Bata Industry Analysis

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  • Topic: Financial ratio, Financial ratios, Gross profit margin
  • Pages : 12 (2616 words )
  • Download(s) : 313
  • Published : January 20, 2013
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Introduction

Since 1942 Bata Pakistan has been offering its services to its valued customers by offer 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. 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 disposable wholesale franchises across the country. Bata has always been the market leader and in order to maintain its leadership it has invested millions of rupees in updating its systems and equipment during the last few years. This will enable the company to expand, modernize and develop its operations and in the process provide additional employment opportunities. Bata the market leader is well equipped to cater the customer's demands and to meet future challenges.

Literature review

In this report we have discussed the financial statements and reports of the multinational company of BATA. As in the introduction we have seen the brief history and its position in the market. Further we have analyzed the SWOT ANALYSIS of the organization of the Bata briefly in which strengths; weaknesses; opportunities and threats of the organization have been briefly analyzed. To strengthen the influence of this report we have also analyzed the PEST ANALYSIS of the company through which we measured the performance and market value of the company in immense way. Ratio analysis of the company BATA have also been done to see the financial position of the company whether it is in pace or not to measure this in the report and make easy to understand the report for the readers we have also mentioned the types of the ratios and how we have measured them. Latest reports of the company available till the year 2008 2009 we have mentioned in the report the financial statement of the company in the report. In this all procedure we analyzed whether Bata is going in profitability or not and its capital as well invested in the business. Every type of ratio analysis has been done to know in and out of the company. In the last we have mentioned the financial statements as per year 2008 and 2009 which was last available. More over BATA is busy in targeting its competitors and working hard to maintain their position in the market and targeting customers through new product lines and entering into the new market segments to keep pace in the environment.

SWOT ANALYSIS

INTERNAL FACTORS
STRENGTH:
1. It has a good retail channels
2. It covers all the classes from upper to lower class
3. Diversification of businesses
4. Bata is financially stable in the market and have covered large part of market. 5. Easily accessible outlets in every area.
6. Profitable sales
7. Strong services
8. Reasonable Prices
9. Footwear for the entire family
10. Targeting all income segments
11. Nationwide retail network
12. Accessible outlets

WEAKNESS:
1. Decrease in NET SALE
2. Poor Advertisement
3. Less Variety of Fashion Shoes
4. Dealing with other brands
5. Lacking of Online store
6. Low competitive advantage
7. Old technology till last year

EXTERNAL FACTOR
OPPORTUNITIES:
1. New ideas of Advertisement
2. Shoes according to trend. (Innovation)
3. Partnership with small outlets
4. Capturing Market in every such area where no other outlet exist 5. Direct communication and relation with customer
6. Complete Family store
7. Introducing new technology in the organization
8. E Commerce
9. Entering new segments of Market
10. Innovative Products
11. New Mediums of Advertisements
12. Acquiring partnership with small players
THREATS:
1....
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