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Introduction
This case describes the challenges faced by the Bata Management in the wake of changingmarket trends in the form of increased competition from the local players as well as theconstantly increasing threat of Chinese imports.Bata had traditionally targeted the lower middle and middle class segments of the society andwas now considering changes in its strategy to be able to survive in the market. The MD of Batawas considering the efforts necessary to realign Bata Pakistan’s manufacturing, outsourcing,distribution and brand strategy in the light of increased local competition and Chinese imports.
Strengths
1.Brand Image2.Reasonable quality at low or reasonable price3.Diversity with ranges in running, training, court, basketball, football and Outdoor 4.Footwear for the entire family5.Financialy Strong6.Conveniently accessible outlets in various parts of the country7.Targetting all income segments8.Provide training for managers and employees9.Nationwide retail network 
Weaknesses
1.No continuity of leadership2.In 2001, 5% decrease in net saless3.No proper planning regarding Advertisement4.No variety in Fashionable shoes
Opportunities
1.E-Commerce2.Acquired, Partnership with small players3.Entring new segments of Markets4.Capturing Market where no other potential competitor exists5.Innovative Products6.New mediums for advertisements
 
Threats
1.Customer Dissatisfaction2.Price wars with competitors3.Competitors4.Political Instability5.Economic Threat6.Changing in consumer prefernces.
SWOT Matrix
StrengthsWeaknesses
1.Brand Image2.Reasonable qualityat low or reasonable price3.Diversity withranges in running,training, court, basketball, footballand Outdoor 4.Footwear for theentire family5.Financialy Strong6.Convenientlyaccessible outletsin various parts of the country7.Targetting allincome segments8.Provide training for managers andemployees9.Nationwide retailnetwork 1.No continuity of leadership2.In 2001, 5% decreasein net saless3.No proper planningregardingAdvertisement4.No variety inFashionable shoes
OpportunitiesSO StrategiesWO Strategies
1.E-Commerce2.Acquired,Partnership withsmall players3.Entring newsegments of Acquisition, Joint Venture(S2, S5, O5)Product Development(S2, S5, O5)Introduce new segments(W4,O3)Market Penetration(W3, O6)
 
Markets4.Capturing Marketwhere no other  potentialcompetitor exists5.InnovativeProducts6.New mediums for advertisementsE-Market Development(S1, S5, O1)
ThreatsST StrategiesWT Strategies
1.Customer Dissatisfaction2.Price wars withcompetitors3.Competitors4.Political Instability5.Economic Threat6.Changing in consumer  preferencesIncrease Customization(S2, S8, T1)Customers can be satisfiedwith Bata’s quality andreasonable prices.(S2, T1)Related Diversification(W4, T1)Innovative Products(W4, T6)
Evaluation of Three Strategic Options for Bata
Manufacturing:
Bata can use its regional expertise e.g. in Malaysia for rubber based shoes and in China for artificial leather shoes and use their expertise and economies of scale to be able to meet the needsof the product lines for which they had some sort of a cost disadvantage.Bata can also stay in its International markets that are benefitial to compete with potentialcompetitors.
Distribution:
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