E bizz and ecommerce for christ university v.3

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I presented this at Christ University Bangalore (last month) to MBA 2nd year students.

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E bizz and ecommerce for christ university v.3

  1. 1. Trends in E-business Class of 2012 MBA @ Christ University Raghavendra P Hunasgi © Raghav
  2. 2. Thanks for Viewing!This presentation was originally designed in June 2012(for a lecture atChrist University). As we all know , the internet moves at an alarmingpace. I hope to update this (regularly), but until then, please note thatthis information may be a little dated (some of the facts and figuresused are from FY 2011-12). However, the heart of the story willremain relevant for years to come.You can find me on:Facebook: https://www.facebook.com/pranesh.raghavendraLinkedIn: http://in.linkedin.com/in/hraghavendraBlog: http://nimeeihg.blogspot.com/Twitter: raghav0711Gtalk: pranesh.Raghvendra@gmail.com © Raghavendra Hunasgi
  3. 3. Content1 Introduction E-tailing • Overview • Business models2 • Advantages & disadvantages • Operations excellence at Amazon • Example (e-tailing giant Amazon.com)3 Case studies4 Q&A © Raghav
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  9. 9. E-tailing
  10. 10. Types of business modelsBricks and Mortars business: Pure play E-tailers: TheThese are businesses with actual businesses that sell pre-business locations and store dominantly online Eg: FlipKartfronts. Multi channel retailers: Businesses that sell both via traditional channels and online Eg: Bigbazzar (futurebazzar.com)
  11. 11. How does e-tailing work? © Raghav
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  13. 13. What is so uniqueabout e-tailing(e-commerce)? © Raghav
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  15. 15. How does e-tailing in Indialook like? © Raghav
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  17. 17. Advantagesof e-tailing © Raghav
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  19. 19. Disadvantages of e-tailing © Raghav
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  21. 21. An example of an Indian e-tailing giant: © Raghav
  22. 22. I am sure all of us have used or atleast heard about “Flipkart.com” Few facts about Flipkart.com• Founded by Sachin Bansal and Binny Bansal(not related), went live in 2007• Both graduates from IIT Delhi and formerly employed @ Amazon• They broke even in March 2010 and claims to have 100% growth QoQ since its incorporation• Today they have close to 12 million book titles, 11 categories, 2.3 million registered users and close to 35000 items shipped each day• Mission: providing a delightful customer experince• Vision: to become Amazon of India• Objective: Making books accessible to anyone who has internet access in India• Tagline “We do not sell used books”• Only Indian e-com company with pure word of mouth MKTG – MKTG team started in 2011• Team objective: Customer first motto• Employees over 3200 people in India © Raghav
  23. 23. Operational excellence @ FlipKart.com How do you handle the operations of a company that has experienced 2 million unit sales and 4 million unique visitors per month with sales growing at 25% per month, eyeing a $50 million run rate?How does Flipkart manage the inventory, Supply chain,client fulfillment, payment options, employee engagement,innovation……????? © Raghav
  24. 24. Inventory management..Flipkart doesn’t believe in getting the product once the order is placed. Theproducts are all there in the inventory. When you place an order online the CRMsystem sends the request to the inventory store and the team ships it within 2hrsof receiving the request.Strictly abide by “never promise something that u dont have” rule.The ANS (Alerts and Notification) system of their inventory management softwarekeeps a close on fast moving, slow moving and dead (demand cycle) to notifyabout the stock.Unique strategy:• Warehouses near airports.• Local warehouses across 8 cities• A part of customer support team based out of warehouse’s © Raghav
  25. 25. Payment options…Best in class and very customer friendlyTie-up with all the major banks and credit card providers in IndiaPre-paid (wallet)Cash-on-deliveryNet banking © Raghav
  26. 26. Delivery..• Flipkart seen delivering through their own delivery boys in Bangalore and at times within 12hrs from order.• Unique packaging of the products Order lifecycle• Tamper proof, weather proof, breakage proof• Tracking ID management• Trace and track emails to the customers © Raghav
  27. 27. Order lifecycle management @ Flipkart.com• Get the item  Procure from Supplier (Just-in-time) (Supplier selection)• Keep Inventory (Inventory Prediction, Planning)• Clean & Check for sanity  Pages missing, MRP printed lesser than told to you• Pack the item  Tamper proof, weather proof, breakage proof• Select courier & hand-over  Courier performances vary across regions a LOT• Get tracking id & communicate to customer  Follow-up for timely delivery• Take care of returns (faulty product/user changes their mind)• Minimize returns © Raghav
  28. 28. Order lifecycle management @ Competition and challenges Flipkart.com• Attract users to the site Family, Friends, SEO, SEM,WoM, Brand Building• Provide selection• Make it easy to Find & Discover products Provide details to evaluate a product Description, Specifications, UGC Price well Have to be competitive to the most obvious options Provide convenient payment options Online, COD Confirm payment © Raghav
  29. 29. • No glamour – this is dhanda and very traditional at that.• Your competition is on SP road, avenue road and Chandni Chowk. Dealing with suppliers: > Signing agreements with suppliers > getting them to share data feeds > getting them to fulfill your orders• Dealing with Payment Gateways• Setting up & operating large warehouses• Dealing with Couriers• People may not be as forthright & honest © Raghav
  30. 30. Flipkart.com what next??? © Raghav
  31. 31. • Funding from VC’s - Accel India and Tiger Global Management (US$10 million)• Acquisitions: • 2010: “We Read”, a social book discovery tool. The stated goal was to give Flipkart a social recommendation platform for buyers to make informed decisions based on recommendations from people within their social network. • 2011: Mime360, a digital content platform company. • 2011: Acquired the rights to Chakpak’s digital catalogue which includes 40,000 filmographies, 10,000 movies and close to 50,000 ratings. Chakpak.com is a Bollywood news site that offers updates, news, photos and videos.• Prepaid Wallet feature to its e-commerce platform• To be the first billion dollar Internet company from India(going by 2015 estimates )is by far the leading online store in the nation.• Now that Amazon is reportedly entering India in early 2012, this news becomes even more significant, considering that Amazon has previously, and unsuccessfully, tried acquiring the company, with Flipkart demanding a very high buyout price.• Private equity firms Carlyle and General Atlantic are in talks to jointly invest about $150 million to $200 million in Flipkart, according to sources. © Raghav
  32. 32. An example of e-tailing giant:Amazon.com © Raghav
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  46. 46. Operations excellence atAmazon.com © Raghav
  47. 47. End-to-end operations of Amazon fulfillment center © Raghav
  48. 48. What is next atAmazon.com? © Raghav
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  51. 51. Case Study © Raghav
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  57. 57. Search is FREE…Blogger is FREE…G+ is FREE..Picasa is FREE…How does GoogleSurvive or make Money? © Raghav
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  59. 59. Painting the bright future.Do you know what is Google Worth today? © Raghav
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  61. 61. Questions?Photo: http://www.flickr.com/photos/oberazzi/318947873/ © Raghav © Raghav
  62. 62. Thank You

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