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This is to certify that the project work “Comparative Study Between Flipkart
and Amazon India” made by Samyak Jain, BBA(GEN), 5124001721 is an
authentic work carried out by her under guidance and supervision of Ms. Kanika
Sharma
The project report submitted has been found satisfactory for the partial fulfillment
of the degree of Bachelor of Business Administration.
Project Supervisor
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Ms. Kanika Sharma
ACKNOWLEDGEMENT
Signature
Samyak Jain
Enrollment no: 5124001721
BBA(Gen)
SEC-A 2ndSemester 2ndShift
DECLARATION
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Samyak Jain
BBA, SEC-A, 2ND Shift
Enrollment No.- 5124001721
TABLE OF CONTENT
3. CHAPTER-3 16-26
DATA ANALYSIS
4. CHAPTER-4 27
FINDINGS
CHAPTER-1
INTRODUCTION & LITERATURE REVIEW
➢ INTRODUCTION:-
Today’s business world is highly competitive. Every firm is in the race to win more and more
customers. It seems like every business organisation is in like a virtual war with one another
where one organisation attacks another with their strategies and the other defends itself. With
respect to the concept of war in business, Madansky (2005) highlights the concept of game
theory as a zero-sum-two-person game, where one wins and the other loses. The concept of
Marketing Warfare deals with the application of military strategies to different marketing
problems(Trout, 2012, p. 38). The authors forwarded a Strategic square to justify the
argument. They suggested four aspects of Marketing Warfare viz. Offensive, Defensive,
Flanking and Guerrilla.
This war can be distinctly seen in the e-commerce industry. Even though the traditional form
of purchasing and selling of goods and services is preferred today; yet the modern form of it
i.e. the electronic form of purchasing and selling of goods and services is grasping the society
in a rapid pace. This electronic form of commerce is popularly known as e-commerce.
Though there are many players in the e-commerce sector of India, yet Flipkart and Amazon
India seem to play the dominant role.
Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology, Delhi
founded Flipkart in the year 2007 with a mere capital of Rs. 4 Lakhs. Prior to that, they were
employees of amazon.com. Flipkart is headquartered in Bengaluru, Karnataka and it operates
exclusively in India. The two partners started Flipkart from a small room at Koramangala in
Bengaluru and registered it as ‘Flipkart Online Services Pvt. Ltd’ in the Registrar of
Companies. The website initially dealt only in bookselling the business and later expanded its
product lines to different merchandise.In May 2018, the US giant Walmart negotiated a deal
to acquire Flipkart and finally closed the deal on August 18th, 2018 by taking over 77% of
Flipkart’s share at a price of US $16 Billion.
On the other hand, Amazon.com was founded by Jeff Bezos in the year 1994. It is an
American e-commerce company. It is headquartered in Seattle, Washington. Initially, the
company was incorporated with the name “Cadabra” on July 5, 1994. It went online as
Amazon.com in the year 1995. Amazon.com too started its business as an online bookstore.
Over the years, it expanded by selling other merchandise. Amazon.com entered India with
the name‘Amazon India’ in June 2013.As in July 2013, Amazon’s Indian rival Flipkart
announced to invest $ 1 Billion to increase its business; Amazon quickly countered by
announcing to invest $2 Billion (Rs 12,000 Crores) in India to expand business. With the
passage of time, Amazon received an excellent response in India and has turned itself to be one
of the most trustworthy e-commerce websites.
➢ Company Profile:
➢ FLIPKART
Flipkart has launched its own product range under the name “digiflip”, Flipkart also
recently launched its own range of personal healthcare and home appliances under
the brand “citron”. During its initial years, Flipkart focused only on books, and soon
as it expanded, it started offering other products like electronic goods, air
conditioners, air coolers, stationery supplies and life style products and e-books.
Legally, Flipkart is not an Indian company since it is registered in Singapore and
majority of its shareholders are foreigners. Because foreign companies are not
allowed to do multi-brand e-retailing in India, Flipkart sells goods in India through
a company called ws retail. Other third-party sellers or companies can also sell
goods through the Flipkart platform. Flipkart now employs more than15000 people.
Flipkart allows payment methods such as cash on delivery, credit or debit card
transactions, net banking, e-gift voucher and card swipe on delivery. Flipkart is
presently one of the largest online retailers in India, present across more than 14
product categories & with a reach in around 150 cities and delivering 5 million
shipments per month.
