The power point drills down in deep analysis of Indian Book retail market and emergence of E- Tailing. We also look at the Business model of Flipkart and how they differentiate from other players.

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2.  Leading Indian E Commerce company headquartered in Bangalore.
 Started by two IIT graduates (earlier employed with Amazon) in year 2007.
 India’s largest online bookseller with over 11.5 million titles in offer.
 Added other products like media, electronics, personal and health care.
 Boasts 100% growth every quarter since founded.
 Funded by owners “Bansals”, VCs Accel India and Tiger global.
 Projected sales for year end 2011-12 stands at US $ 100 million.
 Sells nearly 20 products per minute.
 First company to introduce Cash On Delivery payment system.
 First Mover in the Indian online retail Industry.
 Registered User base of two million customers.
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3. Top 30 Websites in India.
11.5 million titles available.
8 million visits every month.
4500 current team strength in 27 cities.
30000+ items shipped per day.
Projected to be India’s first Billion dollar Internet
company by 2015.
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4. Students/Academicians Book lovers
and
Corporate/executives
Normal
people (for
gifts, etc.)
FLIPKART
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5. Vision
“To become Amazon of India”.
Mission
Providing a delightful and memorable customer experience.
Objective
“Completely hassle free shopping experience with best prices in
India”.
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6. • Low capital • Presence of
investment. multiple players
• High & traditional
technological retail stores.
intensive • Cheap old/used
players. Threat of new book vendors.
Entrants Bargaining
(Moderate) Power of Buyers
(High)
Rivalry Among
Competitors
Existing: Attractive
(High)
Entrant: Not Attractive • Low entry
barriers
•Huge market.
Threat Of Bargaining
Substitutes power of
• Traditional book (Low) Supplier • Large supplier
stores. base.
(Low)
• Advent of E book • Decreasing
readers like I Pad popularity of
and Kindle. printed books.
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8. Online Book Sellers Traditional Book
(20 % market)- Sellers (80% market
Direct share)- Indirect
FLIPKART: Market leader with General Book Stores/
80% share. fragmented over whole
country.
INFIBEAM:
7% share. Branded book chain
(Crosswords, Om Book Depot,
Landmark, etc.) in Tier 1 cities.
BOOKADDA:
5% share.
Others (EBay, India Times):
8% share.
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9. Strategic Objective: “Flipkart” aims to become the largest retailer of
India. Flipkart wants to be present across all categories, except in
groceries and automobiles, the CEO said. “Our target is not just those
who shop online. We want to highlight the convenience of e-commerce to
traditional offline shoppers and, thus, help grow the market.”
Financial Objective:
2015
• US $ 100 million • Largest retailer in
revenue. • US $ 1 billion India.
• Diversify product revenues. • Enter global
portfolio into • Aggressive markets.
home appliances, acquisitions.
electronics, etc. • Stronger supply
chain. 2020
2012
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10. Flipkart:-
High
Traditional Bookstores:-
Book Adda:-
The strategic map suggests that neither
Infibeam:-
Brand awareness nor Prices are key
success factors in the market. Since
Brand awareness
Flipkart is not the industry leader with
high Brand equity and lower prices.
Medium
Traditional
Bookstores
Low
Low Medium High
Pricing Prepared By:- AKASH TYAGI 10

11. Flipkart:-
High
Traditional Bookstores:-
The strategic map suggests that Network Book Adda:-
reach of fragmented book shops is “Name
Infibeam:-
of the game” and it is amplified due to
low internet penetration and online
Brand awareness
shopping awareness in India. But with
changing trend Flipkart will move to high
Medium reach and thus grow its market share
based on other competencies.
Traditional
Bookstores
Low
Low Medium High
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12. The strategic map suggests that low
High Traditional delivery time is a KSF. It is obvious that
Bookstores physical book stores will give immediate
delivery while for any online book store it
will take a number of days. Flipkart is low
on delivery time and guarantees 3 days
delivery on several items. But physical book
stores also take advantage of on the spot
Pricing
buying behavior.
Medium
Flipkart:-
Traditional Bookstores:-
Book Adda:-
Low Infibeam:-
Low Medium High
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13. Key Success Factor Weight Flipkart Infibeam Bookadda Physical book stores
Network/Reach 0.5 3 1.5 1 10
Delivery/ Spot buy 0.5 4 1.5 1 10
Total weighted score 1 3.5 1.5 1 10
Total market share 100% 16% 2.50% 1.50% 80%
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14. • Competitors :- Online Book stores and Physical Book stores.
