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Bata Bussines Proces
Bata Bussines Proces
Business process:
Value chain
In order to devise a competitive strategy for BATA, we need to analyze Porter‟s Five Forces Model. The
model analyses the different aspects of attractiveness and competitiveness of the market.
High
The potential customers for footwear industries can be broadly classified into two categories-five
customers who have a huge bargaining power owing to the presence of low cost brands and local
products. High end customers who prefer to buy discounted and high sale products from retail outlets
or through online shopping like Jabong, Myntra, Yebhi etc.
Bargaining power of suppliers:
Low
As this company has established its name in billion hearts, customers are keen to go for well-known
brand; hence the prospects of a new entrant in the market are significantly reduced.
New entrants like Sreeleather, Relaxo are constantly challenging Bata in low cost segment for last 5-10
years.
High
As customers are often ready to switch brands and try out different products of the competitors in their
search for the best possible deal in terms of price, quality of service etc, the threat of substitute
products of Khadims, Liberty, Paragon etc is high.
High
Rivalry is more intense as there are lots of equally-sized competitors in India e.g- Liberty, Khadims etc.
Aggressive growth strategy of other brands with low switching cost rivalry is more intense in footwear