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Strategic Management Assignment

Bata Pakistan is a prominent footwear manufacturer and retailer with a strong market presence and brand recognition. The company aims to leverage its strengths in distribution and pricing while addressing weaknesses in product quality and innovation to capitalize on opportunities in e-commerce and rural market expansion. Strategic recommendations include improving product quality, enhancing e-commerce capabilities, and innovating designs to meet changing consumer preferences.
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0% found this document useful (0 votes)
17 views27 pages

Strategic Management Assignment

Bata Pakistan is a prominent footwear manufacturer and retailer with a strong market presence and brand recognition. The company aims to leverage its strengths in distribution and pricing while addressing weaknesses in product quality and innovation to capitalize on opportunities in e-commerce and rural market expansion. Strategic recommendations include improving product quality, enhancing e-commerce capabilities, and innovating designs to meet changing consumer preferences.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 27

Assignment: Strategic Management

Name of Business: BATA Shoes

Submitted By: M. Hussain Qureshi

Submitted to: Dr. Riffat Jabeen

Roll No: MSBA-24-01

Class: MSBA (2024-26)

Department of Business Administration Ghazi University


Dera Ghazi Khan
Name of Business

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

environment in which we operate."

Mission Statement

"To be successful as the most dynamic, flexible, and market-responsive organization, with

footwear as its core business."

Competitors in Pakistani Market

 Servis Shoes

 Borjan Shoes

 Urban Sole Shoes

 ECS Shoes

 Stylo Shoes

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Internal Factors

 Strengths:

o Extensive market presence with a wide distribution network across Pakistan.

o Strong brand recognition and loyalty among consumers.

o Diverse product portfolio catering to various customer segments.

o Competitive pricing strategy offering affordable footwear.

 Weaknesses:

o Perception of declining product quality among some consumer segments.

o Limited innovation in design compared to emerging fashion trends.

o High costs associated with brand protection and combating counterfeit products.

External Factors

 Opportunities:

o Growing demand for fashionable and comfortable footwear.

o Expansion potential in rural markets and untapped urban areas.

o Increasing consumer purchasing power and preference for branded products.

o Potential for e-commerce growth and online retailing.

 Threats:

o Intense competition from both local and international footwear brands.

o Economic fluctuations affecting consumer spending habits.

o Proliferation of counterfeit products impacting brand reputation.

o Rapidly changing fashion trends requiring quick adaptation.

Page 3 of 27
EFE (External Factor Evaluation) Matrix

External Factors Weight Rating Weighted Score

Growing demand for fashionable footwear 0.20 4 0.80

Expansion potential in rural markets 0.15 3 0.45

Increasing consumer purchasing power 0.15 4 0.60

Potential for e-commerce growth 0.10 3 0.30

Intense competition 0.20 2 0.40

Economic fluctuations 0.10 2 0.20

Proliferation of counterfeit products 0.05 2 0.10

Rapidly changing fashion trends 0.05 3 0.15

Total 1.00 3.00

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

Product Range 0.15 4 3 3 2 2 3

Pricing Strategy 0.15 4 4 3 3 3 3

Distribution Network 0.20 4 4 3 2 2 3

Innovation and Design 0.15 2 3 3 3 3 4

Marketing and 0.15 3 3 3 2 2 3


Advertising
Total 1.00 3.45 3.30 3.00 2.65 2.40 3.25

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

design, indicating a need for increased focus in these areas.

Page 5 of 27
IFE (Internal Factor Evaluation) Matrix

Internal Factors Weight Rating Weighted Score

Extensive market presence 0.25 4 1.00

Strong brand recognition 0.20 4 0.80

Diverse product portfolio 0.15 3 0.45

Competitive pricing strategy 0.10 4 0.40

Perception of declining product quality 0.15 2 0.30

Limited innovation in design 0.10 2 0.20

High costs of brand protection 0.05 2 0.10

Total 1.00 3.25

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

weaknesses related to product quality perception and innovation.

