CORPORATE BASED CASE STUDY OF FLIPKART

Submitted By
MONICA B
(Reg. No. 22MBAA34)

Under the Guidance of

Dr. G. BARANI
ASSOCIATE PROFESSOR
BSMED, BHARATHIAR UNIVERSITY.
&

Dr. A. D. SHALINI PRIEYA

GUEST FACULTY

BSMED, BHARATHIAR
UNIVERSITY.

Submitted in partial fulfilment of the requirements of Bharathiar

University for the Award of the Degree of
Master of Business Administration

BHARATHIAR SCHOOL OF MANAGEMENT

AND ENTREPRENEUR DEVELOPMENT
BHARATHIAR UNIVERSITY
COIMBATORE – 641 046
AUGUST– 2023

i
 BHARATHIAR SCHOOL OF MANAGEMENT
AND ENTREPRENEUR DEVELOPMENT
BHARATHIAR UNIVERSITY

COIMBATORE – 641 046

CORPORATE CASE STUDY REPORT CERTIFICATE

This is to certify that the report titled

“ CORPORATE BASED CASE STUDY OF FLIPKART”

Submitted in partial fulfilment of the requirements of
Bharathiar University for the Award of the degree of
MASTER OF BUSINESS ADMINISTRATION
is a bonafide record of the work carried out by
MONICA B
(Reg. No. 22MBAA34)

-------------------------------------- --------------------------------------
Faculty guide Faculty co guide
Dr. G. BARANI Dr. A. D. SHALINI PRIEY

--------------------------------------
Director
Dr. G. RUPA GUNASEELAN

Submitted for Viva-Voce Examination held on

--------------------------------------
INTERNAL EXAMIINER

ii
 DECLARATION

I MONICA B hereby declare that the corporate case study entitled

“CORPORATE BASED CASE STUDY OF FLIPKART” submitted to Bharathiar University in
partial fulfilment for the award of the degree in MASTER OF BUSINESS ADMINISTRATION
is a record of original work submitted by me during the period of my study in Bharathiar School of
Management and Entrepreneur Development, Bharathiar University, under the supervision and
guidance of Dr.G.BARANI, Associate Professor, and Dr.A.D. SHALINI PRIEYA, Guest Faculty,
BSMED, Bharathiar University, Coimbatore and it has not formed the basis for the award of any
degree / diploma /associate fellowship /or other similar title to any candidate of the University.

DATE: Signature of the Candidate

PLACE: Coimbatore.

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 ACKNOWLEDGEMENT

I am greatly indebted and convey my most sincere thanks to our Director of

Bharathiar School of Management and Entrepreneur Development (BSMED) and my
project guide Dr. G. BARANI, Associate Professor and Dr. A. D. SHALINI PRIEYA,
Guest Faculty, BSMED, Bharathiar University for their valuable guidance and
encouragement to complete thisproject successfully.

I am thankful to all the people who have given their precious time and
provided mewith requisite data without which this project would not have completed. I
would not forget to thank other members who treated me with respect and helped me in
the best of their capacity.

I also thank almighty God, all my friends, relatives and family for their
encouragement and support extended to me during the course of my project.

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LIST OF TABLES:

TABLE NUMBER TABLE NAME PAGE

NUMBER
1.5 Mergers and acquisitions 26
3.1.1 Cost savings based on components 52
3.1.2 Cost savings based on Manpower 52
3.2 Total cost savings 53

LIST OF FIGURES:
FIGURE NUMBER FIGURE NAME PAGE
NUMBER
1.1 Company Logo 2
1.3.1 Organisational Structure 5
1.3.2 Multidivisional Structure 5
1.3.3 Business model 7
1.4.5.1 Collaboration and celebrity marketing 18
1.4.5.2 Flipkart Kids Ad Campaigns 19
1.4.5.3 Flipkart's GenE 19
1.4.5.4 Flipkart’s Big Billion-Day Marketing 20
Strategy
1.4.5.5 Flipkart SmartBuy Marketing Strategy 20
1.4.5.6 Digital Marketing Strategy of Flipkart 21
1.4.5.7 Twitter followers 21
1.4.5.8 Instagram followers 22
1.4.5.8 Facebook followers 22
1.4.5.9 Flipkart Marketing Strategy on YouTube 23
1.5 Revenue of Flipkart Private Limited 27
1.8 Competitor based analysis 28

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vi
 TABLE OF CONTENTS

CHAPTER CONTENTS PAGE

Executive Summary i.
ORGANIZATIONAL PROFILE 1
1.1 Industry Profile 1
1.2 Origin of the company 3
1.2.1.Vision,Mission and Values 4
1.3 Organizational structure 5
1.3.1.Business Model 6
1.4 Functional Areas of the Company 8
I 1.4.1 Human Resources 8
1.4.2 Operations and Production 10
1.4.3 Finance 13
1.4.4 System 15
1.4.5 Marketing 17
1.5 Recent Development of the company 25
1.6 Future Plan 28
1.7 Product / Service Details 30
1.8 Competitor Based Analysis 32
1.8.1. Porter’s Five Forces Analysis 35
1.9. Areas of Development 42
Case Study Description 48
2.1 Problem / Area of improvement identified 48
2.2 Problem Statement 49
II 2.3 Key areas addressed 49
2.4 Conceptual out lay 50
2.5 Assumptions 51
2.6 Justification/Predicted Outcome 51
Analysis and Recommendations 52
III 3.1 Analysis in elaborate with facts and figures 52
3.2 Solutions addressed 53
CORPORATE SOCIAL RESPONSIBILITY 54
REFERENCES 56
 EXECUTIVE SUMMARY

