Godcare, an insurance firm based in California, had difficulties expanding their operations to Asian markets as most of their target countries had strict regulations on transferring the details of the customers among the different branches of the firm. The company had to obtain an approval from its customers before sharing their personal information with its branches in other countries. Which of the following barriers is most likely to have affected the services of Godcare in the given scenario?

23.)

Charming Charlies charges a daily rate of 0.03 percent (.03% or .0003) on its store credit cards. What interest rate is the company required by law to report to potential customers?

Charming Charlies charges a daily rate of 0.03 percent (.03% or .0003) on its store credit cards. What is the effective annual rate it charges its customers?

Curtis Builders is borrowing $150,000 today for 5 years. The loan is an interest-only loan with an APR of 9.5 percent. Payments are to be made annually. What is the amount of the first annual payment?

Footnotes

Overview: CoffeeBrewers, Inc., the company that you work for, has developed an app it plans to release to customers to help promote its sales. Customers enter the type of pastry or sandwich they are going to have, and the app provides suggestions for the kind of coffee that is best suited to pair with their meal. In an email to the software development team, identify what type of research method is likely to produce the best results for testing the app: a survey, focus group, interview, observation, or field trial, explain how the research method can be applied in this matter and why it will be effective in yielding useful results.

For each of the three organizations below,

• Recommend whether the organization should build or buy/outsource the system in question. Explain your answer.
• What additional information would be useful in making your recommendation?

Organizations:

1. A medium-sized company that sells roofing materials to contractors needs a system that will allow customers to check product inventory through a website.
2. A large (Fortune 500) retailer with a large, well-skilled IT department needs a system that will track the purchasing habits of its frequent customers.
3. A large (Fortune 500) defense contractor needs a system that will track payments to vendors.

A Day in the Life of a Contracts Analyst at Cargill

Glynis Gallagher works as a contracts analyst at Cargill Risk Management, which is a business unit within Cargill. Based in Wayzata, Minnesota, Cargill celebrated its 150th anniversary in 2015. Cargill is a truly global company: With operations in more than 60 countries, it markets food, agricultural, financial, and industrial products and services to customers worldwide. The company is one of the world’s top grain traders. In addition, it has global beef operations, and it does business in starches and sweeteners as well. Cargill also processes steel and de-icing salt. Its revenues totaled $109,699 billion in 2017, making Cargill the largest privately owned company in the United States.

Cargill is committed to feeding the world in a responsible way, while also reducing its environmental impact and improving the communities where its employees live and work. Writing in the introduction to his 1979 book Merchants of Grain, author Dan Morgan noted:

Grain is the only resource in the world that is even more central to modern civilization than oil. It goes without saying that grain is essential to human lives and health.… As America became the center of the planetary food system, trade routes were transformed, new economic relationships took shape, and grain became one of the foundations of the postwar American Empire.

Today, as the saying goes, “You can’t walk down the grocery aisle without seeing something Cargill has been involved with in one way or another.” A recent article in Forbes described the scope of the company’s operations:

Cargill, the $135 billion (fiscal year 2014 sales) family-owned food behemoth dominates all roads between the world’s farms and your dinner plate.… Since the company was founded in 1865, the core of its business has always been trading commodities—buying, storing, shipping and selling the crops farmers grow around the world.

Commodities processing is a high-volume, low-margin business; Cargill crushes large quantities of soybeans each day. Because the company is privately held, Cargill can pursue long-term investment opportunities in many global markets. For example, it has had a major presence in India and other emerging markets for decades. The company has made large investments in cocoa, sugar, and food innovation.

The career path of Greg Page, former Cargill CEO and current executive chairman, shows the range of job opportunities Cargill offers its employees. After graduating from college, Page took a trainee position in the Feed Division. In subsequent years, he held a number of positions in the United States and Singapore. He was also involved with the startup of a poultry processing facility in Thailand. Today, Cargill exports roughly 100 million metric tons of chicken from Thailand every year.

