SWOT Analysis of Bata

Strengths:
Global Presence: Bata is present in more than 70 countries, with production
facilities in 27 countries. This makes Bata a global player and hence not dependent on a
single market.
Bata has penetrated the market really well. Bata is present in large cities to small
towns. This helps in maintaining its customer base and also capturing the new demand
created in the market.
Bata has a very strong distribution network throughout the world with about 5000
retail stores worldwide out of which more than 1200 are located in India.
Bata has positioned itself really well as a fashionable yet affordable footwear
brand.
It’s quite clear that Bata has the cost advantage and is able to manufacture a huge
range of footwears at a very affordable price.

Weaknesses:
Limited market shares due to competition: Bata has been subjected to high
competition which doesn’t allow Bata to have a high market share. Bata’s market share
has been reduced to 6 per cent.

Falling Sales:
Bata India’s year on year sales has been on a downturn. Although the company’s
profits have been increasing.

Low quality image:

Because of the low pricing of Bata shoes, most consumers think the quality of the
shoes will be low as well. This is a typical price quality approach of positioning.
Opportunity:
Footwear as a Fashion statement:
Footwears are now considered fashion statement and hence sales are bound to
increase. This creates an opportunity for Bata to enhance its revenues.
Growing Rural Market:
Bata has a strong presence in the emerging nations. Rural market in the emerging
nations is growing at a high rate. Bata needs to take advantage of the demand created in
the rural market. This will help in improving its bottom-line.
Growing demand in the premium footwear category:
There is a growing demand in the premium footwear industry, especially in the
emerging nations where the standard of living is growing.

Threat

Intense competition:
Bata is facing intense competition from other leading footwear brands in all the
categories and hence enlarging its customer base and market share is becoming difficult.

Duplicity in the market:

The Footwear industry is also subjected to duplicity in the market, which not only
decreases sales but also weakens the brand name.