• Online Book Store market’s projected growth at 30-35% in next 5 years.
• 52 million active Internet users with only 40 per cent online shoppers.
• Largely scattered physical book stores across the towns and cities.
• Spontaneous/physical buying behavior of Indian consumers visiting
malls.
• Books are amongst the most gifted items in Indian youth.
• Displays large disparity between online and physical book stores target
customers.
• Online Book stores will eat the market share of Physical book stores but
only after customer transition to Internet medium of purchases.
• Flipkart will be directly competing with Online book stores while
increasing the trend of online book shopping behavior through its
excellent service.
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15. Flipkart:-
High
Others:-
Book Adda:-
Infibeam:-
Brand Awareness
The strategic map suggests that both
Medium price and brand awareness are key
success factors in the market. Flipkart is
the industry leader with 80% market
share having a very high Brand
awareness and lowest prices.
Low
Low Medium High
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16. The strategic map suggests that
both Convenience and Availability
High are key success factors. Convenience
caters to user friendliness of portal,
tie ups with banks for reliable
transactions. Availability refers to
number of titles and various types
of additions.
Convenience
Medium
Flipkart:-
Others:-
Book Adda:-
Low Infibeam:-
Low Medium High
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17. Key Success Factors:
o Brand awareness.
o Convenience (Delivery time and reach, user interface and
experience and Tie Ups for safe and reliable banking).
o Availability (number of available titles, various editions and
print types like hard bound/paperback).
Threshold Factors:
o Being a very new industry in Indian market almost every
factor contributes to the Key success of an Online book store.
Going forward some of the KSFs will turn into thresholds.
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18. Key Success Factor Weight Flipkart Infibeam Bookadda Others
Brand awareness 0.15 10 3.5 3 4
Convenience 0.60
Delivery time 0.2 10 2 1 2
Delivery reach 0.2 9 2 2 2
User Experience 0.10 8 3 3 3.5
Reliability 0.10 9 4 4 4
Availability 0.15 10 3 2.5 4
Price 0.10 9 7 6 6
Total weighted score 1.00 9.4 3.175 2.725 3.35
Total market share 100% 80% 7.00% 5.00% 8%
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19. Competencies:
• excellent product delivery
Key Success factors: • self owned delivery n/w
• brand awareness • supplier network
• convenience • first mover advantage
• delivery reach • payment mode
• delivery time • excellent services
• reliability • internet strategy (search engine
• user experience optimization)
• availability • large loyal customer base.
• price
Value proposition:
“Completely hassle free online
shopping experience with best prices
in India”.
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20. Key Success factors:
Competencies:
• brand loyalty
• large self owned delivery channels
• User experience
• Reliability
• supplier network/ first to market
• convenience • mobile shopping solution/ increased
• delivery reach reach
• delivery time • innovation in
• mobile shopping services/payments/technology
• availability • excellent customer services
• product modes (printed/ e- • internet strategy (search engine
books) optimization, platform advancement)
• titles • large loyal customer base.
Threshold factors: Brand awareness,
price.
Value proposition:
“Completely hassle free shopping
experience with best services to
everyone, everywhere and everytime
in India”.
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21. Key Success Factor Weight Flipkart Infibeam Bookadda Others
Brand loyalty 0.30
User Experience 0.20 10 5 4 4
Reliability 0.10 10 5 3 3
Convenience 0.50
Delivery time 0.15 10 3 2.5 2
Delivery reach 0.20 10 3 2.5 3
Mobile Shopping 0.15 9 0 0 0
Availability 0.20
Product modes 0.10 9 2 2 4
Titles 0.10 10 5 4 5
Expected weighted
score 1.00 9.75 3.25 2.575 2.9
Expected market
share 100% 90% 4.00% 2.5% 3.5%
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22. Convenience: still remains the name of the game.
o An online/mobile shopper still remains strong on the convenience touch point with
main factors as Delivery reach to wide spread locations, short delivery times. Early advent
into providing a mobile platform for on the go shoppers and shoppers with less access to
other standard internet devices.
Brand Loyalty:
o Excellent user experience on the e commerce website in terms of usability, speed,
clarity will enhance the loyalty of existing customers and move a step ahead of brand
awareness towards customer retention.
Availability:
o Choice/availability of printed mode or e- books will play a major role in catering to a
larger audience with varied needs/interests. Number of titles in either product mode will
still remain a strong factor in determining customer’s interest in purchasing from any
Online book store.
