The Changing Economic Strategies

By Author: Marissa Connie
Total Articles: 15

As we all know, Puma has a sound sale growth for its sportswear and shoes all over the world, but recently, its growth has been effected because of the natural disaster –earthquake happening to Japan, its second largest market. The disaster, to a certain degree, has made Puma Company change its economic strategies in order to maintain its market state. What exactly the strategies Puma has changed? What new strategies Puma has made? What are its strategies to make up the loss in Japan market? I am sure you are eager to know the answers, read this passage, and you will find the answers.
According to Bloomberg report, the chief executive of Puma Jochen Zeitz says Puma，a large company in German mainly produce shoes and sportswear, is expected to get better in the fourth quarter in despite of the earthquake because he thinks its profit growth is expected, but he did not disclose the specific reason. Puma announces that the company's net profit has increased to 77.6 million Euros. Puma expects that the company will increase its net profit at a middle or high level in this year instead of the previous forecast of low level increase. Puma hopes that the company's operating margins will be growing, not static. But he also says that the growth depends on the European, Middle East and African markets, unfortunately, the earthquake happening in Japan influence the expected to some degree because Japan is Puma's second largest sales marketing just following America. In despite of the loss in Japan's market, we are glad to hear that Puma has a unprecedented sound sales number in other countries.
Puma Company announced the detail of a so-called "back attack" sales plan last year, which aimed to make an annual profit of 40 billion Euros in the year of 2015 instead of 20 billion in 2010. As a part of the program, Puma, a manufacture of articles for sports announced that it would buy a minority stake of 49%in Chinese market in January 2011 to get the full control of the market. Puma planed to regard China as the largest rising market at that time let alone the current misfortune happening in its second largest market Japan. Therefore, the company expects its sales grow by 23.5% in the U.S. market this year; it also hopes that sales in other Latin American countries can achieve a double-digit growth. Sales in the Asia-Pacific region are expected to a growth of 16.3%. Zeitz says Puma's commercial investment in 2011 will reach 100 million Euros, but in the future time its investment will be reduced. However, Puma says it will not reduce the price of its shoes and clothes at the same time. Zeitz Last year, PPR group, Puma's parent company, announced that Puma would aim the goal of becoming a new generation of sportswear with fashionable style. It is said that Puma will complete its transition to a European cooperative company in April 2011 and the Chief Executive Office Zeitz r still serves as its CEO.
The sports necessity manufacturer has raised its profit by 17% to 784.3 million Euros in the third quarter. In additional, after Puma purchase Fortune Brands' brand Cobra Golf brands, its sales grows steadily. Because the brand's profit is 79.03 million Euros, exceeding the estimate made by Bloomberg. Zeitz said Puma would be "selective" to consider the market acquisition, because most of the net profit growth has nothing to do with its merger. He added that but if Puma see an opportunity, it will be able to pay hundreds of millions of Euros for the acquisition.

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