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PUMA SWOT ANALYSIS

Mattia Balasso 5^ERIM

PUMA today

Nowadays, Puma is a german multinational corporation that designs and manufactures athletic and casual footwear, apparel and accessories, which is located in Herzogenaurach, Bavaria, Germany. It is the third largest sportswear manufacturer in the world after Nike and Adidas.

How did it all start?

Puma headquarters in Herzogenaurach

The company was founded in 1948 by Rudolf Dassler. In 1924, Rudolf and his brother Adolf had jointly formed the company "Gebrüder Dassler Schuhfabrik" (Dassler Brothers Shoe Factory). The relationship between the two brothers deteriorated until they agreed to split in 1948, forming two separate entities, Adidas and Puma.

What does Puma manufacture?

Puma specializes in design and production of athletic and casual footwear, apparel and accessories.

STRENGTHS

STRENGTHS

  • Strong brand recognition:

Puma has a long history in the sportswear market.

  • Diverse product portfolio:

Puma offers a wide range of products across footwear, apparel and accessories.

  • Innovation and design:

Puma invests in research and development to improve product technologies.

  • Strategic partnerships and collaborations:

Puma has established successful partnerships with top athletes, sports teams and celebrities.

  • Global distribution network:

Puma has a well-developed distribution network, including retail stores, e-commerce platforms and third-party retailers.

WEAKNESSES

WEAKNESSES

  • Intense competition:

Puma operates in a highly competitive market, with Nike and Adidas dominating the industry.

  • Limited market share:

Puma holds a smaller market share than its main competitors.

  • Dependence on third-party manufacturers:

Puma relies on third-party manufacturers located in Asia to produce its products.

  • Slow response to market trends:

Puma has been slower to adapt to emerging market trends.

  • Limited presence in emerging markets:

Puma is not very present in some emerging markets, like China and India.

OPPORTUNITIES

OPPORTUNITIES

  • Expansion in emerging markets:

There is significant potential for growth in emerging markets, where the demand for sportswear is increasing.

  • Growth in e-commerce:

The global e-commerce market is proliferating, providing opportunities to increase online sales and reach more customers.

  • Focus on athleisure and casual wear:

The athleisure and casual wear segments have experienced significant growth in recent years.

  • Strengthening sustainability initiatives:

Puma could use more sustainable materials and reduce the environmental impact of its supply chain.

THREATS

THREATS

  • Intense competition:

Puma operates in a highly competitive industry, which puts pressure on its market share and pricing.

  • Economic fluctuations:

Economic instability in key markets could hurt the company's sales and revenue.

  • Supply chain disruptions:

Political instability, natural disasters or trade disputes can lead to increased production costs and delays.

  • Counterfeit products:

Counterfeit products damage companies' brand reputation and negatively impact sales. For this reason, it is essential to take measures to combat counterfeit goods.

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