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• Online Retail Industry
• It is one of the leading e-commerce players in the country
• With over 11.5 million book titles listed, 11 different categories, more than 2 million registered users and sale of 30000 items a day.
• Founded by Sachin bansal & Binny bansal in Bangalore, Karnataka in 2007.
• Started with initial capital of INR 4 lakh. • 7 warehouses, offices and delivery centers (2011). • Revenue is of 75 Crore (FY 2010-11). • 4600+ employees till December 2011. • Subsidiaries are “We Read”, “Mime 360” and “Lets Buy”.
Sachin Bansal CEO and Co-founder Born and raised in Chandigarh. logistics and customer support. Binny went on to get a degree in Computer Engineering from IIT Delhi. Sachin oversees all the customer facing activities of the company ranging from technology to marketing. Binny is also passionate about soccer and NBA. An active sportsman. Binny oversees all operational activities that come into play from the time the customer places an order till the time of delivery. At Flipkart. He is also in charge of Flipkart's corporate divisions which include the finance and legal departments. He had a brief stint at Amazon before taking the entrepreneurial plunge with Flipkart. he used to captain his school basketball and soccer teams. Binny Bansal COO and Co-founder . Sachin likes to spend most of his free time with his family. This spans across divisions like warehousing. As CEO. An avid gaming enthusiast. He graduated from IIT-Delhi with a degree in Computer Engineering.com in India which he later left to set-up Flipkart.Management Team Sachin spent his early years in Chandigarh. In 2006 he joined Amazon.
warehousing and logistics. At Flipkart. At Flipkart he is responsible for overseeing supply-chain. He started his career with Yahoo! and then went on to join Ugenie where he created weRead. Mekin is responsible for overseeing the company’s technological operations. He worked in the KPO industry and orchestrated several freelance projects before joining Flipkart in 2008. Operations . Mekin Maheswari President. from PESIT Bangalore in 2002.Management Team Mekin completed his B. These include innovation and application of technology in areas starting from supply chain to website management.E. a successful social network around books. He is also in charge of business development for all categories. Mekin is an avid sports fan and was actively involved in badminton. Sujeet Kumar President. table tennis and cricket during his school and college days. Technology Sujeet completed his engineering from IIT Delhi. Sujeet loves playing bridge and poker.
pens & office supplies.Company History •Flipkart was established in 2007 by Sachin Bansal and Binny Bansal.com .John Woods' Leaving Microsoft to Change the World. other electronic items such as home appliances. •Today. both alumni of the Indian Institute of Technology Delhi. personal care gadgets. •Initially they used word of mouth marketing to popularize their company. •The store started with selling books and in 2010 branched out to selling CDs. the company sold its first book on flipkart. computers. mobile phones & accessories. Flipkart employs over 4672 people. •A few months later. kitchen appliances. . Flipkart is among the top 30 Indian web sites and has been credited with being India's largest online bookseller with over 11 million titles on offer. computer accessories and peripherals. as per Alexa traffic rankings. health care products etc. •They worked for Amazon. •Flipkart broke even in March 2010 and claims to have had at least 100% growth every quarter since its founding. •As of today.com before quitting and founding their own company. DVDs. cameras.
Funding • Initially funded by the Bansals themselves with 4 Lakhs(INR). • Flipkart has since then raised two rounds of funding from venture capital funds Accel India (in 2009) and Tiger Global Management (up to the tune of US$10 million) (in 2010). • Private equity firms Carlyle and General Atlantic are in talks to jointly invest about $150 million to $200 million in Flipkart. according to sources. .
000 ratings.000 movies and close to 50. 2012: Letsbuy. news. Flipkart has categorically said that it will not be involved with the original site and will not use the brand name. 10.The stated goal was to give Flipkart a social recommendation platform for buyers to make informed decisions based on recommendations from people within their social network.com is India's second largest e-retailer in electronics. a social book discovery tool.com is a Bollywood news site that offers updates. Flipkart has bought the company for an estimated US$ 25 million.000 filmographies. 2011: Chakpak. .Acquisitions 2010: WEREAD. 2011: Mime360. Flipkart acquired the rights to Chakpak’s digital catalogue which includes 40. photos and videos. a digital content platform company.
• What is there future road map? • What are the major threats for Flipkart? . What is it that makes Flipkart standout? • What does Flipkart have that makes its model so Robust? • What is there strategy behind acquisition of lets buy.Research Questions • How did Flipkart get on to the top of India’s e-shopping market in just 4 years? • What were the strategies implemented by Flipkart to create online business in India? • There are millions of retail websites and not many have achieved even a fraction of the attention that Flipkart has.
Order Lifecycle • Attract users to the site Family. SEM. Specifications. COD • Confirm payment . • Price well Have to be competitive to the most obvious options • Provide convenient payment options Online. Friends. UGC. Brand Building • Provide selection Make it easy to Find & Discover products • Provide details to evaluate a product Description. SEO.WoM.
weather proof.Order Lifecycle (Cont…) Get the item Procure from Supplier (Just-in-time) (Supplier selection) Keep Inventory (Inventory Prediction. Planning) Clean & Check for sanity Pages missing. MRP printed lesser than told to you Pack the item Tamper proof. breakage proof Select courier & hand-over Courier performances vary across regions a LOT Get tracking id & communicate to customer Follow-up for timely delivery Take care of returns (faulty product/user changes their mind) Minimize returns .