EXCLUSIVE PRODUCTS
Motorola mobility, previously owned by google but then sold to lenovo, in an exclusive tie up
with Flipkart launched its budget smartphone moto g in India on 5 february 2014 more than
20,000 units were sold within hours of launch on Flipkartafter this Flipkart was looking for a
long term tie up with motorola mobility. They also launched their android smartphone, the
moto x, on 19 march 2014. Flipkart later sold the moto e, cheaper than moto g, from 13 may
2014. The sale of high-end smartphone xiaomi mi3 produced by xiaomi tech was launched in
India on an exclusive tie-up with Flipkart. The first batch was sold out within 39 minutes on
22 july 2014, the second in 5 seconds on 29 july2014. The sale was proceeded on pre-
registration mode where more than 150,000 buyers booked for the 5 august 2014 sale. This got
sold off in less than 2 seconds. Following this 11xiaomi tech sold 20,000 units in the next sale
on 12 august 2014.On 2 september 2014 Flipkart held a flash sale of the xiaomi redmi 1s budget
android smartphone which was launched in India in july 2014. 40, 000 units priced at Rs5999
each were sold within seconds.A further 40,000 units were sold within 4.5 seconds on sept 9,
2014. The third redmi 1s sale on sept 16, 2014 sold 40,000 units in 3.4 seconds; in the 4th
round of sale of redmi 1s, 60,000units sold in 5.2 seconds on sept 23, 2014. On 30 september
2014 60,000 units sold in 13.9 seconds. Redmi note in India exclusively through Flipkart;
50,000 units sold in 6 seconds on 2 december 2014. In july 2014 Flipkart launched its own set
of tablet, mobile phones & phablet. The first among these series of tablet phones was digiflip
pro xt 712 tablet. In july 2014 Flipkart launched its first networking router, under its own brand
name named digiflip wr001 300 mbit/s wireless n router. In september 2014 Flipkart launched
its in-house home appliances and personal healthcare brand citron. The label includes a wide
range of cooking utilities and grooming products.
ACHIEVEMENTS IN E- COMMERCE
In september 2015, sachin bansal and binny bansal entered forbes India rich list debuting at the
86th position with a net worth of $1.3 billion each. Co-founder of Flipkart, sachin bansal, got
entrepreneur of the year award 2012-2013 from economic times, leading Indian economic
daily. Flipkart.com was awarded young turk of the year at cnbc tv 18's 'India business leader
awards 2012' (ibla). Flipkart.com- got nominated for Indiamart leaders of tomorrow awards
2011.
ACQUISITIONS
▪ 2010: weread, a social book discovery tool.
▪ 2011: mime360, a digital content platform company.
▪ 2011: chakpak.com, a bollywood news site that offers updates, news,
photos and videos. Flipkart acquired the rights to chakpak's 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 thebrand name.
▪ 2012: letsbuy.com, an Indian e-retailer in electronics. Flipkart has bought
the company for an estimated us$25 million. Letsbuy.com was closed
down and all trafficto letsbuy has been diverted to Flipkart.
▪ 2014: acquired myntra.com in an estimated 20 billion (2,000 crore, about
us$319 ₹million) deal.
▪ 2015: Flipkart acquired a mobile marketing start-up appiterate as to
strengthen its mobile platform.
➢ AMAZON INDIA
Amazon is the largest internet based company in the united states. Amazon.com started as an
online bookstore, but soon diversified, selling dvds, vhss, cds, video and
mp3downloads/streaming, software, video games, electronics, apparel, furniture, food, toys,
and jewellery. The company also produces consumer electronics notably, kindle, fire tablets,
fire tv and phone and is a major provider of cloud computing services. Amazon has separate
retail websites for united states, united kingdom & ireland, france, canada, germany, the
netherlands, italy, spain, australia, brazil, japan, china, India and mexico, with sites for sri lanka
and south east asian countries coming soon. Amazon also offers international shipping to
certain other countries for some of its products. In the year 2011, it had professed an intention
to launch its websites in poland, and sweden. In early june2013, Amazon.com had launched
their Amazon India marketplace without any marketing campaigns. In july, 2013, Amazon had
announced to invest $2 billion (rs 12,000 crores) in India to expand business, after its largest
Indian rival Flipkart too had announced to invest$1 billion.
EXCLUSIVE PRODUCTS
ACHIEVEMENTS IN E- COMMERCE
On the mobile app side, Amazon had the fastest growing app download rate in
2015. In october alone, downloads increased 200 per cent. Amazon web traffic
was the highest in october as per comscore data, at 30 million visitors. Amazon
active customers have gone up 230 per cent year on year. The awards were
conferred at etailing India's flagship conference and exhibition 2014, an event that
brought together major stakeholders in the retail and e-commerce business in the
country. The "path-breaking debut of the year" award went to Amazon.in.
FAILURE
Amazon starts using India post and screws up its delivery system in India. At the
time when the competition among online shopping portals in India is at its highest
level possible and each player is pooling in millions from funding’s and trying to
beat each other with never-before discounts and amazing services, Amazon has
taken the worst step ever possible. Amazon India has chosen India post as its
primary delivery partner and all “Amazon fulfilled” orders are now being shipped
through India post. Anyone who lives in India or has some experience with the
postal system in India needs no introduction about India post.
