Bata: Strategic Choices

Abstract

The case describes the history of Bata (Pakistan) together with relevant information on major competitors in Pakistan's footwear industry. Bata started as a vertically inte grated manufacturer and soon dominated the industry. The development of the leather export industry and growth in consumer buying power in the eighties, selective imposition of sales tax in the mid-eighties, and lowering of trade barriers in the twenty-first cen tury, resulted in the emergence of firms specializing in different stages along the value chain. When this occurred, Bata's wide scope and vertical integration no longer re mained a source of competitive advantage, and resulted in threats from inexpensive imports and leaner and more specialized firms. The case allows students the opportunity to analyse outsourcing decisions, issues related to franchised versus company-owned stores, and introduction of global brands, in the context of a highly competitive and rapidly changing industry.