PERFECT COMPETATIVE

MARKET SCENARIO-
BATA SHOE COMPANY(Bangladesh) Ltd.
Footwear markets in Bangladesh such that
no participants are large enough to have the
market power. Companies such as_
 Company profile

 Bata Shoe Company(Bangladesh) Ltd. incorporated in Bangladesh in 1972.  

 Bata Bangladesh operates 2 manufacturing plant Tongi and Dhamrai, Bata

Bangladesh is producing around 110,000 pairs of shoes daily.
Characteristics of Perfectly Competitive
Footwear Market-Bata Shoe Bangladesh Ltd.

The entire local footwear industry considered to be worth 16,000 corer

taka annually. The Market is growing 10-15% since 2016.

Characteristics of retail footwear market in Bangladesh includes:

• Very few entry and exit barriers – It is relatively easy for a business
to enter or exit in a perfectly competitive market. Companies such as
Bay,Jennys, lotto has entered into the market in last decade.

• Perfect factor mobility – Current capital consumption of footwear is

3pairs which was 1.7pairs 5years back. Bangladesh market consumes
est. 30 corer pairs annually.
• Infinite buyers and sellers – There’s estimated 4000 formal &
informal companies which are also operation in Bangladesh.

Market Share

BATA
22%
APEX
6%
OTHERS
72%
• Perfect information – Prices and quality of products are assumed to be
different from all producers in Bangladeshi Market.

PRICE OFFERING
8000

7000

6000

Premium 5000

4000

Mass 3000
Premium
2000

Value 1000

0
Price 0 100 200 300 400 500 600 700 800

POWER SPRINT LOTTO BAY SPORTS

BATA
NIKE ADIDAS UNBRANDED

▪ Premium
▪ BDT >3,500

▪ Mass-Premium ▪ BDT 1,501 – 3,500

▪ Value
▪ BDT 500 – 1,500

▪ Price ▪ BDT <500

• Zero transaction costs – Companies such as Bata are free from the cost
associated with exchange of goods or services and incurred in overcoming
market imperfections. Bata has 240 stores and over 500 dealers
throughout the country.
• Homogeneous products – Products from different companies are
highly competitive in quality & price.
• No Government Involvement –Government is not directly involved in
the industry. Footwear industry is considered blue-chip by Bangladesh
Bank (BB).
Profit maximization – Bata aim to sell where marginal costs meet Total revenue,
where they generate the most profit.
• Non-increasing returns to scale –Today, around 220 tanneries, 2,500 footwear
making units and 90 large firms make footwear and leather goods mainly for
export & local manufacturing.
THE END