Assignment: Strategic Management

Name of Business: BATA Shoes

Submitted By: M. Hussain Qureshi

Submitted to: Dr. Riffat Jabeen

Roll No: MSBA-24-01

Class: MSBA (2024-26)

Department of Business Administration Ghazi

University Dera Ghazi Khan
Name of Business:

Bata Pakistan is a leading footwear manufacturer and retailer with a significant presence in the

Pakistani market.

Vision Statement:

"To grow as a dynamic, innovative, and market-driven domestic manufacturer and distributor,

with footwear as our core business, while maintaining a commitment to the country, culture, and

environment in which we operate."

Mission Statement:

"To be successful as the most dynamic, flexible, and market-responsive organization, with

footwear as its core business."

Competitors in the Pakistani Market:

 Servis Shoes

 Borjan Shoes

 Urban Sole Shoes

 ECS Shoes

 Stylo Shoes
Internal Factors:

 Strengths:

o Extensive market presence with a wide distribution network across Pakistan.

o Strong brand recognition and loyalty among consumers.

o Diverse product portfolio catering to various customer segments.

o Competitive pricing strategy offering affordable footwear.

 Weaknesses:

o Perception of declining product quality among some consumer segments.

o Limited innovation in design compared to emerging fashion trends.

o High costs associated with brand protection and combating counterfeit products.

External Factors:

 Opportunities:

o Growing demand for fashionable and comfortable footwear.

o Expansion potential in rural markets and untapped urban areas.

o Increasing consumer purchasing power and preference for branded products.

o Potential for e-commerce growth and online retailing.

 Threats:

o Intense competition from both local and international footwear brands.

o Economic fluctuations affecting consumer spending habits.

o Proliferation of counterfeit products impacting brand reputation.

o Rapidly changing fashion trends requiring quick adaptation.

EFE (External Factor Evaluation) Matrix:

External Factors Weight Rating Weighted Score

Growing demand for fashionable footwear 0.20 4 0.80

Expansion potential in rural markets 0.15 3 0.45

Increasing consumer purchasing power 0.15 4 0.60

Potential for e-commerce growth 0.10 3 0.30

Intense competition 0.20 2 0.40

Economic fluctuations 0.10 2 0.20

Proliferation of counterfeit products 0.05 2 0.10

Rapidly changing fashion trends 0.05 3 0.15

Total 1.00 3.00

Interpretation: A total weighted score of 3.00 indicates that Bata Pakistan is moderately well-

positioned to respond to external factors, with significant opportunities in market expansion and

consumer demand.

IFE (Internal Factor Evaluation) Matrix:

 Internal Factors Weight Rating Weighted Score

Extensive market presence 0.25 4 1.00

Strong brand recognition 0.20 4 0.80

Diverse product portfolio 0.15 3 0.45

Competitive pricing strategy 0.10 4 0.40

Perception of declining product quality 0.15 2 0.30

Limited innovation in design 0.10 2 0.20

High costs of brand protection 0.05 2 0.10

Total 1.00 3.25

Interpretation: A total weighted score of 3.25 suggests that Bata Pakistan has strong internal

capabilities, particularly in market presence and brand recognition, but needs to address

weaknesses related to product quality perception and innovation.

Competitive Profile Matrix (CPM):

Critical Success Factors Weight Bata Servis Borjan Urban Sole ECS Stylo

Brand Reputation 0.20 4 3 3 3 2 3

Product Range 0.15 4 3 3 2 2 3

Pricing Strategy 0.15 4 4 3 3 3 3

Distribution Network 0.20 4 4 3 2 2 3

Innovation and Design 0.15 2 3 3 3 3 4

Marketing and Advertising 0.15 3 3 3 2 2 3

Total 1.00 3.45 3.30 3.00 2.65 2.40 3.25

Interpretation: Bata Pakistan holds a competitive advantage in brand reputation, product range,

and distribution network. However, it lags behind competitors like Stylo Shoes in innovation and

design, indicating a need for increased focus in these areas.

