Analysis of Growing e-commerce Retail SPACE IN INDIA

NJ Krupashankar (11223)

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.

Mission, Vision, Objective

MISSION Providing a delightful customer experience VISION To become Amazon of India OBJECTIVE Making books easily available to anyone who has internet access

Detailed Analysis Porters Five Force

Threat of New Entrants High - Market potential is huge. - Low entry barriers

Bargain Power of Suppliers. Low - Book readership reducing YoY - Inventory turnover lower than ever

Industry Rivalry Medium - Large number of small players. - International players venturing the entry possibility

Bargain Power of Buyers

High - Best deals online - Cash on delivery - One stop shop - Faster delivery

Threat Of Substitutes

Low
- Diminishing brick and mortar stores. - Increasing need for customer ease

Detailed Analysis (Contd).. VRIO Framework and TOWS

Summary of VRIO, Competitive Implications, and Economic Implications Valuable? Rare? Costly to Imitate? Organized Properly? Competitive Implications Economic Implications Above Normal (at least for some amount of time) SWOT Category

Yes

Yes

No

Yes

Temporary Advantage

Strength and Core Competence

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 provided Strengths 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 delivery Opportunity and Threats Increasing attractiveness to market due to high growth rate. Need to create entry barriers

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)

Road Ahead Analysis Directional Policy Matrix

High Market Attractiveness Disinvest Phased Withdrawal Snapdeal Double or Quit

Medium

eBay
Try Harder

Phased Withdrawal

Custodial Growth Infibeam

Naaptol
Goal of these companies is to capture market share and obtain growth leader position

Low

Cash Generation

Growth Leader Flipkart

Leader

Goal of company is to sustain its position and capture multiple market segments

Strong

Medium Business Strength

Low

Road Ahead
Funding from VCs - Accel India and Tiger Global Management

(US$10 million) Private equity firms Carlyle and General Atlantic (US$150 million) Acquistion of Chakpaks 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 Value Proposition Channels Customer Relationship Revenue Streams Key Resources Key Activities Key Partnerships Cost Structure

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

Thank You