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Puma SWOT analysis 2020: Case Study in 4 Steps

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You might have already heard about the notorious cat that has taken over athletic apparel; Puma. Did you know that Puma came into existence at the same time as Adidas did and that too by two brothers!

So the story is that back in 1924, two brothers started a company that went by the name of Gebrüder Dassler Schuhfabrik, which translates to “Dassler Brothers Shoe Factory.” As fate would have it, the two chaps fell off from each other and decided to split the family business into two separate brands, you guessed it, Adidas and Puma.

Headquartered in  Herzogenaurach, Bavaria, Germany, Puma was started in 1948 by Rudolf Dassler and sold athletic accessories, clothes, and shoes, amongst other things.

Today Puma is the third largest company to produce sportswear. As of 2019, Puma has managed to swoop in 5465.30 million dollars!

Currently, Bjørn Gulden serves as the CEO at Puma. As per reports retrieved from 2017, Puma operates in 120 countries and has employed 13000 people worldwide. Let’s explore the Puma SWOT analysis in a bit more detail to see where it is in the market these days as well as how Puma has managed to stay relevant all these years.

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What are Puma’s Major Strengths?

A lot of people are employed under the Puma brand name, which is a huge achievement for the company because it shows that their employee turnover rate is low. Puma is associated with many stellar brands around the world, which is vital in highlighting it as a top-notch brand itself. It is the main supplier of racing suits for NASCAR and Formula One.

Because it is such a huge deal, they have a huge R&D sector, which is always on top of the latest trends, thereby giving Puma the edge of being innovative. Also, they have a very strong marketing department, which makes sure that the world never misses out on anything they do. They have the ability to invest hefty sums when needed.

The biggest strength, however, is definitely their brand name; it is popular all around the world with not only a huge following but a lot of support from the celebrity endorsements. How many of us think of a feral jungle cat upon hearing the name Puma instead of a pair of kick-ass sneakers? 

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What are Puma’s Major Weaknesses?

There’s a reason Puma isn’t the number one brand in the sportswear industry at the moment; it has weaknesses. Whereas we’ve established that Puma is notorious worldwide, it still doesn’t have as much market share as some of its rivals such as Nike and Adidas, ouch, imagine being beaten by the enemy brother.

In the sportswear industry, having a loyal customer base is extremely hard to guarantee since there are so many often better-priced alternatives. Puma has competition in both pricier as well as cheaper alternatives, thereby catering to a variety of customers and their needs.

Puma has a lesser “brand value” compared to the competition we just addressed, it is amazingly popular, but many people have the perception that Puma is a cheaper variant of some other high-end brands. 

Moreover, a lot of Puma’s sourcing concentration in terms of production is in Asian markets, which are often under the controversy of exploited and underpaid labor.

What are Puma’s Major Opportunities?

Puma has a big opportunity to explore in terms of expanding its market share. They can actively focus on women’s attire and accessories and benefit from this segment. More women are interested in sports and fitness as each day passes, they should have as many options to choose from as the men do.

The sports industry is growing at an exponential rate, with more and more countries emerging into different kinds of sports games. Puma has the opportunity to expand into newer countries and not just that, they can increase their reach by associating themselves with new sports events.

Puma can also grow their influence on promoting their stuff in normal life to; people who aren’t athletes or sports enthusiasts can still find joy in owning Puma clothing and accessories. Why limit it to a certain portion? Puma can become a style statement of sorts that goes beyond the realm of sports.

Puma has the potential of venturing out into a lifestyle choice for people; it has the opportunity to become the go-to choice for a group of people who wish to identify themselves with Puma wear. 

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What are Puma’s Major Threats?

Just like any other business, Puma has suffered in the global economic recession after the Covid-19 Pandemic hit us. Though they have enough to regain their losses, it is never wise for a brand to get cocky because a few slip-ups combine to make a big one.

There are many alternatives to Puma, which are in both ranges; more expensive as well as cheaper options. A consumer of sportswear doesn’t have to stick to only Puma when the market is brimming with competition such as Converse, Bata, Reebok, Nike, Adidas, etc.

Counterfeiting is a serious threat that causes Puma to lose many potential sales. Puma knock offs are easily found in a lot of markets. 

Puma SWOT Analysis: Conclusion

Puma is easily the brand which is always in the top 5 choices of a sportswear enthusiast’s consideration set. With a global reach and rockhard influence, Puma is a brand that we anticipate to see as a player in the industry for many years to come.

As obvious from this SWOT analysis, Puma’s strengths and opportunities outweigh their weaknesses and threats. However, caution should never be completely disregarded. They do face some serious competition with pre-existing brands as well as recent entrants, so they do need to dive into strategies of growing their presence even further. We’ve known and loved Puma for literally more than 70 years now! Some serious props to Puma for keeping it real for all these years when so many brands vanish in a third of this time. We hope to see great things from the brand in the future.