Indeed, online sales through the company’s website contributed 470.1 million Euros in 2010 (Puma, 2010, p.103). Technological settingĪpropos the technological dynamics, Puma concentrates more on the research and developmental undertakings and similarly on the applications of mechanization, particularly those allied to the information technology. For instance, the number of female students in American high schools who participate in sports has risen by 33% (Canada Newswire, 2011). The increasing number of women in sports should be taken into consideration. The approval of sports, namely skateboarding, alongside diving, ought to be assumed as an imperative facet in planning, developing, and administration of Puma SE. Several diverse sports seem to be attaining reputation in the core areas where Puma SE Corp operates in. In fact, the industry partakes have been incessantly progressing with respect to private tastes, technologies, as well as prevalent games. The fact that the company is determined to open 25 stores in India reflects this suspicion.Ĭonsistent with Canada Newswire (2011), life drifts have been posing an immense variation in the global sports industry. For instance, the rapid growth in China and India’s economy is suspected by the company to be the major contributor to the increase in revenues. The economic drifts within the domestic realm and that of the affiliating states tend to have a substantial bearing on the corporation.
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Principally, the position of the German economy with respect to monetary concerns, as well as stock exchanges, is a fundamental element that motivates the Pumas trade. At the same time, the political stability in China made the company increase its factories in the country, leading to a sales increase of 34.6% (Anonymous, 2004, p.117). For example, wars in Afghanistan and terrorist attacks, geopolitical uncertainty led the company to move its production from Pakistan (Anonymous, 2004, p.116). Governments’ stability is a key factor that affects the company. This process of restructuring exposed the company to different political factors across various economies. Political Analysisįor Puma, SE went through a massive restructuring to operate in the wider global market. Source: International management: managing in a diverse and dynamic global environment By Phatak, Bhagat, and Kashlak. Political, economic, socio-cultural, and technological factors are considered to be centered on any business environment, as illustrated below. The tools projected for this part are PESTLE and Porter’s Five Forces analysis. Therefore, this section seeks to analyze the global environments in terms of macro and microenvironments. This has resulted from the interest and dominance of the key market players within these markets.
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Market environment analysisĪs stated by Adam MacLeod, a sports business analyst, the European and American markets for sports equipment have a somewhat mature lifecycle (MacLeod, n.d., p.3). There will also be a determination of the competences, resources, weaknesses, threats, and strengths the company can use to exploit these opportunities. This paper is intended to assess Puma’s operative and market environments in order to discover its competitive advantages and opportunities in place. Around 90 percent of the footwear is produced in Asian countries, as well as 60 percent of the apparel (Anonymous, 2004, p.117). The decentralized structure is reflected by the way Puma operates from three headquarters in Germany, the United States, and Hong Kong. The company focus drifted a far its conventional centralized structure to becoming a virtual sports company. The corporation transformed into a market-oriented firm that is concerned with diversifying the brand into superfluity of lifestyle and fashion options (Miller, 2010, p.2). The company deals primarily with athletic footwear, apparel, and accessories. In the late 50s, the company became a limited partnership and went public in 1980 (Palepu et al., 2007, p.318). Puma was established by Rudolf Dassler in 1948 after he and Rudi Dassler split the family shoe business.