Mission

As a dynamic, innovative sports concern and marketed domestic producer and distributor, with
footwear as Lotto's core business, to keep the promise of the country where they operate. The strategy
that leads them to do everything imaginable to increase their potential. Making the world a more
economical, progressing world-shattering game, creating an imaginative and synthesized global group,
and achieving constructive results in networks where lotto lives and works.

Vision
Lotto's vision is to "inspire and advance each competitor on the sports planet". Although the purpose of
this is to "do everything imaginable" to increase human potential. They do this by developing games of
the moment, making their items increasingly practical, creating an innovator and individual global group
and where it can achieve a beneficial result in networks.

SWOT analysis of Lotto in Bangladesh,

incorporating insights from the PESTEL framework, would assess the brand's Strengths, Weaknesses,
Opportunities, and Threats by considering Political, Economic, Social, Technological, Environmental, and
Legal factors. Here's a detailed analysis.

Strengths

 Brand Recognition: Lotto is an established global brand known for sportswear and footwear,
which gives it credibility and appeal in Bangladesh's market.
 Affordable Pricing: Compared to other international brands, Lotto offers competitive pricing
that suits the Bangladeshi middle-class segment.
 Product Range: Wide product offerings, including sports shoes, casual shoes, and apparel,
attract diverse customer segments.
 Retail Presence: Strong retail presence through exclusive stores and partnerships with local
distributors.
 Adaptability: Lotto often adapts its designs and pricing to local preferences, increasing its
relevance in Bangladesh.

Weakness

 LOTTO has no online shopping options

  LOTTO has poor advertising and brand visibility which make the consumers unable to connect
with product

 LOTTO Operate few number of stores not exceeded 10 in all Egypt

 LOTTO few promotional activities compared with the competitors in the same are
 The company has no relations or interactions with customers as it failed to reach to them and
inform about its new products
 Low promotional budget
 Egyptian market customers considered LOTTO is only sports footwear brand and have no idea
about its diversified products

Opportunity

 LOTTO can expand its divisions into the online retailing arena
 LOTTO has to create more awareness with better advertising
 LOTTO has price advantage over the competitors
 Egyptian football league teams always looking for brands to manufacture there wear with high
quality and suitable cost
 The success of individual

Threats

 Strong competition from brands like Nike and Adidas

 Brand switching cost is very low so the brand has to be regularly updated in their designs and
keep their customers intact

TOWS Matrix of Lotto

Step-by-Step TOWS Analysis for Lotto Shoes

Strengths

 Strong brand legacy: Lotto has been recognized globally for decades in sports footwear and
apparel.
 Focus on quality: Known for producing durable and performance-oriented products.
 Broad product portfolio: Lotto offers products across various sports categories, appealing to a
wide audience.
 Global presence: Operates in multiple countries with significant penetration in Europe and Asia.

Weaknesses

 Limited innovation: Struggles to compete with technology-focused rivals like Nike and Adidas.
 Moderate marketing efforts: Lags behind competitors in impactful branding and promotional
campaigns.
  Niche positioning: Perceived as a mid-tier brand, limiting appeal among premium customers.
 Dependency on footwear: Insufficient diversification into lifestyle and athleisure wear
compared to competitors.

Opportunities

 Growing demand for athleisure: Increasing preference for multi-purpose footwear that blends
style and function.
 Emerging markets: Rising sports culture in countries like India, Brazil, and parts of Africa.
 E-commerce growth: Expanding online shopping offers direct-to-consumer channels.
 Collaborations and sponsorships: Partnering with athletes, influencers, or teams for visibility
and trust.
 Sustainability trend: Eco-friendly product lines are increasingly popular.

Threats

 Intense competition: Dominance of Nike, Adidas, and Puma creates a crowded market.
 Changing consumer preferences: Rapid shifts toward tech-enhanced and customizable
products.
 Economic volatility: Inflation and recession risks affecting consumer spending on non-essential
items.
 Counterfeiting: The presence of fake products undermines brand reputation and revenue.

