Puma is based in Germany and was founded after a dispute between brothers. One brother was the one who started the business Adidas and another founded Puma. Both companies are among the top companies in the field of sports footwear.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct an SWOT analysis by Puma.
Puma At A Glance – Puma SWOT Analysis
Company: PUMA Schuhfabrik Rudolf Dassler
Founders: Rudolf Dassler
Year of establishment: 1948, Herzogenaurach, Germany
CEO: Bjørn Gulden
Headquarters: Herzogenaurach, Germany
Employees (Dec 2020): 14,374
Ticker Symbol: Puma SE
Annual Revenue (Dec 2020): EURO€5.23 billion
Profit net income (Dec 2020): EURO€157.8 million euros
Puma Products & Services: Man’s Clothing | Women’s Clothing | Shoes | Accessories
Company Website: us.puma.com
Competitors: Nike | Adidas | Reebok | Fila | ASICS Corporation | Brooks Sports | Converse
Puma SWOT Analysis
SWOT Analysis Of Puma analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Puma SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Puma SWOT Analysis. Below Is The Detailed SWOT Analysis Of Puma.
Puma Strengths – Puma SWOT Analysis
1. High growth rate: Puma has been experiencing high growth. Puma had a 12.8 percent growth in sales during Q2 of the year 2016. Puma has reported revenue that was EUR3.39 billion for 2015, which was an increase over EUR2.97 billion in 2014. This is a rise of 14.14 percent. This is a healthy rate of growth and they are focused on expanding rapidly that could result in greater growth in the next year.
2. Advertising and Marketing: Puma is heavily involved in promotion of the brand all over the world through sponsorship. Through the years it has enjoyed the pleasure of having many legendary athletes being added to its list. This includes the likes of Pele, Eusebio, Johan Cruyff, Diego Maradona, Clyde Frazier, etc. The current roster includes the international soccer players Sergio Aguero, Antoine Griezmann, Marco Verratti, Yaya Toure, Olivier Giroud, Gianluigi Buffon, and Marco Reus. It also sponsors the athlete world track champ Usain Bolt. Puma was also among the sponsors for the FIFA soccer World Cup of 2014.
3. Puma Sponsors: PUMA has sponsors Arsenal FC, Mamelodi Sundowns and Borussia Dortmund, National football teams from Italy, Switzerland, Austria, Ivory Coast, Ghana and Uruguay and Olympic Handball Champion Denmark. For Track & Field, PUMA is a sponsor of teams from the Jamaican, Cuban, and Barbados Athletic Associations of Jamaica, Cuban, and Barbados. To aid its women’s company, PUMA endorses fashion icons Rihanna and Kylie Jenner. This is a glimpse of the many customers that it is proud to boast off.
4. Research and Research and Development: Puma brand is highly Innovative and has a wealthy Research and Development team. It is known that footballers typically utilize screws in their boots to improve their grip while running. The first screw boots with screws were introduced by Puma and received a lot of recognition in the football world.
5. The brand’s equity: PUMA distributes its products across over 120 nations and employs more than 11,000 people all over the world. Its goal is “To be the Fastest Sports Brand in the world”. In the year 2015, Puma came out with the concept of retail “PUMA Lab”, initially introduced with Foot Locker in 2014, both in the U.S. and in the first store in Europe. The following year, they started working with other retailers in the hopes of enhancing the presence in the PUMA brand within their stores, as well as better communicating their products’ promises on the ground and thus increasing sales over time.
6. Celebrity Brand Ambassador: They’re currently focusing on the female side since they believe that women is the new generation. PUMA is an innovator in this area and has set the standard for many years through the success of their designs as well as collaborations with fashion designers. They are currently focusing their focus on female market segment. One of the key elements in their approach is the relationship they’ve formed with international star Rihanna as an ambassador for the brand. spokesperson for the brand in addition to creative director. They launched the first styles of shoes that were inspired by Rihanna. The Creeper is Rihanna’s very first sneaker from FENTY. The sneaker received a huge amount of attention on social media as well as in the press. The first color variants were gone in a matter of hours.
Puma Weaknesses – Puma SWOT Analysis
1. Competitors: This segment is highly competitive, and Puma is facing a lot of opposition against Adidas as well as Nike. With their impressive earnings and disposable incomes, they’ve basically set up a difficult entry point for Puma to be a major player.
The graph above clearly illustrates the vast difference in revenue of Puma against its rivals.
2. Strong Financial Position: Puma had an annual revenue of EUR3.39 billion in 2015. Although its competitors have more revenue, giving them more opportunities to invest in creativity as well as the development of research. Nike was able to generate EUR27.3 billion in revenue in 2015 while Adidas has EUR16.92 billion in revenue in 2015. This means that Puma having less support to grow and invest in teams as well as individuals when compared to its direct competitors. This gives stability in its finances to its competitors who can concentrate on innovation and bringing in the latest technological changes in the sports business.
3. Market share: Puma holds approximately 77% percent of market share, while its rivals such as Nike has 31 percent, Adidas has 16% and Reebok holds 6percent. This is also a sign that Puma has an extensive way to go.
4. Wage Dispute: Puma is a company that has wage disputes among its employees, which can result in strikes and production is affected. This requires to be resolved and dealt with in a timely manner.
Puma’s Opportunities – Puma SWOT Analysis
1. New targets: Puma can concentrate on the new rising market within Asia and anticipate expanding its market share by a significant amount. It can concentrate on shifts in these sectors and serve the needs of consumers in a way that is appropriate. According to CAGR figures for the Apparel and footwear the fastest growth is expected in Vietnam, Saudi Arabia, India, Colombia and then Mexico. Puma should concentrate on growing the sales of these regions.
2. New product Line: Puma can think of a shift away from sports-related only firm to make apparel for the lifestyle segment and develop a an entirely new market for customers. If it is possible, they can also go into new ventures in order to create new competitions in other markets.
3. Other Sponsorships: Even though Puma sponsors many sports occasions and has a strong relationship with numerous famous athletes and sporting icons , it isn’t enough it comes to competition. It must increase its presence, and even more, in order to stay ahead of the game and increase its market share. This will go an extensive way to making the brand visible, and lead to an rise in sales and, consequently, boost profit.
4. Further Profitable from disposal: People’s income has risen significantly in the past decade. They also have shown significant enthusiasm to trade to purchase top products across all sectors. Puma could profit from this market and increase the customers to gain more sales.
Puma’s Threats – Puma SWOT Analysis
1. Economy Situation: Changing economic conditions all over the world can be unpleasant. The population has been getting caught up in the ever-changing times. This could hinder Puma’s plans to open stores across the world and could become an obstacle for their growth.
2. Fraudulent Products: There are a number of people who create fake products, copying popular brands and offer them at a reduced cost. This can harm the original brand and causes a decrease in sales. There’s nothing you is able to do stop these brands from replicating.
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