BATA CASE STUDY By: M2-1

BACKGROUND
BSO

was formed in 1894 by Thomas Bata In 1920 BSO employed mass production technology In 1932 Thomas Bata died in an airplane accident In 1939 the company relocates to Canada 6300 company owned stores, 100000 franchise, 70 manufacturing units Bata is a multi domestic company Economies of Scale In 1986 Bata closed its operation in South Africa

BACKGROUND
1991

Bata returns to the Czech Republic following fall of the communist regime In 1994 Tom Bata retires In 1995 Bata had shut down 20% of its retail Outlet In 1995 opened Bata Shoe Museum In 1999 appointed Jim Patelidis as new CEO

STRATEGY ADOPTED
In

2001 Thomas Bata Jr. became the chairman and CEO Bata divided into 4 MBU Two important leadership points In 2002 opens innovation centers at Italy, Canada, Mexico, China & Indonesia In 2004 Bata Opened a procurement center and entered into distribution partnership for retail stores in china 2005 Marcelo Villagran, appointed MD of Bata India

STRATEGY ADOPTED
In

2006 start of the 262 acres Riverbank township construction to modernize the Batanagar factory complex, near Kolkata. In 2006 launch of branded business division In 2007 opened 10000 sq.ft retail store at Vadodara In 2008 Bata entered into alliance with Reliance retail In 2008 Bata Bangladesh entered into agreement with Nike Singapore. In 2009 Bata launches restructuring programme in France due to decline in sales

STRATEGY ADOPTED
In

2009, Bata Mexico & Disney enter into alliance. In 2009, Bata introduces industrial shoes 1st Bata airport store in 2010 Bata Australia prevents wear & tear of feet in 2010.

FACTS
Serves 1 million customers per day Employs more than 50,000 people Operates 5000 retail stores Manages a retail presence in over 70 countries Runs 27 production facilities across 20 countries Revenue-283.829 ( USD in Millions ) Market Cap -44309.869415 ( Rs. in Millions ) Financials Total Income - Rs. 12749.763 Million ( year ending Dec 2010) Net Profit - Rs. 953.52 Million ( year ending Dec 2010)

BRANDS
Current 1. 2. 3.

4.
5. 6.

7.
8. 9.

Brands Include Baby Bubble Bata Industrials Bata Power Sundrop Weinbrenner North Star Eco Fit Marie Claire

QUESTION
1.

2.

3.

what are the strategies adopted by Thomas Bata Jr. while entering 21st century? What were the plans of Bata to expand during retail boom in India? How did Bata achieve economies of Scale?

THANK YOU