Gallagher graduated from a large Midwestern university in 2012 with a major in marketing. She spent fall semester of her senior year studying in northern Italy. Many of her business courses helped prepare her for her current role. She recalls, “Although I never took a course focused on derivatives and trading exclusively, my math and finance courses gave me a solid foundation in order to understand portfolio exposures, fee schedules, and financing options we utilize every day. My marketing courses have allowed me to use this data in a more customer-focused approach on a daily basis.”

Cargill Risk Management is part of Financial Services, one of Cargill’s six platforms that comprise 65 business units. Cargill, through Cargill Risk Management, is a registered limited designation swap dealer with the U.S. Commodities Futures Trading Commission (CFTC). Gallagher must make sure that everything she does for customers complies with CFTC swap dealing guidelines. Cargill and other commodities trade houses are industry members of the Commodity Markets Council, a trade group that serves as a liaison between companies and the government.

Gallagher is a contracts analyst. She says, “I have always been interested in law. Becoming a contracts analyst in such a regulated industry allowed me to gain exposure to contractual language, legal requirements, and the regulatory environment. For example, if you do not set up a contract properly, you are opening yourself up to unnecessary risk.” As Gallagher explains, “In today’s highly regulated and changing business environment, it is essential to protect yourself while completing business transactions. Being part of this facet of the business is a daily challenge. It pushes me outside of my comfort zone to understand a basic question—namely, what is the true risk here for Cargill?”

As noted previously, Cargill Risk Management is a limited designated swap dealer. What’s a “swap”? Swaps, also known as over-the-counter (OTC) transactions, can be complex financial structures that derive their value from something else—a futures contract, for example. Swaps are traded in direct negotiation between buyer and seller; they represent a $700 trillion market. Who uses swaps? Gallagher’s business unit services a variety of customers, including farmers, major airlines, food companies, investment funds, oil companies, and many others.

Gallagher’s business unit works with its customers to provide commodities hedges through swaps and structured products. The commodities in question are often agricultural commodities such as grains (e.g., corn, wheat, and soybeans), as well as beef and other animal proteins. Cargill also deals in metals and energy. Hedging is a financial strategy that allows a customer to lock in the price for a specific commodity purchase in the future. An important part of Gallagher’s job is to work diligently to understand customers’ business objectives, and to ensure contractual terms are aligned with these strategies. The Cargill team assists customers by creating tailored risk management solutions to reduce risks and uncertainty by having more diversified hedging portfolios.

Consider the following example: When a large restaurant chain purchases cooking oil, it must manage budgets and margins to ensure profitability. When the price of oil seeds—a commodity—increases, the company needs to find a way to offset this increase instead of passing along the cost to its customers in the form of higher prices. Of course, market volatility and cost swings are difficult to predict—so how is the restaurant chain able to do this? Helping customers answer this question is an important part of Gallagher’s team’s job.

Summing up her experience, Gallagher says, “I enjoy working with our customers in more than 60 countries throughout the world. With 16 global offices, I am exposed to different cultures and business practices that challenge me to think globally. Understanding where the customer is coming from allows me to succeed in helping them understand and navigate this complex field. Ultimately, I am part of the process which allows enterprises ranging from huge corporations to small farmers succeed in managing their overall risk.”

Requirements>

1. Overview of the Case Study 5-6 sentences
2. Statement of the Problem 1-2 sentences
3. Alternatives to Solve the Problem - List and provide a separate heading for each alternative - 1 - 2 pages
4. Recommendation on the basis of recommendation - 5-6 sentences
5. Implementation plant for recommended alternative - 6 sentences
6. Current Event - Link the case to current update event

Suppose Nike opened a new production plant in China to produce sports clothes and shoes. After operating for several years, the company collected the following data about production possibilities (left table) and marginal benefit (middle table).

1. Draw Nike’s production possibility frontier (PPF) and explain how your graph illustrates tradeoff/scarcity.
2. Suppose currently Nike produces 2 million pairs of shoes and 27 million pieces of clothes per year. If the company were to produce one additional million pairs of shoes a year, what would be the associated opportunity cost?
3. Please list Nike’s Marginal Cost data in the right table above (next to its production possibilities and marginal benefits data). Then pick a data point you just listed and explain its economic meaning.
4. A data point in the MB table is (0.5 million pairs of shoes per year, 10 million pieces of clothes per year). What is the economic meaning of this data point?
5. Based on these data, what would be Nike’s optimal shoe and cloth output? Explain the reasoning behind your answer.