SWOT Matrix:

Strength Weaknesses
 1. Strong brand recognition and 1. Perception of declining
extensive market presence. product quality among some
2. Diverse product portfolio consumers.
catering to various customer 2. Limited innovation in design
segments. compared to emerging fashion
3. Competitive pricing strategy trends.
offering affordable footwear. 3. High costs associated with
4. Robust distribution network brand protection and combating
across Pakistan. counterfeit products.
SO Strategies (Leverage WO Strategies (Minimize
Opportunities
Strengths to Maximize Weaknesses by Exploiting
Opportunities) Opportunities)
1. Growing demand for  Leverage strong brand  Address perception of
fashionable and comfortable recognition and diverse product declining quality by innovating
designs that align with market
footwear. portfolio to capture the growing
demand for fashion-forward
2. Expansion potential in rural demand. footwear.
markets and untapped urban  Utilize robust distribution  Overcome the limitation of
limited innovation by
areas. network to expand into new
introducing fresh designs to
3. Increasing consumer regions and tap into rural and attract customers in new
purchasing power and urban markets. markets.
 Mitigate high costs
preference for branded  Take advantage of
associated with brand
products. competitive pricing and brand protection by focusing on
4. Potential for e-commerce recognition to cater to regions with growing disposable
growth and online retailing. consumers seeking branded income.
 Counter limited innovation
products. by offering an online platform
 Capitalize on strong market for custom designs or exclusive
presence and e-commerce product launches.
growth to expand sales through
online channels.
ST Strategies (Use Strengths to WT Strategies (Minimize
Threats
Counteract Threats) Weaknesses and Avoid Threats)

1. Intense competition from  Utilize strong brand  Overcome limited

both local and international recognition and competitive innovation by investing in
footwear brands. pricing to differentiate from design and technology to stay
2. Economic fluctuations competitors. ahead of competitors.
affecting consumer spending  Leverage competitive  Reduce high costs and
habits. pricing and a diverse product brand protection expenses by
3. Proliferation of portfolio to cater to varying optimizing supply chain and
counterfeit products consumer budgets. leveraging online sales.
impacting brand reputation.  Strengthen brand  Address declining quality
4. Rapidly changing fashion protection efforts and perception by focusing on
trends requiring quick increase consumer education product consistency and
adaptation. to maintain brand integrity. improving anti-counterfeit
 Enhance product measures.
innovation and design to  Increase design
remain competitive in rapidly innovation to align with
evolving fashion trends. changing trends, while
maintaining affordable
pricing to appeal to
consumers.

SPACE Matrix:
To develop the SPACE Matrix for BATA Shoes Pakistan, we need to evaluate both internal

and external factors based on their respective scores. Each factor is rated on a scale of 1 to 6 (1

being the worst and 6 being the best). These ratings reflect the company’s position in terms of

Financial Strength, Competitive Advantage, Industry Strength, and Environmental

Stability.

Step 1: Evaluating the Internal Factors

Strengths:

1. Extensive market presence with a wide distribution network across Pakistan:

Rating: 5 (Strong presence, but competition is rising)
2. Strong brand recognition and loyalty among consumers:
Rating: 6 (Highly recognized brand with customer loyalty)
3. Diverse product portfolio catering to various customer segments:
Rating: 5 (Good variety but may need more innovation to remain relevant)
4. Competitive pricing strategy offering affordable footwear:
Rating: 5 (Affordable, but price competition is increasing)

Weaknesses:

1. Perception of declining product quality among some consumer segments:

Rating: 2 (Negative perception, needs improvement)
2. Limited innovation in design compared to emerging fashion trends:
Rating: 2 (Lagging behind in design innovation)
3. High costs associated with brand protection and combating counterfeit products:
Rating: 3 (Costly but necessary to protect brand integrity)

Step 2: Evaluating the External Factors

Opportunities:

1. Growing demand for fashionable and comfortable footwear:

Rating: 5 (Strong opportunity, especially with changing consumer preferences)
2. Expansion potential in rural markets and untapped urban areas:
Rating: 6 (High potential, significant untapped market)
3. Increasing consumer purchasing power and preference for branded products:
Rating: 5 (Branded products are increasingly popular)
4. Potential for e-commerce growth and online retailing:
Rating: 5 (Rapid growth in online sales and digital shopping)
Threats:

1. Intense competition from both local and international footwear brands:

Rating: 2 (High competition, a challenging factor)
2. Economic fluctuations affecting consumer spending habits:
Rating: 3 (Consumer spending is unstable, but manageable)
3. Proliferation of counterfeit products impacting brand reputation:
Rating: 2 (Counterfeit products pose a serious threat to brand integrity)
4. Rapidly changing fashion trends requiring quick adaptation:
Rating: 3 (Fashion is dynamic; the company needs to adapt quickly)

Step 3: Calculating the SPACE Matrix

The SPACE Matrix is plotted using two axes:

 X-axis: Internal Strategic Position (FS and CA)

o FS (Financial Strength): The average of strength factors.
o CA (Competitive Advantage): The average of weakness factors.
 Y-axis: External Strategic Position (IS and ES)
o IS (Industry Strength): The average of opportunity factors.
o ES (Environmental Stability): The average of threat factors.

