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Abhijeet S
Pest Analysis On Puma : Puma AG Rudolf Dassler Sport, officially branded as PUMA, is a major German multinational company that produces high-end athletic shoes, lifestyle footwear and other sportswear. Formed in 1924 as Gebrüder Dassler Schuhfabrik by Adolf and Rudolf Dassler, relationships between the two brothers deteriorated until the two agreed to split in 1948, forming two separate entities, Adidas and Puma. Puma is currently based in Herzogenaurach, Germany.
The company is known for its football shoes and has sponsored acclaimed footballers, including Pelé, Eusébio, Johan Cruijff, Enzo Francescoli, Diego Maradona, Lothar Matthäus, Kenny Dalglish, Didier Deschamps and Gianluigi Buffon. Puma is also the sponsor of the Jamaican track athlete Usain Bolt. In the United States, the company is probably best known for the suede basketball shoe it introduced in 1968, which eventually bore the name of New York Knicks basketball star Walt "Clyde" Frazier, and for its endorsement partnership with Joe Namath.
Following the split from his brother, Rudolf Dassler originally registered the new-established company as Ruda, but later changed to Puma.[3]:31 Puma's earliest logo consisted of a square and beast jumping through a D, which was registered, along with the company's name, in 1948. Puma's shoe designs feature the distinctive "Formstripe",[3]:33 with clothing and other products having the logo printed on them.
The company also offers lines shoes and sports clothing, designed by Lamine Kouyate, Amy Garbers and others. Since 1996 Puma has intensified its activities in the United States. Puma owns 25% of American brand sports clothing maker Logo Athletic, which is licensed by American professional basketball and association football leagues. Since 2007 Puma AG has been part of the French luxury group PPR
Political Factors
Primarily, the company started their strategy by making the brand more profitable. This is to build a strong financial foundation. The main changes that had happened are from the accounting practices of the company. During the said changes and process of restructure, there are different political factors that might be considered. One of this is the environmental issues. As of now, more and more individuals and organizations are focusing on different issues regarding the environment. The fact that the company will be outsourcing from other countries, there are different international as well as local laws that must be considered in order to maintain the continuous process of the development. The trade restriction and tariffs are also another of the most important political factors that must be considered. This is due to the fact that the company already followed the strategy of Adidas and Nike in outsourcing their production in Asia. The primary reason for outsourcing of production is because, most of Asian countries offer lower labor cost and other taxes compare to Europe and America. In terms of political stability, due to the fact that the company is a multinational company that produce as well as sell their products in different parts of the world, there different political issues and events in other local partners that can affect the overall performance of the company.
Economic Factors
The said situation in the political factors, are somewhat connected with the different economic factors that might affect the development process of the company. Primarily is the situation of the home economy or the economic situation of Germany, in terms of monetary issues, stock exchange and the likes. The economy trends of happenings in the home economy are also important, so as the economic situations and trends of the partner countries. This is due to the fact that, this political factor has a great impact to the social mentality of the possible customers. The different employment laws in different countries must also be considered, this is due to the fact that different countries has their different cultures that might affect their beliefs as well as regulations regarding the human resource aspect of any company.
Social Factors
There are more social factors that might affect the development process of the company more than any other factors. This is due to the fact that social factor has the most important impact or effect to the taste or demand of the customers regarding one product or service. The fact that more and more people are into sports is a big chance or advantage for the company, because there will be a huge market for them. Another important thing is that sport is considered as one of the most important sector in the tourism industry, which considered as the most successful industry nowadays. On the other hand, sports are also considered as a form of exercise, for those who wants to have fit and healthy body.
One of this is the lifestyle trends; there have been a big change in the sports sector of the world. The sports sector has been constantly evolving in terms of personal tastes, popular games as well as technologies (Plunkett Research, Ltd 2008). There are different sports that are gaining popularity such as different extreme sports. The popularity of those new sports such as diving, skateboarding and extreme bike must be considered as one of the most important factors in the strategy-making and management of the company. It is also important to consider more the needs of women in sports wear, this is due to the fact that more and more women are going to sports this past few years. This can be seen in the dramatic floodtide of talented women athletes onto the American playing fields alone. In the USA, there are over 33% of female students in high school play sports. Furthermore, the population of those women who participates in the university sports has increased thrice. As of now, women are competing in almost every sport (US Diplomatic Mission to Germany 2008).
