Case Study on Batabito: Innovation and Success in the Sport Shoe Manufacturing Industry

History of Batabito

This case regards an Italian small enterprise called Batabito, based in the Veneto region, in the heart of the Italian sport shoe-manufacturing district. This small, family-run firm was established in the 1970s, when the number of amateur athletes was growing throughout Italy and the rest of Europe. The firm started producing mountaineering shoes mainly on behalf of older, larger, third party firms which partly outsourced their production to trusted smaller producers. The company’s collaborations have also spanned across the Atlantic, working with American shoemakers. Throughout the intervening years between the 1970s and the 2000s, the company had been limited in its production of wares bearing its own brand. This long history of high level cooperation has allowed the Italian firm to accumulate relevant knowledge with regard to productive technologies, the ability to adapt the product to the customer’s anatomy (a relevant issue in shoe making) and with regard to commercial strategies. This relevant background proved essential when, in the mid-2000s, the company decided to launch its own brand comprised of a collection of mountaineering and rock climbing shoes. The timing was strategic, as the second half of the 2000s in Europe saw massive growth in the number of practitioners of these sports, allowing new brands to experiment with success in a burgeoning market. After some year of growth in the market, at the beginning of the 2010s, came the firm’s real technological innovation. Thereupon, the company introduced a new material – a microfiber wedded to a patented technology – to build the upper surface of their climbing shoes. The material had never been experimented with before in this field, but was discovered to revolutionize mountain climbing shoes. The firm spent three years diligently experimenting with the material before arriving at a product that could be presented to the market. What they discovered was that rock-climbing shoes must adhere perfectly to the foot in order to increase the sensitivity of the climber. However, prior shoes that enhanced sensitivity also had the concomitant problem of inducing pain. The microfiber innovation allowed them produce shoes that fit perfectly while also reducing pain and discomfort. As an added benefit, it also enhanced the durability of the shoes. This technological innovation was made possible due to the pre-existing wealth of knowledge possessed by the firm, as well as by the firm’s collaboration with expert climbers. The turnover of the firm has grown significantly (about 20%) due to the sales of the new shoes. Moreover, the company implemented an aggressive commercial strategy, sponsoring several emerging athletes able to demonstrate the benefits of the product to potential customers. Summing up, what is relevant in this case is experimentation, thinking outside the box, product innovation and revolution by means of exploiting new materials while drawing upon a wellspring of practical, accumulated knowledge.

1.Elaborate on any  two main reasons bringing success to this company?  (4 marks)

2.Contextually, would the company fail if they traditionally stick to producing shoes for amateur athletes? Explain. (2marks).

3.‘Increased growth is a measure of leader’s capacity to lead’. Discuss the statement as you identify; 

a.Two probable leadership skills from the case (2 Marks).

b.Two examples of the innovative process in the case (2 marks).

4. From the case above,

a.Analyze and relate the performance of the firm with its location and its leadership of the location  (6 Marks)

b.Elaborate on any two major strategies the firm used to spur its performance (2 marks)

c.Mention any two professional misconduct the firm’s leadership would have done to increase performance  ( 2 marks)