internal and external analysis of BATA India Limited as well as reason for not performing good despite new positioning. strategy for better performance
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Bata India Limited
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2. Due to increase in cost of raw material, sale went up by 21 crore, cost has gone up by 68 crore. So profit affected due to increased input cost.
3. Sales and distribution cost is also very high because most of shops are owned by company itself and staffed employee.
4. High value added footwear did not find acceptance in the market and led to drop in sale volume. So 2 million shoes were sold at a discount of 50 % at a loss of 41 crore.
5. Bata was focusing on premium segment which account very less in footwear industry in India.
7. The Company heavily depends on its Promoter group for its technology. The Company has entered into a Technical Collaboration Agreement dated December 29, 2000 with Bata Limited, Canada (“Bata Canada”) for a period of 10 years. Company does not anticipate any withdrawal of such services in future operations also, in case there is any withdrawal of the services, such withdrawal may adversely affect the business, operations and profitability of the Company.