• This acquisition fits in to their strategy of building dominant shares in all the categories they operate in. . • This will strengthen the position of Flipkart in Indian market in light of the quiet entry of Amazon in Indian e-commerce industry through jungle. • It will make Flipkart stronger in the field of E-retailing. • The price they paid for this opportunity was very attractive. • This will now.Why they acquired lets buy • They will be far ahead in the game. by the time Amazon make a full fledge entry with their own brand retail products in India.com. allow them to accelerate faster and to get to a share similar to what they enjoy in online books category.
you need to be the God of Distribution. • But the best thing they did was that they understood that too be successful in India. • Another thing the two entrepreneurs. • In India. it’s amazing Logistics that prove to be the game-changer and that’s exactly what the folks at Flipkart have done. Sachin and Binny Bansal.What Went Right for Flipkart! • The first and foremost was that we Indians were discarding our stoneage ways and beginning to shop online. . did right was that they started off with books – a low capital investment and a fast turn-around time.
• The discomfort of paying by cards. it wasn’t easy for us to earn the trust of the customer. • The fact that highest number of orders and sales get registered during weekends proves to be tough at times for logistics and customer service. on account of security fears is another challenge. • Handling customer complaints. the customer places an order at 12 am and counts the number of hours for delivery right from then!) . the ‘browsing’ feature and not being able to carry out promotional activities are some other obvious challenges. without having a ‘face’ to our customer service proves to be bit of a challenge at times. • The fact that we have to work 24 / 7 and the customer perceptions around it also bring some difficulty (For example. • Not having the ‘display’ advantage.Challenges Faced By Flipkart • Initially when they started out. They have now tried to address that by introducing the ‘cash-ondelivery’ option.
e. • It is the robust logistics at Flipkart that sets it apart from other wannabe e-commerce sites. .What makes it stand out? • The procurement model is at the heart of Flipkart’s success. as most delays or troubles occur in this part of business. • Flipkart employed consignment model i. • An amazingly well-oiled warehousing and delivery system. • They offer a huge range of titles (more than 7 million) which really sets them apart from the rest of the crowd.. procurement based on demand.
"No Kidding No worries" • Kids were used to create the adverts to send out the message . Flipkart recently launched a series of 3 ads with the tag line . • All in all to create a great customer experience. . • Customer satisfaction has been their best marketing medium. you can also do it.if a kid can do it.Marketing Strategy • Flipkart has been mostly marketed by word of mouth advertising. • Flipkart very wisely used SEO (Search Engine Optimization) and Google Ad-words as the marketing tools to have a far reach in the online world.com official Face book page has close to 9 lac 'likes'. • Flipkart.
Flipkart’s Success mantra! • Great customer service Flipkart users are more satisfied than that of their competitors. • Easy to use website. Almost 60% of its sales happen through this mode. • Cash on delivery/Card on delivery mode of payment This has been a major instrument in Flipkart’s success. Great customer service has been its hallmark. • Focused on user experience Every other e-commerce site. . hassle free payment system The user interface is sleek and easy to use. Cash on delivery created trust in the minds of Indian customers who were always weary of making payments online. tried to cram the maximum of amount of information possible into every single page where as Flipkart focused on providing only the relevant info.
Advertisements By Flipkart .
Prepaid Wallet feature Flipkart has added a prepaid Wallet feature to its e-commerce platform that allows shoppers to store money on the site and use it to purchase items. without having to reach for their credit card for each transaction. .
This is something which clearly differentiates a high performing organization from the others. • “Everyone in the team on a collective and individual level needs to have a high sense of ownership. So some of the key criteria that the Flipkart team looks at while hiring are : • They typically don’t look at specialists to come on board rather they look out for generalists with the attitude to learn and adapt to the fast pace of growth .Startups Hiring? Do it the Flipkart way! Hiring or rather right hiring is one of the critical factors contributing to a startup’s success. • Your hiring process is the best brand campaign for you – “Transparency in hiring is one of the best ways to attract the right kind of talent .
• Remember Amazon being a very big company can bring in serious competition to Flipkart.com in 2012 in the Indian e-commerce space has been cited as a big challenge to Flipkart. • Need to keep introducing more products. • The company has built a great brand name.Threats to its Crown • There are no major foreseeable threats in the future. • However i think that Flipkart is a respected Brand name in India and should be able to compete with Amazon. they just have to maintain and enhance the same. . adapting to the changing needs of the customer with time. since Amazon can bear more losses in the beginning to gain customer base. • The entry of Amazon.
Threats to its Crown(Cont..) • But again Indian market is growing at a rapid pace as access to internet increases and people become more aware of e-commerce sites and start trusting the same. • Hence Indian market is sufficiently big at-least for these two giants to co-exist beneficially. .
and eyes at $ 1Billion sales by 2015. •They will look at bigger investments in their supply chain and technology. so that the product is not delayed. both nationally and internationally. . • To go further in the value chain. • Investment will be made in large warehouses and increased automation of their process. Flipkart is looking at associations with a larger number of suppliers and partners. • Everything except for groceries and automobiles will be available on Flipkart in future. • They intend to enter in to various new categories and expand their current categories as well.Future Road Map • They aim at 10 times growth.
with Flipkart demanding a very high buyout price. the first billion dollar Internet company from India(going by 2015 estimates )is by far the leading online store in the nation.Conclusion • Flipkart. • With online retail industry in India pegged to reach $1. and unsuccessfully. • Now that Amazon is reportedly entering India in early 2012.5 billion (2015). this news becomes even more significant. tried acquiring the company. sources suggest that e-commerce is just hotting up in India and we may soon seen many more Internet companies achieving similar success . considering that Amazon has previously.
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