Strategic Management Assignment
Strategic Management Assignment
Bata Pakistan is a leading footwear manufacturer and retailer with a significant presence in the
Pakistani market.
Vision Statement
"To grow as a dynamic, innovative, and market-driven domestic manufacturer and distributor,
with footwear as our core business, while maintaining a commitment to the country, culture, and
Mission Statement
"To be successful as the most dynamic, flexible, and market-responsive organization, with
Servis Shoes
Borjan Shoes
ECS Shoes
Stylo Shoes
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Internal Factors
Strengths:
Weaknesses:
o High costs associated with brand protection and combating counterfeit products.
External Factors
Opportunities:
Threats:
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EFE (External Factor Evaluation) Matrix
Interpretation: A total weighted score of 3.00 indicates that Bata Pakistan is moderately well-
positioned to respond to external factors, with significant opportunities in market expansion and
consumer demand.
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Competitive Profile Matrix (CPM)
Critical Success Factors Weight Bata Servis Borjan Urban ECS Stylo
Sole
Brand Reputation 0.20 4 3 3 3 2 3
Interpretation: Bata Pakistan holds a competitive advantage in brand reputation, product range,
and distribution network. However, it lags behind competitors like Stylo Shoes in innovation and
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IFE (Internal Factor Evaluation) Matrix
Interpretation: A total weighted score of 3.25 suggests that Bata Pakistan has strong internal
capabilities, particularly in market presence and brand recognition, but needs to address
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SWOT Matrix
Strength Weaknesses
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to Counteract Threats) Weaknesses and Avoid
Threats)
1. Intense competition from Utilize strong brand Overcome limited
both local and international recognition and competitive innovation by investing in
footwear brands. pricing to differentiate from design and technology to stay
2. Economic fluctuations competitors. ahead of competitors.
affecting consumer spending Leverage competitive Reduce high costs and
habits. pricing and a diverse product brand protection expenses by
3. Proliferation of portfolio to cater to varying optimizing supply chain and
counterfeit products consumer budgets. leveraging online sales.
impacting brand reputation. Strengthen brand Address declining quality
4. Rapidly changing fashion protection efforts and perception by focusing on
trends requiring quick increase consumer education product consistency and
adaptation. to maintain brand integrity. improving anti-counterfeit
Enhance product measures.
innovation and design to Increase design
remain competitive in rapidly innovation to align with
evolving fashion trends. changing trends, while
maintaining affordable
pricing to appeal to
consumers.
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SPACE Matrix
To develop the SPACE Matrix for BATA Shoes Pakistan, we need to evaluate both internal and
external factors based on their respective scores. Each factor is rated on a scale of 1 to 6 (1 being
the worst and 6 being the best). These ratings reflect the company’s position in terms of
Strengths:
Rating: 5 (Good variety but may need more innovation to remain relevant)
Weaknesses:
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3. High costs associated with brand protection and combating counterfeit products:
Opportunities:
Threats:
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Step 3: Calculating the SPACE Matrix
Average of strengths:
(5 + 6 + 5 + 5) / 4 = 5.25
Average of weaknesses:
(2 + 2 + 3) / 3 = 2.33
Average of opportunities:
(5 + 6 + 5 + 5) / 4 = 5.25
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Environmental Stability (ES):
Average of threats:
(2 + 3 + 2 + 3) / 4 = 2.5
Now we plot the scores (IP = 2.92, EP = 2.75) on the SPACE Matrix grid:
These values suggest that BATA Shoes Pakistan falls in the Aggressive quadrant of the SPACE
Matrix, which means that the company has a strong internal position and there are good external
opportunities available. The company should focus on aggressive strategies to grow its market
share, improve product quality, and leverage opportunities such as expansion into rural markets
and enhancing its e-commerce presence.
1. Leverage internal strengths (e.g., market presence, brand loyalty, competitive pricing)
to capture external opportunities like the growing demand for fashionable footwear and
4. Strengthen brand protection to prevent counterfeit issues and maintain brand integrity.
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5. Innovate in design to appeal to fashion-conscious customers and stay competitive in a
By focusing on these strategic actions, BATA Shoes Pakistan can effectively use its strengths
and opportunities while addressing the threats and weaknesses in the market.
The SPACE Matrix for BATA Shoes Pakistan is plotted on the grid. As shown, the company's
position (IP = 2.92, EP = 2.75) falls in the Aggressive quadrant. This indicates that BATA Shoes
Pakistan has a strong internal position and there are significant external opportunities. The
company should focus on aggressive strategies, such as expanding its market presence,
improving product quality, and leveraging emerging opportunities like e-commerce growth and
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BCG Matrix
The BCG Matrix for BATA Shoes Pakistan can be developed by assessing the company’s
position in the footwear market based on its internal strengths and weaknesses, as well as the
external opportunities and threats. Below is how we can categorize BATA’s products into the
Positioning Criteria:
Extensive Market Presence & Strong Brand Recognition: BATA has a wide
distribution network across Pakistan, with high consumer loyalty. Products in its best-
selling range, such as affordable footwear with trusted quality, are performing well in the
Expansion Potential in Rural Markets & Untapped Urban Areas: As BATA can
leverage its established market presence to enter rural and under-served urban areas,
products that are widely accepted but still growing in these regions could be categorized
here.
products, especially those catering to evolving consumer preferences for comfort and
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2. Question Marks (High Market Growth, Low Market Share)
Positioning Criteria:
trends, BATA may have some product lines (especially in the fashion segment) that are
not capturing a significant market share in the rapidly growing footwear industry. These
E-commerce Growth: The shift towards online retailing and the potential for e-
developed compared to competitors, its online products could fall into the Question
Positioning Criteria:
These products generate steady cash flow but do not require much investment.
a wide consumer base, especially for its everyday, basic product lines (e.g., casual shoes,
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work shoes, children’s shoes). These products have high market share in the low-growth,
price-sensitive segment.
