Hypothetical Business Management Situation

1. This is A Hypothetical Business
Management Situation

3. IMAGE: logodatabases.com
7% 31%
2007
IMAGE:
16% 6% freelogovector.com
IMAGE: 7themez.com

4. NOW
• Puma has slipped down the ranks with an 8%
market share

5. 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

6. IMAGE: psd101.wordpress.com
LEADER
OPINION
LEADERS
CELEBRITIES
MULTIPLE
LINES

7. ADVERTISING
LARGE INVESTMENT IN
TEAMS
DIFFERENTIATION
FOCUS ON SPORTS IMAGE: delytoo.deviantart.com

8. FASHION AND SPORT
DIFFERENTIATION
ZIGTECH IMAGE: asos.com

9. 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 needed
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10. Opportunities
• 2012 Olympics
• Sponsorship offers
• Merger with another company
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11. 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

12. Alternatives
• Stay the same
• Concentrate on different product lines
• Penetrate one market
• Heavy sponsorship
• Compete on price
• Stop operations

13. 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

14. 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

15. Why this method?
least costly method more pros,
Merger could save costs and add valuable
resources to the business
Motivate company top down, to gain
Market share and reach Target
affordability and satisfy needs
keep ahead of
trends and keep sales up to satisfy customers