1. Internal Strategic Position (IS)

Financial Strength (FS):

Average of strengths:
(5 + 6 + 5 + 5) / 4 = 5.25

Competitive Advantage (CA):

Average of weaknesses:
(2 + 2 + 3) / 3 = 2.33

Internal Position (IP) = FS - CA = 5.25 - 2.33 = 2.92

2. External Strategic Position (ES)

Industry Strength (IS):

Average of opportunities:
(5 + 6 + 5 + 5) / 4 = 5.25

Environmental Stability (ES):

Average of threats:
(2 + 3 + 2 + 3) / 4 = 2.5
External Position (EP) = IS - ES = 5.25 - 2.5 = 2.75

Step 4: Plotting the SPACE Matrix

Now we plot the scores (IP = 2.92, EP = 2.75) on the SPACE Matrix grid:

 Internal Position (X-axis) = 2.92

 External Position (Y-axis) = 2.75

These values suggest that BATA Shoes Pakistan falls in the Aggressive quadrant of the SPACE
Matrix, which means that the company has a strong internal position and there are good external
opportunities available. The company should focus on aggressive strategies to grow its market
share, improve product quality, and leverage opportunities such as expansion into rural markets
and enhancing its e-commerce presence.

Strategic Recommendations for BATA Shoes Pakistan:

1. Leverage internal strengths (e.g., market presence, brand loyalty, competitive pricing)
to capture external opportunities like the growing demand for fashionable footwear and
expanding into rural areas.
2. Improve product quality and increase innovation to address declining perceptions of
product quality and to better align with changing fashion trends.
3. Invest in e-commerce to capitalize on the growth of online retailing.
4. Strengthen brand protection to prevent counterfeit issues and maintain brand integrity.
5. Innovate in design to appeal to fashion-conscious customers and stay competitive in a
rapidly changing market.

By focusing on these strategic actions, BATA Shoes Pakistan can effectively use its strengths
and opportunities while addressing the threats and weaknesses in the market.
The SPACE Matrix for BATA Shoes Pakistan is plotted on the grid. As shown, the company's position (IP

= 2.92, EP = 2.75) falls in the Aggressive quadrant. This indicates that BATA Shoes Pakistan has a strong

internal position and there are significant external opportunities. The company should focus on

aggressive strategies, such as expanding its market presence, improving product quality, and leveraging

emerging opportunities like e-commerce growth and rural market expansion.

SPACE Matrix:

The SPACE Matrix assesses a company's strategic position based on four dimensions: Financial

Strength (FS), Competitive Advantage (CA), Environmental Stability (ES), and Industry

Strength (IS).
  Financial Strength (FS): Bata's strong market presence and extensive distribution

network indicate solid financial health.

 Competitive Advantage (CA): While Bata has a strong brand, it faces challenges in

innovation and design compared to competitors.

 Environmental Stability (ES): The footwear industry in Pakistan is subject to economic

fluctuations and changing consumer preferences.

 Industry Strength (IS): The industry shows growth potential with increasing demand

for branded and fashionable footwear.

Interpretation: Bata's position suggests a conservative strategy, focusing on market penetration

and product development to leverage its strengths and address weaknesses.

BCG Matrix:

The BCG Matrix for BATA Shoes Pakistan can be developed by assessing the company’s
position in the footwear market based on its internal strengths and weaknesses, as well as the
external opportunities and threats. Below is how we can categorize BATA’s products into the
four BCG quadrants:

1. Stars (High Market Growth, High Market Share)

Positioning Criteria:

 High market share in a rapidly growing market.

 Products that benefit from brand recognition, strong distribution networks, and the ability
to expand.

