Business Essays - Puma Company Brand

Puma Company Brand

1. Executive Summary

Puma AG is a transnational company that is based in German and industries high athletic and sportswear places both for adult females and work forces, It was founded by Rudolf Dassler after a difference with his brother Adi Dassler with whom they had founded the Dassler Schuhfabrik in 1924.

Puma had a really hapless trade name image that show a diminution in its market portion and prompted cougar to alter it strategic determinations to better on its image, this procedure of alteration was led by Jochen Zeitz Puma CEO based on stages one to four of strategic program to alter puma’s image so that it can vie favourable in the market place and within a twosome of old ages Jochen Zeitz had alteration puma’s trade name image into one of the most desirable and sought after trade name of athletic wear and footwear worn both buy famous persons and manner followings all over the word.

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1.1 Introduction

Puma was founded in Dassler Schuhfabrik, Herzogenaurach, Germany by Rudolf Dassler after a difference with his brother Adi Dassler with whom they had founded the Dassler Schuhfabrik in 1924. Until early 2003 cougar had a really hapless trade name image that show a diminution in its market portion and prompted cougar to alter it strategic determinations to better on its image, this procedure of alteration was led by Jochen Zeitz Puma CEO based on stages one to four of strategic program to alter puma’s image so that it can vie favourable in the market place and within a twosome of old ages Jochen Zeitz had alteration puma’s trade name image into one of the most desirable and sought after trade name of athletic wear and footwear worn both buy famous persons and manner followings all over the word.

This study is divided in three parts, Part one presents the factors that influenced cougar to alter it trade name image and it farther goes to depict these factors under Macro-environmental analysis establishing on market tendencies, competition between clients and strategic group function.

The 2nd portion presents the puma’s resources and capablenesss in footings of strengths and failing every bit good every bit virtuallity every bit seen as strengthens and the 3rd portion of the study presents puma’s winning schemes establishing on cougar state of affairs that fits the company, sustainable completive advantages and as a better acting company.

Harmonizing to instance survey of Puma AG ( in Thompson, A.A. , Strickland, A.J. and Gamble, J. ( 2005 ) Crafting and Executing Strategy ( Fourteenth Edition ) , McGraw-Hill, New York, pages C411- C432 ) ,

The environmental and competitory factors that influenced Puma’s strategic determination to better its Brand image is identified under Macro- environmental factors, competition between rivals and strategic group function as below.

1.1.2 Macro –environmental factors

Lack of societal credence of Puma trade name from the upper category clients who were non willing to have on the trade name because they considered to of hapless quality and were sold “dirt-cheap” Puma’s trade name was compromised and this a affected it’s value for illustration Rudi’s boy wanted cougar merchandises to make all the clients of all societal back land and this move was seen by the upper category people as some thing below them and they can non be seen have oning the same trade name as people on public assistance receivers. In order for cougar trade name to be accepted as a high quality trade name of value, force cougar to alter and better its trade name so that it can be socially accepted by clients.

Change in clients gustatory sensation and manner for illustration there was high demand for supports ware and manner dresss tend that was oriented toward high value and lifestyle merchandises, this alteration in clients demand influenced cougar to alter it’s trade name image to run into the clients turning demand

Demographic alteration in association football market for illustration their was a high demand to react to demands of both childs playing on local pitch and subjects soccer squad playing professional at international degree that required high quality trade name and in order for cougar to tap in to these demographic alteration cougar needed to better its trade name image.

Market alteration of 1980 when athleticss trade name became more dynamic and consumers taste diversified into new and more exciting high monetary value that make merchandises more desirable this forced cougar to alter its trade name image so that they can bear down high monetary value as clients associate high monetary values with quality of trade name or merchandise and the more extremely charged the more desirable the trade name.

Introduction of niches in the market offered attractive growing rates both incumbent and new market participants for illustration skateboarding markets, golf athleticss, athleticss equipments for out door activities made puma alteration its trade name image, for illustration for cougar to bask this attractive growing its trade name has to be of high quality.