Strategic Options from TOWS

Threats Opportunities

Strengths Use Lotto's reputation for quality to Use strengths to capitalize on opportunities.
compete on durability and
Leverage the brand's global recognition to tap into
affordability, differentiating from
emerging markets with sports-specific and athleisure
premium competitors.
products.
Strengthen the brand’s online
Partner with eco-friendly suppliers to create
presence to mitigate economic
sustainable product lines and appeal to
downturn effects by reaching price-
environmentally conscious consumers
sensitive audiences directly.

Weakness Minimize weaknesses and counter Overcome weaknesses by using opportunities

threats Invest in R&D to innovate with
smart, customizable footwear to
 compete with technology-oriented Enhance marketing efforts, including social media
rivals. Develop a strong anti- campaigns and influencer collaborations, to build
counterfeiting campaign and stronger consumer connections. Expand the product
collaborate with governments to portfolio by venturing into lifestyle wear and tech-
protect intellectual property. enabled footwear, addressing consumer trends.

Stakeholders Analysis of Lotto

Stakeholder analysis for Lotto Shoes in Bangladesh involves identifying key parties who have an interest
in or influence on the company's operations and assessing their impact. Below is a structured analysis

Primary Stakeholders

These are directly impacted by Lotto's business operations in Bangladesh.

Customers

 Interest: Affordable, stylish, and durable shoes that cater to various needs like sports, casual,
formal.
 Impact: Driving sales; customer satisfaction and loyalty directly influence revenue.
 Engagement: Brand campaigns, customer feedback, promotional offers.

Employees

 Interest: Fair wages, job security, training, and career growth.

 Impact: Employee productivity and satisfaction influence the quality of service and operations.
 Engagement: Providing competitive benefits, regular training, and creating a positive work
culture.

Retailers & Distributors

 Interest: Profitable margins, timely delivery of stock, and strong marketing support from Lotto.
 Impact: Ensures product availability and market penetration.
 Engagement: Building partnerships, maintaining supply chains, and supporting sales efforts.

Secondary Stakeholders

These indirectly influence or are influenced by Lotto's business operations.

Government & Regulatory Authorities

 Interest: Compliance with labor laws, tax regulations, and business standards.
 Impact: Regulatory adherence ensures smooth operations; violations can lead to penalties.
 Engagement: Regular audits, fulfilling tax obligations, and maintaining transparent operations

Suppliers

 Interest: Consistent orders, timely payments, and sustainable procurement practices.

 Impact: Ensures the production of quality shoes at competitive prices.
 Engagement: Negotiating fair terms, ensuring ethical sourcing, and fostering long-term
partnerships.

Competitors

 Bata, Apex, local brands

 Interest: Market share and brand positioning.
 Impact: Influence Lotto's pricing, marketing, and innovation strategies.

External Stakeholders

These have an indirect yet significant influence on the brand's reputation and operations.

Media and Influencers

 Interest: Promoting Lotto's products, campaigns, and values to the public.

 Impact: Influences customer perceptions and brand visibility.
 Engagement: Strategic partnerships with media outlets and influencers for campaigns.

Local Communities

 Interest: Socio-economic contributions like job creation, environmental sustainability, and

community welfare.
 Impact: Enhances brand image and local goodwill.
 Engagement: CSR initiatives, sponsorships, and environmental programs.
 Industry Bodies and Trade Associations
 Interest: Upholding industry standards and fostering business growth.
 Impact: Can provide support for navigating market challenges and opportunities.
 Engagement: Active participation in industry events and forums.
Key Considerations in Stakeholder Engagement

 Economic Environment: Bangladesh's growing middle class presents opportunities, while

inflation or currency fluctuations may impact pricing strategies.
 Cultural Preferences: Adapting to local tastes and preferences to appeal to a diverse customer
base.
 Sustainability: Increasing global emphasis on ethical practices and sustainability might require
adjustments in sourcing and manufacturing.

By identifying and addressing the needs of these stakeholders, Lotto Shoes can strengthen its market
position and foster sustainable growth in Bangladesh.

Porter's five forces model analysis.

