Bata- Strategic Choices
This case describes the challenges faced by the Bata Management in the wake of changing market trends in the form of increased competition from the local players as well as the constantly increasing threat of Chinese imports. Bata had traditionally targeted the lower middle and middle class segments of the society and was now considering changes in its strategy to be able to survive in the market. The MD of Bata was considering the efforts necessary to realign Bata Pakistan’s manufacturing, outsourcing, distribution and brand strategy in the light of increased local competition and Chinese imports.
Since 1942 Bata Pakistan has been rendering its services to its valued customers by offering quality products. It was incorporated in Pakistan as Bata Shoe Company (Pakistan) Limited in 1951 and went public to become Bata Pakistan Limited in the year 1979. Since its inception, the company has not only maintained a good reputation of manufacturing high quality footwear for all segments but has also been designing shoes in accordance with the changing fashions and trends. Bata Pakistan is serving its valued customers through a strong retail network comprising of more than 400 retail outlets, 467 registered wholesale dealers, 13 wholesale depots, 28 wholesale distributors and 41 DSP wholesale franchise across the country. Besides catering local market, Bata Pakistan also shows its presence in an international footwear market through its export department which is constantly exploring new potential market in order to earn foreign exchange.
Being a multinational company Bata Pakistan has played a vital role in the economic progress of Pakistan. It has introduced sophisticated technology and business skills to the country and provided direct and indirect employment to about 10,000 people. Along with its own manufacturing capacity Bata Pakistan is also outsourcing its products nationally and internationally to meet the demands of its...