Bata Company Analysis - In Simple Words About Finance

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Originally published Nov 21, 2018, updated Jun 01, 2021
Bata Company Analysis - In Simple Words About Finance

Bata India is the leading and largest manufacturer of shoes in India, a part of the Bata Shoe Organisation (BSO). In the beginning, footwear was stated in handicrafts and small sections before the entry of Bata into the Indian market. Bata Footwear Company Private Small was incorporated as a small operation product in 1931 in Konnagar, India. Tomas Bata built its first manufacturing facility at the start of 1934. The company widened in the years used in its size, and the township was known as Batanagar. It was the first company to get recognition for its production facilities in the footwear industry.

The business went general public in 1973 and changed its name to Bata India Limited. They have their manufacturing products and tannery in five specialized locations across the country - the most successful retail stores are companies in Bangladesh, Czechoslovakia, Switzerland. The business has more than 1200 stores in its retail network in the metros, mini-metros, and cities. The retail strategy includes four types of stores in the United States: City store, Large store format, Family store, and Manufacturing plant store.

The business collaborates with corporate and business customers to create various sneaker lines under international and countrywide brands such as:

  • Hush Puppies.
  • Marie Claire.
  • Mocassino.
  • Ambassador.
  • Comfit.
  • School.
  • Quovadis.
  • North Star.
  • Scholl.
  • Weinbrenner.
  • Bubblegummers.
  • Baby Bubble.
  • Vitality.
  • Sparx.

The company sells more than 45 million pairs of shoes annually and serves 120,000 customers every day. In 2021, Tomas Bata University opened in Zlín, which once again proved the importance. The Bata shoe company has shown phenomenal results, and therefore, students of economics, management, business are sure to face writing case studies, research papers, essays on this topic. Below we will conduct a thorough analysis of the Bata brand to save time and inspire. However, if you have difficulty understanding the data, you can always get homework help from our experts!

Macro Analysis - Political, Economic, Social and Technology Factors

An organization needs to consider its environment before initiating a marketing process. We must consider this a continuous process, which should help the organization in the market penetration. The factors that are considered are political, economic, social, and technology.

Political Factors

Bata faced the following political factors:

  • Rules and legislation for tannery wastes.
  • Government balance.
  • Fewer sports happenings apart from cricket to get the customers.
  • Merging of Adidas and Reebok
  • Market pressure on sales.

Economic Factors

Bata faced the following economic factors:

  • Seasonal Issues: athletics is more prompted in the summertime.
  • Increasing buyer electric power makes the customers look at top quality Bata products.
  • Lack of concentrating on the women and kid sections.
  • Huge consumer market.

Social Factors

Bata faced the following social factors:

  • Change in the approach to life of the people (buyer).
  • Increasing fashion styles.
  • Advertising, promotion, and press.
  • Change in buyer tendencies and footwear market.

Technological Factors

Bata faced the following technological factors:

  • Increase in fighting technology development.
  • Up-ward switch in invention and developing maturity.

Micro Analysis

Microanalysis includes customers, competitors, and a supplier. These are the three criteria we studied from a to z:

  • Customers. The products of Bata targets a wide range of customers, which also includes the army, police, and mining business in all locations. The company has two types of customers they will be the final users, and it provides good quality products with the best price in the market, which means that the price-quality percentage is excellent for the Bata products.
  • Competitors. The opponents for Bata India in the market are Puma, Nike, Reebok, Adidas, Woodlands, Liberty, and Action. The appearance of local and international brands in the Indian market has created an extremely competitive environment for this footwear brand. The products from the competitors provide as substitutes to the clients.
  • Suppliers - The recyclables for the company are PVC feet, and the animal skin, the individuals or company which provides these raw materials are known as the suppliers. Bata's suppliers are Chinese language raw material holders and the neighborhood cottage industries that supply raw materials to the business.

