SWOT ANALYSIS OF BATA

Before entering into a new business or market, doing a SWOT analysis for that company is very
important. It gives the company a heads-up in the market. SWOT analysis is an analytical technique used
to analyze the internal and external factors that impact a company.  The company can know its position
by doing a SWOT analysis. Its strength, weaknesses, opportunities and threats in the market. Each of
these elements in the analysis plays a vital role and helps users evaluate a company. SWOT analysis is an
integral part of the strategic analysis of a company. A SWOT analysis helps users focus on both internal
and external factors of a company, unlike other tools, which tend to focus on one aspect or the other. By
performing a SWOT analysis, companies can reduce their chances of failure, by understanding which
departments they are lacking and eliminating any threats that can be problematic in the future.

Here is the SWOT analysis of Bata. Bata, a popular brand is a Czech multinational footwear industry and
manufacturer of fashion accessories. Bata is a family-owned business that is in the premium footwear
category. Bata is the leading footwear brand in the world and has a retail presence of about 5300 shops
spread across 70 countries with production facilities in about 18 countries.

SWOT ANALYSIS OF BATA

Strengths:

 International Presence: Bata company exists in about 70 countries. Its strong international
market is a key strength for the brand that has helped the company to get more sales and profit.
It has production facilities in about 18 countries that make Bata a global player and not
dependent on a single market.
 Market Penetration: Bata has penetrated well into the market and is available in many large
cities to small towns. Due to its strong presence, Bata maintains its customer base along with
taking care of the new demand created in the market.
  Strong Distribution Network: Bata maintains a very strong distribution network across the
world. It has about 5000 retail stores present globally, in that about 1200 stores are present in
India. Its strong network is a key strength of the brand as the company will get more customers
from various parts of the world.
 Strong Positioning: Bata has a strong position in fashion trends and its footwear products are
affordable. This feature is a key strength of the brand as more and more people can purchase
their products.
 Online Marketing Initiatives: Bata is taking various initiatives of online marketing and markets
its products on various online channels like Instagram, Google Ads, Facebook, and other social
media. As the marketing process and advertising by Bata are good, it is the main strength of the
brand and gets more people into purchasing their products.
 Marketing Analytics: The marketing analysis of Bata is based on the market situation. Bata
always makes use of market analytics to formulate various marketing strategies. Bata has a good
practice in marketing and strategic management.
 Cost Advantage: It is clear that Bata has the cost advantage and can manufacture a wide range
of footwear at an affordable rate. Its products are available at a very affordable price for all
people and hence the brand can get a huge customer base.
 Fashion and Style: Bata shoes and their accessories are considered a fashion statement and are
durable. Bata products are also sold at a feasible rate. Bata has many customers who has full
trust in the brand.
 Footwear Range: Bata is much into product innovations and has a huge range of footwear range
that includes ladies sandals, heels, men’s formal shoes, sports shoes, trek shoes, accessories,
etc.

Weaknesses:

 Less Market Share due to Competitors: Bata is at the risk of high competition and due to this, it
is tough for Bata to have a high market share. This is a weakness for the brand as Bata’s market
share has decreased to about 6 percent.
 Falling Sales: Bata sales are seen to have a dip every year, even though the company’s profits is
increasing. This weakness of the brand is a major concern and can eventually hit its profit in the
long run.
 Low-Quality Image: As Bata shoes are low-priced, most consumers think that the shoes will be
of low quality as well. Hence, customers might hesitate to purchase as this is the price-quality
approach in product positioning.

Opportunities:

 Footwear is seen as a Fashion Statement: These days, footwear is considered a fashion

statement and hence there is likely to be an increase in sales. Due to this, there is a great
opportunity for Bata to increase its revenue.
  Growing Rural Market: Bata is seen to have a strong existence in many emerging nations. Rural
market in many emerging nations is increasing at a high rate. Hence, Bata can avail of this
opportunity and increase its production and sales.
 Growing Demand in the Premium Footwear Industry: There is a growing demand in the
footwear industry, mostly in emerging nations. this is because the standard of living is
increasing.

Threats:

 Intense Competition: Bata is facing intense competition from its competitors in all the
categories who are also from other leading footwear brands. Hence, it is tough for Bata to
increase its customer base and market share. There is a threat in this area for Bata and need to
find a way to get more customers.
 Product Duplication: There is also a threat to product duplicity in the market that decreases
Bata’s sales. Many local providers imitate the Bata shoes model and sell it, thereby making
customers feel that it is Bata. Once they purchase, they might not get the feel of Bata, and the
customers will leave a long-lasting impression, this situation decreases sales.
 Government Rules: Various government rules and regulations are a threat to the brand. There
are various rules for Foreign companies working in the footwear sector that keeps changing the
economic factors.
 Increase Production Cost: An increase in production cost is one of the threats that Bata faces.
The raw materials prices are increasing thereby it hits the production cost and impacting the
product cost as well.