BATA’s Products in this Category:

 Extensive Market Presence & Strong Brand Recognition: BATA has a wide
distribution network across Pakistan, with high consumer loyalty. Products in its best-
selling range, such as affordable footwear with trusted quality, are performing well in the
growing footwear market.
 Expansion Potential in Rural Markets & Untapped Urban Areas: As BATA can
leverage its established market presence to enter rural and under-served urban areas,
 products that are widely accepted but still growing in these regions could be categorized
here.
 Growing Demand for Fashionable & Comfortable Footwear: Some of BATA’s
products, especially those catering to evolving consumer preferences for comfort and
fashion, could be part of this segment.

2. Question Marks (High Market Growth, Low Market Share)

Positioning Criteria:

 High market growth potential but low market share.

 Require investment and strategic action to increase share or improve positioning.

BATA’s Products in this Category:

 Limited Innovation in Design: With limited innovation compared to emerging fashion

trends, BATA may have some product lines (especially in the fashion segment) that are
not capturing a significant market share in the rapidly growing footwear industry. These
products need innovation or fresh marketing strategies to boost market share.
 E-commerce Growth: The shift towards online retailing and the potential for e-
commerce growth presents an opportunity. However, if BATA’s online presence is less
developed compared to competitors, its online products could fall into the Question
Marks quadrant until BATA invests in improving e-commerce channels.

3. Cash Cows (Low Market Growth, High Market Share)

Positioning Criteria:

 High market share but in a slow or mature market.

 These products generate steady cash flow but do not require much investment.

BATA’s Products in this Category:

 Competitive Pricing Strategy: BATA’s focus on offering affordable footwear appeals to

a wide consumer base, especially for its everyday, basic product lines (e.g., casual shoes,
work shoes, children’s shoes). These products have high market share in the low-growth,
price-sensitive segment.
 Strong Brand Loyalty: BATA’s long-standing brand loyalty and consumer trust
contribute to consistent sales in mature market segments. These products, although not
growing rapidly, continue to generate steady cash flow.

4. Dogs (Low Market Growth, Low Market Share)

Positioning Criteria:

 Low market share in a slow-growing or declining market.

  These products are not performing well and may be considered for divestment or
reinvention.

BATA’s Products in this Category:

 Perception of Declining Product Quality: BATA faces a perception issue among some
consumers regarding declining product quality, especially if some product lines (e.g.,
lower-tier footwear) have not maintained the same standard. These products could be
positioned in the Dogs quadrant, especially in the face of intense competition from
higher-quality or trendier alternatives.
 Proliferation of Counterfeit Products: The rise of counterfeit products, especially in the
lower-end market, could hurt BATA’s brand and affect its product lines that are more
vulnerable to counterfeiting. These products might be categorized in the Dogs quadrant if
they lose consumer trust or face significant competition from counterfeit goods.

BCG Matrix for BATA Shoes Pakistan:

High Market Share Low Market Share

Stars: Popular, trusted products with high Question Marks: Products needing
High
sales and expansion potential in new innovation or greater presence in e-
Market
markets (e.g., fashion-forward shoes, commerce, such as trendy designs or
Growth
comfort-focused lines). online-exclusive products.
Low Cash Cows: Affordable, everyday Dogs: Products with declining quality
Market footwear with a strong market presence perception or vulnerability to counterfeit
Growth (e.g., classic, work, and school shoes). products (e.g., low-cost budget lines).

Summary of BATA’s BCG Matrix:

 Stars: BATA’s popular, high-demand products that are expanding into rural and urban
areas with growing consumer interest in fashionable and comfortable footwear.
 Question Marks: Some product lines struggling with innovation or low market share in
rapidly growing segments (such as fashion-forward or e-commerce offerings).
 Cash Cows: BATA’s well-established product lines with a focus on affordability,
comfort, and brand loyalty.
 Dogs: Products affected by declining quality perception and competition from counterfeit
goods.

This BCG Matrix helps BATA identify areas for growth (Stars and Question Marks), maintain or
optimize cash flows (Cash Cows), and evaluate products that may need to be phased out or
redesigned (Dogs).

BCG Matrix:
The BCG Matrix categorizes a company's products or business units into four categories based

on market growth and market share: Stars, Cash Cows, Question Marks, and Dogs.

 Stars: Bata's fashionable and trendy footwear lines that cater to the growing demand for

stylish products.

