About Bata: This company came into being in August 24, 1894.The T. & A.

Bata Shoe Company is registered in Zlin, Czechoslovakia by the siblings Tom, Anna and Antonn Bata. Innovative from the beginning it departs from century old traditions of the one-man cobblers workshop. By 1905 Bata had grown too some 250-company employees. At 2200 pairs per day, the personal effectiveness of each Bata employee far outdistanced the few pairs per day produced by their predecessors. New kinds of shoes were being introduced using new way to promote them. Batas reputation as the innovative industry leader has been, maintained ever since. Despite the outbreak of the first world wart material shortages, manpower shortages, corbels and other challenges, sales increased to about two million pairs by 1917. Tomas Bata thinking in terms of expansion into new markets even as a teenager, travelled to Vienna to sell his shoe to the citys merchants, a young company, Bata exported shoes to the USA, Europe and North Africa. By 1918, aggressive marketing and future foreign expansion could only guarantee the likelihood of the companys 6,000 employees. In the early 1920s Bata established new companies in Poland, Yugoslavia, Holland, Denmark, the United Kingdom and the USA. New companies in Egypt, Belgium, Finland, Luxembourg, Hungary, Italy, Indonesia, Singapore and India before Tomas Bata died prematurely in an airplane crash in 1937. Following the death of the founder Tomas Bata, Mr. J. A. over saw international expansion. In the early sixties, the Bata international center was build in Toronto, Canada deliberately designed to present the building from being expand. During the 70s, 80s, 90s the world-manufacturing base for footwear has shifted to developing countries, to the Pacific Rim and especially to China. Mr. T .G. Bata totally utilizes the companys mission statement as a guideline for Bata Company operation .To be successful as a dynamic flexible and market responsive worldwide organization with footwear as its core business. Bata Today: Bata is one of the world leading footwear retailer and manufacturer with operations across 5 continents managed by 4 regional meaningful business units (MBUs). Now, it includes shoe factories, tanneries, engineering plants, producing shoe machinery and moulds, product development studies, quality control laboratories, hosiery factories and 6300 retail stores and 100,000 franchises more than 60,000 people have been employed, producing and selling approximately 270 million pairs of shoes each year, primarily for internal markets. An additional 40,000 people and their families depend on jobs in support services created by Bata operations. Now the foundries grandson controls all these affairs. Bata today: Serves 1 million customers per day Employs more than 40,000 people Operates 6300 retail stores Manages a retail presence in over 60 countries Runs 40 production facilities across 26 countries Companies 75 in 60 countries

Page 1

Bata's 4 Business Units: Bata Europe, Lausanne Bata Asia Pacific-Africa, Singapore Bata Latin America, Mexico Bata North America, Toronto

Vision
To grow as a dynamic, innovative and market driven domestic manufacturer and distributor, with footwear as our core business, while maintaining a commitment to the country, culture and environment in which we operate.

Mission
To be successful as the most dynamic, flexible and market responsive organization, with footwear as its core business

Marie Claire Hush Puppies Power Bubble Gummers North Star Scholl Weinbrenner Bata Comfort North Star Bata is a multinational company, which has various brand lines in order to satisfy the various segments of market. All the above-mentioned brands are devoted to make best quality of shoes for the particular segments they are assigned. Below is a brief introduction to the various brands of Bata pvt Limited.

Marie Claire shoes are for women with an active lifestyle who seek contemporary modern styles, Marie Claire shoe stores successfully opened in Latin America and Asia. (Except in Japan and Korea)

Page 2

Bubble gummers is the leading children's footwear brand in Pakistan and has an extensive presence in Latin America, Asia and Europe. Bubble gummers offers good quality, comfortable, funny and colorful shoes for kids.

In 1958, during the exciting atmosphere of change the Wolwerine Company created the world's first casual shoe and provided a new alternative in footwear. Hush Puppies emerged as a soft, breathable and very comfortable shoe.

Power is a Bata International Brand, which continues to spark an emotional connection with the masses by providing athletic footwear at very affordable prices. First launched in 1972, it has created a niche for itself in the sports segment. Power Slogan: Be Smart A new terminology replacing Value, The Power customer is a Smart consumer, not just a value consumer.

Dr Scholl's from Bata provides you with maximum comfort completely daylong. The unique Anatomic Insole will give your feet that extra cushioning needed to keep all stresses at bay from your feet while providing support from all sides.

The Weinbrenner line consists of leather shoes and boots, low, mid and high cut. Cuts or designs are dictated by fashion, but always in casual style. OUTDOORS IS YOURS is a tagline commonly used.

Comfort will be an important feature in design and assembly of all the comfit shoes. Many of the Desirable and characteristics such as double stitching molded and latex foam insole, soft textile or cambrelle lining will be used to emphasize the brand image of both comfort and style. Get Comfortable Today is a tagline commonly associated with these range of shoes.

Page 3

It's a casual yet fashionable street-style shoes that caters to the young at heart.

Leena is the latest ladies brand of Bata in which Bata offers the huge range of sleepers for ladies in different colors variation and designs.

BATA PAKISTAN LIMITED Batapur came into being in 1942 at distance on 18 km. from Lahore with due entrepreneurial dynamism it expanded and grew rapidly presently claiming to be the largest shoemanufacturing unit in Pakistan. DESCRIPTION OF VARIOUS DEPARTMENTS There are many departments in BPL that are described under below: o Personal department o Finance department o Purchasing department Local Purchase Imports o Marketing department Other departments as: o Tannery o Production department Leather factory Plastic factory Rubber factory o Designing department o Laboratory o Merchandizing department Seasonal planning 8 week forecast 4 week forecast 1 week forecast o Costing department o Training department o Distribution department

Porters 5 Forces

Page 4

1. Threat of new entrants:There are many barriers to entry preventing new entrants from capturing significant market share. Large footwear producer enjoy economy of scale that create cost advantage over any new rival. Bata has been differentiated its product from rivals product like comfort, wind etc. The capital requirements are a high entry barrier to a new firm to the industry. However, an existing shoe manufacturer may enter the athletic shoe industry simply by re-tooling their manufacturing plant. Switching cost is very low for footwear industry because shoes are relatively inexpensive personal goods that are frequently be replace. Access to distribution channel is barrier to entry because it is difficult for a startup firm to get shelf space at major shoe retailer. However, existing firm may use their existing connections to easily access shoes distribution channel. 2. Bargaining power of buyer:Bata was largest player in industry with 9-10%volume share and 60% market share in organized segment. It had a market share of 70% in canvas shoe segment and 60% in leather shoe segment. Their dominant market share give them power over buyer. Bata is a big buyer of raw material who buys significant part of suppliers revenue. This in a way provides good bargaining power over suppliers. As a part of its strategic decision, Bata set up a rubber/canvas factory in Faridabad, Haryana in 1951. So it can threaten its supplier to integrate backward. 3. Bargaining power of supplier:Shoes are made of leather, rubber, nylon etc. These materials can classified as commodities, where the manufacturing process adds the value, for this reason supplier has limited bargaining power over buyers. 4. Threat of substitute product:Consumer switched from one product to another if alternatives are available in same quality and performance range and have competing price or lesser price. Bata produces 10% of total Hawaii ranged from Rs. 35-110 while competing local brands were selling at Rs. 25-50. Again, when global trade opens then market flooded with many international brands having variety and competing price. 5. Rivalry among existing firms:Mostly numbers of competitors are stable, especially because of high entry barriers. This adds to the rivalry among existing firm. Manufacturers watch each other carefully and make appropriate counter move to match the competitors move. Leading competitor of Bata are Lakhani shoes, liberty shoes, action shoes, woodland, paragon and relaxo in organized segment. ENVIRONMENTAL FACTORS These factors affect organizations performance directly or indirectly. These categorized as: Macro factors Micro factors Macro Factors:Economic Factor: As far as Bata is concern, it is also effect by the economical factor. Doing business in Pakistan, they have to watch the economic condition of Pakistan. Purchasing power of people is very important. However, during the last 2 years purchasing power of people have been decreased so its effect the business of Bata in Pakistan. Another factor is that, in making of

Page 5

leather, petrol is used and prices of petrol in Pakistan is increasing day by day so it increase the cost of production of Bata company. Political Factor: Like other organizations, Bata also has to obey the laws, rules and regulations existing within the country. In Pakistan, we have a very friendly business environment, the regulations and rules are very easy to apply and follow. For example for Bata, industries there are no restraints and no limitations to stop the expansion of their business. They have no reason to slow down their production or distribution nor their publicity or marketing. Social & Cultural Factor: Bata is producing its products in more than sixty countries worldwide. Every country has different culture, norms and values so that Bata have to vary its strategies according to the geographic area Bata advertise its products according to the cultural aspects, it means Pakistani ads are different from Canada. e.g. In Pakistani Bata ads, they always show the family concept to promote their product. Technological Factor: As far as Bata is concern, it is also effect by the technological factor. Bata is good in technology, having latest technology. Moreover, to remain at this high level of technology, Bata must focus on the trends changes in technology and they adopt it immediately. By the change in customer perception, then there is change in demand, need, the fashion and then in technology as well. Bata is always trying to focus on the change in technological market. International Factor: As for as Bata is concern, ever since the import and distribution of Chinese products namely shoes, has increased in Pakistan, the sales of Bata have dropped considerably. Thus, the business of Bata industries has been affect by an international factor in the form of low labor, and manufacturing costs of Chinese products. In the process of countering this situation, Bata industries contracted with Chinese manufacturers for low costing and cheap products. Therefore, they can have a leveled competition in the local and international market. Micro Factors:Customer and Clients: Bata Collections target a wide range of customers and offer an excellent price- quality ratio. Batas exclusive models, along with national and international brands are carefully select and then updated in response to market demand. However, how the customer affects? Bata is always trying to fulfill the needs of their valued customers by giving new initiatives. If Bata fail to do this job then the Batas business strategies and business become fails. Competitors: Competitors are other organizations with a high potential, offering rival products or services. e.g. Servis shoes, Stylo, Delhousy, English and many other high standard industries, which compete with great strength and tact.