An ecommerce business is a company that generates revenue from selling products or

services online. For example, an ecommerce company might sell software, apparel,
housewares, or web design services. You can run an ecommerce business from a single website
or through multiple online channels like social media and email
Flipkart Private Limited is an Indian e-commerce company established in 2007. It
started with a primary focus on online book sales and soon, expanded to lifestyle products,
electronics, home essentials and groceries. Today, Flipkart is the biggest online Indian
marketplace competing with the world leader Amazon.
In this report details of the company such as its history, growth, strategies and CSR are
presented. The problems the company faced in logistics, that is the type of shipping labels they
used in different market place, the challenges they faced with barcodes because of using
different sheets for printing label and the reduction of orphan products by resolving this issue
are also addressed .This report will give insight on the e-commerce giant ‘Flipkart’ .
 ORGANISATION PROFILE

1.1. INDUSTRY PROFILE

Online buying and selling have become an essential part of our lives. It was youth and
adults who initially relied on the internet to buy products at affordable prices with amazing
return policies and guarantees, it was a trend back then.
Nowadays, eCommerce websites have made online shopping a common practice for
people of all ages. Flipkart is India's most popular eCommerce website, known for
its innovative business model.
Flipkart is the leading Indian eCommerce website founded by Sachin Bansal and Binny
Bansal in 2007.The company is headquartered in Bengaluru, India. This Indian eCommerce
store has brought a revolution in the Indian e-retail industry.

Startup Name Flipkart

Headquarter Bengaluru, India

Sector E-commerce

Founders Sachin Bansal, Binny Bansal

Founded 2007

CEO Kalyan Krishnamurthy

Total Funding $12.6+ billion (January 2022)

Revenue $5.83+ billion

Valuation $37.6+ billion

Area Served India

Parent Organization Walmart

Website Flipkart.com

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 Flipkart, an Indian eCommerce company founded in 2007 by Sachin Bansal and Binny
Bansal, has become a household name. Based in Bengaluru, India, Flipkart has been selling a
vast range of products online, similar to Amazon.Its phenomenal marketing strategies has
attracted the attention of retail giant Walmart, which acquired Flipkart for $16 billion in May
2018.
Along with the imposing worldwide market share that Walmart has in the retail industry,
the Sam Walton-founded company is also famous for its inspirational business model.
In the initial years, Flipkart focused on selling books but today the catalogue covers
categories like electronics, fashion, home essentials, groceries, and lifestyle products. More
than 1 billion people have shopped using Flipkart, making the e-commerce giant the leading e-
retailer in India.
Flipkart also has subsidiaries like Myntra, PhonePe, eBay, Ekart, Jeeves, and Jabong.
Flipkart also launched Shopsy on July 2, 2021, which is designed to behave like an app that
will encourage the nation's entrepreneurs to reap all the benefits of digital eCommerce that
comes their way without investments.
Today, Flipkart has over 100 million registered users, 100+ thousand sellers, and 21+
state-of-the-art warehouses.It also boasts about 10+ million daily page visits and over 8 million
shipments/month. Flipkart currently works as a subsidiary of Walmart.
The current CEO of Flipkart Group is Kalyan Krishnamurthy.Flipkart acquired a 100%
stake in Walmart India, which operates the Best Price cash-and-carry business.Thus, launching
Flipkart Wholesale. This step helped Flipkart strengthen its hold on Grocery/food and Fashion
Business, which is stated to be highly competitive in this dynamic environment.
The launch of Flipkart Wholesale will be initiated in August, thus piloting the services
for the Grocery and Fashion categories. Earlier in 2018, Flipkart was acquired by Walmart for
$16 Billion, which was the largest online e-commerce acquisition in the world to the present.
Flipkart launched its wholesale unit with a presence in fashion and grocery categories.
At present, Flipkart Wholesale will be headed by Adarsh Menon (a veteran at Flipkart).
In order to ensure smooth functioning and transition, Sameer Aggarwal (CEO, Walmart India)
will remain with the company for a while.

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1.2.ORGIN OF THE COMPANY
Flipkart is the leading Indian eCommerce website founded by Sachin Bansal and Binny
Bansal in 2007.The company is headquartered in Bengaluru, India.This Indian eCommerce
store has brought a revolution in the Indian e-retail industry.

Founder Education
Bachelor of Engineering in Computer Science and Engineering from
Sachin Bansal
Indian Institute of Technology Delhi (IIT Delhi)
Bachelor of Engineering in Computer Science and Engineering from
Binny Bansal
Indian Institute of Technology Delhi (IIT Delhi)

About Sachin Bansal- Co-founder of Flipkart:

Sachin Bansal is the co-founder of Flipkart. After obtaining a Bachelor’s Degree in
Computer Science from IIT Delhi, Sachin started with Amazon as a Senior Software Engineer
after a brief stint at Techspan. He then left his job at Amazon and co-founded Flipkart.In
Flipkart, he managed the positions of CEO and Chairman before resigning in 2018 following
Walmart’s major acquisition of Flipkart, where the American multinational company acquired
around 77% stakes in the Indian eCommerce company. Bansal eventually started Navi with
Ankit Agarwal and is currently serving as a Chairman at Navi. The net worth of Sachin Bansal
is currently at $1.30 billion, as of the Forbes report of 2022.
About Binny Bansal- Co-founder of Flipkart:
An IIT Delhi alumnus, much like Sachin, Binny completed his Bachelors in Computer
Science and Engineering, after which he co-founded Flipkart. Binny Bansal was the COO and
the CEO of Flipkart.Sachin was the CEO since the inception of Flipkart and in 2016, Binny
Bansal took over as the CEO while Sachin Bansal became the executive chairman of the
company. However, Binny also resigned from Flipkart in 2018 due to personal misconduct
allegations of Flipkart.
Bansal also served as the Group CEO of the organization. Moreover, Binny has also
served as a Board Advisor at Acko, Blackbuck, GreyOrange, Udhyam Learning, and more such
companies. Binny Bansal is currently serving as a Co-founder and Executive Chairman at
xto10x Technologies.The net worth of Binny Bansal is also $1.30 bn, as reported by Forbes in
2022. Apart from serving in the Saas-consultancy startup, Bansal is also among the Board of
Directors of PhonePe.Binny Bansal sold stakes worth $264 Mn (nearly Rs 2,060 crore) to
Tencent, as per official documents checked out on June 13, 2022.
The documents revealed that the transaction has already been done in October 2021,
and was shared only at the start of FY22.At the end of the transaction, Binny Bansal has now
been holding around 1.84% of the stakes, while Tencent is currently holding 0.72% stakes. The
Chinese tech giant is holding around 4-5% stakes in Flipkart Pte, which is the Singapore-based
parent of Flipkart.Binny Bansal has a history of selling stakes.

