Case
BATA : STRATEGIC CHOICES
INDUSTRY :FOOTWEAR
AREA :MARKETING
ORGANIZATION :Bata
LENGTH :29
LUMS No :04-2323-2004-1
PUBLICATION YEAR : 2004
ABSTRACT:
The case describes the history of Bata (Pakistan) together with relevant information on major competitors in Pakistan’s footwear industry. Bata started as a vertically integrated manufacturer and soon dominated the industry. The development of the leather export industry and growth in consumer buying power in the 1080s, selective imposition of sales tax in the mid-1980s, and lowering of trade barriers in the 2000s, resulted in the emergence of firms specializing in different stages along the value chain. When this occurred, Bata’s wide scope and vertical integration no longer remained a source of competitive advantage, and resulted in threats from inexpensive imports and leaner and more specialized firms. The case allows students the opportunity to analyze outsourcing decisions, issues related to franchised versus company-owned stores, and introduction of global brands, in the context of a highly competitive and rapidly changing industry.