WE ALL LIKE SHOPPING

& WE ALL LIKE THE INTERNET

PUTTING
THE

GETHER

(SHOPPING+INTERNET)

ON

-LI

NE

FLIPKART

FOUNDER

Jeffrey Preston "Jeff" Bezos

INTRODUCTION
Amazon.com, Inc.is anAmericaninternationalelectronic commerce
company with headquarters inSeattle,Washington, United States.
Amazon.com started as an onlinebookstore, but soon diversified, selling
DVDs,VHSs,CDs,videoandMP3downloads/streaming,software,
video games,electronics, apparel, furniture, food, toys, and jewellery.
The company also producesconsumer electronicsnotably the
Amazon Kindlee-book readerand theKindle Firetablet computer.

Amazon is considered the fourth most successfulstartup companyof all

time by market capitalization, revenue, growth and cultural impact

BUSINESS MODEL

MISSION: TO BE WORLDS LARGEST CUSTOMER CENTRIC

COMPANY.

TWO FACTOR:

GROWTH

DIVERSITY IN SELECTION

PLATFORMS FOR MERCHANTS AND ASSOCIATES.

ASSOCIATES

INNOVATION

COMPANY DONT BELIEVE IN INNOVATING NEW THINGS.

BUT RATHER INNOVATING IN THINGS THAT DONT CHANGE.

E BOOK READER AND AMAZON KINDLE

ALL ENERGY IS USED IN IT.

Acquisitions

1998:PlanetAll, a reminder service based inCambridge, Massachusetts; Junglee, anXML-baseddata miningstartup based in
Sunnyvale;[Bookpages.co.uk,a UK online book retailer, which became Amazon UK on October 15, 1998.

1999:Internet Movie Database(IMDb);Alexa Internet, Accept.com, and Exchange.com[34]

2003: Online music retailerCDNow. By 2011, the website cdnow.com was defunct and in use by a different company.

2004:Joyo.com, a Chinese e-commerce website. [

2005: BookSurge, aprint on demandcompany, andMobipocket.com, ane-Booksoftware company.[CreateSpace.com (formerly

CustomFlix), a distributor of on-demand DVDs, based inScotts Valley, California. CreateSpace has since expanded to include
print on-demand books (POD), CDs, and video.

2006: Shopbop, a retailer of designer clothing and accessories for women, based inMadison, Wisconsin.

2007:dpreview.com, a digital photography review website based in London; Brilliance Audio, the largest independent publisher
ofaudiobooksin the United States.

2008:Audible.com; Fabric.com;Box Office Mojo;AbeBooks; Shelfari;(including a 40% stake inLibraryThingand whole ownership
ofBookFinder.com, Gojaba.com, andFillZ);Reflexive Entertainment,a casual video game development company.

2009:Zappos,an online shoe and apparel retailer Lexcycle, SnapTell, an image matching startup, Stanza, a rival e-book reader to
Amazon's Kindle.

2010: Touchco.,Woot,Quidsi, BuyVIP,Amie Street.

2010: Toby Press[

2011:LoveFilm,The Book Depository,PushbuttonYap,

2012:Kiva Systems,Teachstreet Evi

2013:IVONA Software, GoodReadsLiquavista

FOUNDERS

SACHIN BANSAL & BINNY BANSAL

N
Flipkartis anIndiane-commercecompany
headquartered inBangalore,Karnataka.
It was founded by Sachin Bansal and Binny Bansal in
2007.
In its initial years, Flipkart focused on online sales of
books, but later it expanded to electronic goods and
a variety of other products.
Flipkart offers multiple payment methods likecredit
card,debit card,net banking, e-gift voucher,Cash
on Deliveryand Card Swipe on Delivery

THEN & NOW

Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal,

both alumni of theIndian Institute of Technology Delhi. They
worked forAmazon.combefore quitting and founding their own
company.

Initially funded by the Bansals themselves with Rs.4,00,000. In

its initial years, Flipkart focused on online sales of books.

Today , Flipkart is amongst the top 20 Indian Web sites and has
been credited with being India's largest online bookseller with
over 11 million titles on offer.

In 2012, Flipkart added A.C, air coolers, stationery supplies & life
style products to its product portfolio.

As of today, Flipkart employs more than 4,500 people.

RISKING IT ALL ON THE LINE

There was huge risk taken by both the Bansal's as both of them got a
high profile job in the worlds biggest e-commerce website named
Amazon. Leaving Amazon to start their own company with just Rs.
4,00,000 involved a huge risk as there was no guarantee that their
idea would succeed or not.
It was result of this risk taking only that today Flipkart generates Rs
1.5 Crore a Day. It has a record user base of 1 Million in India only.

INNOVATION
FLIPKART BROUGHT MAY REVOLUTIONARY INNOVATIVE IDEAS TO
MAKE ONLINE SHOPPING MUCH EASIER AND FUN THAN IT WAS A
FEW YEARS BACK. SOME OF THESE INNOVATIONS ARE :-

DELIVERY WITHIN 2 DAYS

The first few e-commerce web sites broke the trust of many
Indian customers by not delivering the order product on time.

