Puma Ag
Essay by 24 • November 18, 2010 • 513 Words (3 Pages) • 1,367 Views
Competition
International Sportswear Industry
Footwear
Apparel
Accessories
Monopolistic Competition
Many rivals
Heterogeneous products
High product differentiation
Major Players
Nike, Adidas, Reebok, Puma, Fila
Five-forces Analysis
Suppliers
Yue Yuen - World's Largest Manufacturer of Brandei Footwear
Buyers
Retailer
Distributors: 70% Outsorced Tretorn
Licensees
New Entrants
High Entry Barriers - Experience Ðs very important
Substitutes
Increasing
Rivals (Highly fragmented global market )
Adidas, Nike, Reebok, Fila, Prada Sport, Diesel
Footwear market : Nike market leader - Puma 7th
Apparel Market : Nike market leader - Puma 16th
Competitive Strength
Virtualized Company : Outsourcing major activities
Has regional hubs
Dynamic position to capture regional difference
A fully multinational companies ( No dominated culture )
Innovation : Cell Technology - Foam Free Midsole technology
Financial Resources
ROA
1999 / 2% 2000 / 3% 2001 / 6% 2002 / 9%
ROE
2002 / 33%
Gross Profit
2002 / 44%
Current Ratio Quick Ratio
2002 / 2,3 2002 / 1,4
Debt to Equity Debt to Assets
2002 / 1,1 2002 / 0,5
Financial Resources
ROA (2002)
Nike / 7% Adidas / 3% Reebok / 4% Puma / 9%
ROE (2002)
Nike / 17% Adidas / 21% Reebok / 17% Puma / 33%
Gross Profit (2002)
Nike / 39% Adidas / 43% Reebok / 37% Puma / 44%
Strategies/Generic Strategies
Focus Ñn to NÑche markets:
Attractive growth rate
Revival of Puma's brand
Making Puma profitable:
Cost efficient in production
Outsourcing Production to Asia and Turkey
Focus to Core Competencies
Positioning Puma as a high value brand
Corporate Strategy
Give
...
...