Flipcart swot analysis

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Flipcart swot analysis

  1. 1. Flipkart.com Group Members : •Manoj Kumar Patle (35) •Gyanendra Kushwaha (24) •Durgalal Ahir (19) •Surendra Patle (57)
  2. 2.  Flipkart – One of the leading Indian e-commerce companies headquartered in Bangalore, Karnataka  Founded by Sachin Bansal and Binny Bansal in 2007 with 4 lakhs funding Raised two rounds of funding from Accel India andTiger global management  Early focus on online sales of books and later expansion of product line.  Offers multiple payment methods  Among the top 20 Indian Web sites in terms of traffic regarded as the Amazon of India. INTRODUCTION
  3. 3. ACQUISITIONS • 2010: WeRead, a social book discovery tool • 2011: Mime360, a digital content platform company • 2011: Chakpak.com is a Bollywood news site that offers updates, news, photos and videos • 2012: Letsbuy.com is India's second largest e-retailer in electronics for an estimated US$ 25 million
  4. 4. Flipkart building Trust • COD • 24*7 Customer Service • Never Promise something that you don’t have – it built its own inventory • Delivery – its own courier company • No-Questions-Return policy and 30 days replacement policy - A recent study has found that 89% of online buyers say return policies influence their decision to shop with an e-tailer
  5. 5. Growth Story… Started with books and went on to add new products 2 employees, 2 suppliers to 4800 employees and more than 600 suppliers Have their own internal courier services called flipkart logistics
  6. 6. Why Books were the first choice? • Lower transaction size • Better Shelf size • Shipping and handling of books is easy • To emerge as a pioneer in book retailing rather than venturing comparison shopping engine
  7. 7. Competitors in book market 5 sites cheaper than flipkart to buy books • Uread.com • Simplybooks.in • Bookadda.com • Landmarkonthenet.com • Infibeam.com - offering better discounts, consumers’ choices are split and they seem less inclined to buy books only from Flipkart.
  8. 8. No. Of hits on the websites Sep 2011- Aug 2012 Colour Codes Average Scores with respect to Flipkart Flipkart.com 1 Ebay.in 0.82 Myntra.com 0.5 Jabong.com 0.3 Snapdeal.com 0.42
  9. 9. Performance measurement • Profit gauge - Repeated transactions - 70% of customers come back • Reducing COD customers.
  10. 10. Flipkart Strengths • Price reductions • 24 hour a day shopping • Complete freedom and time to choose • Satisfied customers – purchase frequently and spending will increase
  11. 11. Segments Shopping Orientations Internet Exposure Experience as E – Shopper Demographics Convenience – oriented New Shoppers Opening hours and time savings Medium-low Men 25-44 Medium – High Class Big Towns Convenience – oriented experience shoppers Opening hours and time saving High Men 25-34 High Class Big Towns Involved shoppers Only medium available High Men 14-24 Medium – High Class Big Towns Dual shoppers Only medium available Medium- low Men 14-24 Medium – High Class Middle Towns Price oriented shoppers Price reductions - - Men 25-34 Medium/ Medium –High Class Big Towns Informational recreational surfers Low information search costs and easily - - Men 25-34 Medium – High Class Big Towns
  12. 12. Metros Vs Small Towns • In small towns – - consumers value personal communication highly - they are less stressed - have fewer traffic problems So they are less willing to buy online • Metros – - encourages new channels such as internet - nuclear families - traffic problems and more stressed
  13. 13. 123 • GiftsOccasions • Discounts , free home delivery • Price comparison Benefits • Potential user • First time or second time user User Status Behavioral Segmentation
  14. 14. Demographic Segmentation Age Kids – Baby care, Toys Teen – Playstation, Xbox, movies, music Gender Male – Computers, Mobiles and accessories, Watches Women – Beauty and Health care ,Home and Kitchen Occupation Student – Books, Music, Movies, Stationaries Traveler – Camera, Luggage, Books Working – Mobiles, Computers, Watches Segmentation Variables
  15. 15. PRIMARY ANALYSIS
  16. 16. 0 10 20 30 20 22 25 8 0 26 Sales 15% 15% 12% 15%6% 37% No. of events of online purchases in the last 12 months 1 2 3 4 5 >=6 62% 29% 9% USP of Flipkart Cash/Card on Delivery Easy to Order Easy to replace 0 100 77 4 10 2 7 Competition
  17. 17. Consumer oriented model Cost Heavy discounts on books Free shipping for purchases above Rs. 300 Consumer Availability of products across 14 categories Books can be ordered before they are launched Pan India presence Communication Advertisements via Search Engine Optimization Transparent Communication Once the customer places an order, progress can be tracked Convenience Ease of finding the product and related information Purchase at the click of a button Cash/ Card on Delivery Marketing Mix
  18. 18. Decision making process Evaluation of Alternatives Customer perceived value Wider range across all categories Purchase Decision Faster turn around time Cash/Card on Delivery Easy Return Procedure in case DOA Post- Purchase behavior Feedback on Flipkart website and other blogs Word of Mouth Affiliate
  19. 19. Dot -Com Generation Target group PURCHASE Time Poor Customers Cost Effective Non Tier 1 Cities looking for wider range
  20. 20. Understanding the category India is one of the fastest growing digital markets in the world ASSOCHAM says the online retail market in India may grow to Rs 70 billion by 2015 from Rs 27.5 billion, today as internet access improves Online retail accounts for less than 1% of the total online market in India thus provide a huge growth potential of the market for both domestic and international players Reasons for Online Shopping Busy Life Style Unavailability of a particular brand in a particular region Cash/Card on Delivery Discounts and Offers
  21. 21. PORTER’S ANALYSIS
  22. 22. RIVALRY • High Level of Promotion NEW ENTRANTS • Low Entry and Exit Barriers • Accessibility SUBSTITUTE • Price Wars CUSTOMERS • Low Switching Cost SUPPLIERS • Loyalty • New products PORTER’S FIVE FORCES
  23. 23. INTERNALFACTORSEXTERNALFACTORS STRENGTHS •BRAND •SUPPLY CHAIN MANAGEMENT •QUICK TURNAROUND TIME •ADVERTISEMENT AND PROMOTION •STRATEGIC ACQUISITIONS •HUGE REACH WEAKNESSES •DELIVERY •INTERNET PENETRATION •PAYMENT GATEWAYS •HIGHER COSTS •GROWTH IN e-TAIL •GROWTH IN e-BOOK CULTURE •BROADBAND PENETRATION •MOBILE APPS OPPORTUNITIES •NEW PLAYERS SUCH AS AMAZON THREATS SW HARMFUL To achieving the objectives HELPFUL To achieving the objectives OT
  24. 24. New Strategy •None of the people who took the survey said they buy music online •Songs are priced very high , Rs 6 - 15 per song •5000 downloads a day

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