Page 6 of 27
SWOT Matrix

Strength Weaknesses

1. Strong brand recognition 1. Perception of declining


and extensive market product quality among some
presence. consumers.
2. Diverse product portfolio 2. Limited innovation in
catering to various customer design compared to emerging
segments. fashion trends.
3. Competitive pricing 3. High costs associated with
strategy offering affordable brand protection and
footwear. combating counterfeit
4. Robust distribution network products.
across Pakistan.
SO Strategies (Leverage WO Strategies (Minimize
Opportunities
Strengths to Maximize Weaknesses by Exploiting
Opportunities) Opportunities)
1. Growing demand for  Leverage strong brand  Address perception of
fashionable and comfortable recognition and diverse declining quality by
innovating designs that align
footwear. product portfolio to capture
with market demand for
2. Expansion potential in the growing demand. fashion-forward footwear.
rural markets and untapped  Utilize robust distribution  Overcome the limitation
of limited innovation by
urban areas. network to expand into new
introducing fresh designs to
3. Increasing consumer regions and tap into rural and attract customers in new
purchasing power and urban markets. markets.
 Mitigate high costs
preference for branded  Take advantage of
associated with brand
products. competitive pricing and brand protection by focusing on
4. Potential for e-commerce recognition to cater to regions with growing
growth and online retailing. consumers seeking branded disposable income.
 Counter limited
products. innovation by offering an
 Capitalize on strong online platform for custom
market presence and e- designs or exclusive product
launches.
commerce growth to expand
sales through online channels.
Threats ST Strategies (Use Strengths WT Strategies (Minimize

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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.

Page 8 of 27
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

Financial Strength, Competitive Advantage, Industry Strength, and Environmental Stability.

Step 1: Evaluating the Internal Factors

Strengths:

1. Extensive market presence with a wide distribution network across Pakistan:

Rating: 5 (Strong presence, but competition is rising)

2. Strong brand recognition and loyalty among consumers:

Rating: 6 (Highly recognized brand with customer loyalty)

3. Diverse product portfolio catering to various customer segments:

Rating: 5 (Good variety but may need more innovation to remain relevant)

4. Competitive pricing strategy offering affordable footwear:

Rating: 5 (Affordable, but price competition is increasing)

Weaknesses:

1. Perception of declining product quality among some consumer segments:

Rating: 2 (Negative perception, needs improvement)

2. Limited innovation in design compared to emerging fashion trends:

Rating: 2 (Lagging behind in design innovation)

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3. High costs associated with brand protection and combating counterfeit products:

Rating: 3 (Costly but necessary to protect brand integrity)

Step 2: Evaluating the External Factors

Opportunities:

1. Growing demand for fashionable and comfortable footwear:

Rating: 5 (Strong opportunity, especially with changing consumer preferences)

2. Expansion potential in rural markets and untapped urban areas:

Rating: 6 (High potential, significant untapped market)

3. Increasing consumer purchasing power and preference for branded products:

Rating: 5 (Branded products are increasingly popular)

4. Potential for e-commerce growth and online retailing:

Rating: 5 (Rapid growth in online sales and digital shopping)

Threats:

1. Intense competition from both local and international footwear brands:

Rating: 2 (High competition, a challenging factor)

2. Economic fluctuations affecting consumer spending habits:

Rating: 3 (Consumer spending is unstable, but manageable)

3. Proliferation of counterfeit products impacting brand reputation:

Rating: 2 (Counterfeit products pose a serious threat to brand integrity)

4. Rapidly changing fashion trends requiring quick adaptation:

Rating: 3 (Fashion is dynamic; the company needs to adapt quickly)

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Step 3: Calculating the SPACE Matrix

The SPACE Matrix is plotted using two axes:

 X-axis: Internal Strategic Position (FS and CA)

o FS (Financial Strength): The average of strength factors.

o CA (Competitive Advantage): The average of weakness factors.

 Y-axis: External Strategic Position (IS and ES)

o IS (Industry Strength): The average of opportunity factors.

o ES (Environmental Stability): The average of threat factors.

