Puma Company SWOT Analysis 2021

Puma Company SWOT Analysis 2021

Puma Company SWOT Analysis: You may have been aware of the infamous cat who has taken over sportswear; Puma. 

Did you realize that Puma was created in about the exact same moment as Adidas did, and also with two brothers!

The story goes that in the year 1924 two brothers set up an enterprise that was known by Gebruder Dassler Schuhfabrik, which means “Dassler Brothers Shoe Factory.”

As destiny would have it they fell apart and decided to divide the business of their family into two distinct brands, you can guess, Adidas and Puma.

The company’s headquarters are at Herzogenaurach, Bavaria, Germany, Puma was started in 1948 by Rudolf Dassler and sold sporting accessories clothing, apparel, and shoes, among other things.

Today, Puma has become one of the 3rd largest companies that produce sporting goods. At the time of writing, Puma has managed to make 5465.30 billion dollars!

Presently, Bjorn Gulden is the CEO at Puma. According to reports from the year 2017, Puma operates in 120 countries and employs 13000 individuals across the globe. 

Let’s take a look at Puma’s SWOT report in more in detail to discover what it’s doing on the market today and how Puma is able to remain in the game throughout its existence.

Puma Company SWOT Analysis

Company Background

Puma Headquarters Address Beaverton, Oregon, United States
Puma Headquarters Germany Address Puma SE Puma Way 1 91074 Herzogenaurach Germany.
Puma Headquarters Phone Number 1-617-488-2900
Puma Corporate Headquarters Germany Phone Number  +49-9132-81-0
Puma Official Website www.puma.com
Puma Corporate Website Puma Headquarters Website
Puma Corporate Server Email Puma Corporate Server Email
Puma Head Office Online Support Puma Online Support
Puma Customer Service Number  1-888-565-7862
Facebook Page Puma Facebook
Twitter Page Puma Twitter
LinkedIn Page Puma LinkedIn

The Strengths Of The SWOT Analysis Of Puma:

Puma Company SWOT Analysis

  • High growth rate: Puma has been experiencing a high rate of growth. Puma has seen a 12.8 percent increase in sales during its second-quarter in 2016. Puma has reported revenue that was EUR3.39 billion during 2015, which was an increase of over EUR2.97 billion in 2014. It is an increase of 14.14 percent. This indicates a healthy growth rate and the company is focused on expansion, which could result in greater growth in the next year.
  • Advertising and Marketing Puma is heavily involved in advertising the brand all over the world through sponsorship. In the course of its existence, it has enjoyed the pleasure of having many legendary athletes that have been added to its roster. They include Pele, Eusebio, Johan Cruyff, Diego Maradona, Clyde Frazier, etc. The list currently includes internationally renowned 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. PUMA is a sponsor of Arsenal FC, MamelodiSundowns, and Borussia Dortmund, National football teams from Italy, Switzerland, Austria, Ivory Coast, Ghana, and Uruguay, and Olympic Handball Champion Denmark. On 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 enterprise, PUMA endorses fashion icons Rihanna and Kylie Jenner. This is a glimpse of the many customers that it is proud to boast of.
  • Research and development: Puma brand is extremely innovative and has a wealthy Research and Development team. It is known that footballers typically wear boots with screws to improve their grip while running. The first screw boots with screws were introduced by Puma and gained great acceptance from the world of football.
  • The brand’s equity: PUMA distributes its products across over 120 nations and employs over 11,000 people around the world. Its purpose is “To become the Fastest Sports Brand in the world”. In the year 2015, Puma came out with the concept of retail “PUMA Lab” which was first launched by 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 to increase the visibility that the PUMA brand within their stores, as well as better communicating their products’ promises in the store and thus increasing sales over time. They’re currently focused on the female side since they believe that female is the new generation. PUMA is an innovator in this area and has set the bar for years thanks to the popularity of its collections along with collaborations with designers. They are currently enhancing their strategy to target the female-targeted segment. One of the key elements in the approach is the relationship they’ve formed with international star Rihanna as Rihanna’s Brand Ambassador in addition to the creative director. The company launched their first styles of shoes which were inspired by Rihanna. The Creeper was Rihanna’s debut sneaker from FENTY. The shoes received a large amount of attention on social media as well as in the press, and the first color options were sold out in just a few hours.