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1.2.1.VISION ,MISSION AND VALUE

The founders of Flipkart, Sachin Bansal and Binny Bansal wanted a name that could
speak beyond books.Furthermore, they also wanted to name their company in such a way that
it would be suitable for a wide range of product categories that could also be expanded in the
future.Flipkart means ‘flipping things into a shopping kart’

Flipkart Vision Statement:

To become Amazon of India

Flipkart Mission Statement:

“Ab har wish hogi poori! -Every wish fulfilled”
To provide a delightful customer experience, by being the partner of choice for Indians
and to create India's most customer-centric company.There have been several taglines that the
company has gone through for different occasions. Some of the taglines are:
 Ab Har Wish Hogi Poori
 Abhi Nahi To Kabhi Nahi
 If it's trendy, its on Flipkart
 Be Trendy, Always
 Itne mein, Itnaaaa Milega
 Shopping ka naya address
 Ab Mehengaayi Giregi

Flipkart Values:
 Customer First
 Ownership
 Bias For Action
 Audacity
 Respect

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1.3.ORGANISATIONAL STRUCTURE

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1.3.1.BUSINESS MODEL

Flipkart, which has redefined shopping in India, works on a B2C (business to consumer
model). Flipkart started off with a direct-to-consumer model selling books and some other
products, before turning to a marketplace model which connect sellers and buyers and
expanding its catalogue. Today, it sells everything from smartphones to clothes to furniture
refrigerators to FMCG goods — and yes, books too.
Flipkart claims to have lakhs of sellers on board from across India who list their
products in over 80 categories. The average consumer might not care who the seller is and has
a relationship with Flipkart, whereas the seller who may not have reached the customer at all
can now do so thanks to Flipkart’s platform. To facilitate this transaction and fulfil the order,
Flipkart charges a varying percentage as a commission fee from the seller.
Flipkart's business model can be broken down into the following components:
1. Online Marketplace: Flipkart's online marketplace allows sellers to list their products
and connect with millions of customers across India. Sellers can list their products on
the platform, and buyers can purchase those products through Flipkart.
2. Commission-Based Revenue: Flipkart generates revenue by charging a commission
on the sale price of the products sold on its platform. The commission rate varies
depending on the category of the product and the seller's rating.
3. Logistics and Fulfillment Services: Flipkart has a robust logistics and fulfillment
network that helps sellers deliver products to customers across India. The company
charges fees for these services, including packaging, storage, and shipping.
4. Advertising Revenue: Flipkart also generates revenue through advertising. It offers
various advertising options to sellers, including sponsored products, banner ads,
and social media promotions. Advertisers pay Flipkart for featuring their products on
the platform, which helps increase their visibility and sales.
5. Subscription-Based Services: Flipkart Plus is a loyalty program that offers various
benefits to its customers, such as free delivery, early access to sales, and more. The
company generates revenue through Flipkart Plus subscriptions and by offering
exclusive deals and promotions to its members.
6. Financial Services: Flipkart Financial Services is a subsidiary that provides various
financial services to its sellers, including working capital loans, insurance, and invoice
financing. The company generates revenue through fees and interest charges on these
services.
Overall, Flipkart's business model is focused on providing a seamless shopping
experience to its customers while providing various revenue streams to its sellers and partners.
It invests heavily in technology and logistics to ensure fast and efficient delivery of products,
and it continues to innovate and expand its offerings to maintain its leading position in the
Indian e-commerce market.

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 Flipkart, which has redefined shopping in India, operates on a B2C (business-to-
consumer model). Flipkart started with a direct-to-consumer model selling books and some
other products, before turning to a marketplace model that connects sellers and buyers and
expands its catalogue.
Today, it sells everything from smartphones to clothes to furniture to
refrigerators to FMCG accessories – and yes, books too.
Flipkart claims to have millions of sellers from across India who list their products in
over 80 categories. The average consumer may not care about who the seller is and the
relationship he has with Flipkart. Whereas the seller who hasn’t exactly reached out to the
customer can now do so thanks to Flipkart’s platform. To facilitate this transaction and fulfil
the order, Flipkart charges different percentages as the commission fees from the seller.