ACQUISITIONS
It’s no secret that e-commerce giant Amazon has been betting on India as one of
its next big markets outside the U.S. The company is not only investing capital in
the region, but also acquiring startups to help expand its presence in the country.
On Tuesday, Amazon announced it had acquired Indian payments company
emvantage payments pvt. Ltd. Amazon did not disclose the acquisition amount.
Similar to stripe or paypal, emvantage allows online merchants to accept credit
and debit cards. The company also allowed merchants to set up their own branded
pre-paid debit cards and mobile payments. In order to differentiate itself, company
acquired many it & ecommerce start-ups like pets.com, audible.com, junglee.com,
imbd.com, zappos.com, woot etc.
➢ MARKETING STRATEGY:
Flipkart is one of the most visited and fastest growing E-commerce website in India it
has more than 75 million registered users who increased the sales through online
shopping.
The various Marketing strategies used by Flipkart are
Behavioural & Psychographic segmentation strategy to segment the market to cater
to the customers according to the
changing needs & wants.
Undifferentiated targeting strategy as the people of all demography purchase items
online available to everyone where ever the delivery is possible.
Distribution strategy i.e. owning distribution firm (Ekart) for the timely delivery of
orders.
Using various social media promotions like twitter, facebook, TV commercials and
promotion of mobile app etc.
Brand equity which is a Marketing strategy of Flipkart, which has garnered a
market leader position through its innovative branding strategies.
1. Big billion day
2. No Kidding, No Worries
3. Fair-Tale
4. Shopping ka Naya Address
5. Shop Anytime, Anywhere etc are the successful campaigns that helped the
company in creating top of the mind awareness.
Maintaining the Content in its own Official Blog page that gives updates about
company, industry, tech etc.
Maintaining the Customer -Relations through informing about every step via
email/text when the order has been confirmed, order summary & shipment detail
tracker information are provided.
Maintaining the straightforward Return and Exchange policies.
Changing the product price tags, wherein the margin of the cost price and selling
price is manipulated vigorously to change the outlook for the customer’s point of
view.
Amazon is known for being the biggest ecommerce store in the world. It has have
more than 115 million registered users .They are praised for reliability and a great
buying experience, always collaborating with the seller to deliver great quality with
every buy.
The marketing strategies of the Amazon India are
Amazon Marketing Services is proving to be a very powerful advertising platform.
Amazon uses demographic and psychographic segmentation to segment the
markets. Amazon’s micro-level segmentation targets each customer individually,
allowing the company to convert visitors into long-term, high-value customers.
Amazon targets the middle class & upper class people who have got hands on
experience in the basic technology.
One of the Marketing strategy of Amazon is having Competitive advantage in order
to differentiate itself, company acquired many IT & e-commerce start-ups like
pets.com, audible.com, Junglee.com, IMBD.com, Zappos.com, Woot etc. which
helped them in providing high value to their.
Amazon has more than 55 fulfilment centres to maintain its own Distribution
strategy i.e. quick delivery of products the
customer’s order.
Weaknesses
1. Huge investment leading to losses over the years hurts the brand image of Flipkart
2. Acquisition of loss making firms can add to its burden
Opportunities
1. Business expansion to other countries can be big boost for Flipkart
2. Foray into furniture and fresh product business to increase its breadth of product categories
3. Ever expanding internet penetration in India can be tapped by Flipkart
4. Better online secure payments can instill more confidence in people to shop online
Threats
1. Global competitors like Amazon making its foray in Indian online retail market can reduce
Flipkart's market share
2. Investigations by authorities to check its FDI regulations compliance
3. Flipkart's business can be affected by fluctuating economy and unfavorable market
conditions & govt policies.
Weaknesses
1. Intense competition means limited market share growth for Amazon
2. Heavy investments in advertising and discounting affecting margins
3. It has heavily dependent on local players and stakeholders for the supply chain and
distribution
4. Due to Amazon's diversification, a lot of competitors in different lines of business like
ecommerce, cloud, content etc.
Opportunities
1. The markets devoid of internet and increasing internet can boost Amazon's presence
2. Customers reluctant in shopping online can be persuaded
3. Partnerships with corporate houses for bulk selling can help boost sale of Amazon
4. Acquisition of smaller business can help boost the business worldwide
5. Gaming is one of the area, Amazon can explore through its network
Threats
1. Amazon can be subjected to online issues which can affects its brand image
2. Risk of brand dilution by selling a very wide range of products
3. Newly emerging competitive online shopping portals can be challenging
4. Strict government policies and taxation can affect margins
5. Amazon faces a lot of local competition in different regions in operates in
➢ REVIEW OF LITERATURE :
❖ Burt and Sparks (2003) check the interaction between retail processes and
e-commerce. The study finds that with the benefits of internet and inclusion
of cost reductions methods in operations, one can enhance its competitive
position in process, structure and relationship terms. The paper also
discusses the benefits of e-commerce and the uncertainty of the future e-
commerce industry. The paper concludes by suggesting that new
business models and formats should be developed for retailers and e-
commerce to improve the activities of all sorts.