1. Internal Strategic Position (IS)

Financial Strength (FS):

Average of strengths:

(5 + 6 + 5 + 5) / 4 = 5.25

Competitive Advantage (CA):

Average of weaknesses:

(2 + 2 + 3) / 3 = 2.33

Internal Position (IP) = FS - CA = 5.25 - 2.33 = 2.92

2. External Strategic Position (ES)

Industry Strength (IS):

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

External Position (EP) = IS - ES = 5.25 - 2.5 = 2.75

Step 4: Plotting the SPACE Matrix

Now we plot the scores (IP = 2.92, EP = 2.75) on the SPACE Matrix grid:

 Internal Position (X-axis) = 2.92

 External Position (Y-axis) = 2.75

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.

Strategic Recommendations for BATA Shoes Pakistan:

1. Leverage internal strengths (e.g., market presence, brand loyalty, competitive pricing)

to capture external opportunities like the growing demand for fashionable footwear and

expanding into rural areas.

2. Improve product quality and increase innovation to address declining perceptions of

product quality and to better align with changing fashion trends.

3. Invest in e-commerce to capitalize on the growth of online retailing.

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

rapidly changing market.

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

rural market expansion.

Page 13 of 27
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

four BCG quadrants:

1. Stars (High Market Growth, High Market Share)

Positioning Criteria:

 High market share in a rapidly growing market.


 Products that benefit from brand recognition, strong distribution networks, and the ability
to expand.

BATA’s Products in this Category:

 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

growing footwear market.

 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.

 Growing Demand for Fashionable & Comfortable Footwear: Some of BATA’s

products, especially those catering to evolving consumer preferences for comfort and

fashion, could be part of this segment.

Page 14 of 27
2. Question Marks (High Market Growth, Low Market Share)

Positioning Criteria:

 High market growth potential but low market share.

 Require investment and strategic action to increase share or improve positioning.

BATA’s Products in this Category:

 Limited Innovation in Design: With limited innovation compared to emerging fashion

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

products need innovation or fresh marketing strategies to boost market share.

 E-commerce Growth: The shift towards online retailing and the potential for e-

commerce growth presents an opportunity. However, if BATA’s online presence is less

developed compared to competitors, its online products could fall into the Question

Marks quadrant until BATA invests in improving e-commerce channels.

3. Cash Cows (Low Market Growth, High Market Share)

Positioning Criteria:

 High market share but in a slow or mature market.

 These products generate steady cash flow but do not require much investment.

BATA’s Products in this Category:

 Competitive Pricing Strategy: BATA’s focus on offering affordable footwear appeals to

a wide consumer base, especially for its everyday, basic product lines (e.g., casual shoes,

Page 15 of 27
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

growing rapidly, continue to generate steady cash flow.

4. Dogs (Low Market Growth, Low Market Share)

Positioning Criteria:

 Low market share in a slow-growing or declining market.

 These products are not performing well and may be considered for divestment or

reinvention.

BATA’s Products in this Category:

 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

higher-quality or trendier alternatives.

 Proliferation of Counterfeit Products: The rise of counterfeit products, especially in the

lower-end market, could hurt BATA’s brand and affect its product lines that are more

vulnerable to counterfeiting. These products might be categorized in the Dogs quadrant if

they lose consumer trust or face significant competition from counterfeit goods.

Page 16 of 27
BCG Matrix for BATA Shoes Pakistan:

High Market Share Low Market Share


High Stars: Popular, trusted products with Question Marks: Products needing
Market
high sales and expansion potential in innovation or greater presence in e-
Growth
new markets (e.g., fashion-forward commerce, such as trendy designs or

shoes, comfort-focused lines). online-exclusive products.

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).

Summary of BATA’s BCG Matrix:

 Stars: BATA’s popular, high-demand products that are expanding into rural and urban

areas with growing consumer interest in fashionable and comfortable footwear.

 Question Marks: Some product lines struggling with innovation or low market share in

rapidly growing segments (such as fashion-forward or e-commerce offerings).

 Cash Cows: BATA’s well-established product lines with a focus on affordability,

comfort, and brand loyalty.

 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).

