1. X L R I , P G C B M - 2 6
E-BUSINESS PROJECT - I
2. INTRODUCTION
Flipkart founded in 2007 by Sachin Bansal & Binny Bansal
and is registered in Singapore with operations in India
Flipkart started selling books online and used word of mouth
marketing for the first 2 years
In year 2010 it has branched out to selling CDs, DVDs,
Computers, Mobile Phones & Accessories, consumer
electronics etc
The company revenue to operating costs broke even in
year 2010 and had atleast 100% growth every quarter since
its initiation
Flipkart started with a mere budget INR 400,000 for its
operations and website creation, today the company
valuation is 15 Billion USD or INR 90,000 crore
Flipkart has started it own line of products since 2014, some
of these products are fashion apparels, mobile phones,
phablets, routers, home appliances & medical devices
Flipkart today has about 20,000+ employees in its India
operations
Flipkart now allows sellers to set up accounts online and sell
their products by providing all the necessary marketing &
seller operations
4. BUSINESS
Distribution
Flipkart is designing its
distribution channels in such
a way that it is becoming
official distributor of the
products for several
companies.
Examples: Motorola
products, Google Products
etc
Logistics
Flipkart Logistics are
becoming very strong and
efficient which itself is
turning into a Business
Solution
Other websites can also
outsource their delivery
through Flipkart
Pricing
Flipkart pricing options give
vendors to directly sell their
products on the website by
opening a vendor account.
Product Launches and
Marketing is handled by the
already established brand
giving several advantages
to the vendors
BPO
24X7 customer service and
returns network is well
established to provide best
customer service
experience
This network can be utilized
by several product
manufacturers to delivery
the best Aftermarket
services
5. BUSINESS INFRASTRUCTURE
• 25 Warehouses across the country
• 60 delivery locations
• 20,000+ Employees
• More than 110 Network Servers to handle the increasing web
traffic
IT Network Infrastructure
6. WHY THIS INFRASTRUCTURE
• Flipkart organized a marketing event called the “ The Big Billion Day Sale” which turned out to expose major
flaws in their networking and web management.
• Flipkart has taken immediate steps to ramp up their server capacity by 10 M USD. Also they are taking help
of Data Analytics to monitor the consumer buying behaviour and the expected sales.
• Flipkart has moved its IT Infrastructure management from a US based firm to an Indian based firm called
Netmagic which has helped them to achieve 99.99% website availability.
• Flipkart is aiming at a goal of 80 million shipments per month by optimizing their supply chain and by
partnering with companies who are specialized in Logistics Management
• Flipkart is also investing in future technologies like using robots to deliver packages between their
warehouses. This will reduce the cost and time of delivery.
7. BUILDING INFRASTRUCTURE WITH
INVESTMENTS
Investments Made over years
• Unlike Flipkart’s competitor ‘Amazon India’, the cost of infrastructure is very high. As, flipkart relies on third
party solution. Where as Amazon has its own website solution that it also sells to other companies (ex.
Redbus) to reduce the cost.
• Earlier in 2014, Flipkart had raised total $1.9 billion, and immediately a few months later, it again raised
$500 million.
• Now in 2015, Flipkart is investing $10 million to make a robust infrastructure of cloud with the help of Dell.
• This investment were done in very short intervals. One of the reason to emerge out into The reasons is to
build an in house logistics (eg. Ekart). Also the investment is to catch up with the rapid change in the e-
business traffic and therefore the need to have a robust infrastructure to handle sudden spike in traffic.
Source: yourstory.com
