Bata India
COSTING AND MANAGEMENT ACCOUNTING PRACTICES
COMPANY:
BATA INDIA Ltd.
EXECUTIVE SUMMARY
This report discusses the detail of 1) Bata’s main line of business. 2) Its main competitors and their value chain comparison. 3) Strategy the company is following. 4) Current Costing System of the company. 5) Decision making on the basis of cost and information. 6) Decisions are being taken using management accounting information.
To summarise the above points we know that Bata is the fastest growing footwear brand in the country with a presence across 400 cities. The brand offers a wide range of comfortable, stylish and trendy footwear at affordable prices, ensuring there is something in the collection for everyone. The USP of the brand lies in the fact that they have successfully made fashion and durability so affordable and accessible to all. This explains why Bata India sells over 45 million pairs of footwear every year and serves over 120,000 customers every day. Today, Bata India is the largest retailer and leading manufacturer of footwear in India.
Bata’s main competitors are Mirza Intl, Liberty Shoes, Crew B.O.S; Bhartiya Inter. In this report we have compared the Value chains of Bata India Ltd and liberty Shoes Ltd which says that Bata has a competitive advantage over Liberty shoes. Bata follows backward integration and are not dependent on some third party for procurement of raw materials which makes it cost effective. Apart from this Bata has a huge competitive advantage over Liberty in the area of sales and distribution channel.
Bata follows Cost leadership strategy. The company enjoys the highest market share in India and this is evident from the fact that the total retail presence of the company currently is more than thrice that of its closest competitor (Liberty: 381 stores). Bata has over 15% market share in Organized Retail market and around 6.5% share in unorganized retail. Bata is produces its own raw material to improve its
COMPANY:
BATA INDIA Ltd.
EXECUTIVE SUMMARY
This report discusses the detail of 1) Bata’s main line of business. 2) Its main competitors and their value chain comparison. 3) Strategy the company is following. 4) Current Costing System of the company. 5) Decision making on the basis of cost and information. 6) Decisions are being taken using management accounting information.
To summarise the above points we know that Bata is the fastest growing footwear brand in the country with a presence across 400 cities. The brand offers a wide range of comfortable, stylish and trendy footwear at affordable prices, ensuring there is something in the collection for everyone. The USP of the brand lies in the fact that they have successfully made fashion and durability so affordable and accessible to all. This explains why Bata India sells over 45 million pairs of footwear every year and serves over 120,000 customers every day. Today, Bata India is the largest retailer and leading manufacturer of footwear in India.
Bata’s main competitors are Mirza Intl, Liberty Shoes, Crew B.O.S; Bhartiya Inter. In this report we have compared the Value chains of Bata India Ltd and liberty Shoes Ltd which says that Bata has a competitive advantage over Liberty shoes. Bata follows backward integration and are not dependent on some third party for procurement of raw materials which makes it cost effective. Apart from this Bata has a huge competitive advantage over Liberty in the area of sales and distribution channel.
Bata follows Cost leadership strategy. The company enjoys the highest market share in India and this is evident from the fact that the total retail presence of the company currently is more than thrice that of its closest competitor (Liberty: 381 stores). Bata has over 15% market share in Organized Retail market and around 6.5% share in unorganized retail. Bata is produces its own raw material to improve its
References: www.bata.in www.wikinvest.com www.moneycontrol.com www.inrnews.com www.scribd.com