Strong Brand Loyalty: BATA’s long-standing brand loyalty and consumer trust
contribute to consistent sales in mature market segments. These products, although not
Positioning Criteria:
These products are not performing well and may be considered for divestment or
reinvention.
Perception of Declining Product Quality: BATA faces a perception issue among some
consumers regarding declining product quality, especially if some product lines (e.g.,
lower-tier footwear) have not maintained the same standard. These products could be
positioned in the Dogs quadrant, especially in the face of intense competition from
lower-end market, could hurt BATA’s brand and affect its product lines that are more
they lose consumer trust or face significant competition from counterfeit goods.
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BCG Matrix for BATA Shoes Pakistan:
Low Cash Cows: Affordable, everyday Dogs: Products with declining quality
Market
footwear with a strong market presence perception or vulnerability to
Growth
(e.g., classic, work, and school shoes). counterfeit products (e.g., low-cost
budget lines).
Stars: BATA’s popular, high-demand products that are expanding into rural and urban
Question Marks: Some product lines struggling with innovation or low market share in
Dogs: Products affected by declining quality perception and competition from counterfeit
goods.
This BCG Matrix helps BATA identify areas for growth (Stars and Question Marks), maintain or
optimize cash flows (Cash Cows), and evaluate products that may need to be phased out or
redesigned (Dogs).
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IE Matrix
company’s internal and external environments and help determine the appropriate strategy based
on these factors. It is created by plotting the IFE (Internal Factor Evaluation) score against the
The IE Matrix divides into nine cells based on two factors: internal and external evaluations.
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Step 3: Determine the Position in the Matrix
IFE Score = 3.25: This places BATA in the strong internal position category (3.0–4.0).
EFE Score = 3.00: This places BATA in the average external position category (2.0–
2.99).
Based on these scores, BATA would fall into the Cell 6 of the IE Matrix, which corresponds to
"Hold and Maintain" strategy. This means that BATA is in a relatively strong position
internally, but it is facing average external opportunities. The company should focus on
consolidating its strengths and addressing weaknesses, while strategically positioning itself to
Strategy Focus:
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BATA is in a good position to maintain its current market standing while making incremental
improvements, such as product innovation and addressing quality concerns, which would allow
the company to remain competitive and adapt to evolving external factors like changing fashion
trends.
IE Matrix Overview:
Average External Hold & Maintain Growth & Build Turnaround Strategy
Position (2.0–2.99)
Strategy (Cell 4) Strategy (Cell 5) (Cell 6)
Conclusion:
For BATA Shoes Pakistan, the Hold and Maintain Strategy suggests that the company should
continue its current trajectory, strengthen its existing product lines, and improve weaknesses in
design innovation and product quality perception. Additionally, BATA should focus on
capitalizing on market expansion and e-commerce growth opportunities to enhance its position in
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Grand Strategy Matrix
The Grand Strategy Matrix is a tool used to evaluate a company’s strategic position based on
its internal and external environments, helping to determine the most appropriate strategies to
adopt. The matrix consists of four quadrants, each representing a different strategic approach
based on two factors: competitive position (internal factors) and market growth (external
factors).
Internal Factor Evaluation (IFE) Score for BATA Shoes Pakistan: 3.25
External Factor Evaluation (EFE) Score for BATA Shoes Pakistan: 3.00
o This places BATA in an average market growth position (higher than 2.5 but
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Given BATA's IFE score of 3.25 (strong internal position) and EFE score of 3.00 (average
external opportunities), the company falls into Quadrant II of the Grand Strategy Matrix.
This quadrant suggests that BATA is in a strong competitive position but faces moderate
external growth opportunities. The most suitable strategies for BATA are focused on product
recognition and market presence. This could include increasing marketing efforts,
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o BATA can exploit the opportunity for expansion in rural and untapped urban
areas to increase its market presence. This will help capitalize on growing
4. E-Commerce Growth:
BATA can strengthen its online presence and invest in digital marketing, offering
a seamless shopping experience for customers in urban and rural regions alike.
editions to capture the online market's interest and build brand awareness in the
digital space.
Position (IFE > 2.5) like market development, product and market penetration. Focus on
innovating products.
weak.
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Conclusion:
BATA Shoes Pakistan is positioned in Quadrant II of the Grand Strategy Matrix, which
indicates that the company should focus on market penetration and product development
strategies. By strengthening its market share in existing markets, improving product innovation,
and capitalizing on e-commerce growth, BATA can maintain its strong competitive position and
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QSPM for BATA Shoes Pakistan
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Strategic Recommendations Based on QSPM Results:
o This strategy leverages BATA’s strong market presence, brand recognition, and
o Actions:
o Actions:
designs.
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Conclusion:
While both strategies are essential for BATA Shoes Pakistan's growth, the QSPM suggests
should allocate resources to improving product quality and design innovation to maintain long-
Bata's competitive advantage lies in its strong brand recognition, extensive distribution network,
and affordable pricing strategy. These factors have established Bata as a trusted and accessible
footwear brand in Pakistan.
Recommended Strategy
By focusing on these strategies, Bata can strengthen its market position, address competitive
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