Case Study:
Trump De Tomato Ltd (TDT) is a company in aquacultural industry specialised in farming of aquatic
organisms. TDT is considering opening a new farm in Sandy Bay. This project would involve the purchase
of 13 hectares land at a price of $1,000,000 (Note that: The land is not subject to depreciation for accounting
and tax purposes). In addition to that, the company will need to purchase eight special equiments which cost
$125,000 each. The equipments are expected to be in use for 5 years and after that, they will be scrapped
without any residual value. Each year, each of these equipments will incur $5,000 maintenance cost. It is
assumed that the farm will first be used at the beginning of the next financial year: 1 July 2022.
Before starting this new operation, TDT will need to redevelop and renovate the warehouse at the farm. This
is expected to cost $200,000. Assume that TDT is not able to claim any annual tax deduction for the capital
expenditure to the renovation of the building until the business is sold.
Revenue projections from the farm for the next five years are as follows:
Year 1 Year 2 Year 3 Year 4 Year 5
Beginning 1/7/2022 1/7/2023 1/7/2024 1/7/2025 1/7/2026
Ending 30/6/2023 30/6/2024 30/6/2025 30/6/2026 30/6/2027
Production quantity (tons) 120 140 170 185 185
Price (per tons) $9,000 $9,150 $9,250 $9,300 $9,350
Operating variable costs associated with the new business including material costs and labour costs.
Estimated material costs per ton in year 1 is $2,000 and this cost will increase by 3.5% every year. The farm
will require about 6 workers working for 8 hours a day, 200 days per year. The pay rate is flat at $20/ hour
including superannuation. Annual operating fixed costs associated with production (excluding depreciation)
are $100,000. Existing administrative costs are $550,000 per annum. As a result of the new operation, these
administrative costs will increase by 30%. The company is subject to a tax rate of 30% on its profits.
Meanwhile, TDT Ltd is currently financed by 60% of equity and 40% of debt. Company’s bond is traded at
a price of $980. The bond has 10 year term, 8% coupon rate paid semi-annually and face value of $1,000. In
addition, company’s equity has a beta of 1.2 while the risk-free rate in the market is 3% and market portfolio
return is estimated to be 12%.
P. De Potato, the company CFO would like you to help him examine the viability of the project for the next
five years, taking into account the projections of sales and operations costs prepared by company’s
accountants.

quesstion 1: Using sensitivity analysis, recalculate NPV using the scenario of a. A decrease in project sales by 10% annually. b. An increase of the sale price by 5% annually c. An increase of material costs change from 3.5% to 8% Briefly comment on your results.

Trump De Drum Ltd (TDT) is a company in aquacultural industry specialised in farming of aquatic organisms. DT is considering opening a new farm in Sandy Bay. This project would involve the purchase of 13 hectares land at a price of $1,000,000 (Note that: The land is not subject to depreciation for accounting and tax purposes). In addition to that, the company will need to purchase eight special equiments which cost $125,000 each. The equipments are expected to be in use for 5 years and after that, they will be scrapped without any residual value. Each year, each of these equipments will incur $5,000 maintenance cost. It is assumed that the farm will first be used at the beginning of the next financial year: 1 July 2021.

Before starting this new operation, TDT will need to redevelop and renovate the warehouse at the farm. This is expected to cost $200,000. Assume that TDT is not able to claim any annual tax deduction for the capital expenditure to the renovation of the building until the business is sold.

Revenue projections from the farm for the next five years are as follows:

Operating variable costs associated with the new business including material costs and labour costs. Estimated material costs per tons in year 1 is $2,000 and this cost will increase by 3.5% every year. The farm will require about 6 workers working for 8 hours a day, 200 days per year. The pay rate is flat at $20/ hour including superannuation. Annual operating fixed costs associated with production (excluding depreciation) are $100,000. Existing administrative costs are $550,000 per annum. As a result of the new operation, these administrative costs will increase by 30%. The company is subject to a tax rate of 30% on its profits.

