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Chapter 4: Functional Level Strategy: (Note: Value Chain Analysis)

Bata primarily focuses on a cost leadership strategy by leveraging its large production plants and supply chain management to produce products at lower prices with little advertising and distribution costs. It also pursues some differentiation by selling branded products like Nike and Adidas. At the corporate level, Bata focuses on the footwear business and diversifying its product portfolio by adding related products like bags, belts and accessories, allowing it to leverage its expertise, brand, and distribution channel in the footwear industry.

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Riduan Ullah Khan
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132 views2 pages

Chapter 4: Functional Level Strategy: (Note: Value Chain Analysis)

Bata primarily focuses on a cost leadership strategy by leveraging its large production plants and supply chain management to produce products at lower prices with little advertising and distribution costs. It also pursues some differentiation by selling branded products like Nike and Adidas. At the corporate level, Bata focuses on the footwear business and diversifying its product portfolio by adding related products like bags, belts and accessories, allowing it to leverage its expertise, brand, and distribution channel in the footwear industry.

Uploaded by

Riduan Ullah Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Chapter 4: Functional Level Strategy

(Note: Value chain analysis)

Chapter 5: Business level strategy


• Business-level strategy is concerned with a firm's position in an industry relative to
competitor.
• Business level strategies detail actions taken to provide value to customers and gain a
competitive advantage over competitors by exploiting core competencies in specific,
individual product or service markets.
Business level strategies of Bata
Cost Leadership strategy:

• Bata has an established market in Bangladesh with two one of the largest production plants,
they can use their capacity to produce more products at lower price.
• Bata has an established set up for supply chain management that also helps them to provide
at lower priced products.
• Little advertisement expenditure due to brand image.
• Low expense for distribution network because of their huge own distribution channel.
• Low input cost due to own tannery (Dhamrai Plant) and A-Z machineries of shoe
manufacturing process.
Differentiation strategy:

• Bata mainly concentrate on Cost leadership strategy, but with wide range of products’ they
have some differentiated products in their product line.
• World Renowned brands are selling under BATA Shoe umbrella in Bangladesh like: NIKE,
Adidas, Power, Weiberner, Bubble Gumbers etc.
• Bata has an effective research and development department to develop new products and
its design, size.
• Focus on product designs that reduce manufacturing costs.

Chapter 6: Corporate level strategy


• Corporate level strategies are concerned with the selection of businesses the company can
successful compete in.
• They are formulated by the top management with inputs from middle level management
and lower level management in the formulation process.
• Focus on gaining long term revenue, profits, and market value through managing
operations in multiple businesses.

Corporate Level Strategy of Bata

BATA mainly focus on footwear business. They are not diversifying their business but they
are diversifying their product line by increasing different products in their product portfolio
due to

• They have huge history in footwear manufacturing which started in 1894, so they
concentrated highly on this sector. And they are ambitious to get the latest, lucrative,
attractive and handsome design of shoes for people.
• They have Expertise knowledge in leather processes and footwear manufacturing. That’s
why they are adding Leather bags, Leather wallet, Belt, Some Scarfs, and School Bags etc.
in to their product line.
• Established and renowned brand name in Footwear industry.
• Bata focuses mainly products which are related with fashion and footwear. They also sell
shoe accessories in the market.
• Well established distribution channel helps them to market those varieties of products.

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