The purpose of this essay is to present the internationalization strategy based on the German sports textile manufacturer PUMA SE. The paper first begins with an introduction in which the terminology which is necessary for understanding the essay is explained. In addition, the relevant internationalization strategies for entering foreign countries and markets are highlighted. The subsequent chapter deals with the history and development of PUMA as a company. The main part of this essay consists of a 5 forces analysis of PUMA and a description of their internationalization strategy. The conclusion of this essay shows a critical appraisal of the previously gained knowledge.
Table of Contents
1. Introduction
2. Theoretical Background
3. Internationalization strategies
4. The company PUMA SE
5. Description and critical analysis of company’s business model through Porter’s five Forces
6. Analysis of PUMA’s Internationalization Strategy
Objectives and Topics
The primary objective of this paper is to examine and analyze the internationalization strategy of the German sportswear manufacturer PUMA SE. The study aims to evaluate how the company leverages international market entry strategies to maintain its competitive position within the global sports goods industry.
- Theoretical foundations of corporate internationalization and market entry modes.
- Historical development and evolution of the PUMA SE brand.
- Strategic analysis of the company's business model using Porter's Five Forces framework.
- Evaluation of PUMA’s specific internationalization approach, including the role of subsidiaries and joint ventures.
- Assessment of the importance of the American market for PUMA’s global revenue growth.
Excerpt from the Book
Bargaining power of suppliers:
The bargaining power of suppliers, is the converse part of the bargaining power of buyers and refers to the pressure that suppliers can exert on companies by raising their prices, lowering their quality, or reducing the availability of their products.
The bargaining power of suppliers in the footwear industry is low. Their low bargaining power can be attributed to several factors like the small company size or the lack of forward integration. A large number of these companies are small businesses that supply raw materials to larger brands such as PUMA. The products these suppliers offer, are fairly standardized, have little differentiation, and have low switching costs. All over the world, there are numerous textile suppliers with whom a company like PUMA can easily establish contact and therefore create new partnerships. This makes it easy for buyers like PUMA to change suppliers in just a short period of time.
The number of suppliers compared to buyers in the industry is very high, which gives suppliers less control over prices, resulting in poor bargaining power for suppliers.
Summary of Chapters
Introduction: Outlines the purpose of the paper, which is to analyze PUMA SE's internationalization strategy, and provides a roadmap for the subsequent analytical chapters.
Theoretical Background: Defines key terminology related to internationalization and lists indicators used to measure the degree of a company's international activities.
Internationalization strategies: Details various entry modes, specifically focusing on the mechanics and advantages of franchising, joint ventures, and subsidiaries.
The company PUMA SE: Provides a historical overview of the brand's origins, its technological advancements, and its modern corporate structure and reach.
Description and critical analysis of company’s business model through Porter’s five Forces: Applies Porter’s framework to evaluate PUMA’s competitive environment, analyzing supplier/buyer power, threats from entrants/substitutes, and industry rivalry.
Analysis of PUMA’s Internationalization Strategy: Examines PUMA’s operational structure, its reliance on subsidiaries for local adaptation, and its strategic use of testimonials for brand growth.
Keywords
Internationalization, PUMA SE, Sports Industry, Market Entry, Subsidiaries, Joint Venture, Porter's Five Forces, Competitive Advantage, Franchising, Brand Strategy, Global Supply Chain, Corporate Strategy.
Frequently Asked Questions
What is the core focus of this paper?
The paper focuses on the internationalization strategy of the German sports textile manufacturer PUMA SE and evaluates its market performance.
What are the primary themes discussed in this study?
The study covers international business theory, the historical evolution of PUMA, competitive analysis via Porter’s Five Forces, and specific market entry strategies.
What is the central research goal?
The goal is to understand how PUMA expands and maintains its global market position through specific internationalization methods and strategic adaptations.
Which scientific framework is used for the analysis?
The author utilizes Porter’s Five Forces model to critically analyze the company's business model and competitive environment.
What topics are covered in the main section?
The main section investigates PUMA’s historical development, its business model, the application of Porter's Five Forces, and a detailed look at its international subsidiary-based structure.
What are the essential keywords for this document?
Key terms include Internationalization, PUMA SE, Market Entry, Subsidiaries, Joint Venture, Porter's Five Forces, and Competitive Advantage.
How does PUMA utilize subsidiaries to manage its global operations?
PUMA uses subsidiaries to carry out local tasks like distribution, marketing, and product development, which allows the company to adapt to regional conditions and leadership styles effectively.
Why is the American market described as particularly important for PUMA?
The American market represents a significant revenue driver where PUMA successfully entered through strategic joint ventures like "United Legwear & Apparel Co." to secure a top-3 brand position.
- Quote paper
- Anonym (Author), 2021, The Internationalization Strategy of PUMA SE, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/1002940
