Wide array of shoe-wear. -Strategy acquisition with reputed companies. -Brand stands for quality, latest technology and prestige. -Global Brand. -PUMA top management is highly marketing oriented and most of the key personnel come from marketing background. This is strength in this business because industry is market driven instead of product driven. Weakness -Less of promotional activities done by the company and not much of ment. -They have diversified range of sport product but income of the business heavily depends upon its share of foot ware market. -Retail sector is very price sensitive. However, most of its income is derived from selling into retailers. -Profit margin tends to squeeze as retailers try to some of the low price competition pressure onto PUMA. Opportunities -Open more stores. -Product development. -Strong global recognition. -Expand in markets which have more disposable income. -Participate in global marketing events like World cup, Olympics, etc. Threats -Harsh competition and to keep-up with the competitions penetrating effort will cost a lot of money and pressure on marketing and research and development [R & D]. -Short PLC play important role in the ROI in a particular product line. -Weakling markets may be a serious threat. -Puma exposed to international trade. Fluctuation in currency affects cost and profit margin of the company.
PORTERS 5 FORCES -Many provide on market. -Build up healthy brand image. -High competition. -Per manner threat. [Same sector] -Fragmented market. -Big retail chain. -Own distribution. -Vulnerable sport market. [Asia] -Own retail store network. THE COMPETATORS: Nike: -Number one sports brand in the world. -U.S based istrative activities and design and product innovation. -Sub brands like "Tiger Woods" or "Michel Jordan" Addidas: -Focus on core sports like soccer, tennis, athletics and skiing. -Design and marketing departments are located in and . PRADA: -Well known luxury brand. -4 years ago PRADA dared to step into the sport segment. -Focus on fashion and trends but their price strategy is still too high. Diesel: -Major fashion brand including: Sunglasses, foot ware, watches, fragrances and writing tools. -Experienced an unexpected growth rate. -Brand is still situated in Italy. Draw Backs of PUMA: -Very low brand awareness. -Market share is low. -Advertising is very low.