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1.4.FUNCTIONAL ARESA OF THE COMPANY

1.4.1Human Resources:
E-commerce technologies are changing the way that work tasks are conducted and thus
have significant implications for the way organizations manage their human resource functions.
Although the impact of IT on work and employment has been the subject of research, little
attention has been paid to electronic commerce and its effect on work organization and HR
management.
At the point when a business first chooses to actualize e-business methodologies and
operations, it regularly utilizes its personnel it has for doing so. However, as the strategy
increases in magnitude, the organization will need to change in order to better embrace and
"live" a more efficient and productive organizational restructuring to help maximize desired
results. In doing as such, the human resource for the organisation can turn out to be critically
imperative to achievement. The quantity of required experts expected to cooperate with a
specific result to expand capability turns into a great test.
Filling the requirement for specialists can be refined by creating and procuring these
aptitudes from inside of the organization, or setting up key associations or outsourcing the work
to authorities. Typically, larger companies will implement building skills from within as well
as acquiring the skills in new hires.
However, this does not mean that this is the norm, as many large companies initially
seek partnerships and outsourcing to foster knowledge as well as minimize initial startup
expenses. The general perspective is that bigger firms more often than not have spending plans
that are more vulnerable to all choices. Since staff pros with e-business learning and experience
can be popular with the huge number of transitioning organizations, it turns into a test for
organizations to retain skilled people. It can likewise turn out to be extremely costly as experts
usually demand hefty salaries
The importance of retaining solid performers becomes even more critical when time,
money and resources have gone into training them in new areas of skill development. However,
since creating and holding such staff can be such a colossal test and potential budgetary
presentation, a developing pattern among organizations is to outsource the work. This is
commonly done in 2 positions: outside-in and back to front.
The outside-in configuration for e-commerce includes outsourcing a few tasks where
there isn't sufficient in-house learning or experience. As the ventures thrive, the organization
adds to these abilities for future needs.
It is critical for HR to be included in observing and cultivating both of these connections
to best address the organization's issues. In addition, human resource departments must
establish a sense of collaboration and commonality among whatever system or combination of
systems are chosen. This can be done by not only making roles challenging and stimulating,
but also by sharing skills and cross training employees.

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 Using the learning of SME's (Subject Matter Experts) to help train other representative's
is an incredible approach to augment assets and expand aptitudes limit through broadly
educating endeavors. Giving the capacity to extend worker obligations and opportunities
through new learning encounters help to keep talented staff drew in and energetic about their
work. Accordingly, the danger of losing a representative on account of exhausting or
commonplace day by day undertakings is reduced.
Another vital objective that must be tended to in setting up the fitting blend of experts
inside of an e-business structure includes adaptability. Adaptability fundamentally implies that
the framework or organization must have the capacity to handle any alterations in requests
being asked.
For instance, like a spring however inverse in development, the e-business framework
(counting the organization) must have the capacity to contract or grow as required by the
interest on it. Where a spring contracts with included weight (the interest) an e-trade framework
would in principle need to extend to handle the increment in limit.
The spring's development is just used to exhibit the development taking into account
impacting conditions. On the other hand, the fundamental message is that a supportable e-trade
framework must have the capacity to handle variance sought after.

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1.4.2.OPERATIONS DEPARTMENT:
Flipkart is one of the largest e-commerce companies in India. The company operates as
an online marketplace offering a wide range of products. It handles more than two million
orders on a daily basis and delivers to more than 19,000 pin codes across India.
Order Cycle
To understand the logistics of how the purchased product reached its destination let's
start with the order cycle at Flipkart. The moment an order is placed by the customer, it goes
to the OMS (Order Management System). From here it goes to the ‘Inventory Allocation’
process where the seller and the logistics department receives the details of the order followed
by the process of ‘Order Picking’ and finally ending with ‘Order Delivered’ by the logistics
team. It is important for the seller to pack the product only with Flipkart packaging materials
and be ready with the packed product on time to hand it over to Flipkart’s logistics.
Logistics
To ensure proper tracking and on-time delivery of the products, Flipkart relies on its
own logistics – EKart. However, Flipkart has tie ups with other courier companies and India
Post as well to deliver products at the locations where it doesn't deliver.
Flipkart has three transport clusters namely local, zonal and national. For the local
orders (where the seller and the buyer are from the same city/place), it uses surface or road
mode of transportation. For zonal orders (where products are shipped within the borders of a
zones which are - north, east, south and west), it usually uses surface or road mode of
transportation but if the order volume is high, air mode of transportation is also used. Lastly,
for the national orders (interzone or where products are shipped across zones in India), most of
the time, air mode of transportation is used.
Fulfilment
Fulfilment means everything done by the company after the order gets placed and
before it gets delivered to the customer. As soon as the order is placed by the customer, Flipkart
immediately sends the order details to the seller and EKart. Flipkart has multiple warehouses,
fulfilment centres and delivery hubs all across the country. The shipments received from the
sellers are transported to the mother hubs, then to the delivery hubs where delivery personnel
pick up the products and do doorstep delivery.
Responsibilities of a Logistics Manager
A logistics manager plays a critical role in ensuring that the company’s supply chain is
running smoothly and that the customers receive their orders on time. He is the one who
manages a complex network of vendors, carriers and warehouses keeping in mind that the
service and quality is never compromised.
Let’s look at the key responsibilities:
Managing supply chain processes - Kumar looks after the smooth movement of goods from
the warehouses to delivery locations.

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Coordinating with vendors and delivery agents - Coordinating with vendors and delivery
boys to ensure safe and timely delivery of products are my every now and then activity. Proper
allocation of delivery is extremely important especially, in case of one-day delivery and same-
day delivery. For this, we use faster means of transportation or a combination of both air and
road transportation.
Managing inventory - One of my most important tasks is to make sure that the right products
are available at the right time. For this, Kumar keeps a regular check on the inventory sheets
and if he finds that there will be a shortage of a particular product very soon, he asks the
vendor(s) to ship that product to the warehouse. This is very important because customers do
not like to see ‘This product is out of stock’ for a long period of time. It’s us who are responsible
to get the products in the warehouses as soon as possible.
Ensuring compliance - Kumar ensures or rather, all logistics managers ensure that all the
shipments comply with regulatory requirements and internal policies of Flipkart, including
proper documentation and adherence to safety standards.
Managing team and training - Kumar manages a team of 18 members and he is responsible
for providing proper training and feedback to the delivery boys. Everyday, on an average, he
handles around 1,500 - 1,800 orders per day.