Porter's Five Forces is a framework for anveyzing the competitive forces that shape an Industry. These
forces are identified on the basis of Lotto Sports Italia Company. These are

 Rivalry Among Existing Competitors: Lotto Sports Italia faces competition from other
sportswear and athletic footwear companies such as Nike, Adidas, Puma, and others. The
intensity of rivairy depends on factors like brand strength, product differentiation and pricing
strategies.
 Threat of New Entrants: The sportswear industry typically requires sigrificant investments in
research, development, marketing, and distribution. However, if a new company with innovative
products and a strong brand enters the market, it can pose a threat to Lotto Sports Italia.
 Bargaining Power of Suppliers: Lotto Sports Itaña relles on suppliers for materials like fabric
rubber, and leather. If there are few suppliers dominating the market, they might have
significant bhargaining power. The company's ability to negotiate prices and secure quality
materials is important.

 Bargaining Power of Buyers: Customers, including athletes and retail stores, have options when
It comes to sportswear and athletic footwear Their bargaining power depends on factors like the
uniqueness of Lotto's products and the price sensitivity of customers.
 Threat of Substitutes: Customers have choices beyond sportswear and athletic footwear, such
as casual wear or alternative sports equipment. The availability of substitutes can impact Lotto
Sports Italia's market share

Resource based view of the Firm (VRIO FRAMEWORK)

 The Resource-Based View (RBV) focuses on the strategic use of a firm's resources to gain and
sustain competitive advantage. The VRIO Framework evaluates resources and capabilities based
on four criteria: Value, Rarity, Imitability, and Organization. Let’s analyze Lotto Shoes using this
framework:
1. Value: Does Lotto Shoes possess resources that create value by meeting customer needs or
improving operational efficiency?
2. Rarity: Are Lotto’s resources or products unique or scarce in the marketplace?
3. Imitability: How easily can competitors replicate Lotto’s resources or strategies?
4. Organization: Is Lotto effectively organized to exploit its valuable, rare, and hard-to-imitate
resources?
1. Value
 Brand Reputation: Lotto Shoes has built a strong brand presence, especially in the
sportswear and footwear segment. This brand recognition provides value by influencing
consumer trust and loyalty.
 Quality and Design: Lotto’s product quality, including comfort, durability, and advanced
technology in footwear design, adds value to customers who seek performance-oriented
sports shoes.
2. Rarity
 Established Partnerships: Lotto's partnerships with sports teams and events could be
considered rare, enhancing brand visibility in competitive sports.
 Heritage in Sports: The historical connection with sports, particularly soccer, gives Lotto a
unique positioning that some newer competitors may lack.
3. Limitability
 Brand Loyalty: Lotto’s long-standing brand identity and customer loyalty are difficult to
imitate quickly, as they require years of consistent marketing and quality offerings.
 Technology and Product Innovation: While technologies can be copied, the proprietary
innovations in shoe design and materials may be harder for competitors to replicate
without significant investment in R&D.
 Supplier Relationships: Established supply chains or exclusive partnerships for certain
materials may provide some barriers to imitation.
4. Organisation
 Operational Efficiency: Lotto appears to have a well-organized distribution system and retail
network, ensuring that the value of its products reaches customers efficiently.
 Marketing and Advertising: The company’s ability to effectively market its products through
sponsorships, endorsements, and media channels allows it to exploit its resources.
 Innovation and R&D: Lotto must have the organizational capability to continually invest in
product development and design to stay ahead of competitors.

Summary Of VIRO Analysis

Criterion Evaluation Competitive Implication
 Value Moderate Temporary competitive
advantage

Rarity Low to Moderate Competitive parity

Imitability Moderate Temporary competitive

advantage

Organization Moderate Partial exploitation of

resources

The Value Chain of Bata Shoes Bangladesh

The Value Chain Analysis for Lotto Shoes in Bangladesh identifies how the brand creates value at
different stages of its operations, from production to delivery to the end consumer. The framework
divides the company's activities into Primary Activities . Here's an analysis for Lotto Shoes in Bangladesh:

Primary Activities

1. Inbound Logistics

 Raw Material Procurement: Lotto sources materials like rubber, synthetic leather, and fabric
through a global supply chain, often relying on cost-efficient suppliers.
 Local Warehousing: In Bangladesh, raw materials and semi-finished goods are stored in
warehouses before production.
 Challenges: Dependency on imported raw materials increases costs and lead times.