Page 17 of 27
IE Matrix

The Internal-External (IE) Matrix is a strategic management tool used to evaluate a

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

EFE (External Factor Evaluation) score on a 9-cell matrix.

Step 1: Determine the Scores

From the provided IFE and EFE matrix results:

 IFE Score: 3.25 (Moderately strong internal capabilities)

 EFE Score: 3.00 (Moderately favorable external opportunities)

Step 2: Plot the IFE and EFE Scores on the IE Matrix

The IE Matrix divides into nine cells based on two factors: internal and external evaluations.

Each axis has a scale from 1 to 4:

 Internal Factor Scores:

o 1.0 – 1.99: Weak internal position

o 2.0 – 2.99: Average internal position

o 3.0 – 4.0: Strong internal position

 External Factor Scores:

o 1.0 – 1.99: Unfavorable external environment

o 2.0 – 2.99: Average external environment

o 3.0 – 4.0: Favorable external environment

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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

better leverage external opportunities.

Step 4: Interpretation of the IE Matrix

Cell 6: Hold and Maintain Strategy

 Strategy Focus:

o Leverage strengths: Continue to build on strengths such as extensive market

presence, strong brand recognition, and competitive pricing strategy.

o Address weaknesses: Work on improving the perception of product quality and

increase innovation in design.

o Market Expansion: Focus on opportunities in growing markets (e.g., rural areas,

increasing purchasing power), and improve the e-commerce presence.

o Cost Management: Keep an eye on managing costs, especially related to brand

protection and combating counterfeit products.

Page 19 of 27
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:

Strong Internal Average Internal Weak Internal


Position (3.0–4.0) Position (2.0–2.99) Position (1.0–1.99)
Favorable External Growth & Build Selective Growth Turnaround Strategy
Position (3.0–4.0)
Strategy (Cell 1) Strategy (Cell 2) (Cell 3)

Average External Hold & Maintain Growth & Build Turnaround Strategy
Position (2.0–2.99)
Strategy (Cell 4) Strategy (Cell 5) (Cell 6)

Unfavorable External Retrenchment Retrenchment Strategy Divestiture Strategy


Position (1.0–1.99)
Strategy (Cell 7) (Cell 8) (Cell 9)

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

the footwear market.

Page 20 of 27
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).

Step 1: Determine the Matrix Coordinates

 Internal Factor Evaluation (IFE) Score for BATA Shoes Pakistan: 3.25

o This places BATA in a strong competitive position (higher than 2.5).

 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

less than 3.5).

Step 2: Position BATA in the Grand Strategy Matrix

The Grand Strategy Matrix is divided into four quadrants:

High Market Growth Low Market Growth


Strong Competitive Quadrant I: Market Development, Quadrant II: Product
Position (IFE > 2.5)
Product Development, and Development and Market

Diversification Strategies Penetration Strategies

Weak Competitive Quadrant III: Turnaround or Quadrant IV: Divestiture or


Position (IFE < 2.5)
Retrenchment Strategies Liquidation Strategies

Page 21 of 27
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

development and market penetration.

Step 3: Interpretation of Quadrant II

Strategies for BATA in Quadrant II:

1. Market Penetration Strategy:

o Increase market share in existing markets by leveraging BATA’s strong brand

recognition and market presence. This could include increasing marketing efforts,

strengthening distribution channels, and enhancing customer loyalty.

o Competitive Pricing: Continue to emphasize its competitive pricing strategy to

capture more price-sensitive customers and expand market share.

2. Product Development Strategy:

o Innovation in Design: Invest in developing new and innovative products to

address the limited innovation in design weakness. This could involve

introducing more fashionable, trendy designs or enhancing product features for

better comfort and durability.

o Improve Product Quality: Address the perception of declining product

quality by upgrading the production process, focusing on quality control, and

possibly rebranding the products to assure customers of higher quality.

3. Expansion into Rural and Untapped Urban Markets:

Page 22 of 27
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

demand in areas where BATA has less penetration.

4. E-Commerce Growth:

o Leverage E-Commerce: With the increasing potential for 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.

o Online Product Innovation: Develop exclusive online products or limited

editions to capture the online market's interest and build brand awareness in the

digital space.

