PUMA case study

3598 Words Jul 27th, 2009 15 Pages
In order to arrive at the correct judgment of what will be puma's opportunities and threats, let analyze the external environments factors affecting the company basing on the PESTEL and industrial competitive factors using five forces framework. And later when determining the company's strengths and weakness I will look at the company's internal capabilities by looking at its value chain, value network and any other competitive factors which gives the company more competitive advantage than rivals.

By definition external environmental factors are those factors which have impact on company although the company has either very little or no control at all over those factors. Usually these factors are classified as PESTEL (Political,
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Technological factors can lead to both high rate of obsolescence and Increase Company's budget (through R&D).

Environmental factorsMost of the nations and international bodies have been enacting laws to protect the environment (green issues).Companies have been compulsorily required to adhere to these laws; for example the law to internalise pollution, waste remittance and all legislations regarding safety and environment issues. These have significant impact to business like Puma because it reduces revenue.

Legal factorsThe company which operates globally must expect different laws in different markets place within its operations. For example employment laws, health and safety regulations and financial regulations. It will also need to know advertising and promotion regulations, pricing regulations and consumer protection legislations. (Brassgton and Pettiti, 2007).

Porter's five forces of competitive strategyWas developed as a way of assessing the attractiveness (profit potential) of different industries. It helps to identify the sources of competition in an industries or sectors (Johnson, scholes and Whittington, 2006).The focus is in the environmental factors influencing this

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