Value chain Analysis of Bata

Primary activities of value chain

Inbound logistics

• Leather is the key raw materials for Bata which is collected from different part of
Bangladesh.
• They collect raw leather and have a modern tannery with the latest technological
facilities to process 5 million square feet of leather yearly.
• They also collect finished leather from local tannery Hazerybag.
• Others raw materials like Rexene, PVC sole, nylon net, rubber, chemicals have
collected from china.

Operation

• Bata Bangladesh has two factories in Tongi and Dhamrai.

• All the rubber and related production has been done in Tongi factory.
• Every types of leather products are been manufactured in the Dhamrai factory.
• About 92% of all Bata products are produced in these two factories. Hourly production
is 4,000 pairs.

Outbound logistics

• The finished products send to the central distribution center in Tongi factory.
• After receiving the finished products then the packaging has been done according to
the requirement of different stores, Agencies, dealers and wholesalers the goods has
been transferred directly to the distributors through company owned vehicle.

Marketing & Sales

• As Bata is an established brand in Bangladesh they think that they should go on with
more and more retail outlets rather than intense advertising.
• 70% of Bata’s sales are from its own retail outlets. Moreover there is a network of about
500 exclusive wholesalers who service about 300 retail stores all over the country.
• Bata has showrooms, wholesale depots and distribution centers across the country.

Services

• In any Bata store in the world they repair, exchange or refund any products if defects
found.
• They also exchange or refund on unworn merchandise if one changes one’s mind. Proof
of purchase is required for refunds.
• They provide warranty for six Months in every category of shoes.
• Bata Shoe Company (Bangladesh) Ltd has a customer service center.
• Bata has a few service of home deliveries, orders made possible via catalogues, the web
or even call centers only in mega city.
Supporting activities of value chain:
Technological development: Bata tannery is very much updated and technology based, one
of the tanneries is second largest in Asia, so here world class quality leather is produced.

Human Resources Development: Activities of human resources department are to ensure the
proper section of personnel, help the employees to grow and develop themselves, maintenance
of personnel records and maintain cordial and peaceful labor management relationship to
ensure discipline among the employees.

Procurement: Bata use their own value chain to collect raw materials. All inputs like
equipment machinery are same.

Firm infrastructure: Bata has finance department, quality assurance, R& D department,
internal audit department, marketing and sales department, human resource management and
administration department, production department etc.

Balanced Scorecard for Bata

Resource Based View of BATA

Tangible resources

1. Physical assets:
• Bata Bangladesh has two factories in Tongi and Dhamrai.
• Modern tannery with the latest technological facilities
• Central distribution center in Tongi
• 300 retail stores all over the country.
2. Financial assets
• Strong financial position (constant growth);
• ROI, ROA is higher than industry’s average; 
3. Technological resources:
• Patents (Bata Ladies' patent oxford shoes, BATA Cala),
• Trademarks ("Barrett Shoes" trademark),
4. Organizational resources
Big and loyal customer base, effective distribution network and control system over the
supply Chain.

Intangible resources:

• Human resources: 56.500 employee worldwide, powerful research team (specialists

such as bio mechanics, industrial designers, and exercise physiologists).
• Innovation resources: Knowledge transfer, integrated research laboratories, dynamic
technological innovation design, exclusive worldwide patents, an online website ideal
for customization (“customer-designer”).
• Reputation resources: Brand name, identifiable distinctive trademarks, logos

Organizational capabilities:

• A streamlined management structure

• Cost effectiveness
• Human resource management strategy focused on training (training programs with
contract manufacturers)
• Good inventory management
• Distinctive customer service
• Product design capabilities (perfect combination of performance, comfort and
fashion)
 VIRO analysis

ViRO Analysis of BATA

Competitive
Resources Value Rare Imitation Organization Advantage
Brand Positioning Yes No Can be Yes, the firm has Temporary
in Comparison to imitated by positioned its Competitive
the Competitors competitors brands based on Advantage
but it will consumer
require big behavior
marketing
budget
Distribution and Yes, as it helps in No Can be Yes Medium to Long
Logistics Costs delivering lower imitated by Term
Competitiveness costs competitors Competitive
but it is Advantage
difficult
Marketing No, firms are No, as most of Pricing Yes, firm is Competitive
Expertise competing based the competitors strategies are leveraging its in- Parity
on cost leadership have decent often matched house expertise
in the industry marketing by competitors
know how

Product Portfolio Yes, it is valuable Most of the Can be The firm has Provide short
and Synergy among in the industry competitors are imitated by the used it to good term competitive
Various Product given the various trying to enter competitors effect, details advantage but
Lines segmentations & the lucrative can be found in requires constant
consumer segments case exhibit innovation to
preferences. sustain
 Competitive
Resources Value Rare Imitation Organization Advantage
Intellectual Yes, they are Yes, IPR and Risk of So far the firm Providing Strong
Property Rights, extremely other rights are imitation is has not utilized Competitive
Copyrights, and valuable rare and low but given the full extent of Advantage
Trademarks especially to competition the margins in its IPR & other
thwart can't copy the industry properties
competition disruption
chances are
high
Successful Yes, without a No, as most of Can be One of the Digital strategy
Implementation of comprehensive the firms are imitated by leading player in has become
Digital Strategy digital strategy it investing into competitors the industry critical in the
is extremely digitalizing industry but it
difficult to operations can't provide
compete sustainable
competitive
advantage
Customer Yes, as customers Yes, the firm It is very Going by the Providing Strong
Community are co-creating has able to difficult to data, there is still Competitive
products build a special imitate the a lot of upside Advantage
relationship culture and
with its community
customers dedication
Brand awareness Yes Yes, BATA is No BATA has Sustainable
one of the utilized its Competitive Ad
leading brand in leading brand
the industry position in
various segments
Ration Analysis Formula

- Historical comparison: The comparison must be drawn between the past performance of
the organization and present status of the same organization.
- Comparison with industry norms: A firm’s current ratio or profitability may appear
impressive at first glance. However it may pale when compared with industry standard or
norms.
- Comparison with key competitors: One can gain valuable insight into firm’s financial
and competitive position, when comparison is made between firm and its most direct rivals.