Challenges:
There are a lot of challenges. Some of the important ones are listed below:
Dealing with fraud/cheating customers/delivery boys - Sometimes, I come across such
customers or even delivery boys who are fraud and cheat the company. In case of fraud, the
logistics manager has to submit a report to the company with each and every detail as it's about
the image and reputation of the company.
I will share an old instance where the company had to suffer a loss of around one lakh.
This is before Flipkart introduced ‘Open-Box Delivery’ for valuable items. There was a
customer who had ordered an iPhone of nearly Rs 90,000. It was a prepaid order so the delivery
boy delivered the shipment to him. Soon, I got a call from the head office that the customer had
complained that the box delivered to him didn’t have an iphone, there was soap in it. I
immediately called the delivery boy who had delivered the box to him. He said that everything
was fine and that the box was sealed like any other shipment. I submitted each and every detail
of the order. Every process involved was thoroughly checked and no fault from the company's
side was found.
At last, the company could have done nothing but to send him an iPhone again. In such
cases, even if the company knows that the customer is cheating or lying, it will take the
customer’s say into account and will compensate him/her. It’s our policy, we can’t blame our
customers.Later, after a few months, that person was arrested by the police as he was caught
cheating with another e-commerce portal citing the same story.

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Dealing with unforeseen events - At times, due to natural disasters like heavy rain or
thunderstorms, roadblocks and supply chain disruptions etc., the orders do not reach the
warehouse on time which results in delay in delivery to the customers. Although such things
happen once in a blue moon, we are held accountable for this delay because the logistics
manager is the one responsible to get the shipments on time and ensure its timely delivery.
Ensuring all shipments meet the quality standards - We have to make sure that the seller
packs the products with proper packaging materials bearing Flipkart’s branding and has the
product label stuck on them.
Managing large volumes of orders - During the sale season or big sale events like the Big
Billion Day or the Summer Sale that happen once a year, we receive a high volume of orders.
Managing such a high volume of orders and ensuring their timely delivery requires a lot of
time and manpower. We have to ensure that the product reaches the customer before the
committed time.
Daily Routine
My office shift is from 9 am to 6 pm. This may also get extended during sale events
due to bulk orders. We get a lunch time of 45 minutes. Each and every part of the warehouse
gets monitored by high-resolution CCTV cameras. When I am not working, I monitor the
cameras to ensure that everything is fine in the warehouse. Apart from this I have already shared
my everyday work that I do at my office (warehouse). There is one other logistics manager as
well who works when I am off duty. We also ensure that the customers get timely updates via
SMS and email about their orders. For this,we have software.
Finally, I would like to say that since I am an old employee and have been working for
a long time, I have got habituated to seeing trucks and loading vehicles coming and going out
of the warehouse. The crowd of delivery personnels and their motorbikes is a common scene
at any delivery hub. I have a good work-life balance and I enjoy my work.
Through the work experience shared by Amit Kumar, you must have understood that
the role of logistics manager is not easy. You need to possess the right set of skills, understand
time management, networking and negotiation skills as you will work with a vast resource of
human workforce to make your job a success.

12
1.4.3.FINANCE DEPARTMENT:
A finance department is the unit of a business responsible for obtaining and handling
any monies on behalf of the organization. The department controls the income and expenditure
in addition to ensuring effective business running with minimum disruptions. Besides the
traditional roles of handling the payroll, income and expenses, finance department
responsibilities also include economic analysis to improve key business strategies.
A finance department has specific responsibilities to carry out daily. Its primary functions
include:
1. Accounting
Daily account record keeping is a finance department function that entails reconciling
a company's financial registers to make suitable business decisions. Through bookkeeping and
income statement preparations, the unit supports the management in filing requisite financial
data that's useful in managing funds.
2. Examining financial statements and reporting
By analyzing a company's financial statements, the finance department evaluates
economic trends, identifies its future investment and cultivates long-term business plans. It
uses and synthesizes financial analysis information to assist in business decision-making.
3. Preparing and forecasting budgets
The finance department plans and implements the company's financial year budget. The
department also conducts research and collects data that assists in the organization's temporary
and permanent financial forecast. The information is essential in planning and providing
informed decisions critical to expansion, such as staff training and asset procurement.
4. Managing operations systems
The finance department plays a significant part in acquiring, updating and maintaining
the latest operations systems to improve efficiency. A systems change may include automation
of various functions or digitalization of some organization's systems.
Jobs within a finance department
Depending on a company's activities and your skill set, you can work in any of the following
finance department roles:
 Accountant: An accountant prepares financial statements and documents monetary
transactions and income statements. The accountant role has a seniority hierarchy, with
the accounting manager being the topmost in the ranks.
 Auditor: The auditor's primary role is to evaluate the documents prepared by the rest of
the teams and authenticate their accuracy. They identify all insufficiencies and mistakes for
accountability.
 Budget analyst: The budget analyst is skilled in preparing and maintaining a balanced
budget throughout the year. They plan for the future financial responsibilities of the
business.