Meanwhile, TDT Ltd is currently financed by 60% of equity and 40% of debt. Company’s bond is traded at a price of $980. The bond has 10 year term, 8% coupon rate paid semi-annually and face value of $1,000. In addition, company’s equity has a beta of 1.2 while the risk-free rate in the market is 3% and market portfolio return is estimated to be 12%.

P. De Potato, the company CFO would like you to help him examine the viability of the project for the next five years, taking into account the projections of sales and operations costs prepared by company’s accountants.

Your tasks:

Based on the information in the case study, P. De Potato has asked you to write a report to TDT’s management advising them as to the best course of action regarding this project. Your report should address the following specific questions asked by management:

1. Discuss which costs are relevant for the evaluation of this project and which costs are not. Your discussion should be justified by a valid argument and supported by references to appropriate sources

1. What does Puma need to do to maintain the leadership position in the Indian sportswear market?

2. How should Puma prepare to ‘fight’ the response from foreign brands in the Indian market?

3. What concepts and theories of international business are found in the Puma case? Briefly discuss each one and relate them to the case.

In September 2014, Puma retained star athlete Usain Bolt, the world’s fastest man, as brand ambassador and launched a new campaign — Forever Faster — to send the message that Puma was and would continue to be “the fastest sports brand in the world.”2 In August 2015, Puma launched its second round of Forever Faster campaigns with a new marketing line: “What are you training for?” The campaign promoted the idea of driving athletes to train harder in order to perform better. The multi-million euro campaign promoted the brand’s latest shoe with ads showing Bolt and the Arsenal football club undergoing limit-pushing training schedules over a course of four weeks to extract more from their performance.3 Puma wanted to make it clear to the world “that it needed to be seen as a major player — that life isn’t all about Adidas and Nike,” suggested Nigel Currie, managing director of the British company brand Rapport, a sports sponsorship agency.4 Puma’s global aspirations also extended to advancing its market position in India. Despite Puma’s presence in the Indian market since 2006, the sportswear brand had not realized its goal of capturing the lead position. Puma’s marketing push finally paid dividends when in June 2015, the brand recorded, for the first time, sportswear sales in India ahead of Adidas, Reebok, and Nike (see Exhibit 1).5 Puma’s success in India could be primarily attributed to the company’s marketing techniques, judicious expansion, and customer-acquisition strategy.6 Indian consumers were already changing their lifestyle in response to increased health concerns, and fitness programs were growing in popularity. The retail sportswear segment experienced unprecedented growth as a result, and companies rode the fitness wave to maximize returns on their investments. Puma had moved ahead of Adidas and Nike to become the leading brand in India, but how long would Puma be able to hold its position in the face of sustained expansion by domestic footwear brands such as Liberty Shoes Ltd (Liberty), Relaxo Footwear Ltd (Relaxo), and Paragon Footwear (Paragon)? These local brands had increased their retail footprint and were expanding their distribution networks beyond their regional presence in order to gain a substantial market share.7 Puma needed a plan to strengthen its branding and pricing strategies to stave off competition from these domestic companies. Could Puma sustain its leadership position in the years to come? PUMA WORLDWIDE Puma SE (Puma), headquartered in Germany, was considered one of the world’s leading sportswear brands. It had been designing, developing, marketing, and selling footwear, accessories, and apparels since 1948. The company categorized its product portfolio by sport (such as football, fitness and training, running, motorsports, and golf) and owned other popular brands, such as Puma, Dobotex, Cobra Golf, and Brandon (see Exhibit 2). Puma employed approximately 10,000 people and distributed its products in more than 120 countries worldwide.8 To capture a leadership position globally, Puma revised its mission statement in 2013 to “be the fastest sports brand in the world,” meaning fast reaction to new trends, reduced time to market with innovations, and speed in problem solving. The company’s repositioning initiative, such as its Forever Faster campaign, was a reflection of its new revised mission statement.9 PUMA INDIA Puma first entered the Indian market