Unifying of industries to organize one large group for illustration Rosso joined forces with several other industries in northern Italy to organize Genius group this was seen as a menace because this means more resources and strong fiscal base and this led to high disconnected planetary market and for cougar to last in a extremely disconnected market it needed to alter its trade name image

Puma’s trade name was disreputable and had lost specailised athleticss traders in its distribution web in order for cougar to derive its distribution web it had to better on its trade name image

1.1.3 Rivalry between rivals

Puma greatest competitions are from the undermentioned rivals:

Nike Inc

  • Nike is the figure one athleticss trade name in universe over and from the instance survey
  • Based in USA
  • Has got sub trade name like Tiger words and Michael Jordan

Adidas Salomon AG

  • Deals on nucleus athleticss ( association football, sports & A ; skiing )
  • Has got stronger fiscal resources
  • Has got it’s selling and design sections in Germany and France

Prada Sports

  • Luxury trade name
  • It has entered in to athleticss sections four old ages ago
  • Deals in voguish manner wear of high monetary values

Diesel

  • Based in Italy
  • Manner trade name, majoring in dark glassess, footwear

Rivals entered the market such as Adidas, Nike, Rebook among others entered the market and made competition for market portion was really high and these rivals had better quality trade name than cougars and among them, they shared 27 % of the market portion, this stiff competition influenced cougar to better on it’s trade name image to last to last in the competitory market

Nike was the biggest rival of all and it had the largest market portion for illustration Nike was became the world’s largest athleticss equipment industry in the late 1980 and keep this place since so. Puma was covering in about indistinguishable merchandises like cougar but its trade name was hapless so in order to hold a portion in the market topographic point cougar needed to better on its trade name image.

Adidas-Salomon was besides another rival that entered the market as the 2nd world’s largest manufacturer of athleticss equipment industry in universe with about $ 6.5 billion in gross revenues and was present in every state this put cougar in a really hard state of affairs and in order for cougar to hold a favourable portion in the market it needed to alter its trade name

Reebok besides entered the market at the clip when cougar trade name was hapless, Reebok was the universe tierce largest participant in the athleticss market, Reebok identified footwear industry as a cardinal market and began to sharply into abroad market this expand was seen as a menace to puma and to last it puma had to alter its trade name image

Prada though a luxury bran, it besides started trade in sportswear four old ages ago and this is a menace for Puma and because though the monetary value for Prada trade name is high, it high quality goods do attack client who are willing to pass for illustration super starts, this is a menace to puma because cougar has to non merely with Prada but with Nike, Adidas and Reebok for clients.

1.1.4 Selling schemes

Acquisitions of groups for illustration Rosso bought out other spouses and embarked on growing and enlargement this means more competition for market portions as he built a solid and huge distribution platform across five continents describing one-year gross revenues of $ 330 million with luxury trade name merchandising denims for every bit much as $ 100- $ 200 a brace doing it’s trade name more appealing to clients and in order for cougar to last Such a hash market, it needed to alter its trade name image

Inventions as a selling scheme for illustration Nike diversified his merchandise portfolio to aim people of ages 20 -30 with enthusiastic athleticss entreaty, Reebok changed its selling scheme and began passage toward football, baseball and association football which Puma was one of puma merchandise line and in order for cougar to pull new clients it has to alter it trade name image for illustration cougar planing and new functionality in new aggregations and launched retro expressions of the 1970s/80s

All companies engaged in monolithic advertizement for their trade name a consciousness so that they can vie favourable in the market for illustration in Nike selling scheme, it focused on patronizing immense events and popular events, Reebok besides sponsored popular events and had a licensing understanding with national basket association that increased its trade name consciousness

To vie with each other favorability each company outsource production and natural stuffs where their cost was inexpensive and labor was available this enables each company to cut on production cost.

Product distinction causes restraints on competition for illustration the is high competition for illustration between Nike, Adidas and Reebok because thought there is high trade name designation in the market they about dealt in similar athleticss equipments which offer client the use.