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 Finance controller: Also referred to as comptroller, they oversee the activities performed
by other finance roles, such as auditing and accounting. The finance controller audits and
prepares financial reports on tax compliance and risk management, among other financial
documents.
 Finance administrator: The finance administrator helps plan and verify business
documents for completeness. They also manage cash flows, prepare budgets and present
reports to management for advisory and accountability purposes.
 Payroll officer: Payroll officers prepare documentation related to employees' salaries,
taxation, commissions and any other benefit for timely and accurate payment.
 Treasury analyst: A treasury analyst analyzes the transaction and investment accounts to
evaluate expenses and advise management on how they can best minimize costs.
Skills you need to work in a finance department
There are many job opportunities within a finance department, but each job comes with
its own requirements. Five skills you need to work in a specific finance department role are:
 Problem-solving: You may have to react to financial problems within a company or pay
off liabilities using available assets and other methods. Problem-solving means you have
the expertise to approach difficult financial situations and resolve them.
 Communication skills: A finance department role may mean you have to communicate
and work with others within and outside the department. It is important to communicate
clearly and concisely so you can keep everyone properly informed.
 Analytical skills: Analytical thinking is how you can review data to identify patterns,
discrepancies or additional funds within the company's finances. This skill shows
employers you can view numbers in a more complex way.
 Detail-oriented: Being detail-oriented is important in finance because much of your work
involves entering, analyzing and calculating company data. You should be able to identify
discrepancies in data and be able to identify mistakes in calculations.
 Persuasiveness: You might be in a position where you need to persuade your coworkers
or higher-ups about strategies and budgeting tactics you believe will be beneficial to the
company. You should be able to provide them with evidence to support your claims.

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1.4.4.SYSTEM ADMINISTRATOR
The role of an E-Commerce System Administrator is to provide senior oversight and
expertise regarding the overall eco-system supporting the online environment including the
infrastructure, web, middleware, and database layers and their interactions. The E-Commerce
Systems Administrator is also responsible for resolving issues and recommending
improvements for site viability.
This will involve developing detailed recommendations, design, strategies, auditing,
and consultation with other departments to resolve system issues. The position will meet
regularly with other areas of IS to determine technology requirements, offer advice and perform
implementations. This position also will act as a mentor to other team members.
The E-Commerce System Administrator is instrumental in building and managing
complex information systems and IT infrastructure. This position will support the rest of the
organization as well as require thought leadership to improve and innovate.
E-Commerce System Administrator’s skills:
1. Have a strong understanding of the principles and concepts of computer networking
and Internet technology.
2. Extended experience with Linux operating systems.
3. Experience with Microsoft Windows XP Professional (and later) Desktop and Windows
Server operating system(s).
4. The E-Commerce System Administrator should have ability to produce written
documentation and perform technical evaluations.
5. Strong attention to detail and willingness to follow directions and established
procedures.
6. An interest in providing first-rate IT solutions and assistance.
7. The E-Commerce System Administrator should hav e the desire to work in a team
setting with an open mind and respect for alternative approaches.
Role as E-Commerce System Administrator
The selected candidate will be involved in the following activities:
1. Develop IT strategies and solutions.
2. The E-Commerce System Administrator will create implementation plans and setup and
configure systems.
3. Setup and manage heterogeneous distributed backup system.
4. Large scale server cluster planning, setup and load testing and optimization.
5. Troubleshoot and research solutions to optimize hardware and software bottlenecks.
6. Setup and configuration of desktop computers in support of IT Desktop Management
projects and activities.

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7. The E-Commerce System Administrator will also be involved in performance and load
testing.
8. Adjust and install computer equipment.
9. Engineer dynamic fail-over system spanning multiople data centers.
10. Troubleshoot and resolve problems with desktop operating systems and application
software.

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1.4.5.MARKETING:
PROMOTION MATERIALS AND MARKETING STRATEGIES
Flipkart’s marketing strategy is the reason behind its massive success. No company can
survive without great marketing. The marketing strategies of Flipkart differentiate it from other
brands. Today, the brand also owns many small organizations like Myntra, Phonepe, etc. First,
let’s know more about the company then we’ll move toward the marketing strategies of
Flipkart.
Flipkart’s prominent marketing strategy concentrates on every single touchpoint their
consumers are now at. It functions as the majority of its cost on numerous digital channels
comprising paid and organic marketing. Furthermore, because India has newly experienced the
digital revolution, the attempts of Flipkart are paying off. Flipkart is regarded as one of the
reliable platforms for online shopping. Moreover, we discuss some gadgets or apparel, and
Flipkart has constantly revealed their high-quality service.
Flipkart also spends strongly on celebrity endorsement and influencer marketing.
Ranbir Kapoor, Alia Bhatt, Varun Dhawan, and Shraddha Kapoor have all remained as brand
ambassadors who were essentially highlighted in Flipkart’s commercials and digital marketing
campaigns. Flipkart has predominantly expanded its business through digital marketing
strategy.Flipkart is doing well. The marketing strategy of Flipkart is they started focusing on
the fashion market instead of electronics.
Target Customers of Flipkart (Two Groups):
Everybody is Flipkart’s customer who wants to order something online. But they have
categorized the target customers of Flipkart into two groups.
1) Those Who Don’t Want to Go to Outside for Shopping
This is the first category of people who wants everything at home. They don’t want to
go outside because of traffic or any other reason.
2) Those Who are Looking for Sale and Offers
This group of people might not be a loyal customers of Flipkart. They go where they
find cheap. They are always looking for offers at Flipkart. That’s why you will see why Flipkart
does big billion sales. That is done for this category of people.
Flipkart Marketing Strategy
The complete marketing strategy of Flipkart has been divided into small parts for
better understanding.
1. Collaboration and celebrity marketing :
2. Flipkart Kids Ad Campaigns
3. Flipkart's GenE
4. Flipkart’s Big Billion-Day Marketing Strategy
5. Flipkart SmartBuy Marketing Strategy
6. Digital Marketing Strategy of Flipkart
 SEO Strategy of Flipkart
 Social Media Marketing Strategy of Flipkart
 Flipkart Marketing Strategy on YouTube