 Cash Cows: Classic and affordable footwear ranges with established market share and

consistent demand.

 Question Marks: New product lines targeting niche markets or experimental designs.

 Dogs: Outdated or declining product lines with low market share and growth.

Interpretation: Bata should invest in Stars to maintain growth, utilize Cash Cows for steady

revenue, evaluate the potential of Question Marks, and consider discontinuing Dogs.

IE Matrix:

The Internal-External (IE) Matrix is a strategic management tool used to evaluate a

company’s internal and external environments and help determine the appropriate strategy based
on these factors. It is created by plotting the IFE (Internal Factor Evaluation) score against the
EFE (External Factor Evaluation) score on a 9-cell matrix.

Step 1: Determine the Scores

From the provided IFE and EFE matrix results:

 IFE Score: 3.25 (Moderately strong internal capabilities)

 EFE Score: 3.00 (Moderately favorable external opportunities)

Step 2: Plot the IFE and EFE Scores on the IE Matrix

The IE Matrix divides into nine cells based on two factors: internal and external evaluations.
Each axis has a scale from 1 to 4:

 Internal Factor Scores:

o 1.0 – 1.99: Weak internal position
o 2.0 – 2.99: Average internal position
 o 3.0 – 4.0: Strong internal position
 External Factor Scores:
o 1.0 – 1.99: Unfavorable external environment
o 2.0 – 2.99: Average external environment
o 3.0 – 4.0: Favorable external environment

Step 3: Determine the Position in the Matrix

 IFE Score = 3.25: This places BATA in the strong internal position category (3.0–4.0).
 EFE Score = 3.00: This places BATA in the average external position category (2.0–
2.99).

Based on these scores, BATA would fall into the Cell 6 of the IE Matrix, which corresponds to
"Hold and Maintain" strategy. This means that BATA is in a relatively strong position
internally, but it is facing average external opportunities. The company should focus on
consolidating its strengths and addressing weaknesses, while strategically positioning itself to
better leverage external opportunities.

Step 4: Interpretation of the IE Matrix

Cell 6: Hold and Maintain Strategy

 Strategy Focus:
o Leverage strengths: Continue to build on strengths such as extensive market
presence, strong brand recognition, and competitive pricing strategy.
o Address weaknesses: Work on improving the perception of product quality and
increase innovation in design.
o Market Expansion: Focus on opportunities in growing markets (e.g., rural areas,
increasing purchasing power), and improve the e-commerce presence.
o Cost Management: Keep an eye on managing costs, especially related to brand
protection and combating counterfeit products.

BATA is in a good position to maintain its current market standing while making incremental
improvements, such as product innovation and addressing quality concerns, which would allow
the company to remain competitive and adapt to evolving external factors like changing fashion
trends.

IE Matrix Overview:

Strong Internal Average Internal Weak Internal

Position (3.0–4.0) Position (2.0–2.99) Position (1.0–1.99)
Favorable External Growth & Build Selective Growth Turnaround
Position (3.0–4.0) Strategy (Cell 1) Strategy (Cell 2) Strategy (Cell 3)
Average External Hold & Maintain Growth & Build Turnaround
Position (2.0–2.99) Strategy (Cell 4) Strategy (Cell 5) Strategy (Cell 6)
 Strong Internal Average Internal Weak Internal
Position (3.0–4.0) Position (2.0–2.99) Position (1.0–1.99)
Unfavorable External Retrenchment Retrenchment Divestiture Strategy
Position (1.0–1.99) Strategy (Cell 7) Strategy (Cell 8) (Cell 9)

Conclusion:

For BATA Shoes Pakistan, the Hold and Maintain Strategy suggests that the company should
continue its current trajectory, strengthen its existing product lines, and improve weaknesses in
design innovation and product quality perception. Additionally, BATA should focus on
capitalizing on market expansion and e-commerce growth opportunities to enhance its position in
the footwear market.

IE Matrix:

The Internal-External (IE) Matrix positions a company’s various divisions in a nine-cell display,

considering the IFE (Internal Factor Evaluation) and EFE (External Factor Evaluation) scores.

 IFE Score: Bata's strengths in brand recognition and distribution suggest a moderate to

strong internal position.

 EFE Score: Opportunities in market expansion and e-commerce indicate a favorable

external environment.

