PAGE 1: SHERLEY

Introduction:

This case study is fully spoke about all the trails and achievement of the flipkart
throughout its journey.
According to co-founder of flipkart though flipkart making online business, the major
part of handling goods in backend is very important than handling online transaction. As the
overall journey has been discussed in these case, we came to know the ups downs, struggles and
strength of flipkart from the beginning.
Though flipkart started with book alone initially, after a period of time it diversified its
product line. After acquiring proper investment and made considerable profit.
After diversification though it grown in enormous way, it had to go through a large amount of
losses then and there.
By only concentrating consumer satisfaction the firm had forgotten to make profit to
attract investment for further growth.
Because of its service fault it had to face the difficulties in pursuing customer also. And
due to logistics and warehousing problem flipkarts could not have the proper operating model.
So it has to take proper initiative to obtain profitability in future.

PAGE 2 , 3: NILIMA
ORIGIN OF FLIPKART
Indian e-commerce industry is showing very high growth within small period of time.
First e-commerce industry is IndiaPlaza.com.
Flipkart was started in the year 2007. Its co-founders are Sachin Bansal and Binny Bansal. They
both are friends and graduated from the same college i.e. Indian Institute of Technology, Delhi.
Both of them had worked as a former employees at Amazon.com, from there they learned and
gain knowledge. Their initial idea was to launch Flipkart as price – comparison platform but
there was no competitors in the market so they decided to start their own e-commerce industry.
Then the Flipkart came in the market.
They started the business with the initial investment of US$8000. Flipkart first started the
business with only one product i.e. books. Because by selling books it can be easily transfer
to anyplace without any damage and it can reach very safely to its destination.Their main
objective to sell the books because to make easily available of the books to anyone who will
demand. With this the Flipkart was growth very fastly.
In 2012, the Flipkart started to sell its various categories of product in a single day such as
music, movies, mobiles, games, health care, home care, computers, etc. In 2013 , Flipkart
employed 5000 people. Then it also bought four companies in 5 years one of the is
LetsBuy.com. After that they started so many services such as business service segment,
Flipkart logistics, courier services.

EVOLUTION OF THE INDIAN E-COMMERCE INDUSTRY

In India e-commerce industry is placed in two distinct phases:
· ​Pre-dotcom bust
· ​Post- dotcom bust
In 1990’s the information technology users growth are increasing. In 1999, the users
growth has been increased to 3 million. And then the first e-commerce industry had launched
i.e. Fabmart.com. The second phase was entered with an low cost carriers it leads to the growth
of online ticketing, travelling, banks are also introduced internet banking facilities, transactions
are also increased in online.
 As of 2007, Internet users in India around 42 million. Later in 2012, internet users in
India has increased to137 millions. In 2007 Internet penetration is 3.7 percent of the total
population. And in 2012 internet penetration is 11,4 percent of the total population. Total
population is 1.3 billion. Factors that contributed the e-commerce industry in India includes
increasing disposable income, migrating to metropolitan cities, increasing usage of technology
by the youth. Online ticket booking services in Railway are also increased. E-commerce industry
in India are rapidly growing up.

FLIPKART’S GROWTH STORY: THE KEY FACTORS

Flipkart’s success was unprecedented . Internet penetration was low in 2007. In order to
get success, Flipkart not only had to convince the consumer about its quality of product but it
also had to educate the target audience on the benefits of online retail. Flipkart is growing very
rapidly.
Initially, Bansal used to do inexpensive mode of promotion such as word- of- mouth
advertising in order to increase the brand name. The company received nearly $200 million
investment from Accel Partners and Tiger Global.
Flipkart’s main focus is to satisfy the customers.

COMPREHENSIVE RANGE OF OFFERINGS

Flipkart started as an online book retailer due to three reasons:
· ​The margins on books were high
· ​Books are easy to deliver
· ​There was a large market.
In 2010, they expanded to offer mobile phones& associated accessories and also they offer
music, movies, games. Within the next year, computers, cameras. Mp3 players, home
accessories, personal and health care products were added.

PAGE 4, 5: BAVEEN
Competitive pricing:
 In flipkart their focus the customer-centric services. Lowest price to purchase in online
products. flipkart gives discount to the customer. but profit will not come and developed large
sales .
Clever communication strategy:
Advertising world by storm with highly creative ad campaign in 2011. flipkart was able
to educate consumers benefits for online shopping.flipkart promoted online coupons to discount
to purchase the product. Search engine optimization the platforms of social media and the online
competitions. Bookmarks are available to purchase in flipkart. six degrees of separation.
Twitter/Facebook followers the flipkart.
Accessibility:
online retail portal the support a robust back-end supply chain operation. Once the
customers oder the product. and the back end process to deliver the product with the help of
goods and services. Suppliers demand generated order to the website. Warehouse to delivery to
the thirty party. Cash on delivery is easy to check the product and to buy. Online payment
options will be in credit/debit card. Damaged product return in period of days.30 days to return
the product to the flipkart.
Customer centricity​​:
Customer point of view user friendly they likening. Ordered product deliver the correct
place and correct time. Service is more effective on that time .to handling the customer very soft.

PAGE 6: NAVEEN

COMPETITORS THEN AND NOW:

The market space that drew for investors, corporate houses and entrepreneurs. When the
flipkart enters it face the competitors like indiaplaza.in,rediff.com,ebay.in.
There are some other competitors like myntra, jabong, snapdeal., homeshop, naaptol and febhi
they also entered in 2007.

ISSUES PLAGUING FLIPKART:

 Flipkart success story had been documented. It had not come with far without its share of
problems. And increase the number of competition like online retailers such as jabong.com,
myntra.com and jungle.com.
There is no switching cast from one-retailer to another. The competitor has been
increased highly the flipkart had not reached profitability in spite of leader in its segment for 6
years. The biggest worry in flipkart is investor’s tiger global and accel partners are already
invested in flipkart. In future they will not invest with flipkart due to non-profitability.IPO
selling is more but profit is less in flipkart 60%-70% run by oun and 30% run by third party
stock. Profitability is necessary requirements for a local exchange it becomes difficult for flipkart
to raise money in short term.
Flipkart exhausted $181million dollars putting the money initially it was consumed. In
flipkart current investors were understandably to provide more funds until profits were realized.
Bansals controlled about 37% of equity accel partners and tiger global passed 48% the
flipkart is held by remining 15%.This left the bandals and bringing down the evaluation of
company due to heavy investors and not profitability.
Some of the biggest issues that company faced is logistics, working capital, complaints and
employee turnover these issues faced by flipkart majority.

LOGISTICS:
It is one of the issues in flipkart. Warehousing is one of the problem. Flipkart did 60-70%
of deliveries through house network.
Flipkart have 5 warehouse across the country. It has rapidly burgeoning and have amount of
pressure with storage facilities.
The warehousing cost is increasing especially during festival and holidays.

PAGE 7: SURESH
LOGISTICS PROBLEMS:
 Flipkart had been facing significant changes irreversible logistics. They were several
instances where in the equated monthly instalment. But the product had not reached the
customers.
The tracking status is not updated most logistics providers were not adequately geared to
manage return from customers.
The COD service posed more problems with the major issue in the cash flow cycle.
WORKING CAPITAL:
It is initial amount for purchasing the raw material goods. Flipkart has faced many
problems with a working capital.
It is resulting in a negative operating margins and Cash Flow Company has source of
knowledge but operation ends with loss around $1.1 million a month.
Registration of the company as claim the loss amount of $2740 in 2008 to 2009 further
$202,822 loss reported in 2009/10.
It has to obtain domain exports with the marginal cost involved.
So the company is improved new feature of advertisement promotion and SEO cost around $16
to $30.

PAGE 8, 9: KALYAN

CONSUMER COMPLAINTS :-

Consumer complaints centering on delivers Services due to logistics issue's,when it's

complains started to climb, Murmers started surfacing in popular consumer forums about Quality
management, warehousing suddenly started gossips about flipkart, “Nobody has to ready to
investing their amount including Tiger global management also” Because of there is having lot
of issues in flipkart
They are
● Logistics
● Warehousing
 ● SEBI
● cash on redelivery
● Shipping orders
● Delivery charges some of them.

Flipkart has decided to expand their business with the help of flyte also but it is not possible
because of the products are happen to Broken and also some logistics issue's. That's is the reason
for they didn't choose the delivery with flytes.

EMPLOYEE TURNOVER :-

Then flipkart management decided to take decision to take up the certain measures.
For example :- They reduced the margins of discounts and increased the minimum order value
(or) free shipping from $0 to $4, then to $6 and finally to $10.flipkart working with a variety of
Third party supplies and logistics patterns at a time profit growth reached as 25% high in the
year 2013.
Some time's consumers increasing more than common days because of some popular
festivals days are coming that time consumers increasing from 100 shippments per/day to
between 170&200 per/day, Some of the employees are not improving their business offerings
&margins so flipkar’s management t has decided to trim that employs, some time's flipkart has
given to special offers because of improving their business and customers

THE WAY HEAD :-

Two Issues:
1. Prominent private equity (​PE) ​giants like Bain capital and Kohlberg kravis Roberts had
rejected Flipkart's proposal.
2. flipkart was also unable to come out with an initial public offering (​IPO) ​due to ​SEBI
mandates
If they can stop invisting, also they can become profitable in a day but flipkart aim is to grow and
become India's largest retailer. Since the internet user rate will be increasing in india in
forthcoming years, flipkart has to take some important approaches to increase profit and add new
customers to make a breakeven point.

DABBAWALA CASE STUDY

Sherley page 1
Dabbawalas case study is fully analysing the success of the dabbawalas throughout the
history without an error. How dabbawala maintains the system and how come they organise
things in well manner.
Basically according to researcher dabbawala has 4 pillars which lead them to reach the
success.
Though the process seems simple the dabbawalas work more than the payment to achieve
success in their work.
They organise what has to be done, when has to be done, who have to do and they establish
these planning through experience by doing a small service oriented work dabbawalas made
great amount of profit and fame to its organisation and employee.
Their simple goal is on time delivery.

Kalyan, Naveen - 2
Dabbawala will work like this they started in the morning, a worker picks it up from the
customer’s home and they brings it on a ​bicycle​​ along with remaining dabbas and then they went
to nearest railway stations to crate according to its delivery destination and at that location again
it changes to another worker who delivers along with other dabbas to the right office, location
before lunch time.
To perform their work most efficiently ​Dabbawala's​​ have “organized themselves into
units about 25 people each worker”. dabbawala introducing a low cost delivery service in
Mumbai. Customers paid an average of only ​300​​ ​rupees ​(Rs), or about $6, per/ month after Two
years average cost has increased Rs. 400-450 and also exchange rate has moved to Rs. 55 per ​U.
S doller ​why they are all not doing lunch in office canteens because of food cost is very high and
also they are not providing Good quality food and at the same time dabbawala also introduced
and it helps to the customers
 ● Dabbawala generally manage themselves with respect to hiring, logistics, Customer
acquisition and retention, pricing, and resolution of conflicts. Each dabbawala is like a
“​micro entrepreneur​​”, who is responsible for negotiating prices with customers using
guidelines set by management only. Those guidelines take account various factors,
including the distance between the customer’s residence to office, and the distance
between that office and the nearest railway station after probation period of six months,
they can buy into the business with a sum of ​10​​ ​times​​ there expected monthly income

Baveen-page 3

To serve their customers on time. Dabbawala started a business at 1880.They registered in

1956.Dabbawala 8th grade of schooling. Total area coverage is 80km. Working employee is
5000.Number of Tiffin box is 2,00,000.Time taken to deliver the product 3+3 hrs=6hrs.

Coding System:

1. Dabbawalas street code of pick-up station.

2. Pick-up railways station code.
3. Destination railway station code.
4. Dabbawalas code at destination .
5. Building number of delivery.
6. Floor number.

Working of Dabbawalas:

1. 9:30 AM to 10:30 AM -Pick up dabba from residence/caterer and bring it to Andheri

station.
2. 10:34 AM to 11:20 AM - Journey in local train.
3. 11:20 AM to 12:30 PM- Unloading and sorting at destination station.
4. 12:30 PM to 1:00 PM- Delivery to the respective customer.
5. 1:15 PM to 2:30 PM- Collection of empty dabba.
6. 3:30 PM to 5:00 PM- Returning dabba to residence/caterer.

Discipline and Code of Conduct:

1. Alcohol consumption is strictly prohibited during business hours.

2. Wearing white cap is mandatory while on duty.
3. Carry identity cards.
4. Rs.500 fine for drinking on duty.
5. Rs.100 fine for smoking on duty.
 6. Rs.25 fine for not wearing white cap.
7. Rs.1000 fine for leave without permission.
8. Sacked if mistakes are repeated two or three times.

Suresh - page 4

DUBBAWALAS

CULTURE AND PEOPLE

1.The dabbawalas come from the same geographic region in India near the city of Pune
2.Chharapathi Shivaji Maharaj,founder of the Maratha Empire in western India
3.New workers are friends and relatives of exiting members
4.Rahunath Medge is a head of dubbawala governing committee
5.The Dubbawalas ,food is through to be akin to medicine, and serving food is like serving
god
6.The Dubbawalas wearing same style of clothes and Mahathma Gandhi ncaps make
them easily to identify
7.They not making repeated mistakes
8.They are able to build strong, long-term trusting relationship with customers
9.The dubbawalas morning schedule is very tight but the afternoon schedule is much less
rigid, allowing workers to interact with customers to provide or receive information
about upcoming challenges
10.The Dubbawalas is not necessarily their uniform background but the way I n which the
homogeneity is emphasized by adopting a simple and clear mission- delivering food
on time- that helps to further unify everyone.

Nilima -page 5

The Consultant’s Recommendations

An Experiment will be a initial step for ideas to implement the whole and different ways in
which the pillars boosting up to one another. Dabba coding system is the best example for those
start-up in small firm. Dabbawalas plays a dominant role in Mumbai it become popular in
Mumbai , Dabbawalas called as tiffin wallas constitute in a lunchbox delivery and return system
that delivers hot lunches from homes and restaurants to people at work in Mumbai. The lunchbox
delivered predominantly using Motorcycles and railway trains and returned empty in afternoon.
The Dabbawalas follow the culture and people. The Dabbawalas system main is satisfy the
customers by on time delivery, Every time to their compendium for its high level service with a
low of cost and simple operating system. Dabbawalas became the world best meal delivery
system without using of technology. Over the years, the Dabbawalas have received no shortage
of recommendations for increasing their revenues or improving their operations. Some business
school students examined our system and suggested we use motorcycle instead of bicycle, but
Dabbawalas said that they opposed to change of any kind because the new change will affect the
customer cost would be increase. The Dabbawalas have recently been experimenting with ways
in which they might merge with small companies and canteens that provide general foods.at the
same time they rejected any suggestions for backward integration like for setting up their own
kitchens.

JSW CASE STUDY

SHERLEY- PAGE 1,2

​JSW is producing all type of steel product. The major goal of the company is distributing the
product directly to the customer and they wanted to eliminate tge middlemen in supply chain
process.

In April 2007 it introduced the strategy to upgrade the company to the next level. They started
to penetrate the market to make a great awareness of the product among customers. Since it
produces all steel related product the major thing it had is to ensuring that to end-user.

They came with solution for an organised retail format for supplying the goods directly to the
customer.

COMPANY BACKGROUND

Initially it was started with steel pipes, bends and sockets. But in 2010 many product were
added in list. It includes mining iron ore, manufacturing carbon and value added steel, cement
power and industrial gases and also providing port facilities.

The domestic companies all only pay much attention to bulk order not the lower one. JSW
used this to distinct their company among competitors.

THE IDEA

​In india usually the primary method used by all steel producer that is having middlemen
before end-user to distribute the product JSW proposes that this method should be changed and
the produces must reach end- user by their own supply chain mechanism.

Through giving proper awareness to the consumer this method is highly likely in giving profit
and establishing brand image.
NILIMA- PAGE 3,4

EMERGENCE OF JSW SHOPEE

A six-member task force was initiated. Mahendra was the team head. The order given by the
Mahindra was to design the entire process flow of the project, interact with the dealers, complete
the groundwork, evaluate prospective markets in which to offer the first 50 outlets, identify
marketing and branding strategies. Finally they design the cost- and revenue sharing model. The
team agreed the deadline of one month to complete the tasks given by Mahendra.

SEPTEMBER 2007

The team was excited when they assemble at the marketing headquarters in Mumbai. In starting
the finding and response to the idea suggested by TF had been very encouraging. The feedback
from earlier business model, the dealers are not having any control over their businesses.
Production capacities of manufactures are also limited but steel managed to meet the export
demand. Dealers have no choice they have to stay in a difficult and fluctuating market situation.
The JSW TF felt if their model could give guarantee to the dealers about regular and continuous
supply of material, then they will assure its success. Three names were considered for the outlets:
JSW Shoppe, JSW steel bazaar, JSW steel emporium. They choosed JSW Shoppe, they felt it
was stylish and could work well both in cities and in rural areas.

ACHARYA’S APPROVAL

Mahendra gave the information regarding the project to Acharya. After reading the report
Acharya asked Mahendra to come along with his team to Jindal Mension and give the
presentation of the project in front of Jindal.

ENTHUSIASTIC RESPONSE AT JINDAL MANSION

Mahendra elaborated his idea:

JSW shoppe will be an exclusive steel retail outlet of the company and will display all the
products of JSW steel, from hot- rolled to colour- coated sheets and long products. The objective
is to attract end – users and customers. Once if the outlets grow in popularity and increase sales,
JSW can starts its own fabrication units.

According to Mahendra, the model would be an “extended arm of the company” JSW
intention is not only to increase the business model but also to increase the partner with dealers.
Mahendra says if they share some costs, dealers will feel that they are serious about this
concept. They will also give certificates to the dealers signed by Acharya. TF team suggest that
they design a standardized model, franchise it to select dealers and share costs with the dealers.
Jindal asked could they not start their own outlets:

Mahendra said, a moderate-sized Shoppe will cost Rs 75 lakhs to Rs 125 lakhs, it is very big
amount to invest on each outlet. So, the team suggest opening 600 outlets by the end of 2012. As
per the market survey most of dealers are not happy with the supply from steel manufacturers,
if they promise to supply regularly then the dealers will love this concept. The team has worked
out that if they set a production target of 1000 tons per month for each Shoppe, they will able to
sell 50% of the production by 2012. The discount that they are offering to the OEM clientele,
that saving can be send to their dealers in the form of margins. After this discussion Jindal highly
satisfied with Mahendra’s project and said him to start the work.

SURESH - PAGE 5,6

​JSW Execution of business model

❖ in order to execute the strategy it was decided that a phased opening of the shoppes.
❖ In 2009 the company had 160 dealers
❖ According to Mahindra​ ​,the initial phase company aim for 50 outlets
❖ It was anticipate that some dealers would be skeptical concerning legal issues relating to the
franchising arrangement
❖ During the second phase a new target of 200 dealers should be achieved
❖ The remaining three and fourth phases should be opened
❖ While the first phase would focus on converting the existing dealers
❖ More over this would also be an opportunities for the non-exclusive dealers

ISSUES

❖ Acharya pointed out two core issues that they would confront
❖ They needed to obtain the general acceptance with the company i,e of the sales and
marketing workforce.
❖ The sales executives role was confined to collecting orders from the dealers
❖ They would be asked to spend time at the dealers coordinates sales and promotion
❖ JSW s their experience showed that each dealer had a focus on selling one product variety.
❖ Mahendra s response was that since the concept was at the drawing board stage
❖ The company could start with two or three shoppers their functioning and the apparent
advantages aggressive expansion would be initiated
 The second issue according to acharya was obtain dealers acceptance of the model

❖ Mahendra proposed that an incentive training programme

❖ The model and train them on the usage of the software being introduced
❖ Other challenges involved in this traction include designing a sophisticated ordering process
for the shoppes to ensure the steady supply of materials
Branding the supply chain
Negations cost revenue
Sharing model with the dealers and designing the floor layouts

▪ After the implementation off few shoppes, JSW sales management sat down to
analyze the progress and initiate corrective actions based on their assessment

BAVEEN- PAGE 7

FROM THE DEALER'S PERSPECTIVE:

The company had come up with an elaborate model to penetrate into the market and build strong
and long-lasting ties, many dealers accepted this concept reluctantly. Some dealer's opinion the
company wanted long time to run in a company. In company regular meeting with the dealer to
remained skeptical. Dealer's questions invest heavily in infrastructure Shoppe good business
without such a change. Company provided standardized product to the customers were unhappy
the satisfied the product of the quickly as before. To order the product were in customs made and
suppliers to us. The company respond saying after the roll of out of the second phase to the
Shoppe expansion program. In April 2010, completed by March 2011, planned establish the steel
service. Growing interference from JSW in to day to day affairs. They difficult to maintain the
information system (MIS). Never use the computer, software maintenance preparing daily report,
placing order and marketing real time gross settlement payment was very demanding. Dealers
force to sell the product to the low cost of the products. And difficult to sell the products high
end products. To maintain the brand of the value to all the products depth of the company's
product line.

DEALER SELECTION AND EVALUATION:

The company strategically targeted the new generation of dealers initially, these believed by the
young dealers, more receptive to the idea, and the flexible to making changes. A dealer is not
aware of the company for choosing a select set of dealers. No proper evaluation criterion. The
company says the competing dealers also existed earlier, and now franchise dealers were
associated by the corporate brand. Dealers product basket was increasing, translate into greater
footfalls to the limited range of the products to offer. Dealers to sell the products they have some
target incentives. And to training the dealers as well as the store personnel at each franchise.
NAVEEN -PAGE 8
FROM THE COMPANY PERSPECTIVE:

JSW dealers are not diverted all the business to Shoppe in fact it was found that many dealers are
opposite which they sold other manufactures products. The dealers did not have Shoppe
discipline as they were not used in a corporate culture and environment. Another thing the
dealers were not interested in investing in(IT) MEANS INFORMATION TECHNOLOGY.AND
THEY WILL NOT UPDATE (MIS)management information technology.

The guidelines and monitoring mechanism are absence in the company. The dealers have
unscrupulous use of BDA funds. The recruitment of dealers have did not meet the company
standards. Dealers used trained executives for activities which also performed by unskilled staff.
It result reduce moral executives for training program whenever the company conducted. It felt
it's a waste of time and money and they have to pay the bill.Other Hand the company involved in
recruitment and training. The company was to bring the professionalism and uniformity. The
resistance from the dealer for expensive manpower.

The critical issue was there is no system in place to measure the performance of the dealers. The
lack of transparency was felt by the dealers.

JSW MARKETING EFFORTS:

JSW realize that the sales at Shoppe depend upon the customer and then placing orders.JSW
marketing concept is to create a(BUZZ) in the region covered by shoppe.JSW program that
involves area vehicle was deployed where the Shoppe was located, The rear of the vehicle
displaying the Shoppe name and contact number, The JSW steel products,advertising,entertain
and religious programs shows through television,DVD player,sales executive are trained by JSW
for communicating in crowd, An artist(SINGER)entertain the crowd, marketing through games
and quiz JSW gives reward and freebies

KALYAN - PAGE 9

New anxieties, concerns:-

At first mahendra’s office gave him a View by watching the setting sun while sipping his coffee
view Of The mumbai skyline and second hand he takes one note, The first two phases of the
shoppe plan had successfully come to an end and his team implantation of the third phase after
that his eyes fell on a newspaper report on the changing business dynamics of the indian steel
industry after that mahendra concederd that no other business-to-business product likely had as
many varieties as steel
● dealer's expectations related to supply and serviceability
 ● The company was contemplating a hub-and-spoke distribution model by opening large
warehousees a cross the country
● The sale's and distribution department decided to wing their company
● New challenges came with the changes in the company
How did JSW propose to handle this inorganic growth :-
JSW company having two competitor’s they are, “T ​ ATA STEEL (s​ teeljunction) and ​ESSAR
(​​Hyper mart) joining the race to open retail outlets on similar lines, after that JSW taking care of
what they are manufactured (competitor’s) which type of qualities and how they will educate the
employees and they are all analyzing JSW company holder's and they are changed that business
model also shoppes would play a key role, what training initiatives should JSW plan and they are
educated like this way to their employees.
This and all changes wrote mahendra because he knows his task was a challenging one in that
JSW.