Business Strategy
BATA: STRATEGIC CHOICES
Case Analysis Assignment
Introduction
This case highlights 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 contemplating changes in its strategy to be able to survive in the market.
Analysis of Bata’s Current Market Position
With the evolving market and changing market dynamics Bata was being given a tough time by its local competitors and other footwear being imported from China. Bata management feared that they would not be able to survive because they could not compete with the low cost Chinese products, hence they embarked on a plan to enter the premium segment of the market to be able to survive, because they felt competition from Chinese products there would be much less.
However, in my opinion, their management in the year 2001, made a mistake by committing to go after the premium segment as well, without realizing the fact that their image would be hurt and could get diluted because they were moving into a domain for which their activities were not aligned. Other than the activities too we have to consider the Brand image that Bata had developed over the past 40 odd years of its existence in Pakistan, and this image was by no means that of a brand which could boast about having premium footwear products, in fact Bata was just meeting the basic functional needs of its middle class customers. Therefore their ...