The SWOT analysis on Bata Shoes Company Ltd

The importance of having good strategies can be seen by the organizations accomplished. By designing effective strategies to attract customers, they have built their resort into a prosperous, thriving organization. And as they ponder expansion plans, SWOT analysis will once again play an important role. A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results. The purpose of SWOT analysis is to gather, analyze, and evaluate information and identify strategic options facing a community, organization, or individual at a given time. SWOT Analysis is a very effective way of identifying strengths and weaknesses, and of examining the opportunities and threats one tends to face. Carrying out an analysis using the SWOT framework helps to focus activities into areas where one is strong and where the greatest opportunities lie. This knowledge is then used to develop a plan of action. The analysis can be performed on a product, on a service, a company or even on an individual. Done properly, SWOT will give the big picture of the most important factors that influence survival and prosperity as well as a plan to act on.

Bata Shoes Company Ltd also follows SWOT analysis method for their betterment and success for the organization. The analysis is given below:

Strength: Strengths describe the positive attributes, tangible and intangible, internal to your organization. They are within your control. Here they also include: What do you do well? What resources do you have? What advantages do you have over your competition? Manager may want to evaluate his strengths by area, such as marketing, finance, manufacturing, and organizational structure. Strengths include the positive attributes of the people involved in the business, including their knowledge, backgrounds, education, credentials, contacts, reputations, or the skills they bring. Strengths also include tangible assets such as available capital, equipment, credit, established customers, existing channels of distribution, copyrighted materials, patents, information and processing systems, and other valuable resources within the business. Strengths capture the positive aspects internal to his business that add value or offer him a competitive advantage. This is his opportunity to remind himself of the value existing within his business. Bata Shoes Company has also some strength. They are

Intention of sale environment:

Bata Shoe Company has an intention of

creating a profitable sale environment in them.

Service Motive:
Bata Shoe Company has the motive of better service giving

to the consumer.

Flexibility:

Bata Shoe Company is a flexible departmental store. It can perform its business activities both in much or less space.

Market research:

The authority does a research over the market position, ups and downs of prices, needs and wants of the customer to take important marketing decision.

Supply of goods according to new fashion:

It serves the products to the

consumer according to the new style and fashion.

I think if they want to increase there strength higher they also follow these rules Image of the company Quality Product Differentiated line of products Competitive Pricing Strong distribution channel Modern manufacturing facilities Brand loyalty at mass level

Weakness: Weaknesses are factors that are within managers control that detract from his ability to obtain or maintain a competitive edge. Which areas might he improves?

Weaknesses might include lack of expertise, limited resources, lack of access to skills or technology, inferior service offerings, or the poor location of his business. These are factors that are under his control, but for a variety of reasons, are in need of improvement to effectively accomplish his marketing objectives. Weaknesses capture the negative aspects internal to his business that detract from the value he offers, or place at a competitive disadvantage. These are areas he needs to enhance in order to compete with his best competitor. The more accurately he identifies his weaknesses, the more valuable the SWOT will be for his assessment. Bata Shoes Company has also some weakness. They are

Delay in decision making:

The authority has to take decision by consulting with other members. Sometime long term discussion and arguing make the decision time consuming.

Advertisement provided by Bata Shoe Company is not sufficient. The net information does not meet to our need.

Lack of advertising:

If they want to improve themselves I think they must overcome the weakness and the weaknesses are from my point of view: sufficient promotional activities Bata at present conducts all the store management activity manually. This results lots of lengthy paper works, errors & waste of time. So they can conduct it by machines or other equipments. ability to catch the present trend in time high competitive price due to high cost structure VAT & tax barrier

Opportunity:
Opportunities assess the external attractive factors that represent the reason for managers business to exist and prosper. These are external to his business. These opportunities reflect the potential he can realize through implementing his marketing strategies. Opportunities may be the result of market growth, lifestyle changes, resolution of problems associated with current situations, positive market perceptions about his business, or the ability to offer greater value that will create a demand for his Marketing strategies. What opportunities exist in his market, or in the environment, from which does he hope to benefit? Does it represent an ongoing opportunity, or is it a window of opportunity?

Bata Shoes Company has also some strength. They are

Good will:

Bata Shoe Company has created a good will among the consumer by providing better service.

Direct communication:
It maintains a direct communication with the

consumer.

Creating relationship:
Bata Shoe Company creates direct relationship

with consumer.

I think they can also use there opportunities to increase their products. In my view: Despite political turbulence a segment of our middle-class is coming up with reasonable buying power. Many of them are women who are decision maker so the city store concept of Bata can attract them as whole of the family footwear can be available there. More competition results in more campaign for products. C o n s u m e r l i k e d i f f e r e n t i a t e p r o d u c t s . Th e y l i k e t o s h o p i n a s t o r e where they serve the whole family.

Threats:
A threat is a challenge created by an unfavorable trend or development that may lead to deteriorating revenues or profits. Competition existing or potential is always a threat. Threats include factors beyond manager controls that could place his marketing strategy, or the business itself, at risk. These are also external he has no control over them, but he may benefit by having contingency plans to address them if they should occur. What factors are potential threats to your business? What situations might threaten his marketing efforts?

The threats that Bata Shoe Company fall problems they are

Competitors:
Powerful multiple stores like Apex, Afjal are competitors

of Bata Shoe Company.

Price rate:

According to the changes to the demand authority has to less the price rate of commodity. It causes loss for the company. They can protect the company by Political stability affects the supply of raw materials and distribution of finished products. And controlled counterfeit of Bata products. By following these ways Bata Shoe Company can easily reaches its goals and they do the better job for their own good.

From the analysis of Bata Shoe Company Bangladesh Ltd we have identified that the shoe industry is growing and identified their main weakness is insufficient lack of development with the rapid changing market needs, insufficient promotional activities, and downward trend of quality. On the other hand, distribution system and vertical integration are the strengths of Bata From strategic marketing viewpoint; we see that Bata is taking corrective steps in almost all the way. In very few sides Bata has lacking. Based upon these facts recommended strategies would assist in more growth of Bata shoe company Bangladesh Ltd. in among the upcoming fierce competition in the shoe industry. Carrying out an analysis using the SWOT framework helps to focus activities into areas where one is strong and where the greatest opportunities lie. This knowledge is then used to develop a plan of action. The analysis can be performed on a product, on a service, a company or even on an individual. Done properly, SWOT will give the big picture of the most important factors that influence survival and prosperity as well as a plan to act on. .

Reference: Bata Shoes from Wikipedia Bata Shoe Company ltd