Secondary Data
Secondary data is the data that have been already collected by and readily
available from other sources. Such data are cheaper and more quickly
obtainable than the primary data and also may be available when primary data
cannot be obtained at all.
Some of the sources of secondary data
1. Internet
2. Information brochures
3. Magazine
DATA ANALYSIS
For the investigation reason SPSS demo variant was utilized. Factor investigation was
performed to decide the connection between the variables and much corresponded variables
are consolidated and spoken to by a factor. This is to guarantee data diminishment, rather than
a few variables they are spoken to by minimal essential issue. Relapse investigation, to
distinguish the impact of the segments recognized in factor examination (independent
variables) on client satisfaction (dependent variable).
DEMOGRAPHICS:
Gender Male 28 40
Female 42 60
Total 70 100
Chart Title
120
100
80
60
40
20
0
>25 25-35 >35 Total Male Female Total
Age Gender
Frequency Percentage
The above table gives the experimental disclosures gathered from the gathered data. It gives
statistic data of the respondents and the precise investigation of the data gathered from them.
This is trailed by the understanding and trade about our disclosures. The above table exhibits
that out of 70 respondents 50 % of individuals are in the age social affair of < 25 years,35.7%
of individuals are in the age gettogether of 25-35 and 14.3% of individuals are in the get-
together of >35. We are having most elevated respondents who do web based shopping are
under 25 years and each one of those has a place with understudy class. In the meantime 35.7%
of age save 25-35 are utilizing web based shopping admirably. Every single one of those
individuals are pulled in to web based business destinations which are putting forth extensive
variety of things to all over the place and moreover with their administrations. Another statistic
factor we considered is sexual orientation. Female respondents are higher than the male
respondents that who favor web based shopping. We can decipher that in view of their
inclinations that they are getting extraordinary and inaccessible global things on the web, which
set aside a few minutes productive.
FOR HOW MUCH TIME DO RESPONDENTS SHOP ONLINE
Chart Title
120
100
80
60
40
20
0
Once in month Once in two months More frequent Very rare
Chart Title
120
100
80
60
40
20
0
Frequency Percent Valid percent Cumulative percent
E-Commerce needs to get trust as far as offering security to client's delicate data.
At the point when respondent is addressed with installment technique they will
utilize while doing internet shopping, the more noteworthy bit of the respondents
picks cash down strategy which is of 62.9%. We can dissect that cash down is
straightforward and culminate approach to manage client to continue. Indeed,
even conveyance youthful colleagues are passing on swipe machines and made
more helpful.
WHICH E-COMMERCE SITE IMPRESSES THE RESPONDENTS THE MOST?
As per above table respondents are picking as per online reviews and furthermore equal
percentage of respondents are picking e-commerce sites based upon their friend's suggestions.
E-commerce sites know when to and how to attract customers. The managing of offers in e-
commerce sites is recently perfect. Even however people needn't bother with them they will
purchase because of tempting deals consecutively. More than half of people are doing online
shopping, when those e-commerce sites are offering such huge numbers of exciting deals and
offers. All the e-commerce sites are moving their pawns competitive to each other, which lead
customers in perplexity.
TROUBLES FACED BY THE RESPONDENTS
From item order to delivery of the item its affiliation's responsibility to satisfy customer's
requirements. Customers expect what they paid for, if something happens they will hesitate to
purchase once more. From above table a large piece of the respondents (41.4%) are having
problem with the item quality and after that they are having problem with delay of item
delivery.
REVIEWS OF RESPONDENTS ON FLIPKART CUSTOMER CARE SERVICE
Respondents will choose e-commerce sites when they are completely satisfied with their
complete services. After purchase likewise, affiliation have to take responsible for customer's
requirement. Flipkart made its stamp in customer's heart. Respondents (47.1%) of them are
with the Flipkart customer bolster. This is really a better result to Flipkart, because people are
positive towards it.
REVIEWS OF RESPONDENTS ON AMAZON CUSTOMER CARE SERVICE
Again Amazon proved that still it is one step ahead of all its competitors. About 30% customers
of Amazon are happy and highly support Amazon that is the core reason of the success of
Amazon in the markets. As we know from the previous tables that customer are afraid of the
delivery of damaged products, quality of the items, which is not considered in the case of
Amazon because of its image coordinated efforts and its awesome packaging satisfied the
customers and increased its brand value in the Indian e-commerce markets.
CHAPTER-4
FINDINGS