PUMA, branded as PUMA, Cobra Golf and Dobotex, is a German multinational company that designs and manufactures athletic and casual footwear, apparel and accessories, headquartered in Herzogenaurach, Germany. The company was founded in 1948 by Rudolf Dassler.
In 1924, Rudolf and his brother Adolf Dassler had jointly formed the company Gebrüder Dassler Schuhfabrik. The relationship between the two brothers deteriorated until the two agreed to split in 1948, forming two separate entities, Adidas and PUMA. Both companies are currently based in Herzogenaurach, Germany.
Here is the SWOT Analysis of PUMA
Strengths:
• Strengths of PUMA are that it is an established brand in over 90 countries, and is a very popular, well known brand throughout the world. This means that they have a huge target audience (MBASkool). Their famous logo with the jumping cat is today one of the most famous trademarks worldwide (About Puma). Their extensive product range, from world class football boots to casual hoodies, helps to reach a wide audience and therefore they can reach a large target audience.
• The brand is in partnerships with other large companies such as Ferrari and BMW; creating famous car racing shoes. This often helps with funding and income as it can often target a different audience, introducing new people to the brand (MBASkool).
• Similarly, PUMA sponsor many top athletes, as said in previous posts, such as the world-record-holding athlete: Usain Bolt. For them this provides major funding as it means that their brand is on show to the world and it must therefore be a good brand if top athletes are using their products. This boosts customer appeal as it acts as a walking advertisement. They were also the official sponsor of the FIFA World Cup in 2006, which again is advertisement to the whole world.
• PUMA’s products, in particular their football boots have been creatively and innovatively made through advancements in technology. For example, in the 60s, they were the first sports shoe to use the vulcanization production technique. Today, they use careful study of biomechanics and zoning which leads to the use of specific material and construction in specific areas of the foot in their football boots (Puma.com).
Weaknesses:
• PUMA has tough competition, and limited market share, from large companies such as Nike and Adidas who are in the same market.
• They have less financial strength compared to other brands in the industry meaning that they may not be able to invest in new products or technologies where others might.
Opportunities:
• The company can attain more sponsorship deals through the increase in number of international sporting events to advertise their brand through.
• PUMA can enter the lifestyle section of the industry, helping to reach a wider audience (MBASkool).
Threats:
• The current economic situation is very bleak, hence expansion is minimal therefore they may not progress as much as they would like or need.
• Imitations or fakes of the brand are extensively increasing.