Flipkart faces many challenges operating in India's volatile ecommerce market including high cash-on-delivery orders, underestimating competition, and difficulties with third-party logistics. To address these issues, Flipkart is working to reduce cash-on-delivery by promoting online payments, providing seller training and financing to improve inventory management, and launched its own logistics arm to gain more control over deliveries. Tax ambiguities between states also present complex challenges that Flipkart aims to overcome through customized policy solutions.

1. MANAGING IN A
VUCA WORLD
SUBMITTED BY
RINEE DOBHAL

2. IT’S A VUCA WORLD!
“We are moving from a world with problems, to a word of dilemmas”

3. WHERE DID VUCA COME FROM?
• VUCA is an acronym—first used in 1987
• Coined at the U.S. Army War College in meant
to describe the “FOG OF WAR”.
• FOG OF WAR is the uncertainty regarding
one’s own capabilities ,adversary capability,
and adversary intent during a war.
• Military forces try to reduce the fog of war
through military intelligence.

6. VOLATILITY
• It is the RATE, AMOUNT and
MAGNITUTE of change.
• It brings Drastic, rapid Shifts
can Bring about instability for
organizations, but even the
minor shift that occur daily ,
Such as new and “intermediate”
priorities that disrupt plan or
increasing need to “multitask "are changes
that increase in volatility.

7. In cashew plantation point of view
• Volatility helps to make profit in some cashew planters and also loss to
some cashew planters.
For example:- When there is a natural disaster in one areas and in another
area no such natural disaster occurs.
In the place where natural disaster occurs the demand for cashew increases
because of less production and automatically the price also increases then
the profit for the plantation sector are also increases.
In the place where no natural disaster occurs the demand for cashew
remains constant or can be less
because of more produ-
-ction and prize also
constant so there is no
profit for the planters
located in this area.

8. UNCERTAINTY
• Lack of clarity about the challenges and their
current and future outcomes.
• Uncertainty can result in an over-reliance on past
experiences and yesterdays solutions or to analysis
paralysis as we shift to more and more data.

9. In Cashew Plantation point of view
• There are many situations in plantation sector
which causes uncertainty:-
Lack of prediction of rainfall
Lack of information about price fluctuation in
future.
Lack of clarity about particular technology.
Lack of information about when to harvest
and when to market among the cashew
planters.

10. COMPLEXITY
• The amount of dependency and interactive
effect of multiple factors and drivers.
• Requires to think in more creative, innovative
and non-linear way; to be able to deal with
shades of gray( as apposed to black and white)
solutions.

11. In Cashew plantation point of view
• Complexities in using improved package of
practices
• Complexities in using improved technologies
like precision farming i.e. using of GPS, yield
mapping, variable rate of fertilizer application.
• Complexities in understanding government
policies in terms of exports and imports.

12. AMBIGUITY
• The degree to which information, situations, and events can
be interpreted in multiple ways.
• It increases doubt, slows decision-making and result in missed
opportunities. It re-quires that leaders think through and
diagnose things from multiple perspective.

13. In cashew plantation point of view
• Failure to understand the particular time
when to harvest and when to market.
• Failure to understand the new technology
and its profitability due to lack of information
among the farmers.

14. VUCA PRIME

16. VUCA ANALYSIS IN INDIAN ONLINE
RETAILINDUSTRY - FLIPKART
• The Indian online retail industry is currently witnessing a number of
rapid changes and challenges associated with stages of evolution.
• Though the e-commerce sector is growing exponentially in India, it faces
several challenges like customer mindset, high cash on delivery (CoD)
based orders, reachability, poor courier services and other policy-related
issues.
• Certain ecommerce players and industry observers have raised concerns
that deep discounts, free shipping, intense competition and higher
rejection rates due to cash on delivery (CoD) have impacted online
online retail adversely.
• Some of these concerns are specific to India and are more difficult to
overcome than issues such as internet penetration and getting more
people to shop online.
• Flipkart, is also facing a lot of these challenges and to certain extent, has
been successful in dealing with them.

17. FLIPKART CHALLENGES AND
APPROCHES
VOLATILITY
CHALLENGES APPROCHES
• Majority share of Cash-on Delivery
(CoD) due to which multiple challenges
occurs:-
-additional cost
-longer revenue realization cycle
-increased supply chain complexity
-and fraud risk
• Dissatisfied customers of “Big Billion
Day” sale
Lack of exposure to the online business
for its seller base was the reason why
the market leader Flipkart ran out of
stock for many of its popular products.
-share is likely to reduce gradually, with
increasing penetration of credit/debit
cards coupled with its online usage and
greater consumer confidence in such
transactions.
• It identified the efficient sellers and
began coaching them on various
aspects which are important for selling
products online.
• it took the help of third-party agencies
such as Aptech and Skillventory. It also
used data and analytics, to help the
sellers identify trends

18. FLIPKART CHALLENGES AND
APPROCHES
UNCERTAINITY
CHALLENGES APPROCHES
• UNDERESTIMATED COMPETITION Need to invest more in collection of
innovations made by flipcart are now data and interpretations.
commoditised. Every big player offers
the same. Amazon India has data
scientists whose job is to only execute
strategic pricing that makes Flipkart
Bleed
• Facing difficulties from the third it started its own logistics arm named
party logistics providers (3PLs) in the e-kart
form of higher delivery cost, late
deliveries and faulty products
delivered resulting in return
and customer dissatisfaction,

19. FLIPKART CHALLENGES AND APPROCHES
COMPLEXITY
CHALLENGES APPROCHES
-Flipkart‘s faulty process to address ‘out of
stock issues‘ during “Big Billion Day’.
-Failed to organize sellers .
-Uneducated suppliers in terms of online
business
-5 days exclusive category sales of goods
Example: Fashion, Home appliances,
Mobile and accessories, Electronics and
automotives, Books and more
- Educated suppliers in terms of online
business
-Provided finance to suppliers for buying
inventory
- Built seller‘s trust

20. FLIPKART CHALLENGES AND APPROCHES
AMBIGUITY
CHALLENGES APPROCHES
-Tax issues in Karnataka and Kerala -Specially designed policies for
ecommerce industry, implementation
of goods and service tax e.g. GST

21. CONCLUSION
• The VUCA model is beneficial in identifying the internal and external
conditions that affect organizations today.
• Volatility can be dealt with a better organizational vision. Clear vision of where
they want their organizations to be could help them to tide over volatile
environmental changes such as economic downfalls or increased competition.
• Uncertainty can be managed with cognizing, the ability of a leader to stop,
look, and listen beyond their functional areas .
• Complexity can be defied with clarity, the process
to try to make sense in the time of chaos.
In a VUCA world, chaos comes rapid
and hard. Organizations, who can quickly
and clearly comprehend all of the intricacies
associated with the chaos, can make better,
more business decisions.
• Ambiguity can be counteracted with dexterity. Skillful management of the
resources in an ambiguous environment would remove the vagueness
surrounding the business.