Interpretation: Bata falls into the "Grow and Build" quadrant, recommending strategies like

market penetration, market development, and product development.

Grand Strategy Matrix:

The Grand Strategy Matrix is a tool used to evaluate a company’s strategic position based on
its internal and external environments, helping to determine the most appropriate strategies to
adopt. The matrix consists of four quadrants, each representing a different strategic approach
based on two factors: competitive position (internal factors) and market growth (external
factors).

Step 1: Determine the Matrix Coordinates

 Internal Factor Evaluation (IFE) Score for BATA Shoes Pakistan: 3.25
o This places BATA in a strong competitive position (higher than 2.5).
 External Factor Evaluation (EFE) Score for BATA Shoes Pakistan: 3.00
o This places BATA in an average market growth position (higher than 2.5 but
less than 3.5).

Step 2: Position BATA in the Grand Strategy Matrix

The Grand Strategy Matrix is divided into four quadrants:

High Market Growth Low Market Growth

Quadrant I: Market Development, Quadrant II: Product
Strong Competitive
Product Development, and Development and Market
Position (IFE > 2.5)
Diversification Strategies Penetration Strategies
Weak Competitive Quadrant III: Turnaround or Quadrant IV: Divestiture or
Position (IFE < 2.5) Retrenchment Strategies Liquidation Strategies

Given BATA's IFE score of 3.25 (strong internal position) and EFE score of 3.00 (average
external opportunities), the company falls into Quadrant II of the Grand Strategy Matrix.
This quadrant suggests that BATA is in a strong competitive position but faces moderate
external growth opportunities. The most suitable strategies for BATA are focused on product
development and market penetration.

Step 3: Interpretation of Quadrant II

Strategies for BATA in Quadrant II:

1. Market Penetration Strategy:

o Increase market share in existing markets by leveraging BATA’s strong brand
recognition and market presence. This could include increasing marketing efforts,
strengthening distribution channels, and enhancing customer loyalty.
o Competitive Pricing: Continue to emphasize its competitive pricing strategy to
capture more price-sensitive customers and expand market share.
2. Product Development Strategy:
 oInnovation in Design: Invest in developing new and innovative products to
address the limited innovation in design weakness. This could involve
introducing more fashionable, trendy designs or enhancing product features for
better comfort and durability.
o Improve Product Quality: Address the perception of declining product
quality by upgrading the production process, focusing on quality control, and
possibly rebranding the products to assure customers of higher quality.
3. Expansion into Rural and Untapped Urban Markets:
o BATA can exploit the opportunity for expansion in rural and untapped urban
areas to increase its market presence. This will help capitalize on growing
demand in areas where BATA has less penetration.
4. E-Commerce Growth:
o Leverage E-Commerce: With the increasing potential for e-commerce growth,
BATA can strengthen its online presence and invest in digital marketing, offering
a seamless shopping experience for customers in urban and rural regions alike.
o Online Product Innovation: Develop exclusive online products or limited
editions to capture the online market's interest and build brand awareness in the
digital space.

Step 4: Grand Strategy Matrix Summary for BATA Shoes Pakistan

High Market Growth Low Market Growth

Quadrant I: Growth strategies like Quadrant II: Product development and
Strong Competitive
market development, product market penetration. Focus on increasing
Position (IFE > 2.5)
development, or diversification. market share and innovating products.
Quadrant III: Focus on
Quadrant IV: Focus on divestiture or
Weak Competitive retrenchment or turnaround
liquidation strategies if internal factors
Position (IFE < 2.5) strategies if internal factors are
are weak.
weak.

Conclusion:

BATA Shoes Pakistan is positioned in Quadrant II of the Grand Strategy Matrix, which
indicates that the company should focus on market penetration and product development
strategies. By strengthening its market share in existing markets, improving product innovation,
and capitalizing on e-commerce growth, BATA can maintain its strong competitive position and
leverage emerging external opportunities. Addressing weaknesses related to product quality
perception and design innovation will be crucial for long-term success.

Grand Strategy Matrix:

This matrix helps formulate alternative strategies based on competitive position and market

growth.
  Quadrant I: Strong competitive position in a rapidly growing market.

 Quadrant II: Weak competitive position in a rapidly growing market.

 Quadrant III: Weak competitive position in a slow-growing market.

