flipkart

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flipkart

  1. 1. Analysis of Growing e-commerce Retail SPACE IN INDIA NJ Krupashankar (11223)
  2. 2. About the company• Flipkart started by Sachin Bansal and Binny Bansal(not related), went live in 2007.• Presence across various categories including multimedia, games, mobiles, electronics and many more.• Over 11.5 million book titles, 11 different categories, more than 2 million registered users and sale of 30000 items a day.• Broke even in March 2010 and claims to have had at least 100% growth every quarter since its founding.
  3. 3. Mission, Vision, ObjectiveMISSION“Providing a delightful customer experience”VISION“To become Amazon of India”OBJECTIVE“Making books easily available to anyone who hasinternet access”
  4. 4. Detailed AnalysisPorters Five Force Threat of New Entrants High - Market potential is huge. - Low entry barriers Bargain Power of Bargain Power of Industry Rivalry Buyers Suppliers. High Medium Low - Best deals online - Large number of small - Book readership - Cash on delivery reducing YoY players. - International players - One stop shop - Inventory turnover lower than ever venturing the entry - Faster delivery possibility Threat Of Substitutes Low - Diminishing brick and mortar stores. - Increasing need for customer ease
  5. 5. Detailed Analysis (Contd)..VRIO Framework and TOWS Summary of VRIO, Competitive Implications, and Economic Implications Costly to Organized Competitive EconomicValuable? Rare? SWOT Category Imitate? Properly? Implications Implications Above Normal Temporary Strength and Core Yes Yes No Yes (at least for some Advantage Competence amount of time)Strengths and Weaknesses • Designing website to support local language. • Build on early mover advantage to constantly upgrade for more services.Strengths and Threats • Expanding to villages and small towns and exploiting benefits of e-commerce • Creating barriers to entry by differentiating services providedStrengths and Opportunities • Build on existing features to introduce the product to emerging market • Expanding to logistics and distribution management using acquisition • Strategic partnership with big retailers for home deliveryOpportunity and Threats • Increasing attractiveness to market due to high growth rate. • Need to create entry barriers
  6. 6. Why flipkart?• Discoverability• “We Do Not Sell Used Books” tagline.• Customer preference for payment - Cash on delivery• Low inventory turnover ratio• Great logistics and customer first motto• Promotion through word of mouth (High Goodwill)
  7. 7. Road Ahead Analysis Directional Policy Matrix High Phased Market Attractiveness Disinvest Double or Quit Withdrawal Snapdeal eBay Medium Phased Custodial Growth Try Harder Withdrawal Infibeam Naaptol Goal of these Low companies is to Cash Generation Growth Leader Leader capture marketGoal of company isto sustain its Flipkart share and obtainposition and capture growth leadermultiple market Strong Medium Low positionsegments Business Strength
  8. 8. Road Ahead• Funding from VC’s - Accel India and Tiger Global Management (US$10 million)• Private equity firms Carlyle and General Atlantic (US$150 million)• Acquistion of Chakpak’s digital catalogue, Mime360, and We Read.• Prepaid Wallet feature to its e-commerce platform• Online retail industry in India pegged to reach $1.5 billion (2015)• Amazon entering the Indian market.• Focus on Nine Building Blocks of Company Customer Segments Revenue Streams Value Proposition Key Resources Channels Key Activities Customer Relationship Key Partnerships Cost Structure
  9. 9. References• “Frameworks and Chart for strategic analysis” – Mahesh Narayan compilation• About the company - www.flipkart.com• “What it takes to do online retail in India”, mint.com• “Interview with Sachin Bansal”, TOI, 20-Feb-2011• “Continuous Development at flipkart” – Slideshare.com• “Rags to riches – Evolution of garage enterprise” – TOI• “A winning chapter” – Aarti Dua, Flipkart story• “Generating Business models” – Alexander Osterwalter and Yves Pigneur
  10. 10. Thank You

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