2. Operations

 Local Manufacturing: Lotto collaborates with Bangladeshi manufacturing units, taking

advantage of the country's skilled labor and cost-effective production facilities.
 Quality Control: Stringent checks are implemented to maintain global standards.
 Customization: Some product lines are tailored to local consumer preferences, focusing on
affordability and comfort.
 Value Creation:.Cost-effective production enables competitive pricing while maintaining quality

3. Outbound Logistics

 Distribution Network: Lotto shoes are distributed across Bangladesh through regional
warehouses, retail outlets, and e-commerce platforms.
 Retail Presence: Lotto has exclusive brand outlets and is also available in multi-brand stores.
  E-commerce Growth: Partnerships with platforms like Daraz and their own online store expand
reach.

4. Marketing and Sales

 Brand Positioning: Lotto markets itself as an affordable yet premium-quality sportswear brand,
appealing to middle-class and youth demographics.
 Promotions: Regular discounts, sponsorships of local sports events, and collaborations with
athletes enhance brand visibility.
 Social Media and Digital Marketing: A growing focus on online engagement to attract younger
audiences.

5. Service

 Customer Support: After-sales services include product warranties and repair options for
defects.
 Feedback Channels: Use of social media and direct surveys to gather customer feedback for
continuous improvement

Support Activities

1. Firm Infrastructure

 Regional Offices: Lotto's Bangladesh operations are managed with a streamlined administrative
setup.
 Compliance: Adheres to local labor laws and global standards for ethical manufacturing.

2. Human Resource Management

 Local Workforce: Lotto employs local talent for retail, operations, and manufacturing, providing
training to align with global standards.
 Employee Engagement: Initiatives to ensure employee well-being and productivity.

3. Technology Development

 R&D: While global R&D for Lotto happens in Italy, local adaptations are made to suit
Bangladeshi consumers’ preferences.
  E-commerce Integration: Investment in digital platforms for seamless online shopping
experiences.

4. Procurement

 Vendor Management: Lotto works with reliable suppliers for raw materials and manufacturing.
 Local Sourcing: Efforts to source some components locally reduce costs and improve lead times.

Lotto PESTEL Analysis

A PESTEL analysis is a framework used to analyze the macro-environmental factors that can Impact a
business or Industry. Here's how it applies to Lotto, the Italian sportswear and sports equipment
manufacturer:

Political Factors

 Government regulations: Lotto operates in a highly regulated industry, with various rules and
standards related to sports equipment and apparet.
 Trade policies: Changes in trade agreements or tariffs can affect the company's supply chain and
casts

Economic Factors

 Economic conditions: The state of the global and local economy can impact consumers
disposable income and their willingness to spend on sports products
 Exchange rates As an international brand, fluctuations in currency exchange rates can affect
Lotto's profitability.

Social Factors

 Lifestyle trends Changing consumer preferences and lifestyles can influence the demand for
sportswear and athletic gear
 Health and fitness trends Growing interest in fitness and wellness can be an opportunity for
Lotto to expand its market.
Technological Factors

 Innovation in materials and manufacturing: Advancements in technology can affect the quality
and production of sports equipment and clothing,
 E-commerce: The growth of online shopping and digital marketing preserits both opportunities
and challenges for Lotto

Environmental Factors

 Sustainability concems: Consumers are increasingly looking for eco-friendly products. Lotts may
need to address sustainability in its products and operations.
 Environmental regulations: Compliance with environmental laws and regulations is crucial
especially for manufacturing and sourcing materials.

Legal Factors

 Intellectual property rights: Protecting trademarks and patents is essential for a sports brand
like Lotto
 Consumer protection laws Compliance with consumer protection