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 7. Flipkart’s Twitter Strategy Campaign
8. Flipkart’s Remarketing
9. Affiliate Marketing Tactics
10. Personal Touch and Commoner's Brand Image-
11. Efficient Distribution Channel Strategy
12. Flipkart's Expansion Strategy
13. STP Analysis of Marketing

1) Collaboration and celebrity marketing :

Flipkart is well-known for its collaborations. It furthermore empowers heavily in star
power and celebrity marketing. Flipkart maintains collaborating with many famous figures
from time to time. The most remarkable collaboration “IndiaKaFashionCapital” is done with
Alia Bhatt and Ranbir Kapoor. Under this campaign, the company encourages fashion
enthusiasts from the entire country to advance their style with the newest trends from Flipkart.

Through the procedure of a meaningful media mix, via a styled fashion quotient and
targeted communication concerning their consumers, Flipkart Fashion’s brand ambassadors,
Alia and Ranbir, update the public regarding constantly being ahead in their style game by
‘Wearing The Next.’ The pair were seen in a diversity of engaging and interactive formats,
ranging from short digital content to traditional TVCs talking about the advantages of shopping
on Flipkart Fashion.

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2) Flipkart Kids Ad Campaigns
This was one of the most successful advertising campaigns of Flipkart. I am sure you
have seen these kids in ads. Flipkart still uses this marketing strategy in its new ad
campaigns.A few years back, Flipkart wants to build trust among consumers. That’s why they
have chosen kids in their ads. Humans are emotionally connected to kids and subconsciously
we believe kids say the truth.

This type of campaign was not prepared in the history of Indian advertising. It was an
out of the box idea and people loved it.
3)Flipkart's GenE
In December 2018, Flipkart launched an ad campaign to address gender inequality
issues which has often plagued India.
The concept is pretty clever - Flipkart launched a new digital campaign
featuring GenE - Gender Equal which features a new generation of children engaged in
atypical activities associated with their gender. The idea was to raise kids without any rigid
gender norms and allow them to realize their full potential. Flipkart, in tune with this campaign,
also launched a Gen E store on their website - a unisex kids clothing line.

This campaign stands out for me particularly because it’s about raising a future generation that
aims to have a lower disparity between sexes. It’s also about conscious parenting which is
definitely the need of the hour.

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4) Flipkart’s Big Billion-Day Marketing Strategy
Every year Flipkart launches a Big Billion-day sale where products are offered at very
cheap prices. This reduces the customer acquisition cost of Flipkart and also they get free word
of mouth publicity. As you can see, they bring Bollywood stars in their ads to build trust. Today,
there are many Indians who trust Flipkart more than Amazon.

These sales are launched during the festive season. Both big brands Amazon and
Flipkart sell products at cheap prices and ultimately the customer wins. In my opinion, this is
an amazing marketing strategy of Flipkart.

5) Flipkart SmartBuy Marketing Strategy

Flipkart is a marketplace where sellers come and sell their products. Flipkart has the all
data of their best-selling products. The products which sell well, Flipkart starts selling from
their brand name “SmartBuy”.

The products are of good quality at affordable prices. The best thing is these products
are not available anywhere else except Flipkart. SmartBuy products have a separate fan base.
Launching SmartBuy was a marketing strategy of Flipkart which did well.

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6)Digital Marketing Strategy of Flipkart
SEO Strategy of Flipkart
Flipkart gets a monthly organic traffic of 241.3M visitors. The website has 86.9M
backlinks. The majority of its traffic comes from India. The website’s major traffic comes
from branded queries like Flipkart, Flipkart customer care, etc.

Keywords
Flipkart has smartly used keywords on its website. Their homepage title includes the
most profitable keywords. When somebody searches for these keywords the website comes at
the top.
They have also included keywords in the “Keyword meta tag”. Although, Google gives
very less importance to this meta keyword tag. They also smartly used their product keywords
in URLs so that whenever somebody searches for the product, Google will show it.

Flipkart’s Social Media Strategy:

Flipkart is extremely much more active on all social media platforms. As of August
2020, Flipkart has,
 2.4 Million followers on Twitter.

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  1.7 Million followers on Instagram

 93,96,244 followers on Facebook

Flipkart has a strong hold on its social media strategy. If you want to promote your
e-commerce business and build rapport with the audience then you can always take inspiration
from Flipkart SMM strategy .
Flipkart Marketing Strategy on YouTube
Flipkart has more than six lakh subscribers on YouTube. Generally, they upload
promotional videos over there. They use celebrities in their promotional videos to build trust
among consumers. Indian audiences love two things – Bollywood and Cricket. From
Bollywood, they bring actors like Ranbeer Kapoor and Alia Bhatt. From cricket, they bring
M.S. Dhoni.

