Program: BBA (H)
Section: a
Assignment # 2
BATA: STRATEGIC CHOICES
Submitted to:
Mr. Ghulam Ahmad Rana
Submitted by:
Sohail Mazhar 083805013
Moeez Saleem 083805016
Umer Ashraf 083805027
Shahbaz Arshad 083805030 Zain fazal Ahmad 083805032
Furqan Tariq 083805046 Omer Sher 083805129
DATE: 26-03-12
BATA PAKISTAN LTD
PAKISTAN FOOTWEAR INDUSTRY:
➢ Pakistan has a large footwear industry. It had a footwear market of above 150 million pairs per year.
➢ In Pakistan footwear industry can be divided into two sectors formal sector and informal sector
➢ Formal sector consist of about 500 small manufacturers, each producing from 500 to 40,000 pairs per day. Firms in this sector included giants such as Bata and servis
➢ Informal sector has the big market share of about 80 percent, was comprised of over 17,000 units, each with the average of two employees.
➢ Exports About dozen firms are involved in the exports but only Servis, Bata, Firhaj, Epcot. Shafi and Rajex participated regularly in the major annual footwear exhibitions in the Dusseldorf, Germany.
➢ Government Policy has big influence on the large players of the footwear industry through their import and export policies and duty rates.
➢ Sales Tax Small manufacturers prefer not to grow too large. They just want to remain under central board of revenue for to save themselves from 15 percent sales tax and by doing so they can save on many duties.
➢ Expansion The larger expansion in the leather industry happened in the 1980s that was resulted due to the remittances from migrant in the Middle East, together with the afghan war, resulted in 6% annual GNP growth.
➢ Market Size The number of tanneries tripled during 1981-1991 from 180 to 509, making quality finished leather widely available to footwear