Step 4: Grand Strategy Matrix Summary for BATA Shoes Pakistan

High Market Growth Low Market Growth

Strong Competitive Quadrant I: Growth strategies Quadrant II: Product development

Position (IFE > 2.5) like market development, product and market penetration. Focus on

development, or diversification. increasing market share and

innovating products.

Weak Competitive Quadrant III: Focus on Quadrant IV: Focus on divestiture

Position (IFE < 2.5) retrenchment or turnaround or liquidation strategies if internal

strategies if internal factors are factors are weak.

weak.

Page 23 of 27
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

leverage emerging external opportunities. Addressing weaknesses related to product quality

perception and design innovation will be crucial for long-term success.

Page 24 of 27
QSPM for BATA Shoes Pakistan

Key Factors Weight Strategy 1: Focus on Strategy 2: Improve


Market Expansion and Product Quality and Design
E-Commerce Innovation
Strengths
Extensive market presence 0.25 4 (1.00) 3 (0.75)
Strong brand recognition 0.20 4 (0.80) 4 (0.80)
Diverse product portfolio 0.15 3 (0.45) 4 (0.60)
Competitive pricing 0.10 4 (0.40) 3 (0.30)
strategy
Weaknesses
Perception of declining 0.15 3 (0.45) 4 (0.60)
product quality
Limited innovation in 0.10 2 (0.20) 4 (0.40)
design
High costs of brand 0.05 3 (0.15) 3 (0.15)
protection
Opportunities
Growing demand for 0.20 4 (0.80) 4 (0.80)
fashionable footwear
Expansion potential in 0.15 5 (0.75) 3 (0.45)
rural markets
Increasing consumer 0.15 4 (0.60) 3 (0.45)
purchasing power
Potential for e-commerce 0.10 5 (0.50) 3 (0.30)
growth
Threats
Intense competition 0.20 3 (0.60) 3 (0.60)
Economic fluctuations 0.10 3 (0.30) 3 (0.30)
Proliferation of counterfeit 0.05 3 (0.15) 3 (0.15)
products
Rapidly changing fashion 0.05 2 (0.10) 4 (0.20)
trends
Total Weighted Scores 1.00 6.75 6.45

Page 25 of 27
Strategic Recommendations Based on QSPM Results:

1. Primary Strategy: Focus on Market Expansion and E-Commerce

o Total weighted score: 6.75

o This strategy leverages BATA’s strong market presence, brand recognition, and

pricing strategy while capitalizing on external opportunities in rural market

expansion and e-commerce growth.

o Actions:

 Expand the distribution network in rural and untapped urban areas.

 Enhance digital platforms and e-commerce operations.

 Strengthen marketing efforts targeting growing customer segments with

rising purchasing power.

2. Secondary Strategy: Improve Product Quality and Design Innovation

o Total weighted score: 6.45

o While slightly lower in score, this strategy addresses critical weaknesses in

product quality and limited design innovation. It is essential for long-term

sustainability and competitiveness.

o Actions:

 Invest in research and development for innovative and fashionable

designs.

 Implement robust quality control measures to improve product perception.

 Launch marketing campaigns to rebuild consumer trust in product quality.

Page 26 of 27
Conclusion:

While both strategies are essential for BATA Shoes Pakistan's growth, the QSPM suggests

prioritizing market expansion and e-commerce initiatives. Simultaneously, the company

should allocate resources to improving product quality and design innovation to maintain long-

term competitiveness and adapt to changing market trends.

Competitive Advantage of Bata

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

Considering the analyses, Bata should pursue Intensive Strategies, specifically:

 Product Development: Invest in innovative designs and quality improvements to meet

evolving consumer preferences and counteract perceptions of declining quality.

 Market Penetration: Enhance marketing efforts to increase market share in existing

markets, leveraging brand strength and distribution capabilities.

By focusing on these strategies, Bata can strengthen its market position, address competitive

pressures, and capitalize on emerging opportunities in the Pakistani footwear industry.

Page 27 of 27

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