Key External Factors

Weight
Opportunities
Increasing Trends Towards Fashion Shoes 0.13
Sales of apparel & footwear on the Internet has been growing at a double digit
pace
0.06
Increasing Sports Events in Pakistan 0.11
Increase in wedding seasons and festivals (average wedding season of 8 months
now)
0.08
Awarness of Quality among customers 0.11
Increasing population by 10% 0.09
Threats
Stiff competition in the market from local and foreign brands 0.12
Electricity Shortage 0.08
Increase in unemployment has impacted the household income which may result
in spending less on brand name
0.07
Decrease in customers purchasing power ( Inflation) 0.09
Political Instability
0.06
Total
1
Rating
Weighted
Score
2 0.26
1 0.06
3 0.33
1 0.08
4 0.44
3 0.27
0
3 0.36
3 0.24
3 0.21
2 0.18
3 0.18
2.61
Sr #
1
2
3
4
5
6
7
8
1
2
3
4
6
Key Internal Factors
Strengths
Largest retailer network of 1300 outlets, 4000 franchises and another 10000 dealers. Extensive
Distribution with 241 retail stores (Forward integration)
People associated Bata for quality and real value for money. (Shoe Quality)
Brand loyalty
Financial Strength
Geographical coverage
Variety of products
Image of durable shoes
Largest footwear group in Pakistan
Weaknessess
Insufficient promotional activities
Bata at present conducts all the store management activity manually. This results lots of lengthy
paper works, errors & waste of time.
Inability to catch the present trend in time (old Fashion & Old Designs)
Bata does not present itself as a brand of corporate and sports personalities.
Supply chain and Inventory management issues.
Total
Weight Rating W-Score
0.09 4 0.36
0.11 4 0.44
0.09 4 0.36
0.11 4 0.44
0.09 4 0.36
0.07 3 0.21
0.09 4 0.36
0.08 4 0.32
0
0
0.09 1 0.09
0.04 1 0.04
0.07 2 0.14
0.03 2 0.06
0.04 2 0.08
0
1 3.26
Critical Success Factors Weight Rating W-Score Rating W-Score Rating
Shoe Quality 0.25 4 1 3 0.75 2
Customer Loyalty 0.09 4 0.36 3 0.27 2
Financial position 0.21 4 0.84 4 0.84 2
Price 0.09 3 0.27 3 0.27 4
Outlets 0.09 4 0.36 4 0.36 2
Market Share 0.07 3 0.21 2 0.14 1
Advertising 0.15 3 0.45 3 0.45 1
R & D 0.05 3 0.15 2 0.1 1
0
Total 1 3.64 3.18
Bata Servis Local
W- Score Rating W-Score
0.5 1 0.25
0.18 2 0.18
0.42 3 0.63
0.36 4 0.36
0.18 2 0.18
0.07 2 0.14
0.15 1 0.15
0.05 3 0.15
1.91 2.04
Local China
Strategies SPACE BCG IE
1 Market Penetration 1 1 1
2 Market Development 1 1 1
3 Product Development 1 1 1
4 Forward Integration 1 1 1
5 Backward Integration 1 1 1
6 Horizontal Integration 1 1 1
7 Related Diversification 1 0 0
8 Unrelated Diversification 1 0 0
9 Retrenchment 0 0 0
10 Divestiture 0 0 0
11 Liquidation 0 0 0
Matrix Analysis
GrandMatrix Strategy Total Count
1 4
1 4
1 4
0
1 4
1 4
1 4
0
1 2
1 2
0
0 0
0 0
0 0
Matrix Analysis
Key Factors Weight
Opportunities
increase in population by 10% 0.15
change in trends 0.12
qulatiy conceious 0.07
Sales of apparel & footwear on the Internet has been
growing at a double digit pace 0.1
Increasing Sports Events in Pakistan e.g Punjab Youth
Festival 0.08
Threats
increasein competion 0.12
power out 0.1
Increase in unemployment has impacted the household
income which may result in spending less on brand name 0.1
increase in inflation 0.08
political instability 0.08
Strengths
Largest retailer network of 1300 outlets, 4000 franchises and
another 10000 dealers.
0.09
People associated Bata for quality and real value for money. 0.07
Brand loyalty 0.08
Competitive Pricing 0.05
Largest footwear group in Pakistan 0.06
Geographical coverage 0.09
Variety of products 0.05
Image of durable shoes 0.08
Financial Strength 0.11
Weaknesses
Insufficient promotional activities
Bata at present conducts all the store management activity
manually. This results lots of lengthy paper works, errors &
waste of time.
Inability to catch the present trend in time
Total
Product Development Promotional Compains
Attractiveness
Score
Total
Attractiveness
Score
Attractiveness
Score
Total
Attractiveness
Score
4 3
4 2
3 2
3 4
-
4 3
2 3
3 4
4 3
4 3
3 4
Strategic Alternatives
1 2
4 3
4 3
1 4
4 2
Return on Assets 6
Leverage 5
Net income 6
25
Income/Employee 4
Inventory Turnover 4

FS Average 5
Market Share -3
Product Quality -2
Customer Loyalty -2
-12
Technical know-how -2
Control over Suppliers &
Distributors -3

CA Average -2.4
x 2.8
y 1.8
(-6 worst, -1 best)
Financial Strength (FS)
(+1 worst, +6 best)
Competitive Advantage (CA)
Rate of inflation -5
-16
Technological changes -3
Price elasticity of Demand -3
Taxation -3
Barriers -2

ES Average -3.2
Growth Potential 5
Financial Stability 6
26
Ease of Entry into market 5
Resource Utilization 6
Profit Potential 4

IS Average 5.2
Industry Strength (IS)
(+1 worst, +6 best)
Environmental Stability (ES)
(-6 worst, -1 best)
Joggers (Power) Sandles (Whineblanner)
Bata Bata
Servis Servis
Nike Hushpuppies
Starlet Urban sol
China Starlet
Local Private
Formal Shoes Bubble Gummers (Childern)
Bata Bata
Servis Servis
Fayva Local Players
Starlet
Local Players
Relative Market Share
Casual Shoes
Bata
Servis
Hushpuppies
Urban sol
Starlet
Local Players
Sandak
Bata
Servis
Local Players
Division
Sales
(Revenues)
% of
Sales
Profits
% of
Profits
Relative
Market Share
Division
Sales
(Revenues)
% of
Sales
Profits
% of
Profits
Relative
Market Share
1 60 36 10 39
2 40 24 5 20
3 40 24 2 8
4 20 12 8 31
5 5 3 0.5 2
Total 165 100 25.5 100
Industry
Growth Rate
(%)
0.5
Industry
Growth Rate
(%)