Bata Case Study

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Table of Contents

Background3
Indian Footwear Retail Industry3
BATA-GLOBAL4
BATA-INDIA4
Bata’s Wholesale Division6
Bata Institutional Sales Division6
Milestones (post 1985)6
Turnaround Story8
STP9
Value Proposition for the Customers9
4Ps10
Porters Value Chain11
COMPETITOR ANALYSIS13
MARKET SHARE OVER YEARS14
Ansoff Model16
SWOT17
Final inferences and recommendations17
References17

Background
Mr. Marcelo Villagran is Chief Executive Officer, Managing Director, Executive Director of Bata India Limited. He has been working with the Bata Group for 37 years and before joining the Company in 2005 he was the CEO of Bata Chile. The restructuring and re-engineering of the Company was largely possible due to the continuous and sustained efforts put in by Mr. Villagran. He glanced through the report he had presented to his team a year ago. “Operational Restructuring” was the title he had given it. Closing cash drain stores, renovating few existing ones and large scale expansion was suggested. Mr. Villagran could sense the changing market. He knew he had to do something to give a boost to this 80year old company. The outcome of this decision was its opening of 69 new stores and renovation of 40 of its existing ones. The company also closed 73 stores that were not performing well. Now the count was 1250 stores. In the quarter ended June 2010, the company’s net sales increased by 13.4 per cent and net profit by 41.1 per cent over the corresponding quarter of the previous year. The operating margins also improved to 13.4 per cent from 11 per cent. The team was delighted with the results but Mr.Villagran just smiled. He knew it was just the beginning. There is a lot more to be done. The competition in the Indian market had grown exponentially. The Indian customer was getting very demanding in terms of style and availability. The customer had more options. He sipped his coffee as he contemplated on how this success could be sustained. Indian Footwear Retail Industry

Footwear is a necessity to every person and at the same time is now a lifestyle as also a performance enhancement product; and is thus a segment with vast potential. The Indian footwear market is estimated to be worth Rs.14,000 crores (approximately) and constitutes just about one percent of Indian retail. About 37.8 percent of retail footwear is in the organized segment, which qualifies it as the second most organized retail category in India, next only to Watches. •Footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07. •Presently, the Indian footwear market is dominated by Men's footwear market that accounts for nearly 58% of the total Indian footwear retail market. •By products, the Indian footwear market is dominated by casual footwear market that makes up for nearly two-third of the total footwear retail market. •As footwear retailing in India remain focused on men's shoes, there exists a plethora of opportunities in the exclusive ladies' and kids' footwear segment with no organized retailing chain having a national presence in either of these categories. •The Indian footwear market scores over other footwear markets as it gives benefits like low cost of production, abundant raw material, and has huge consumption market. •The footwear component industry also has enormous opportunity for growth to cater to increasing production of footwear of various types, both for export and domestic market. BATA-GLOBAL

Bata Ltd. is a privately owned global shoe manufacturer and retailer headquartered in Ontario, Canada. Bata is organized into four business units. Bata Canada, based in Toronto, serves the Canadian market with 250 stores. Based in Paris, Bata Europe serves the European market with 500 stores. With supervision located in Singapore, Bata International boasts 3,000 stores to serve markets in Africa, the Pacific, and Asia, Finally, Bata Latin America, operating out of...
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