The document provides a comprehensive analysis of e-commerce growth in India, focusing on Flipkart's strategies, strengths, weaknesses, opportunities, and threats (SWOT). It highlights factors influencing e-commerce popularity, such as technological advancements and changing consumer preferences, while addressing challenges like competition and trust issues in online shopping. The conclusion emphasizes the company's goals for expansion, product diversification, and navigating the evolving online landscape.

1. E-COMMERCE CASE
STUDY-I
FLIPKART
BY
AMLAN DATTA

2.  What has led to the rising popularity of e-commerce in
India?
 Why do many people still prefer to go shopping
physically, ignoring the convenience of online
shopping?
 What are the prospects of e-commerce in India and
which factors may influence its continued growth?
E-COMMERCE SCENARIO IN INDIA

3.  Display
 Expense
 Location
 Communication
 Technology
ONLINE VS. OFF-LINE

4.  Books fall under non-sensory product categories and
gaining trust while selling non-sensory products online is
easier.
 The average order size for Flipkart books was very small
 Flipkart had already established its brand as a trustworthy
seller, capable of delivering on its promises.
 Flipkart entered into different product categories so that
the order sizes increased, resulting in a greater profit per
transaction.
 By including a variety of products, they minimized the risk
involved in decreases of demand for any particular
product.
PRODUCT CATALOGUE: BOOKS

5.  There is no tax on the purchase of books, making it an
apparently easy and profitable market
 Major global players have just started to enter India, because
of issues with FDI in India
 Huge government support to increase literacy rates and
generate employment, which will increase disposable incomes
of customers
 Governments in some Indian states are providing
computers/laptops/tablets at free or reduced cost, which may
help to increase the company’s customer base.
 Indian economy is growing rapidly and is poised to become
one of the greatest in the world by 2030
 Rapid growth in income power of the educated youth and more
disposable income predict a better future for e-commerce
companies
MACRO ECONOMETRICS: BOOK CATALOGUE

6.  Tech-savvy Indian youth would like to derive more
benefit from their electronic gadgets
 Online shopping can be one of these avenues where they
may spend time and money, to have more time for their
personal lives
 Lack of trust in online shopping
 Advancements in technology, penetration of broadband,
ubiquitous use of smartphones, Internet banking
facilities will determine the fate of Flipkart
 The company will have to stay updated with the most
current technology to provide its customers with a
satisfying shopping experience.
MACRO ENVIRONMENT

7.  Reduced costs of operation, as Flipkart does not have any bricks-
and-mortar shop infrastructure and does not need to pay for the
same;
 Excellent customer support, superior use of technology and efficient
distribution system
 Experience of Sachin Bansal and Binny Bansal, who both worked for
Amazon.com and have good knowledge of software coding, which
works as the backbone of this online business
 Trust enjoyed because of being the business leader
 Positive word-of-mouth recommendations by satisfied customers,
online or offline;
 Discounted price of books, which bricks-and-mortar retailers are not
able to match
 Increasing number of repeat purchasers and loyal customers;
 Dedicated and informed employees
SITUATION ANALYSIS

8. Strengths
 Appropriate use of print and electronic media to increase brand
awareness;
 Clever use of social media and online search engine optimization
techniques
 Various convenient modes of payment for the purchases consumers
make
 Related acquisitions
 Strong technological innovations enabling them to handle even larger
numbers of customers
 Adaptability shown by the entrepreneurs when changing the business
model from being an inventory-based one to a marketplace one
 Availability of huge funding from investors
 Enhanced business knowledge and expertise from venture capitalists
SWOT ANALYSIS

9. Weaknesses
 Arranging for the continuously huge flow of capital that this model
needs
 Because venture capitalists hold a major portion of the company, it
may become
 Difficult for the Bansals to take independent decisions
 Although the cash-on-delivery model attracts more customers, this
mode of payment increases the operating cycle and burdens the
company financially
 Higher costs of products, compared with Snapdeal, Amazon
 Reducing refusal rates at the last moment, without hurting business
 Allegations of nepotism by top management
 Unhappy suppliers over delays in payment and attempts to return a
greater number of unsold products than is the industry norm
 Increased stake of investors, leading to possibility of restricted
freedom in management decision processes
SWOT ANALYSIS

10. Opportunities
 Increasing awareness of people, regarding the benefits of
online purchase
 Expected deeper penetration of broadband, smartphones and
Internet banking in Indian households
 Reduced available time to the consumers because of hectic
working lives
 Increasing disposable income of consumers in India and early
employment of an
 Educated youth workforce
 Rapid growth of online book market
 Expanding product lines
 Entering into international business.
SWOT ANALYSIS

11. Threats:
 Reluctance of banks to provide loans, as Flipkart lacks
physical assets
 Nascent stage of online purchasing in India presently
 Surviving operational losses due to technology, supply chain,
logistics, customer support and marketing
 Increasing number of competitors in online marketing, led by
Amazon, Myntra, Snapdeal,Jabong
 Flipkart may find it difficult to match the financial prowess of
Amazon
 Low entry barrier in the industry
SWOT ANALYSIS

12. Company
 Goals and objectives;
 Segmentation and targeting;
 Marketing strategy and marketing mix
 Performance; and
 Product line.
Competitors
 Identification of business activities of competitors.
 Main competitors
 Other competitors
 Traditional bricks-and-mortar shops
 Assessment of competitors
 Predicting future initiatives of competitors
5 C’S ANALYSIS

13. Customers
 Demographics.
 Customers’ wants and needs.
 Quantity and frequency of purchases.
 Market size and growth potential.
 Suitable advertising
 Distribution channel.
Collaborators
 Agencies: recruitment agencies and brokers.
 Suppliers.
 Distributors.
 Partnership.
 Investors.
Climate
 PEST analysis
5 C’S ANALYSIS

14.  Expanding in new markets
 Adding more product categories to increase
competitiveness
 Inorganic growth by merger and acquisition
 Being acquired by a bigger company at a premium.
OPTIONS AVAILABLE FOR FLIPKART