FLIPKART CASE STUDY

1. Flipkart Case Study
By : - Meet Shah
No:- 156050319051

2. History
 Flipkart is an e-commerce company headquartered
in Bangalore , Karnataka.
 It was founded in October 2007 by Sachin
Bansal and Binny Bansal.
 They worked for Amazon.com, and left to create their
new company incorporated in October 2007 as
Flipkart Online Services Pvt. Ltd.
 Flipkart now employs more than 33,000 people.

3. Online retailing
 Online industry is booming in India.
 The huge population is only one part of the story because of Low
Internet usage, low credit card penetration, slow internet speeds and
fulfillment issues.
 It took time for the customers to adopt Modern Retail Outlets format like
Reliance Fresh.
 Then came yet another format : e-retailing.
 Schemes like Cash On Delivery & EMI system made it easy for the
customers to get used to online purchase.
 These online portals often sell at loss for getting the traffic in their
website & getting them experience their service.

4. Mission
 Mission – Providing a delightful and memorable
customer.
 Vision – To become the Amazon of India.
 Objective - Completely hassle free shopping
experience with best prices in India.

5. Core Values
 Customer Obsession
 Ownership
 Impact
 Honesty
 Selflessness
 Communication
 Innovation

6. Introduction of New Category
Over the years in Flipkart
 2007- Books
 2010- Media. Mobile Phones & Accessories.
 2011- Gaming and Console , Audio Players and TV,
Personal and Health care, office Supplies, Home and
Kitchen.
 2012-Health and Beauty , Lifestyle, Toys, Posters,
Apparels, Sport and fitness, Shoes.

8. Info graph

9. Online Retail Industry
 1.4 – 1.6 Billion $.
 Will grow to 10 billion $. To reach $76 billion by 2021.
 Growth driven by the country’s growing Internet –
habituated consumer base.
 180 million broadband users by 2020, and a
burgeoning class of mobile Internet users.

10. Major Challenges for
Online Retailers
 Customer Loyalty, Trust and Education.
 Most of the customers prefer Cash on Delivery option
instead of credit/debit card payment.
 So, this makes online retailers to lose some of the
cash as the delivery companies will keep the money
for 15 days and later they pay to these online retail
companies.

11.  Rivalry with in Industry:
 Competition is very high in this industry with so many
players like Flipkart, Myntra, Jabong, Snapdeal,
Amazon, Indiaplaza, Homeshop18 etc.

12. Environmental Analysis
 Demographic trends: When it comes to online retail
industry, for people to shop online, they need to have
internet. India is third largest country when it comes to
internet usage after U.S and China. Presently, above
200 million people are using internet. Out of this, 110
million people access internet through mobiles. In
India, 8-10% of online users transact online. So, it
means it comes to 20 million people. And also, with
smart phones, tablets coming into picture, number of
people who are going to use internet is going to be
increased. This means, increase in the online retail
usage in India.

13.  Socio-cultural Influences:
• Culturally, Indians tend to buy the products in physical stores. They
want to touch, feel the product before buying.
• If the risk associated with product is very high, like in purchase of
Television, Laptop, Washing Machine etc., they tend to go to physical
store.
• Indians will mostly influenced by peers, friends while purchasing the
products. So, these factors are negatively affecting online retail
industry.
• But slowly, culture of buying is changing. They are going for online
purchases but this rate is less when compared to offline purchase. But
with 30 day replacement guarantee, if the product is not functioning
properly, by E-commerce companies, and with the availability of peer’s
or friend’s feedback about products online, they are slowly moving from
offline to online purchases.

14.  Technological Factors:
 With the advancement of technology at a rapid pace,
online retail industry is going to benefit a lot.
 Several technological devices like smart phones, laptops,
tablets etc. are going to help this online retail Industry
because with the penetration of these devices, Indian
consumers are going to purchase their products online.
 Even Smart phone market is growing at a very rapid rate
in India.
 Since companies can gather the data about their
customers when they are doing business with them, they
can use these data to personalize the services by using
predictive analytics

15. Competition
 The competitors for Flipkart are not only the online
portals but also the offline marketers like Reliance
fresh , big bazaar , etc.
 Flipkart is an attacker brand who has adopted flanker
attack strategy to fight against competition from leader
brands like amazon.