in the early 1990s with a licensing agreement with Carona. The agreement was revoked in 1998, and in 2002, Puma re-entered the Indian market by sharing its license and distribution partnership with Planet Sports. Under this model, Puma was responsible for quality and brand consistency while Planet Sports was in charge of sourcing, distribution, and retail of Puma products in India.10 India’s monthly per capita income was expected to grow by over 10 per cent in FY2015/16 in comparison to FY2014/15.11 The Indian consumer lifestyle had undergone a massive shift: disposable income levels had increased and people were adopting international brands.12 By 2006, there had been a fourfold increase in the availability of international accessories and shoe brands in India.13 To leverage this growing trend and strengthen its brand position in India, Puma established its first executive outlet in the country in 2006, manufacturing and distributing apparel, footwear, and accessories across multiple cities in the country.14 After three and a half years of operations, Puma reported a profit in 2009.15 Despite entering the Indian market after its peers (Nike, Reebok, and Adidas), Puma had consistently maintained its growth above the industry average rate and, ultimately, in 2015, surpassed its competition to gain a leading position.16 In 2015, Puma recorded its highest number of sales in India, for the first time ahead of its competitors Adidas, Nike, and Reebok.17 SUCCESS MANTRA Puma’s marketing strategy, judicious expansion plans, and resistance to using discount campaigns led to Puma’s lead in India.18 Retail Strategy Puma’s position as leading sportswear brand in India was primarily due to Puma’s prudent expansion strategy and clever vendor engagement. Puma focused on long-term sustainability, never opening multiple stores in the same location. This safeguarded the brand from over-distribution and helped Puma maintain the quality of distribution across its stores.19 With this strategy, Puma steadily built its network of 340 stores across 115 cities in India. Of the 340 stores, 320 stores were operated under the franchise model.20 Puma reported 13 per cent same-store sale growth in 2014 as compared to 2013. In addition to maintaining tight control over its distribution network, Puma adopted a clever vendor engagement. When Reebok closed 300 of its 900 stores, retailers were handicapped. Puma leveraged this opportunity to gradually grow its partnership with Rishabh Sports Station — Reebok’s biggest vendor — and with other vendors in order to fill the market gap left by Reebok’s absence.21 Product Portfolio With the rise in disposable incomes, change in consumer preferences, and escalating health awareness, sports apparel and equipment companies were launching new products and models to satisfy growing Indian consumer demand. To take advantage of this opportunity, Puma introduced two of its leading shoe brands — Mobium and Faas — to Indian consumers in fiscal year FY2014/15. Mobium Ride, the average price for a traditional, men’s athletic jogging shoe, was priced at US$138.04; the model Faas 600S was priced at US$122.7022 — comparable to pricing by Nike and Adidas. Puma also launched the Nightcat Powered edition under its Mobium brand, and introduced its Ignite brand of running shoes and Alexander McQueen’s stylish global collection to Indian consumers.23 Puma planned to add other brands from its global portfolio to India’s product portfolio in the coming years.24 To build strong brand loyalty, Puma focused on developing products that fit well, were light, and moved with the person wearing the product. The style quotient was always a crucial parameter in Puma’s product mix. Consumers were central to Puma’s strategy; hence, after assessing a demand for flip-flops and sandals, Puma introduced a collection of stylish wear exclusively for the Indian market. Puma sold over 5 million pairs of flip-flops and sandals in FY2014/15.25 Promotional Strategy Puma built its brand on the pillars of a desirable product mix and engaging marketing.26 In addition to being known for sports apparel, Puma gradually built its image as a fashion inspirational brand with dynamic designs and stylish products. Consumers associated the fashion items with unchallenged passion, determination, and sentiment for sport.27 As part of its initiative to increase brand awareness, the company launched a Forever Faster campaign in partnership with the Indian Super League football franchise.28 This tie-up fit well with Puma’s plan to focus on a football wear collection and concentrate its marketing efforts around football.29Puma had Usain Bolt, a world-record holding sprinter and Puma’s brand ambassador, launch the Forever Faster campaign in India in September 201430 to signal the brand’s seriousness