SWOT Analysis Of Bata

The SWOT analysis includes three factors: strength, weakness, opportunities, threats. Let's take a closer look at them. If you have problems analyzing statistics, contact our experts for statistics homework help.

Strength

  • Availability of recyclables and other inputs for the business's operations.
  • Manufacturing products in a variety of places, including rural markets, helps in circulation.
  • Subsidiaries and Duty bonuses on machinery.
  • Established links with potential multinational buyers from Europe and the US.
  • Friendly federal government policies for export.
  • The brand is immediately determined with shoes or boots by the consumers.

Weakness

  • Bata faced the challenges of transitioning to new creative technology because it had been around for more than seven generations.
  • High labor costs, as the business has a large number of employees.

Opportunities

  • There is an excellent scope for diversification into other products like leather wallets, seat covers, and different types of leather garments.
  • Growing countrywide and International market.
  • Developing fashion awareness globally.
  • Being in a sizable developing market that offers demand for sports shoes, the company locates its potential in leveraging the Bata brand for marketing other items consumer products such as sportswear.

Threats

  • Changing fashion trends is hard to look at for the Indian Leather Establishments.
  • The entry of global competitors into the сountrywide market brings heavy competition on the market. Bata India has around 13.7% of the market share, and the business has decided to increase its market share by introducing a fresh product under the brand Electricity in the market. Electric power brand is only meant for sportswear. The business discovered some issues and customer needs regarding their product. Their product was lagging behind the latest design and the customer's comfort. The business has invested largely in changing its store appearance and has also taken steps to incorporate the new technology involved with manufacturing specialized shoes.

Positioning

Positioning is performed to locate the brand in the clients' brains, which in turn escalates the benefits of the business. Bata has used various steps to increase its market show. A few of them are renovating its already existing stores, starting new stores in suburban places, and the primary strategy followed by the business is high quality and low price. This has done the business lasting for more than seven decades in India. The company will follow the same technique for the new product Power-Lite. On the other palm when looking into the marketplace for the merchandise from Nike, Puma, Adidas, and Reebok, they impose a large amount for their activities products. The cost of shoes from Bata is relatively low when compared to others.

Product

Bata has launched a new product, Life-Line, under the same brand Vitality. The key product is the Power Lite. The formal products are their comfort, style, brand, and features. The augmented product is something that emerges after-sales. In this case, the wholesalers offer free restoring service for about six months from the time of sale.

Life Cycle of the Product

The product life cycle of a sneaker is short in comparison with many other products. The sneaker appeared to have a short introduction period, a little bigger growth period where it gets to its maturity stage. It continues to be in the maturity stage for a longer time, and then the decrease stage starts whenever a new product or an updating product is launched in the market.

Pricing

The price tag on the Power-Lite is determined to be Rs 2799 (Indian Rupees - INR) considering variable, set costs, and the marketplace floor, ceiling price. The company gets its contribution -after selling 20,000 products of Power-Lite.

The pricing degree of Nike, Adidas, Puma, and Reebok is greater than Bata, and they need to follow this during the product launch to sell their product initially. The break-even analysis establishes the point where the contribution is manufactured regarding the volume of products sold. If you find it challenging to carry out calculations or analyze pricing policy, we are happy to offer accounting homework help.

Place

The company a good syndication route - they sell their products immediately through their factory shops, franchise retailers, wholesalers, distributors, indie sellers, and online. Hence they cover all the locations of the marketplace in different ways.

Promotion

As this is a new product, the company must advertise in advertising such as magazine, TV, Banners, and internet. They ought to follow the press and pull campaigns in the initial stage to later change to pull marketing promotions if the merchandise is successful in the market. The drive and pull campaigns include discounts to the wholesalers, staff incentives, advertising, screen at the point of sales. The company should achieve this in factor with the estimated budget for promotion purposes.

Angelina Grin
Creative Writer and Blog Editor

Work, study, play, party, love, move, go, improve.