Flipkart realised this problem and in order to bring the customer

back to on line shopping it came up with idea of delivering the
product in 2 days & if there is a delay then the customer is paid
interest on the value of product.

30 DAYS RETURN POLICY

In order to satisfy the Indian customer after the product is

delivered flipkart came up with idea of providing 30 day return
policy.

This is done to ensure that the product delivered to the customer

is not faulty.

Card Swipe on Delivery

Flipkart realised that most of Indian customers are not

comfortable sharing there credit card details online. As there is
always a risk of fraud.

For solving this problem it came up with the idea of card swipe on
delivery i.e- the delivery guy brings the card swipe machine so
that all the transaction happens before customer.

BROWSING- MADE EASY

http://www.flipkart.com/

COMPARISON-MADE EASY

http://www.flipkart.com/mobile/compare?ids=MOBDKVGZUEGRAYZD,M
OBDHMYXDFYCZCVC,MOBDH2XTNHMHA6BU,MOBDGPDZ5BRABR2W

PROMOTIONAL TECHNIQUES
ADVERTISING

SALES PROMOTION
techniques like --

Rebate

Discounts

Refunds

Quantity deals/gifts

Usable benefits

Full finance @ 0%

BUSINESS RESULTS
In

FY 20112012, Flipkart crossed the INR5

billion (US$100 million) mark as Internet usage
in the country increases and people get
accustomed to making purchases online.
Flipkart projects its sales to reach INR10 billion
by year 2014. On average, Flipkart sells nearly
20 products per minute and is aiming at
generating a revenue of INR50 billion (US$1
billion) by 2015.

Acquisitions

2010: WeRead, a social book discovery tool.

2011: Mime360, a digital content platform company.

2011: Chakpak.com is a Bollywood news site that offers updates,

news, photos and videos. Flipkart acquired the rights to
Chakpaks digital catalogue which includes 40,000 filmographies,
10,000 movies and close to 50,000 ratings. Flipkart has
categorically said that it will not be involved with the original site
and will not use the brand name.

2012: Letsbuy.com is India's second largest e-retailer in

electronics. Flipkart has bought the company for an estimated
US$25 million. Letsbuy.com had been closed down and all the
traffic of Letsbuy is diverted to Flipkart.

Glowing reviews:
AMAZON

FLIPKART

80 percent of Amazons product

reviews were positive. people
who received free products from
publishers, agents, authors, and
manufacturers.

The lesson: Encourage reviews of

your business, especially when
youve got a happy customer on
your hands.

Niche Product
AMAZON (E-BOOK)

FLIPKART

People are reading more than

ever because of the ease of Ebooks. E-books from Amazon are
also popular among those with
iPads because of Amazons
expansive selection

Lesson: If youve got a niche

product that youre known for,
keep your focus on it and
maintain a wide selection

Value-added differentiation
AMAZON

FLIPKART

Amazon.com works hard to

achievevalue-added
differentiationthrough customerfocused information services.
Amazon.com's site retains
customer preferences and
provides automated
customization for users

Lesson : should focus on the

customer preferences and give
them advantage of customization
of product

Price Control
AMAZON

FLIPKART

Amazon still manage to get a

hold on its price differentiation
when compared to other physical
or online store

But with flip kart , they are still

not getting it. Customer still find
a wide gap in price b/w flip kart
and other online store.

3 possible scenarios

Amazon buys Flipkart:(Probability: 40%)This is the dream

Flipkart founders /investors are hoping for day in and day out.
The question then will be about what the price will be. If we look
at history, it's similar to what Ramesh Chauhan of Parle soft
drinks faced when Coke was trying to enter India. He sold off 4
brands: Thumsup, Gold sport, limca and one other for a price of
750 crores when a reasonable value was more likely 275 to 300
crores. It's rumored that Flipkart founders have already asked for
2 billion USD which Amazon thought was ridiculous and turned
down. This is the kind of exits current investors are hoping for.

3 possible scenarios

Amazon crushes Flipkart:(Probability: 50%)Amazon brings in

its own expertise, processes, patents, IP, brand and offers
superior buying experience thereby wiping flipkart out of
existence. The problem which flipkart has solved( Logistics) is a
commodityand can easily be replicated. I am assuming that
flipkart doesnt have any IPR or patent ( In fact the founders
having worked with Amazon earlier might have exploited
Amazon's IPR ). The customers quickly switch to Amazon. Finally,
Flipkart is sold for a small amount to Amazon. It would be
disastrous for founders and investors.

3 possible scenarios

Flipkart does a Lagaan:(Probability: 10%)Amazon is not able

to find its feet in the country. Flipkart finds the battle tough. If
Bansals get the government to protect it. They bribe Momota di /
Fernandez who go on rampage and either drive Amazon out of
India or, just like the Naukri Versus Monster showdown, Flipkart
becomes #1 and Amazon is comfortable playing the second
fiddle.

THE END