1.1.5 Strategic group mapping to place rivals

Strategic Group Map on Footwear Mark

From the strategic group function, the competition between Puma and Nike is really low and puma doesn’t pose a menace because Puma doesn’t adequate market portions as compared to Nike, This is because Puma is a phase where its trade name is hapless and clients are non willing to purchase puma merchandises and this explains why the place of cougar and Nike are far a portion from each

The close placement of Nike, Adidas and Reebok are and narrow and about tight because they are viing for about the same size for illustration the competition between Adidas and Reebok are about of the same size in market portion and they have to maintain viing for the market with no laterality from Adidas and Reebok as a prima competition, this is because the cost of production is low and so is the cost of labor

The cost of exchanging from one trade name to another is really low for clients the competition houses because clients can freely purchase from another from Nike, Adidas and Reebok particularly where there is no trade name royalty that’s why they are so near together

Nike, Adidas and Reebok entered the market about at the same clip when puma’s trade name image needed bettering this cause high competition for the market portions and for clients and this explains why less room for enlargement for Nike, Adidas and Reebok that needs to protect it’s market portion from Puma

The cost of production was low between the competition houses as most of had outsourced all production and natural stuff where they were cheap to bring forth, this made the market so unstable and due to high competition for the market portion.

2 Puma’s strengths and failing

2.1 Strength

Puma had coaction with some of the celebrated interior decorators from different cultural back land for illustration puma’s new undertakings were developed under the supervisings of trendsetters like Yashuiro Mihara and Jil smoothers which are strongly influenced by kickboxing. This cooperation and coaction opened a new broad market for cougar for illustration where high manner meets sportswear, for illustration this coaction led cougar to produced high quality trade name that suppers starts like Madonna were happy to be spotted wear puma trade name and this made many manner and trade name wearer purchase more of cougar merchandises

Puma launched new aggregations which blended with athleticss, life style and manner for illustration cougar curato places, unala cropped woven women’s ware which are really sport stylish and voguish, such causal sportswear became similar really twenty-four hours sort of wear for certain age group for illustration the immature starts who identified themselves with cougar logo and manner, this made it easy for cougar to aim and make the right market as at the right clip as puma knew it’s market and clients good

Inventions -puma carried inventions at each portion of the procedure for illustration cougar worked with technology squads of Jordan expansive prix Rushing to larn about new stuffs like C fire which are so built into cougar places like shudou places, this invention enabled Puma to bring forth high quality sportswear that were so desirable that puma derive a batch more client that cougar became looked upon as a tendency starting motor in the footwear market for other companies like Nike and Adidas as follow

Puma outsourced all productions and natural stuff procurances in European were to expensive and natural Martial were inexpensive in Asians states, this allow cougar to cut down it’s working capital and let cougar to shorten the production and enable full quality control of input factors

Puma had knowledge and experience, this is one of cougar major strength because harmonizing to the instance survey Zeitz’s apprehension of manner as “the new combinations of elements of the past it easy for cougar to bring forth merchandises without holding to plan for abrasion instead than utilize its heritage, this made it easy for Puma to re-launched older merchandises for illustration the retro expression where some parts were taken from 1970/1980 aggregations were re-launched after adding modern elements such as tantrum or colour manner places

Puma has good planning and timing for illustration cougar for illustration cougar entered the athleticss market two old ages before its resurgence in order to maximise net incomes and this gave puma adequate clip to fix for up coming demand, Puma had addition market experience and gave clients the feelings of ever being in the athleticss market.

Puma participated in assorted selling runs to originate client trade name consciousness for illustration it sponsored large events, chose music telecasting channel which was known for its immature audience who tired to distinguish themselves and targeted them with cougar adverts, for illustration Puma use the MTV and Music Mongol as Jazzy to advance footwear and other dress this made lead to the popularity of cougar trade name and in the last five old ages saw increased gross revenues as the trade name was considered “rebellious and fashionable “ as two most desirable properties as compared to it’s rivals

Acquisitions of other company for illustration cougar acquired Swedish company Tretorn, Europe’s third largest maker of tennis ball from Proventus for ˆ23 million which the contributed to ˆ45 million in gross revenues and cougar was able to apportion its over caput cost of distribution maps

Puma had a stockholder New Regency which put cougars in several successful Hollywood films such as Satan and high offense this benefited cougar massively from generous merchandise arrangement. This new regency made it easy for cougar to make it market audience through films, adverts that portrays the image of cougar as a company

Technologically puma created a web presence that fit its imaged for illustration its place page displayed different adverts from Jamaica line. Synergistic narratives transported readers into managers’ ideas during his 96 hr concern tripe around the universe have oning pumas insouciant and concern garb.

