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International Sportswear Industry
High product differentiation
Nike, Adidas, Reebok, Puma, Fila
Yue Yuen ? World's Largest Manufacturer of Brandei Footwear
Distributors: 70% Outsorced Tretorn
High Entry Barriers ? Experience Ys very important
Rivals (Highly fragmented global market )
Adidas, Nike, Reebok, Fila, Prada Sport, Diesel
Footwear market : Nike market leader ? Puma 7th
Apparel Market : Nike market leader ? Puma 16th
Virtualized Company : Outsourcing major activities
Has regional hubs
Dynamic position to capture regional difference
A fully multinational companies ( No dominated culture )
Innovation : Cell Technology - Foam Free Midsole technology
1999 / 2% 2000 / 3% 2001 / 6% 2002 / 9%
2002 / 33%
2002 / 44%
Current Ratio Quick Ratio
2002 / 2,3 2002 / 1,4
Debt to Equity Debt to Assets
2002 / 1,1 2002 / 0,5
Nike / 7% Adidas / 3% Reebok / 4% Puma / 9%
Nike / 17% Adidas / 21% Reebok / 17% Puma / 33%
Gross Profit (2002)
Nike / 39% Adidas / 43% Reebok / 37% Puma / 44%
Focus yn to Nyche markets:
Attractive growth rate
Revival of Puma's brand
Making Puma profitable:
Cost efficient in production
Outsourcing Production to Asia and Turkey
Focus to Core Competencies
Positioning Puma as a high value brand
Give importance to R&D
Sport, Lifestyle and Fashion
Incrasing Growth rate in appearel products market in America and Asia
Fast growing footwear market still in Europe
Orientation towards high value and lifestyle oriented products
Convergence of sports and fashion products
Increasingly difficult to recognise major trends
(High level of diversity)
Succesfull to combine fashion with supports
Strong logistics skill through regional hubs
Huge experience in sports markets
Succesful in niche segments
High level of outsourcing
Lack of direct distribution channels
Increasing growth rate in apparel and accessories markets
Innovation sensitivity of the market
Existence of niches
Maturity of the market
Large numbers of substitudes
Lack of distribution channels
Focus on both apparel and accessoires market
Increase direct sales channels-logistics need to be more efficient to decrease cost
Puma and Benetton convergence can be considered
Try to solve counterfeit problem
Calculate a fair price for your order
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