Page 6

In early days of Bata in Pakistan, they have no such competitors. During the last decade lot of shoe making companies have been arrived so Bata have to face the competition. Because local competitors prices are relatively low as compared to Bata. Suppliers: Batas suppliers are Chinese raw material holders, manufactured supplies from local cottage industry etc. The impact of suppliers on Bata is that if the prices of raw material increase, it directly affects the companys marketing mix strategy. The result is that the price of products increases. Employees: Bata is always employing the correct staff and keeping these staff motivated which is an essential part of the strategic planning process of an organization. Bata always focus on the training and development of their employees, which plays an essential role in-order to gain a competitive edge. If Bata hires unskilled employees, the impact will be bad. Other competitors with market shares listed below: Bata 15% Share of Servis 09% Milli Shoes 3% Hang Ten 1% Others 65% e.c.s 7 % Total 91% Bata Pakistan Strategy in accordance of competitors: Product development has been a source of pride to Bata companies and allowed Bata to stand apart from other manufacturers. From shoe innovation centers in Canada, Mexico City, Italy and Indonesia, to styling and technical designing detailed and provided Bata various manufacturing facilities around the world. Research is conducted into the application of new technologically advice materials to new shoe making processes. Other competitors with market shares listed below: Bata 15%, E.C.S 7 %, Milli Shoes 3%, Hang Ten 1%, Others 65%, Shares of Servis 09 % Grand Total: 100% Total 91%

SWOT Analysis of the Company: Every individual and the company have SWOT. Progress of company can be enhancing by SWOT analysis. Here is a review of the companys SWOT analysis. Strengths: Bata has ISO-Certificate: 9001 Product development has been a source of pride to Bata companies and allowed Bata to stand apart from other manufacturers. The company is a quality manufacturer, believes on customer satisfaction and comfort. While producing any

Page 7

product the issue of comfort ability, needed product and needed quality has been, keep in mind. That is why the company has introduced different brands for all classes of society and for all age groups in order to attract the attention of its customers. All the operations of the company are according to the laws of Pakistan Trade Policy. Company pays full of its Sales Tax and Income Tax as well as other duties to the Government. Company plays a vital role in representing its country as they manufacture for export purpose also. Weaknesses: Not too much stylist so it is losing the attraction of the customer, especially in the youth segment. Therefore, it is losing competition because of the other big players like adidas, Nike, woodland etc. They do not have any powerful brand ambassador to promote their brand. They have not promoted themselves thoroughly, invested very less in their add campaign. Opportunities: Retailing is a big opportunity for the company. Foreign markets and importers are another big opportunity for the company. There is still potential in the market. Threats: Every threat is a big opportunity on the other hand. The company faces a big threat in market as some of the businesspersons have started buying products from the cheaper markets of the world as China, Vietnam etc. and they sell it here at lower prices. Customer in Pakistan specially falls on low price that is why Quality brand makers are facing this thing as a big threat. Some of the other threats are Government Duties, High Sales Tax Ratio etc. Strategies by Bata in Pricing: 1. For finding opportunities and evaluation of new initiatives, Bata uses the Price Range Strategy. By using this technique, Bata find the gaps for new initiatives and its position among competitors. 2. For the concept testing before developing and launch a new product, Bata capture the views of customers through questioning. 3. For evaluation of the organizations capabilities, Batas managers held a meeting where they discuss about capabilities. Either they are able or not for developing new product. Price Range Strategy: Bata Shoes Ltd. is using Price Range Strategy for finding the opportunities and evaluation the new initiatives among competitors. Bata prepare one sheet on which all the competitors products, brands, category and prices as well as Batas products, brands, category and prices are list. With the help of this format Bata find out the new product or new category in new price range that is missing in Bata and competitors offers to their customers. Recognition of Organization Capabilities: Third is the recognition of organization capabilities. This is a judgment of capabilities that is required for new product development. According to our visit in Bata Shoes Ltd, we collect the information in this area. In Bata Shoes Ltd, there is no any specific technique use by Bata. When idea is select then all the managers are arrange in a meeting, it may be for a day or for a week, where they decide that they should develop the product or not.

Page 8

Bata arrange a meeting of all managers, general managers and directors of all departments. The departments like: Finance Marketing R&D Production/Manufacturing Store CAD / CAM etc. All the managers, general managers and directors sit together and talk about on all aspects with the help of all required documents that prepared by all departments managers and held presentations as well.

REFERENCE
www.bata.com.pk www.google.com www.servis.com.pk

Page 9