A undertaking promoted on the cyberspace was the “top victor thrift” A aggregation of 510 alone and single places was created and sold at premium monetary values all over the universe.

2.1.2 Failing

Poor trade name Image

Before the resurgence, cougar has a really bad trade name image that most clients from the upper societal category did non desire to purchase puma merchandises because it was considered cheap, this destroyed hapless repute and it took old ages for this image to be rebuilt through stages.

Luck of fiscal resource Puma did non hold a strong fiscal resource as can be seen from the balance sheet of 1999-2002 this could hold been due to cut down gross revenues as the trade name was of hapless image. From the instance survey cougar has the lowest balance sheet comparison to its rivals

Luck of clients

Due to puma hapless trade name image of 1992-2002 it was non pulling clients because the trade name was hapless the replacement were readily available on the market most of cougar clients might hold crossed to Nike or Adidas as they had better quality footwear Limited market when the trade name was hapless cougar has the least market portion as compared to Nike, Adidas and Rebook that to garner shared 27 % of the market portion. This failure by cougar to capture a larger brand portion is a failing and this decreased on trade name attraction, this can be due to puma’s selling communicating which is different for market section

Puma lost its athleticss traders distribution web due to hapless trade name image and unhealthy sale. Though this was gained, Puma still losing the athleticss sections distribution systems

From the instance survey Puma has a higher operating expense as compared because some of its merchandises were sold cheaply at a really low monetary value doing it truly difficult to calculate out what the net income was made as costs were being attached to entire gross revenues regardless of what merchandise section was sold

2.1.3 Virtuality

Puma is the first practical athleticss company harmonizing to pumas mission statement and uses Virtual Warehouse Management System.

Harmonizing to Jochen Zeitz, CEO of cougar “ Virtual ” really may be the incorrect word. One should likely state a “ virtualized ” company, where location does n’t truly play a function any longer. It ‘s wholly independent from location and how you do concern, and travel things frontward. Take merchandise development, for illustration.

It ‘s really divided among all the three hubs, with certain development maps in Germany, certain in the U.S. , and others in Hong Kong. They each complement each other and work together. It ‘s all integrated through proper IT, so no affair where you are, you can entree the same sort of information and attention deficit disorder to the full development chain” . ( Reveries.com, Dec 2202 ) .

2.1.4 Virtuality as strength for cougar

Information sharing

Puma has a planetary direction construction several caput quarters supported by a strong information engineering substructure this makes it easy for sharing of huge web resources on a planetary graduated table for illustration during design phase and utilizing the Lotus notes and information database application, cardinal information about design procedure and processs and it can be entered in to the database and it can viewed by all the production squad located in all the regional hub, this makes exchange of thought and determination devising fast without the demand for production squad and interior decorators to be physical locations in one topographic point. For illustration footwear can be designed in German so it can be checked by merchandise development squad in another state, the reappraisal is done throughout the production rhythm till the merchandise is finished and ready for sale.

Hi engineering substructure

The strong information engineering substructure can be used to associate all the planetary parts together for illustration during executive meetings video-teleconference can be use nexus all the troughs in the assorted parts together during a meeting enabling fast sharing executive information for managerial determination taging Online Reseller Puma’s virtuality has enabled cougars to supply its clients with assistance of screening and purchasing merchandises through a web based shops and retail merchants for illustration puma’s “Qualified Puma Online

Reseller” has made it possible for client to order merchandises and view their purchase position as they a delay bringing whenever their locations Family Websites Through practical presence cougar has been able to a twosome of puma household web sites for illustration in 2000 cougar featured an online shop in offering a few merchandise in United States merely though this has become more common of Pumas online shops, this makes it easy for puma presence to be really where in any state in the universe and makes it easy for cougar gross revenues squad to interact with clients online.

Puma besides unfastened it’s door to the public via web presence ( Pumabiz.com ) by allow users entree to company information such as corporate construction, fiscal studies and puma public presentation in the market, this web presence enabled puma onslaught potency and future concern spouses every bit good as enrolling new staff utilizing the Pumabiz.com web site.

