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Puma’s dilemma

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Hypothetical Business Management Situation

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Puma’s dilemma

  1. 1. This is A Hypothetical Business Management Situation
  2. 2. IMAGE: logodatabases.com 7% 31% 2007 IMAGE: 16% 6% freelogovector.comIMAGE: 7themez.com
  3. 3. NOW• Puma has slipped down the ranks with an 8% market share
  4. 4. Some History…• Two brothers started a shoe company• They split-up after an altercation to form two separate companies “Adidas” and “Puma”• Great rivalry ensued each group trying to out play the other• Changed to healthy but steep competition in the industry IMAGE: thesun.co.uk
  5. 5. IMAGE: psd101.wordpress.com LEADER OPINION LEADERS CELEBRITIES MULTIPLE LINES
  6. 6. ADVERTISINGLARGE INVESTMENT IN TEAMS DIFFERENTIATION FOCUS ON SPORTS IMAGE: delytoo.deviantart.com
  7. 7. FASHION AND SPORTDIFFERENTIATION ZIGTECH IMAGE: asos.com
  8. 8. ISSUES * Increase Effectiveness to accomplish this task that Puma needs *Losing market share *Since 2007 profits dropped due to large expansion plan *New goals and that are in line with the Puma vision are neededIMAGE: mobileapples.com
  9. 9. Opportunities• 2012 Olympics• Sponsorship offers• Merger with another company IMAGE: analyzercro.deviantart.com
  10. 10. Assumptions• Competitors will grow at the same rate• There are no entrants that will change market shares considerably• Rivalry stays the same IMAGE:coolgraphic.org
  11. 11. Alternatives• Stay the same• Concentrate on different product lines• Penetrate one market• Heavy sponsorship• Compete on price• Stop operations
  12. 12. Pros and Cons• Stay the same • Pushed out of market• Concentrate on different • Risk: expensive but product lines spreads costs• Penetrate one market • Research and Development• Merger • Identity transition profitable • Expensive free marketing• Heavy sponsorship and publicity• Compete on price • Increase sales• Stop operations • Tragedy
  13. 13. Recommendations• Merge with another company• Compete on price plus discounts• Use focus groups to see which lines are the strongest and penetrate those market• Motivate design team to stay ahead of trends and keep fresh ideas• Work with teams and athletes to keep name Out there
  14. 14. Why this method? least costly method more pros,Merger could save costs and add valuableresources to the business Motivate company top down, to gainMarket share and reach Target affordability and satisfy needs keep ahead oftrends and keep sales up to satisfy customers

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