Strategy Puma Product
A Winning Strategy
In this section evidence will be given to support the view that the strategy adopted by Puma is a winning strategy. There are several factors that will be taken into consideration in proving Puma’s winning strategy, the first of which will be a summary of Puma’s finances from 2003 to 2007 which is shown in table 1 below.
This illustrates the Net sales, Gross Profit Income before tax and the Net income of Puma for the stated period. As can be seen in the table the figures have been constantly increasing every year which indicates Puma has become more efficient in producing its product. This supports the fact that the outsourcing strategy is working as Puma seems to have become more efficient in managing its value chain.
Summary Financials
Source: PUMA
Fiscal years ended 31 December
Year |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
Net sales |
1,274.0 |
1,530.3 |
1,777.5 |
2,369.2 |
2,373.5 |
|
Gross profit |
620.0 |
794.0 |
929.8 |
1,199.3 |
12,373.5 |
|
Income before tax |
264.1 |
365.7 |
404.1 |
374.0 |
382.6 |
|
Net income |
179.3 |
259.7 |
285.8 |
263.2 |
269.0 |
Table 1 Key consolidated financial performance, 2001-2007 (Figures are in millions of EUR, unless otherwise stated)
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Figure 1 Key consolidated financial performance, 2001-2007 (Figures are in millions of EUR, unless otherwise stated)
End of year price |
Highest price listed |
Lowest price listed |
Earnings per share |
Cash flow per share |
Shareholders’ equity per share |
|
2007
|