Virtual warehouse

Puma’s virtualisation procedure lead to the creative activity of a practical warehouse where every bit shortly as clients order goods they are assigned with alone doing it easy to turn up the goods and goods are dispatched to clients no affair where they are with the specific given period. The practical warehouse system solves puma’s traditional manner of storage and led to a feeling that cougar is everyplace as the practical warehouse was everyplace puma has a subordinate.

By utilizing vitulised system cougar has competitory advantage for illustration Puma all nucleus competency is seen as a individual large company and globally it’s employees are all over the universe and through usage of puma communicating engineering employees are able to portion all the resources and the procedure of virtualisation is being seen as a hereafter that most companies will follow ( californium Fuderholz, 1998 )

The interaction of clients, providers and stockholders through the usage of information system and communications between administrations have brought merely provider and investors together but has brought stockholders closer for illustration stockholder through the usage on information system are able to seek and happen out how the company Idaho acting in the market

3 Wining schemes

There are groundss from Puma fiscal studies that suggest cougar schemes in the resent old ages have led to winning schemes ; this can be seen from its wide actives that have improved puma’s image well.

3.1 Fits the Company’s state of affairs good

Addition in orders

Pumas orders has increased by merchandise line harmonizing to puma’s mentality for illustration order for footwear went up by 4.7 % to ˆ 721.1 1000000s and order for dress has increased by 19.9 % to ˆ 397.7millioms followed by accoutrements which increased by 13.6 % to ˆ68.9 million

See Appendixtwo & A ; 111

Global branded Gross saless growing

Puma direction confirmed addition in gross revenues on of footwear, dress and accoutrements for based on the fiscal consequences for the first one-fourth of 2008 this has the strength of Euro against other currencies for illustration footwear gross revenues were down by 4.6 % to ˆ404.1 1000000s, Apparel about remained the same as last old ages entire ˆ246/9 1000000s and accoutrements increased by 30.0 % to ˆ 90.1million

Amalgamate gross revenues

In the first one-fourth of 2008 amalgamate gross revenues grew for illustration gross revenues in footwear level but with all puma part meeting satisfactory gross revenues degree except USA, the gross revenues of apparel goods increased by 18.5 % to ˆ 231.8 million and accoutrements in creased by 16.5 % to ˆ 47.3 million with parts from the full part in dual figures

Europe, Middle East besides saw increased gross revenues of 19.9 % which all together left the company with 3.4 % gross of which footwear gross revenues histories for up to1.9 % , dress increased by 5.7 % and accoutrements by 3.7 % despite a slow gross revenues in America. ( 26 February 2008 | Source: just-style.com )

Pumas gross revenues for the full twelvemonth of 2005 consist of amalgamate and license gross revenues which increased by 18.4 % to ˆ 2.4 million for which the gross revenues of dress histories for 16.5 % , accoutrements increase to 16.5 % and footwear increased by 17.7 %

Gross net incomes at 5 % from the gross revenues and gaining development study, puma’s gross net income from the first one-fourth increased to 52.2 % as compared to last old ages. The border of footwear increased from 52.0 % to 52.1 % , accoutrements increased from 53.4 % to 54.9 % and dress was low compared to last year’s gross net incomes

Puma embarked on stage IV

Puma has started its stage IV in 2006 of going “most desirable athleticss lifestyle company” that consists of enlargement out side of European market every bit all as enlargement of merchandise classs ; this includes come ining the already bing markets every bit good as come ining into new countries for illustration cougar purpose to offer merchandises that cover all the athletics life style such as integrating athletic wear into manner and doing puma more distinguished to crush off competition from its competition. Phase IV enlargement scheme show enormous growing in net incomes as consequence of uninterrupted high gross revenues and puma ability to descry new tendencies in the market and offer merchandises consequently

Puma’s stockholders value

In 2007 Puma’s chief long term end was founded, when Pinault Printemps Redoute of France return over Puma, this brought the two companies that portion the same vision and civilization together, for illustration the return over made it possible for each company to supply support to the other to make it’s strategic aims. The return over was non objected by the portion holders because the offer monetary value of ˆ330 per portion was considered just and this made both companies more money.