 Quadrant IV: Strong competitive position in a slow-growing market.

Interpretation: Bata's strong brand and market presence place it in Quadrant I, suggesting

strategies like market development, product development, and market penetration.

QSPM Matrix:

QSPM for BATA Shoes Pakistan

Strategy 2: Improve Product

Strategy 1: Focus on Market
Key Factors Weight Quality and Design
Expansion and E-Commerce
Innovation
Strengths
Extensive market
0.25 4 (1.00) 3 (0.75)
presence
Strong brand recognition 0.20 4 (0.80) 4 (0.80)
Diverse product portfolio 0.15 3 (0.45) 4 (0.60)
Competitive pricing
0.10 4 (0.40) 3 (0.30)
strategy
Weaknesses
Perception of declining
0.15 3 (0.45) 4 (0.60)
product quality
Limited innovation in
0.10 2 (0.20) 4 (0.40)
design
High costs of brand
0.05 3 (0.15) 3 (0.15)
protection
Opportunities
Growing demand for
0.20 4 (0.80) 4 (0.80)
fashionable footwear
Expansion potential in
0.15 5 (0.75) 3 (0.45)
rural markets
Increasing consumer
0.15 4 (0.60) 3 (0.45)
purchasing power
Potential for e-commerce 0.10 5 (0.50) 3 (0.30)
 Strategy 2: Improve Product
Strategy 1: Focus on Market
Key Factors Weight Quality and Design
Expansion and E-Commerce
Innovation
growth
Threats
Intense competition 0.20 3 (0.60) 3 (0.60)
Economic fluctuations 0.10 3 (0.30) 3 (0.30)
Proliferation of
0.05 3 (0.15) 3 (0.15)
counterfeit products
Rapidly changing fashion
0.05 2 (0.10) 4 (0.20)
trends
Total Weighted Scores 1.00 6.75 6.45

Strategic Recommendations Based on QSPM Results:

1. Primary Strategy: Focus on Market Expansion and E-Commerce

o Total weighted score: 6.75
o This strategy leverages BATA’s strong market presence, brand recognition, and
pricing strategy while capitalizing on external opportunities in rural market
expansion and e-commerce growth.
o Actions:
 Expand the distribution network in rural and untapped urban areas.
 Enhance digital platforms and e-commerce operations.
 Strengthen marketing efforts targeting growing customer segments with
rising purchasing power.
2. Secondary Strategy: Improve Product Quality and Design Innovation
o Total weighted score: 6.45
o While slightly lower in score, this strategy addresses critical weaknesses in
product quality and limited design innovation. It is essential for long-term
sustainability and competitiveness.
o Actions:
 Invest in research and development for innovative and fashionable
designs.
 Implement robust quality control measures to improve product perception.
 Launch marketing campaigns to rebuild consumer trust in product quality.

Conclusion:

While both strategies are essential for BATA Shoes Pakistan's growth, the QSPM suggests
prioritizing market expansion and e-commerce initiatives. Simultaneously, the company
should allocate resources to improving product quality and design innovation to maintain long-
term competitiveness and adapt to changing market trends.
QSPM Matrix:

The Quantitative Strategic Planning Matrix (QSPM) evaluates and prioritizes strategic options.

 Strategies Considered:

o Market Penetration: Increase market share in existing markets through

marketing efforts.

o Product Development: Introduce new products to meet changing consumer

preferences.

o Market Development: Expand into new geographic areas or market segments.

Interpretation: By assigning weights and scores to each strategy based on internal and external

factors, Bata can prioritize the most effective strategy. For instance, if Product Development

scores highest, Bata should focus on innovation and design improvements.

Competitive Advantage of Bata:

Bata's competitive advantage lies in its strong brand recognition, extensive distribution network,

and affordable pricing strategy. These factors have established Bata as a trusted and accessible

footwear brand in Pakistan.

Recommended Strategy:

Considering the analyses, Bata should pursue Intensive Strategies, specifically:

  Product Development: Invest in innovative designs and quality improvements to meet

evolving consumer preferences and counteract perceptions of declining quality.

 Market Penetration: Enhance marketing efforts to increase market share in existing

markets, leveraging brand strength and distribution capabilities.

By focusing on these strategies, Bata can strengthen its market position, address competitive

pressures, and capitalize on emerging opportunities in the Pakistani footwear industry.