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Issues In The Internal Environment Of PUMA

1188 Words5 Pages

WEAKNESSES In the Internal environment of PUMA, they also faced numerous issues that made their gross profit margin, operating margin and brand sales decrease in all parts of the region. Footwear, Apparel and Accessories of PUMA is not stable meaning they have difficulty in maintaining their position when crisis occurs. In the year 2007, PUMA’s strategy to launch their new innovative products at different competition that does not meet their quota.PUMA’s gross profit in Accessory category decreased in the year 2007 from 53.3% to 52.8%.America’s Footwear and Apparel sales drop by 5.7% and 2.6% respectively.In 2007, Asia/Pacific’s operating margin drop from 21.9% to 20.4%. In the year 2008, PUMA’s brand sales in Accessories decreased by 0.5%.In the year 2008 of PUMA, only Asia/Pacific region slightly decreased from 21.5% to 21.3%and the gross profit margin of PUMA’s Footwear, Apparel and Accessories category in 2008 drop from 51.7% to 52.3%, 52.2% to 51.9%, and 52.8% to 51.7% respectively. In the year 2011, the shares of PUMA decreased by 9.6%. PUMA spends a lot when in terms of projects. They have a lot of projects but it does not really help increase their shares. IV. Analysis of the External Environment OPPORTUNITIES PUMA expand their existing product categories in their different retail business around the world making them to grab every opportunity that comes to their way. PUMA even partner with known competitions to launch their product and have a

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