Good balance sheet

Pumas gross revenues for the full twelvemonth of 2005 consist of amalgamate and license gross revenues which increased by 18.4 % to ˆ 2.4 million for which the gross revenues of dress histories for 16.5 % , accoutrements increase to 16.5 % and footwear increased by 17.7 % , this as comparison to pre 2003 shows that cougar has got a healthy balance sheet for illustration cougar equity ratio is above 60 % and of March 31, 2008 entire assets increased by 0.8 % to ˆ 1,811.5 1000000s

3.1.2 Competitive advantage

Barney ( 1991 ) defines sustainable competitory advantage as “ A house is said to hold a sustained competitory advantage when it is implementing a value making scheme non at the same time being implemented by any current or possible rivals and when these other houses are unable to double the benefits of this scheme ( italics in original ) ” ( p. 102 ) .

Based on both Barney’s work and the definition in the lexicon, a sustainable competitory Advantage is defined as long term benefit of implementing some alone value-creating scheme non presently being implemented by any known or possible rivals along with the incapableness to double the benefits of this scheme. Factors that have enabled cougars achieve sustainable competitory advantage are identified below

Knowledge and Expertise

Puma has utilizations expertness in design cognition with major competences in all parts of design and selling for illustration with the acquisition of Puma by PPR group has enabled cougars to utilize PPR big base design squad to bring forth high quality of desirable trade names, this cognition and expertness makes puma completive set a portion from it’s chief rivals.

Brand as completive advantage Pumas trade name is so strong and dynamic harmonizing to Zeitz that by 2003 puma’s popularity was so strong that mega starts like Madonna was proud to have on Puma’s, This trade name image and associations of it’s trade name with international starts is of competitory advantage in merchandising of dress and footwear because it brings about promotion for cougar and trade name consciousness and open up locales for other chances for illustration by 2003 cougar marks a trade to be the official provider of dress and footwear to the FIA universe mass meeting title-holder.

Expansion into other market Puma has been spread outing its market particularly in China, for illustration cougar has unfastened many shops in Olympic small town in China to showcase new aggregation and run into the demand for Puma’s footwear demand, this enlargement has attacked new clients and cougar has provided support to single athleticss personality for illustration, the CEO of Puma is quoted as “ If we find the right individual we will see partnering with those Chinese athleticss starts” ( China daily describe 26,2007 )

Advanced merchandises Puma has a advantage in footwear, dress and accoutrements because it a batch easier for cougar but manner know who with the aid of interior decorators and the CEO of cougar has the apprehension of manner “the new combination of elements of past” in which when cougar spots a new tendency alternatively of doing a new trade name, puma uses it old trade name to plan and this counted for 10 % of footwear, dress and accoutrements based on the old design and this besides made puma a tendency starting motor. In footwear cougar besides collaborated with sought after interior decorators like Stella McCartney, Alexander McQueen to bring forth new line of women’s and men’s footwear which was launched in the spring of 2006

Broad consumer entreaty Puma offer a really diverse merchandise line for everyone and this histories for the wide client entreaty because there is merchandise for everyone. In the spring aggregation of 2003 did Carter for both male and female for illustration Nuala merchandise line with cropped woven bloomerss and Nuala Nylon coat for adult females every bit good as Kings US Secret Service association football shirts that catered for both work forces and adult females.

Puma besides ventured into Action athleticss line for emerging athleticss like BMX skateboarding and downhill mountain bicycling making Pt series offering causal footwear and dress and accoutrements for such events

Relational market asserts Puma has got greater bond with its clients this has forged a working relationship work with clients to industries extremely alone and customized trade names for illustration in the instance survey cougar promoted the “top victor thrift” a aggregation of 510 alone and single places that were created out of recycle fabrics from Jeans and ties, with the purchase of such points, clients allowed to come in puma’s sole community on the web.

Supplies to run into the assorted demands of consumers Puma’s major provider was Yue Yuen, the largest provider of footwear, so when the demand for peculiar footwear goes up cougar is more readily meets the demand from changeless supply of branded merchandises from YueYuen.

Intellectual market asserts Puma has great in deepness cognition sing clients demands and penchants for illustration cougar has gained cognition and credibleness in athletic wear and equipment, this was a consequences of many old ages of trading on the same merchandise line and which made it really easy to hold competitory advantage over others manner industry, this cognition made it easy for cougar to re-launch merchandises that clients most prefer to hold.

