A STUDY ON

“VALUE CHAIN ANALYSIS OF BATA”

BY

SUNIL KUMAR M

REG NO: 20202MD0016

 VALUE CHAIN ANALYSIS

 Introduction:
 A value chain is a set of activities that a firm operating in a
specific industry performs in order to deliver a valuable product
for the market.
 According to “Michael Porter”, Value is a collection of
activities that are performed by a company to create value for its
customers. Value is the total amount that buyers are willing to
pay for a firm's product.
 Value chain is a tool used to analyze internal firm activities a
firm engages in to produce goods and services. It is formed by
primary activities that add value to the product directly and
secondary activities that add value indirectly.
 Value chain has been categorized as :
 Primary activities.
 Secondary activities.

 Primary activities: Inbound Logistics, Operations, Outbound

Logistics, Marketing and Sales, and After Sales Service.

 Secondary or support activities: Firm Infrastructure,

Human Resources Management, Technology Development, and
Procurement.
 Value chain analysis of Bata
Bata Shoe Company is the market leader in the footwear industry, the
name Bata achieve such a position in the customer’s mind that
whenever they heard the name of Bata, a footwear with high quality
comes in to their mind. Bata has been serving its customer with wide
variety of products and doing it successfully.

Secondary Activities

FirmsInfrastructure
Firm Infrastructure
Human Resource Management MARGIN

Technology Development
Procurement
Value: what
Inbound Operations Outbound Marketing Service buyers are
logistics logistics & Sales willing to pay
Raw Materials -Produces -Collection -Tagline, Warranty
like: shoes in of finished Print ads
their own products Exchange
-Leather factory -TV ads or
-Distribution Refund MARGIN
-Rexene -Road side
- across the
-PVC sole Assembling country LED Customer
the finished from display care
-Nylon net advertising
products distribution
-Rubber storage area -Discount,
- packaging or hub
-Elastic the products Gift

-Lace -Banners
advertising
-Chemicals
-

Primary Activities
  Primary activities are:

1. Inbound Logistics:
India is popular all over the world for leather production and
exporting. So Bata easily collect leather as raw material from many
finished leather production company and they have two own tannery
where they produce finished leather. Others raw materials are
manufactured by their own like Rexene, PVC sole, nylon net, rubber,
chemicals etc.

2. Operations:

Operation includes converting of raw materials into a finished

product, where Bata produces its products in its own factory of wide
varieties of designs and assembling them according to their different
styles and sizes it also adds labels of the company on finished
product. Packaging products according to different styles and sizes as
a bundle.
3. Outbound Logistics:
Bata collects the entire finished product and distribute across the
country, in all the metros, mini metros, towns. Its retail network is
over 1200 stores across the country. The company also delivery
products to the urban wholesalers from the distribution centre.
4. Marketing and Sales:
Bata India, advertising its products in magazine and newspaper
through print media and promoting through TV ads and it also
promote through the online social media like instagram, facebook and
email marketing
Bata India CEO Sandeep kataria told, “Now we are using all three
engines - our own stores, franchise partner store and multi brand
outlets. Online channels are providing opportunities in multiple ways
to reaches consumers.
5. Services:
In any Bata store in the world they repair, exchange or refund any
products if defects found Proof of purchase is required for refunds.
They provide warranty for six Months in every category of shoes.
Bata has a few services of orders made possible via catalogues, the
web or even call centers only in mega city.

 Secondary Activities are:

1. Firm Infrastructure: Bata consist of activities like

Accounting, Finance control, Public Relation, Quality assurance
and other activities.

 Management: Bata is a global brand, they are still an

oldest form of business organization, run by a passionate
multicultural leadership team. Sandeep Kataria is a Chief
Executive officer of Bata.
 Planning: Bata India major footwear Company, which
currently has around 1500 stores across India, plans to add
500 outlets by 2023 to strengthen its network in semi-
urban and rural markets.

2. Human Resource Management:

 Bata’s HRM department monitors, evaluates payroll of the

employees and benefits inside the factory.
 A proper training is conducted every month and during the
time of recruitment.
 Bata provided employment to over 15,000 people in its
manufacturing and sales operations throughout India.
3. Technology Development: