COMPETITIVE ADVANTAGE OF FLIPKART OVER AMAZON INDIA

INTRODUCTION

The amount of internet users in the country has been gradually expanding. The
impacts of E-commerce as of now are found in all areas. E-commerce made so
natural for everybody with their item varieties and straightforward approach to
purchase things. Flipkart is the first entry which made e-commerce available for
Indians from books to devices to fashion, everything can be bought on internet. In
this paper we study about the two dominant giants Flipkart and Amazon India. Their
present plot in market and challenges to them will be reviewed.

E-Commerce in India

The e-commerce in India was popularized in around 1990’s, most of them were
marital or job portals. The industry was slow growing because there was lack of
recognition among the people, less security for payments & less internet availability.

In mid 2000’s e-commerce was boosted by services like travel ticket bookings, and
various airways started online booking services for its customers. Today relatively
everything is sold online.

Distinction among Flipkart and Amazon

FLIPKART AMAZON
1994 in US,
Established 2007
2012 in India
Established by Sachin Bansal, Binny Bansal Jeff Bezos
Company
Bengaluru, Karnataka, India Believue, Washington, US
Headquarters
Area of Operations India Worldwide

Industry E-commerce E-commerce

Company Type Private Public

No. of Employees 30,000 62,000

STATEMENT OF THE PROBLEM

Indian e-commerce market has emerged to be successful as both the companies

have good share in the market. This study explores the methods used by these
companies to attract the customers and sustain in the market for a longer period
time.

OBJECTIVES

To determine the various strategies of Flipkart and Amazon India, which

organization's methods are progressively viable to impact clients.

To explore the differences among flipkart and amazon.

MARKETING MIX OF FLIPKART

Price

Flipkart has constructed its pricing model in such a manner in such a way that it
contends with other e-commerce players. It scaled down the cost by compelling the
sellers to compete among themselves to give the less expensive item. It does not
charge for its distribution if the request is more than Rs 500 yet charges a minimum
charge for orders less than Rs 500 on account of flipkart assured products. If the
item is supplied by the dealer directly, at that point the dealer's charges of
transportation apply. It likewise offers one-day delivery where the item is supplied
within a day. But in some cases it charges additional service charge and choice of
installation for a price in specific areas.

Place

Flipkart pursues a hub and spoke model. It has 21 best in class warehouses. Here
the items are at first arranged and packed. Products move from these warehouses or
fulfilment centres to mother hubs. Mother hubs are situated at the focal point of a
200 kilometre span zone that comprises of 3 to 5 major urban areas that represents
larger part of interest just as various smaller areas. From the mother hubs, the
stocks are moved to nearby centres from where the delivery van or vehicles picks
and delivers the items.
Product

Flipkart sells items in more than 80+ classifications running from books, garments to
gadgets, mobiles and appliances. It can be considered as an administration platform
which acts as link among dealers and buyers.

Product to dealers:

Flipkart is a stage to exhibit seller’s items. It likewise gives details & analysis of the
items sold by the dealer on its site like what number of units are sold, how much
benefit he is making, chance to advertise his item, the kind of logistic channel which
will give him better benefits and which item doesn't have demand and a few
investigations for the same. It likewise gives the choice of flipkart assured products
where the stock of the merchant are kept in warehouses owned by flipkart. The items
are picked, stuffed and dispatched by its warehouses for the most part through its
logistic services E-kart

Product to buyers:

A stage is created where the buyer can get access to items sold by various sellers
and companies and take decision on the item to purchase dependent on the cost
and other criteria like seller ability to supply the guaranteed product. Flipkart likewise
gives an user friendly framework pay online through debit, credit, net banking and
Cash on delivery. A sub classification service offered by flipkart to its suppliers is its
assured products where the item purchased by the buyer experiences 6 quality
checks and quick and free shipping. It gives the rating of the item and the dealer
which enables the purchaser to take proper decisions.

Promotion

Flipkart has been aggressive in its marketing methodologies as a piece of its

promoting mix. It advances through print media usually through a full-page promotion
particularly during their Big Billion Day. Big Billion Day is a marketing instrument
utilized by flipkart where whole day it sells items at a lesser rate in some cases
giving gigantic discounts. It has other advertising tools like enormous big freedom
sale, deals of the day, offer zone page on its site and application.
SWOC Analysis of FLIPKART

STRENGTHS

1. Flipkart is now taken over by American multinational retail corporation

Walmart which adds to its advantage.
2. It has acquired many online platforms like Myntra, Jabong.com, Ekart,
ebay(2GUD), Phonepe etc.
3. Innovative marketing of flipkart by featuring kids in the ads which boosts the
brand perception and also widen the market and attract the customers.
4. Limited tie-ups with brands like MotorolaMobility and Xiaomi has led to
outstanding product launches.
5. It has several house brands Eg:- Citron (Home appliances), Billion
(Smartphones), Smartbuy (electronic accessories)
6. It has a active logistic backing by ekart.
7. It is the first billion dollar online shopping company in India.
8. It has over 100 million registered users.
9. It has strong existence due to broad promotion and marketing.
10. It has good customer services like helpline, feedback, replacement options
etc.
11. It knows the indian customers tastes and preferences as it is an Indian
company.

WEAKNESS

1. Huge investments prompting losses throughout the years harm the brand
image of flipkart.
2. Acquiring of organisations which make losses.
3. It needs to depend on outside investors to get funds.
4. Need to get better products in clothing and accessories.
5. Focusing to overcome amazon to create a monopoly in Indian market.

OPPORTUNITIES

1. Expanding its business to other countries can boost.

 2. Increasing internet users in India can be utilised by flipkart as they are able to
understand Indian customers.
3. Secure online payment will build confidence in people in online shopping.
4. Selling the make in India products can attract customers.

CHALLENGES

1. Global leader Amazon has good market share and is trying to attract the
customers which leads to reduce in customers.
2. Flipkart's business can be influenced by fluctuating economy and
unfavourable economic situations and govt policies.

The products sold by Flipkart are:

1. Mobile Phones and accessories

2. Laptops, Computer Accessories & Tablets
3. Electronic gadgets
4. Games & Gaming Console
5. Home & Kitchen appliances
6. Men’s and Women’s Clothing
7. Men’s and Women’s Footwear
8. Sports, gym and fitness products
9. Travel, luggage and handbags
10. Personal care appliances
11. Home and Furniture

Reference:

http://www.allresearchjournal.com/archives/2015/vol1issue10/PartO/1-9-49.pdf

https://www.mbaskool.com/marketing-mix/services/17240-flipkart.html