Bata Case study

A1

1894

The company was founded in 1894. The company is a family-owned business that is one of the worlds largest manufacturer and retailer of footwear.

1920

Bata had built a shoe network in 28 countries using machinery & mass production.

1939

On fathers death Tom Bata had left with the responsibility to expand. Political conditions were bad as Nazi had invaded Czechoslovakia. To preserve father business Tom Bata moved to Canada abandoning Czechoslovakia operation with his family & staff.

1945

After world war In 1945 the company was nationalized as a part of large scale nationalization program in Czechoslovakia. In spite of incredible odds and a political climate that had put the machinery in motion to nationalize all large businesses.

1980

A relatively stagnant economy, political strife resulting from apartheid, including the policy of not granting political freedom and civil liberties to blacks, prompted foreign companies and governments to pressure the government for political reforms. As a result, Bata sold its holdings in South Africa in 1986.

1994-96

In 1994, Bata hired the company's first non-family chief executive in an attempt to reinvigorate the paternalistic company, but disagreements over the future of the company forced the resignation of the CEO and two of the top members of his management team in October 1995 The key to Bata's success has traditionally been a low-cost manufacturing base tied to an extensive distribution network. But Nike and Reebok turned the footwear industry into one that was market-driven, not manufacturing-driven. Several of Bata's retail outlets began losing money, and Bata was forced to dose down 20 percent of its retail outlets in 1995 and 1996

2001

Thomas J. Bata, Jr., becomes chairman and CEO.

2005

After the global economic changes, the company closed a number of its manufacturing factories in developed countries and has focused its activities on expanding its retail business. In developing countries it still has a large number of manufacturing units and still produces a significant number of shoes each year.

2006-09

Launch of the Branded Business Division in 2006 to consolidate our existing worldwide branded business activities into a leading industrial and professional footwear company. The Bata Emerging Markets Unit was created in 2008 in order to maximize the synergies of all operations in Latin America, Africa, Asia and India. The European Shoe Innovation Centre (SICE) in Padova, Italy launched in 2009.

2010
The company is currently headquartered in Lausanne, Switzerland, with 4 business units: Bata Europe, Lausanne Bata Emerging Markets, Singapore Bata Branded Business, Best, Netherlands Bata North America, Toronto Current shoe brands are: Bata (Baa in former Czechoslovakia) Bata Premium (handcrafted dress shoes) Bata Industrials (safety footwear) Bubble gummers (children) Power (athletic shoes ) Marie Claire (women)

Today

According to Bata, in 2010 the company served 1 million customers per day, employed over 67,000 people, operated 6300 retail stores, managed a retail presence in over 60 countries and had 70 production facilities across 26 countries.

Questions

How was Batas approach in International market?

Rationalized marketing. Stress on democratic country. Family oriented approach. Diversity. Dependent on local resources. Economies of scale. Large no of stores. Easy availability.

How Bata grew considering political & economical factors?

Type of Government Growing Economy. Huge Population. Entry-Exit barriers.

Where did Bata go wrong?

Excessive focus on low- med end products. High manpower- high cost. Mass production approach. Stylish. Modernization. Import- export. Marketing. Family oriented approach.