3.1.3 Better company public presentation

Selling run

Puma participated in assorted selling runs to originate client trade name consciousness for illustration it sponsored large events, chose music telecasting channel which was known for its immature audience who tired to distinguish themselves and targeted them with cougar adverts, this has resulted in o better public presentation because it improved trade name consciousness which in bends led to high gross revenues public presentation.

Out sourced production Puma outsourced all productions and natural stuff procurances in European were to expensive and natural Martial were inexpensive in Asians states, this allow cougar to cut down it’s working capital and let cougar to shorten the production and enable full quality control of input factors, this consequences in a better company public presentation because it enables cougars to run into the market needs efficaciously and salvage a batch of money from holding its production and stuff from a inexpensive beginning

Use of engineering

Puma invention of the “cell technology” which introduced the froth –free midsole where alone designs were made by single designs and athleticss work forces were convinced to have on pumas merchandises for illustration cougar introduced the All-In-One ‘UniQT’ for the Cameroon football squad at the 2004 African Cup of Nations.

The new ‘UniQT’ is the replacement of the sleeveless shirt worn by the Cameroon squad in the 2002 African Cup of Nations, this has resulted in to break company public presentation because with the alone manners of athleticss wear more and more promotion was being done for cougar and doing the trade name more known hence doing puma merchandise line good known and increasing gross revenues

Harmonizing to ( Carty, Victoria 2001, 34-66 ) “Almost all administrations of any sensible size have some sort of strategic planning” and strategic planning direction was/is a chief portion of cougar schemes of a better public presentation company for illustration cougar knew that rhythm for each athletics differ from athletics to feature and establishing on the general regulation of thrum that a rhythm lasts for 12 to15 old ages with 5 to 8 old ages of a merchandise popularity and that it’s demand lowers, this indicates that investings in new merchandise line demand to be planned good in progresss and this is what cougar did for illustration in 2003 cougar entered the cricket market get downing in Austria, South Africa and Africa where cricket going trendy and was expected to be grow in popularity.

Planing and clocking market trends This planning and timing scheme makes Puma a better acting company because it’s easier for cougar to come in other subjects markets fast as its presence in the market is good known and every bit good as the trade name which in bend led to increase in gross revenues of footwear, accoutrements and dress.

Collaborations with other spouses Collaborations with other spouses with athletic trade names for cougar for illustration the coaction with McQueen, this coaction brought the footwear, accoutrements and dress closer to the universe of high manner by for illustration this coaction lead to Puma opening up a shop in New York ace hip meatpacking territory a long side Alexander McQueen’s flagship shop. This aggregation was unveiled in September 2007 gross revenues growing and enlargements

Puma direction confirmed addition in gross revenues on of footwear, dress and accoutrements for based on the fiscal consequences for the first one-fourth of 2008 this has come as a consequence of cougar outsourcing production and stuff to developing states where labor is inexpensive every bit good as cost of production, together with monolithic advertizement and selling, cougar gross revenues in all the three key markets saw high gross revenues growing.

Puma has continued to open and spread out more in retail and retail- now how for illustration in 2007 cougar opened up 25 shops making more involvement in the shops and spread outing its customer’s base and determining the place of retail stores that aids to bring forth more growing and trade names quality.

4. Coup d’etat

Take over is dealing that takes topographic point between two or more companies where one company lose it’s control to another company for illustration Puma relinquished all it control to Pinault Printemps Redoute, this return over come finalised by July ( Daily News, Record, 2006 111-123 ) Puma and Pinault Printemps Redoute will strategically profit from this move as discussed below

4.1 Strategic benefits

PPR Economies of graduated tables Puma and Pinault Printemps Redoute will profit both from economic systems of graduated tables by uniting production and bring forthing big volume of footwear/luxury goods, the return over enables to both companies to bring forth goods economically by to the full using the works machineries during production clip for illustration by jointly bring forthing and new design save cost and by utilizing both engineerings the companies improve on development clip doing new designs to make clients on clip.