Technological Factors
In terms of the technological factors, it focuses on the series of R&D activities as well as applications of automation and new technologies, most especially those that are connected to the Internet. Another important thing that might affect the development is the maturity of the technology; this is due to the fact that technology is considered as restless in terms of development. Furthermore, the global communication is also another important aspect, this is important because the company is operating in different part of the globe. It is also important to consider the different laws like the intellectual property issues.
The company is known for its football shoes and has sponsored acclaimed footballers, including Pelé, Eusébio, Johan Cruijff, Enzo Francescoli, Diego Maradona, Lothar Matthäus, Kenny Dalglish, Didier Deschamps and Gianluigi Buffon. Puma is also the sponsor of the Jamaican track athlete Usain Bolt. In the United States, the company is probably best known for the suede basketball shoe it introduced in 1968, which eventually bore the name of New York Knicks basketball star Walt "Clyde" Frazier, and for its endorsement partnership with Joe Namath.
Following the split from his brother, Rudolf Dassler originally registered the new-established company as Ruda, but later changed to Puma.[3]:31 Puma's earliest logo consisted of a square and beast jumping through a D, which was registered, along with the company's name, in 1948. Puma's shoe designs feature the distinctive "Formstripe",[3]:33 with clothing and other products having the logo printed on them.
The company also offers lines shoes and sports clothing, designed by Lamine Kouyate, Amy Garbers and others. Since 1996 Puma has intensified its activities in the United States. Puma owns 25% of American brand sports clothing maker Logo Athletic, which is licensed by American professional basketball and association football leagues. Since 2007 Puma AG has been part of the French luxury group PPR
Political Factors
Primarily, the company started their strategy by making the brand more profitable. This is to build a strong financial foundation. The main changes that had happened are from the accounting practices of the company. During the said changes and process of restructure, there are different political factors that might be considered. One of this is the environmental issues. As of now, more and more individuals and organizations are focusing on different issues regarding the environment. The fact that the company will be outsourcing from other countries, there are different international as well as local laws that must be considered in order to maintain the continuous process of the development. The trade restriction and tariffs are also another of the most important political factors that must be considered. This is due to the fact that the company already followed the strategy of Adidas and Nike in outsourcing their production in Asia. The primary reason for outsourcing of production is because, most of Asian countries offer lower labor cost and other taxes compare to Europe and America. In terms of political stability, due to the fact that the company is a multinational company that produce as well as sell their products in different parts of the world, there different political issues and events in other local partners that can affect the overall performance of the company.
Economic Factors
The said situation in the political factors, are somewhat connected with the different economic factors that might affect the development process of the company. Primarily is the situation of the home economy or the economic situation of Germany, in terms of monetary issues, stock exchange and the likes. The economy trends of happenings in the home economy are also important, so as the economic situations and trends of the partner countries. This is due to the fact that, this political factor has a great impact to the social mentality of the possible customers. The different employment laws in different countries must also be considered, this is due to the fact that different countries has their different cultures that might affect their beliefs as well as regulations regarding the human resource aspect of any company.
Social Factors
There are more social factors that might affect the development process of the company more than any other factors. This is due to the fact that social factor has the most important impact or effect to the taste or demand of the customers regarding one product or service. The fact that more and more people are into sports is a big chance or advantage for the company, because there will be a huge market for them. Another important thing is that sport is considered as one of the most important sector in the tourism industry, which considered as the most successful industry nowadays. On the other hand, sports are also considered as a form of exercise, for those who wants to have fit and healthy body.
One of this is the lifestyle trends; there have been a big change in the sports sector of the world. The sports sector has been constantly evolving in terms of personal tastes, popular games as well as technologies (Plunkett Research, Ltd 2008). There are different sports that are gaining popularity such as different extreme sports. The popularity of those new sports such as diving, skateboarding and extreme bike must be considered as one of the most important factors in the strategy-making and management of the company. It is also important to consider more the needs of women in sports wear, this is due to the fact that more and more women are going to sports this past few years. This can be seen in the dramatic floodtide of talented women athletes onto the American playing fields alone. In the USA, there are over 33% of female students in high school play sports. Furthermore, the population of those women who participates in the university sports has increased thrice. As of now, women are competing in almost every sport (US Diplomatic Mission to Germany 2008).
Technological Factors
In terms of the technological factors, it focuses on the series of R&D activities as well as applications of automation and new technologies, most especially those that are connected to the Internet. Another important thing that might affect the development is the maturity of the technology; this is due to the fact that technology is considered as restless in terms of development. Furthermore, the global communication is also another important aspect, this is important because the company is operating in different part of the globe. It is also important to consider the different laws like the intellectual property issues.
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