Bata Case Study

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Table of Contents

Indian Footwear Retail Industry3
Bata’s Wholesale Division6
Bata Institutional Sales Division6
Milestones (post 1985)6
Turnaround Story8
Value Proposition for the Customers9
Porters Value Chain11
Ansoff Model16
Final inferences and recommendations17

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....
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