PUMA CASE
The case provides several issues that class members will need to address:
1. How well positioned is Puma for the future now that things have gotten turned around?
2. How important is it that Puma strive to gain sales and market share, given that the industry arena in which it competes is “fragmented” with many competitors?
3. Does Puma currently have a good strategy for the long-term or are strategic changes and adjustments needed?
1. What is your opinion of the job that Puma’s management has done since CEO Jochen Zeitz took over? Is the company in good shape and in a good market position? Would Puma management agree with your assessment? How does your characterization of where Puma is and how well it is doing compare with the message and image that Puma management is trying to get across?
1. What is your opinion of the job that Puma’s management has done since CEO Jochen Zeitz took over? Is the company in good shape and in a good market position? Would Puma management agree with your assessment? How does your characterization of where Puma is and how well it is doing compare with the message and image that Puma management is trying to get across?
Puma has done well under Zeitz’s leadership. There is not a lot to quibble with here. But at the same time, the company has a long way to go in establishing itself in the ranks of the industry leaders. It has a small market share and its brand image still suffers in comparison to those of Nike and Adidas. In the U.S. market, Puma is an also ran; it is stronger and has considerably more visibility in Europe.
2. What is competition like in the international sport apparel industry? What do we learn about competition in this industry from a five-forces analysis?
A representative five-forces models of competition in the sport apparel industry is shown below: Competitive pressures stemming from the threats of additional entry into the industry (moderate to strong)
Entry in the form of existing industry
1. How well positioned is Puma for the future now that things have gotten turned around?
2. How important is it that Puma strive to gain sales and market share, given that the industry arena in which it competes is “fragmented” with many competitors?
3. Does Puma currently have a good strategy for the long-term or are strategic changes and adjustments needed?
1. What is your opinion of the job that Puma’s management has done since CEO Jochen Zeitz took over? Is the company in good shape and in a good market position? Would Puma management agree with your assessment? How does your characterization of where Puma is and how well it is doing compare with the message and image that Puma management is trying to get across?
1. What is your opinion of the job that Puma’s management has done since CEO Jochen Zeitz took over? Is the company in good shape and in a good market position? Would Puma management agree with your assessment? How does your characterization of where Puma is and how well it is doing compare with the message and image that Puma management is trying to get across?
Puma has done well under Zeitz’s leadership. There is not a lot to quibble with here. But at the same time, the company has a long way to go in establishing itself in the ranks of the industry leaders. It has a small market share and its brand image still suffers in comparison to those of Nike and Adidas. In the U.S. market, Puma is an also ran; it is stronger and has considerably more visibility in Europe.
2. What is competition like in the international sport apparel industry? What do we learn about competition in this industry from a five-forces analysis?
A representative five-forces models of competition in the sport apparel industry is shown below: Competitive pressures stemming from the threats of additional entry into the industry (moderate to strong)
Entry in the form of existing industry