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23. External Analysis Opportunity: Threat:
1. Untapped mobile users 1. Low internet penetration
2. Coverage of all parts of India 2. Less usage/preference of online
3. Tie ups with Book fairs/education buying
institutes. 3. Small value orders in remote
Internal Analysis 4. Enter new untapped global areas with high delivery costs
markets 4. Amazon will enter soon
5. Self e-publishing
Strength: S1S3S7O1: Provide mobile platforms. S2S6S7T1T1: Mobile consumers
1. Customer service S2S4S5O2: Increase the reach. S1S3S7T2: marketing to educate
2. Online discoverability S3S4O3: Target students and education reliability to customer
3. Brand sector. S4S5T3: Save costs and provide
4. Inventory management S2S3S5S6O4: Enter new attractive package deals for higher value orders.
5. Self owned delivery n/w global markets. E.g. Srilanka. S1S3S4S5S6T4: Enhance brand loyalty
6. Supplier network/relation S2S3O5: Tie up with authors to acquire ,customer service and build on delivery
7. Innovation and technology rights. and supplier n/w.
competence.
Weakness: W1O3: Tie up with educational W1W2T2T3: Minimize small value
1. No control over small value orders institutes for providing bulk orders to orders.
2. Free shipping built costs students/schools. W3T1: Promote other mediums of
3. Less reach as compared to W2O2O5: reduce delivery costs with buying like mobile, telephone or may
physical book stores. widespread warehouses and be small retail outlets.
4. Global reach. promoting high margin e-books. W4T4: expand to new untapped
W3O1O2O3O4: Improve reach, enter markets and acquire small players.
new untapped cities.
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24. Short/ long term Strategic options Long Value Capabili Alignme Weighte
term propositi ty (.30) nt to d Score
objective on (.30) goals
s (.30) (.10)
Increase the reach using mobile platform, 9 8 9 9 8.7
telephone or physical medium.
Tie ups with educational institutes across India 7 7 9 6 7.5
to cater students and reducing costs through
similar order delivered once.
Setting up own E-publishing house by acquiring 4 4 3 3 3.6
rights from authors to publish high margin e-
books.
Enter new untapped/unserved global markets 9 9 8 8 8.6
like neighboring Srilanka.
Reduce costs by increasing warehouses and 9 9 10 10 9.4
suppliers across the country.
Increase margins through bundled deals for 10 10 9 10 9.7
small value customers .
Marketing efforts to educate Flipkart’s reliability 8 8 9 10 8.5
and safety shopping to conventional consumers.
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25. Short Term:
 Flipkart must develop mobile application/solution for huge cell-phone
customer base of India helping it to increase its reach.
 Increasing margins while reducing losses by providing attractive bundled
deals to low value shoppers.
 Provide small mobile outlets in cities with limited reach to internet and
increasing demand.
Long Term:
 Enter new international markets which is either un-served or untapped.
 Focus on high margin products like e-novels for a book store.
 Diversify into all product categories (achieved) to achieve economies of scale.
 Educate Indian conventional customer by marketing efforts.
 Increase bulk selling and reach to student customers by ties with educational
institutes for academic curriculum supplies.
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26. Internal
Outputs O
actions IA
I
P
n
r
n
o
o
f
v
I
a
t
t
s
e
Lower costs
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27. Respect the
Cost customer-> loyal Employee
advantage Customer-> WIN strength
Provide the
customer- best
price, service,
quality.
Promise the
customers-
value
proposition.
Connect to
customers-
increase the
Constant
reach. Supplier
Innovation relations
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28. http://www.pluggd.in/flipkart-story-ecommerce-differentiator-297/
http://blog.flipkart.com/
https://www.flipkart.com
http://www.thehindubusinessline.com/todays-paper/tp-new-manager/article2507045.ece
http://www.iamwire.com/2012/02/flipkart-is-all-set-to-buy-letsbuy-com/
http://www.deccanherald.com/content/190213/indian-e-commerce-firm-flipkart.html
http://www.guardian.co.uk/books/2009/apr/22/books-india-china
http://timesofindia.indiatimes.com/business/india-business/Flipkart-faces-heat-of-rivals-
discounts/articleshow/13029174.cms
http://www.sramanamitra.com/2010/10/04/building-indias-amazon-flipkart-ceo-sachin-bansal-part-1/
http://www.slideshare.net/VarunAthreya/flipkart
http://www.slideshare.net/krupashankarnj/flipkart-12116318
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