about making Puma the fastest sports brand in India. To raise the consumer engagement level, Puma invested in a food, drinks, and entertainment venue — the Puma Social Club. The club was located in the poshest area of Bengaluru and was a hit among the local millennials.31 In addition, Puma put together a compilation of music and a concert series under Puma Loves Vinyl — a campaign to connect with consumers at a personal level.32 Price With growing competition, Puma had two options to push its sales further: the company could use a discounting model, like its competition, or continue on the path of sustained and slow growth.33 The company decided to persist with the gradual growth strategy, which brought Puma the success it sought. To make the brand accessible to more customers, Puma lowered the entry barrier with low-priced entry products. Puma’s products ranged from an affordable $25 to $230.34 Customer Focus Puma focused on continuous monitoring and improvement of the customers’ store experience. The brand had a huge fan following, particularly among the youth. Being consumer-centric, Puma developed its products after identifying these consumers’ needs. The consequent launch and success of flip-flops and sandals exclusively for the Indian market validated Puma’s effort and commitment.35 In line with its focus on India, Puma launched an exclusive fitness shoe for women, Pulse XT, in the summer of 2015. Abhishek Ganguly, managing director of Puma India, declared, “We have planned a very aggressive autumn and winter and will continue to launch global innovative technology-oriented products suitable for India. You will see a lot more of us.”36 E-Commerce Model Worldwide use of smartphones and tablets to access the Internet drove the e-commerce model on an unprecedented growth trajectory. With all companies trying to gain a share of the online market, Puma, too, built its presence through popular marketplaces such as Amazon, Jabong, Snapdeal, and Flipkart. In late 2013, former managing director of Puma India, Rajiv Mehta, indicated that selling Puma’s products online was a marketing advantage the company wanted to exploit: Between 16 [and] 25 years of age, a lot of people are shopping online. Because we are a lifestyle brand, consumers end up shopping multiple times for a lifestyle product than a performance product which lasts for some time. . . . 37 Online is a lot more dynamic. If I want to launch a new shoe, all I have to do is make sure it’s in my warehouse and take the graphic, which can happen in two hours. Our online business is as good as a Brigade Road store in Bangalore and is one of the largest store equivalents in terms of sales. Also, it's a marketing advantage, if not anything else.38 To curb heavy online discounts, Puma excluded online franchise operations.39 Puma earned a 15 per cent revenue share from its online segment in 2014. To extend its online reach, Puma planned to boost its online presence and strengthen the content and offerings of its online portal, Puma.com.40 INDIAN SPORTSWEAR MARKET The sportswear industry was defined as an aggregation of performance, outdoor, and sports-inspired clothing and footwear.41 All kinds of dresses, shorts, trousers, tops, coats, jackets, track suits, athletic sets, swimwear, underwear, hosiery, clothing, and accessories (including gloves, headwear, and scarves) were included under the clothing segment. Children’s, men’s, and women’s footwear — sports shoes, sandals, pumps, and more — were included under the footwear category.42 The sportswear industry in India was valued at $3 billion in 2013 and was predicted to reach $4.9 billion by 2018.43 The industry grew 25 per cent in 2013 and was expected to increase at a compounded annual rate of 10 per cent from 2013 to 2018. Within the sports apparel segment, current sales value of performance apparel grew by 20 per cent; outdoor apparel, by 28 per cent; and sports-inspired apparel, by 18 per cent, in 2013 (see Exhibits 2 and 3).44 MAJOR COMPETITORS Adidas Adidas had ruled the Indian sportswear industry for more than a decade. The increasing presence of the brand across major Indian cities and its tie-up with the Indian cricketer icon, Sachin Tendulkar, for advertisements helped the firm become a sportswear leader.45 To further increase its market presence across the world, Adidas acquired Reebok in 2005 for $3.8 billion.46 However, since 2012, Reebok’s Indian arm was tangled in various commercial irregularities.47 Owing to the irregularities in the Indian unit, Adidas reported a loss of €125 million (roughly equivalent to ?8.7 billion or US$135 million in 2005) from its global profits. Further losses of €70 million (?4.88 billion or US$76 million in 2005) were estimated if the case was not handled soon.48 The failure to leverage the