The Weaknesses Of The SWOT Analysis Of Puma:

Puma Company SWOT Analysis

  • Competition: This segment is extremely competitive and Puma faces a lot of rivalry against Adidas as well as Nike. With their impressive profits and disposable incomes, they’ve made it difficult for Puma to be a major player. The graph above clearly demonstrates the vast difference in profits of Puma against its rivals.
  • Financial strength: Puma had annual revenue of EUR3.39 billion in 2015. Although its rivals have more revenue, giving the company more room to invest in the development of new products as well as the development of research. Nike has EUR27.3 billion in revenue in 2015 while Adidas has EUR16.92 billion in revenue in the year 2015. This means that Puma is without financial 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 are able to focus on innovation and incorporate the latest technological developments in the sporting business.
  • Market share: Puma holds about 77% in 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 still a lot to do.
  • Wage DisputePuma has wage disputes among its workers, which may result in strikes, and production is affected. This requires to be resolved and dealt with in a timely manner.

The Opportunities Of The SWOT Analysis Of Puma:

Puma Company SWOT Analysis

  • New targets: Puma can concentrate more on rising marketplaces that are emerging in Asia and expect to increase its market share substantially. It can concentrate on shifts in these industries and provide the market in the right way. According to the CAGR for apparel and footwear, the fastest growth is expected in Vietnam, Saudi Arabia, India, Colombia, and then Mexico. Puma should concentrate on increasing sales in these regions.
  • New product range: Puma can think of a shift away from a sports-related only firm to make apparel for the lifestyle segment and create the market for new customers. If you are able, venture into new ventures in order to create new competitions in other markets.
  • Other Sponsorships While Puma sponsors numerous sports occasions and has a strong relationship with numerous famous athletes and sports icons, it isn’t sufficient when compared with its competition. It must increase its presence, even more, to be able to stay ahead of the game and increase its market share. This will go with a lot of benefits in creating a brand that is visible and lead to a rise in sales and, consequently, increasing profit.
  • Further Income that is disposable: People’s income has risen substantially when compared to the previous decade. They have also demonstrated a great desire to trade up to purchase high-end products across all sectors. Puma is able to capitalize on this market and turn these potential customers into more sales.

The Threats Of The SWOT Analysis Of Puma:

Puma Company SWOT Analysis

  • Economy Situation: Changing economic conditions all over the world can be bad. People are getting caught up in the ever-changing times. This could hinder Puma’s plans to open stores across the globe, and could be an obstacle for their growth.
  • Fraudulent products: There are many people who design fake products, copy popular brands and sell them at a cheaper cost. This is detrimental to the authentic brand and leads to a decrease in sales. There’s nothing one could do about it to prevent them from replicating.

Limitations of SWOT Analysis for Puma

While SWOT analysis is a popular tool for strategic planning, SWOT analysis is extensively used as a tool for strategic planning however, it does have its fair share of drawbacks.

  • Certain aspects or capabilities of an organization can be both strengths and weak points at the same. This is among the main drawbacks that SWOT analysis has. Changes in environmental regulations can be and a risk to the business, but as well as an opportunity in the sense that it allows companies to be on the same level or even gain an advantage over competitors when it is can develop their products quicker than competitors.
  • SWOT is not a method of determining how to get a competitive edge It is not a strategy to gain a competitive advantage, therefore it should not be a complete solution.
  • The matrix is merely an idea to begin discussions on how suggested strategies can be put into practice. It also provided an evaluation window, but it did not provide an implementation plan that is based on the strategic competitiveness in the Puma Series 2015-1
  • It is a static analysis and analysis of the current conditions with only a few potential modifications. As the environment, circumstances threats, strategies, and circumstances evolve, the dynamics of the competitive landscape will not be apparent in one single matrix.
  • SWOT analysis could make a firm over-emphasize the importance of a single external or internal aspect when formulating strategies. There are interrelations between the important external and internal aspects that SWOT doesn’t reveal, which could be crucial in determining strategies.

Weighted SWOT Analysis of Puma

Due to the previously stated shortcomings of the SWOT analysis/ matrix, the management of corporations has decided to assign an appropriate amount of weightage for every internal strength and weakness of the business. 

Companies also evaluate the probability of events happening in the near future and what the effect will be on the company’s performance.

This technique is known as the Weighted SWOT analysis. It’s superior to simple SWOT analysis since using the Weighted SWOT Analysis of the Puma managers are able to focus on the most crucial elements and ignore the less crucial ones. 

This also helps solve the long list issue that causes organizations to make an extensive list, but with none is considered to be crucial.

Conclusion  

After careful examination of the swot analysis conducted by Puma We’ve discovered that Puma is the top manufacturer of sportswear. The economic crisis, the increase in competition and a decrease in brand differentiation are a few of the biggest challenges facing Puma’s success. Puma needs to be able to differentiate its products on the basis of design and cost to prevent dangers and weak points.

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