Puma’s Economies of graduated table Puma uses the expertness and design cognition of PPR group this has enable Puma to bring forth high trade names enabling cougar to put it self as category apart from it’s rivals Synergies Synergies between cougar and Pinault Printemps Redoute is much greater than cougar or Pinault Printemps Redoute runing entirely, strategically puma will profit more because it will be given opportunity to broaden it merchandise line so that it has market for each sections in the market for illustration in the footwear, accoutrements, dress, snowboarding and skating and Pinault Printemps Redoute will go on bring forthing its luxury merchandise scope, this trade name distinction by cougar and Pinault Printemps Redoute will enable the houses fair good in the oligopoly markets.

PPR group Growth Pinault Printemps Redoute has strategically benefit from growing in two ways, this can be internal or external, the return over will enable the company to turn fast and quickly for illustration to the Pinault Printemps Redoute web site, Puma’s 2007 part to PPR group amounted to ˆ1,718 million, that’s a rise of 3.6 % as compared to 2006 before the return over, in 2007 cougar contributed runing income of ˆ 236 million to PPR group that’s operating net income at 13.8 % & gt ; after take over at 27.1 % control of cougar, Pinault Printemps Redoute increased in interest to 62.1 % on completion of the offer but this growing can besides attributes to sale residuary interest in France Printemps to RREEF and the Borletti Group every bit good as the acquisition by Redcats USA of united Retail Group Puma’s enlargement and Growth Puma benefited from this move through enlargement shiping on Phase IV of its strategic programs which included broadening the merchandise line into non puma trade name every bit good as enlargement onto other parts.

For illustration Puma benefitted from this move by spread outing to china markets where it opened up new shops to run into the footwear demand by showcasing it’s new aggregation in Olympic small town in readying for 2008 Olympics Reduce competition

Strategically both Puma and Pinault Printemps Redoute will cut down competition between themselves and increase their market power to vie with other houses such as Nike and Adidas for illustration with a combine market, both companies will hold equal portion of market size which will be able to kill of competition from other trade names such as Adidas, Nike and Reebok which has strong competition with Puma for market portions for athletic wear and athleticss equipments

Increased liquidness of ownership portions of the company Pinault Printemps Redoute has benefited from the return over by having a commanding interest in by selling monetary value portion of ˆ330 which raised tonss of liquid hard currency money for PPR and it commanding interest made PPR major determination doing refering cougar.

High portion monetary value Puma benefited from the return over through portions sold at a monetary value of ˆ330 tot some of puma portion holders this besides made puma stockholder who bought portion in PPR it’s portion holder who benefits financially if PPR trades good on the stock market Stronger Financial base

Until early 1980- 1990, Puma had a really hapless trade name image that show a diminution in its market portion and prompted cougar to alter it strategic determinations to better on its image, this procedure of alteration was led by Jochen Zeitz Puma CEO based on stages one to four of strategic program to alter puma’s image so that it can vie favourable in the market place and within a twosome of old ages Jochen Zeitz had alteration puma’s trade name image into one of the most desirable and sought after trade name of athletic wear and footwear worn both buy famous persons and manner followings all over the word. Puma is invariably introducing utilizing engineering, growing and trade name run consciousness. Puma’s hereafter is bright with a healthy.

hypertext transfer protocol: //www.ppr.com/front__sectionId-454_Changelang-en.html

6. Bibliography

hypertext transfer protocol: //about.puma.com/ ( Accessed on 19/07/08 )

hypertext transfer protocol: //www.ppr.com/front__sectionId-195_Changelang-en.htm ( Accessed on 19/07/08 )

Case 23 Puma AG, Lutz Kaufmann, The WHU Otto Beisheim Graduate School of Management ( Accessed on 12/05/08 )

hypertext transfer protocol: //www.slideshare.net/vitusmaren/marketing-plan-of-puma/ ( Accessed on 26/06/08 )

Bharadwaj, Varandaraj and Fay ( 1993 ) Stainable Competitive Advantage in Conceptual Model and Research Proposition

Alderson ( 1965 ) The Search for Deferential Advantages

Hall ( 1980 ) Survival Strategies in hostile Environments

Henderson ( 1983 ) The Anatomy of Competition Porter ( 1985 ) Competitive Advantage: Creating and prolonging Superior public presentation

Barney ( 1991 ) Firm Resources and Sustained Comparative Advantage

hypertext transfer protocol: //www.pumabiz.com/downloads/58.pdf ( Accessed 26/07/08 )

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