Reebok brand added to Adidas’ financial losses; in 2015, Adidas lost its position as market leader. Adidas indicated it might sell Rockport, Reebok’s shoe brand, to regain its position in India.49 To start a fresh chapter, in September 2015, Adidas identified Ranveer Singh as brand ambassador for its streetwear label Adidas Originals,50 leveraging the actor’s stardom and his connection with youth. Reebok Although a relatively small player, Reebok had an established market in key regions such as North America and India. In order to grow its market presence, Reebok was purchased by Adidas in 2005 for US$3.8 billion. In India, Reebok targeted the 15 to 50 age group and promoted its brand with advertisements targeted at cricket.51 However, in 2012, Adidas announced that it had uncovered several incidents of commercial irregularities at Reebok’s India unit. As a consequence, Adidas closed a substantial number of Reebok outlets.52 Reebok’s struggles resulted in poor financials in 2013.53 In a bid to regain its leadership position in sportswear in India, Reebok planned to launch more than 100 of its FitHub54 stores, targeted towards urban consumers.55 Nike Nike had an established base in India. The company had a strong year in 2013 with respect to returns and investments. The company increased its investment in brand promotions with targeted advertisements and official sponsorship of the Indian cricket team. In addition to brand promotions, Nike strengthened its distribution network across smaller cities with a larger presence in multi-brand outlets.56 To drive its sales further, Nike offered various seasonal discounts and offers to lure customers. Instead of investing in an online retailing site of its own, Nike established an online presence through tie-ups with several marketplaces, such as Snapdeal, Flipkart, Jabong, and Myntra.57 Although Nike did not market its own products online, it did use its website to keep fans abreast of the latest product launches and store releases.58 Domestic Companies In addition to global sportswear brands, India had an established presence of popular regional brands such as Liberty, Lancer, and Relaxo. Affordable sportswear products from regional brands were gaining popularity among Indian consumers. These brands slowly bridged the gap between the domestic and international brand sales by introducing new designs and colors as part of their product portfolios. Leading footwear manufacturers, such as Relaxo and Liberty, launched women’s footwear designs to target a growing market need. Domestic companies invested in increasing their penetration across India and launching desired brand variants within different price platforms in order to tap into the burgeoning opportunity59. THE CHANGING INDIAN CONSUMER India's economic growth and rising household incomes were expected to take consumer spending to a level of $3.6 trillion by 2020. Food, housing, consumer durables, transport, and communication were expected to reap the most of consumer spending. The Indian consumer market was dominated by the younger generation and was becoming increasingly sophisticated and brand conscious. Young upper-middle-class consumers were looking beyond the utility aspect of a product to seek brand and lifestyle statements connected with the product.60 India’s consumer confidence continued to be the highest globally and had improved more in the second quarter of the 2015 calendar year due to a positive economic environment and low inflation.61 There was a visible change in consumer attitude towards sports and fitness as a result of an increase in health awareness.62 With the inclusion of physical exercise in an Indian’s daily regime, many state governments were building parks in urban locations to cater to the demand for morning and evening walks.63 Gyms and health clubs in India were taking advantage of the opportunity and offering a variety of fitness programs, such as yoga, dancing, spinning, aerobics, and more.64 With the growing presence of fitness and health clubs and gyms in metropolitan areas and top-tier cities in India,65 the sportswear industry was set for unprecedented growth.66 Additionally, an increasing number of sporting events, such as the Indian Premier League and marathon events, fostered sports growth in India.67 PUMA’S DILEMMA The evolving consumer landscape, rising e-commerce opportunities, and increasing health awareness had fueled massive growth in the sportswear industry. After continuous efforts over eight years, Puma was at last in the number one brand position in India, taking the lead from Adidas.68 However, although Puma led Adidas and Nike in total sale volumes, there was only a narrow differential margin among the three. This implied that the 1–2–3 positions could undergo reshuffling anytime in the future.69