22
 Flipkart also used “Buying Guide” marketing strategy on YouTube. You can see in the
image, they have created a complete video on Smart T.V. buying guide. The video got more
than 2 lakh views. In this video, they suggest the audience to buy the right T.V. for their home
and buy it from Flipkart. This was a Flipkart marketing strategy that they used for YouTube.
With YouTube being achieved as the world’s second-largest search engine (behind
Google) Flipkart entirely leveraged this platform to promote its marketing campaigns. Flipkart
initiated a targeted marketing campaign for the fashion segment known as “India ka Fashion
Capital”, aimed at featuring video ads on youtube as the majority of their audience are present
here. Google was also capable to estimate the effect of traditional media vs digital policies,
which caused clear that the brand had an existing all on digital platforms.
7)Flipkart’s Twitter Strategy Campaign
You’ll be shocked to realize that out of all the platforms Flipkart assigns special
attention to Twitter. Flipkart is well-known to follow a fixed pattern for communication for all
the platforms but once it comes to Twitter, they maintain running mini-campaigns from time to
time like #SareeTwitter.
Apart from fun campaigns, Flipkart has 24*7 accessible Customer Support System on
Twitter where they address complaints and queries of their consumers. Subsequently, if you
face a problem with Flipkart, you know what to do.
8)Flipkart’s Remarketing
Remarketing is any marketing and advertising strategy that re-establishes links with
potential purchasers after they visit the store’s website. Remarketing survived before the arrival
of the Internet, yet its procedure has moved from offline to online and it is extremely beneficial
and inbound. Generally, visitors visit the online portals and leave the site without finalizing the
purchase. Remarketing is performed by showing ads to such potential consumers across the
digital platforms advising them to convert.
9)Affiliate Marketing Tactics
Affiliate marketing is a type of performance-based advertising in which a person
receives a share of profit for promoting a product or service or for recommending Flipkart's
items. Flipkart delegated the task of advertising its items to associates, who are paid a portion

23
of the profit on selling the items. Affiliate program members market the products directly or
indirectly through their blogs, videos, or other means. Flipkart offers 5 to 15% commission as
per their cash cow products.
10)Personal Touch and Commoner's Brand Image-
Since its inception, Flipkart ensured surprise delivery by founders, making gift packs
for particular customers on special days. Indians are insane about the personal touch, gifts,
wishes, etc. So, the company focuses on personal approaches. India is obsessed with
Bollywood, and Flipkart is taking advantage of this to raise awareness about its image and
promote its platform and products.
But now the company wants to get into a 'commoner' image to lure the OTT addicted,
'Game of Thrones' lovers; the rational next-gen. Bollywood hardly makes sense to them. So,
strategists uniquely use unknown faces.
11)Efficient Distribution Channel Strategy
Flipkart has nearly 70 warehouses in India where it may hold products after receiving
them from retailers and quickly transfer them to customers. Flipkart also has other hubs for
packing, branding, sorting, and more.
The most important aim of any marketing strategy is to ensure fast delivery to win the
trust of customers and this can be done by selecting a good and efficient distribution system
and chain. This is exactly how Flipkart does its work.
12)1Flipkart's Expansion Strategy
Merger acquisition or business buyout is not only a policy to reduce competition but
also a great marketing strategy. Flipkart acquired many of its small competitors to kill
competition, and sometimes its acquisition is to boost up logistics tech advantages or make a
new entry. For example, it acquired ANS Commerce, eBay India, and Myntra (the king of the
online fashion industry) to fight with rivals.
In order to diversify itself, Flipkart has also made deals with med-platform,
SastaSundar, and ticket booking application, Cleartrip. All this brings up the platform in the
eyes of people and hence, a great marketing strategy.
So, Flipkart is the big fish that eats little fish for its diversified expansion.
13)STP Analysis of Marketing
A balanced strategy is chosen for STP (Segmentation, Targeting, and Positioning)
analysis of Flipkart segmentation, pricing, and targeting analysis. Flipkart works as a
middleman and sells from books to bikinis, so their targeting is not fixed. Similarly, the pricing
also rotates as per product quality brand. However, it claims many products under MRP and
discount rates.
Flipkart uses behavioral and psychographic segmentation tactics to segment the market
and adapt to customers' shifting requirements and wants.

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1.5.RECENT DEVELOPMENT OF THE COMPANY

Flipkart uses an undifferentiated targeting strategy, since people of all demography

purchase items online which is available to everyone where delivery is possible.National &
Multinational ECommerce companies are giving neck-to-neck competition to each other, due
to which their positioning is very important. Flipkart has positioned itself as a trustworthy and
customer-friendly ECommerce brand.
The online retail industry market is of a size of around $60 billion. It is expected to
reach $200 billion by the year 2026. The Indian and global e-commerce industry is on the verge
of exponential growth, and the introduction of high-speed internet has fueled the process across
the nation.
Before the pandemic, India was one of the most attractive eCommerce markets globally,
expected to deliver a 30% CAGR over a six-year time horizon, according to a report by
RedSeer Consulting that projected the sector to record $160 billion in gross merchandise values
(GMV) by 2022.

MERGERS AND ACQUISITIONS:

Flipkart has acquired 18 companies to date, as of March 2022. ANS Commerce was the
latest company that Flipkart acquired in an undisclosed deal on April 19, 2022, in order to
strengthen its eCommerce ecosystem.As per the deal, ANS Commerce would be continuing as
a separate eCommerce solutions platform working under the leadership of Flipkart. Flipkart
previously acquired the repair and refurbishing startup Yaantra on January 13, 2022, in a deal
worth $40 million.
Noida-based Yaantra has already proven expertise in product assessment and
refurbishment and will be aiding to boost the eCommerce giant's business, thereby
strengthening the after-sales offerings of the customers in the smartphones segment.The
company had acquired numerous companies among which the acquisition of a 100% stake in
Walmart India in July 2020 and Upstream Commerce on Sep 9, 2018, are memorable along
with its other acquisitions of Myntra, which it acquired in 2014, in a deal worth $300 million;
Jabong, which it acquired for $70 million in 2016 and that of PhonePe.
In April 2017, eBay announced that it would sell its Indian subsidiary eBay.in to
Flipkart and make a US$500 million cash investment in the company. Flipkart has also acquired
gaming startup Mech Mocha after being its seed investor earlier.The deal has been sealed in
November 2020, for an undisclosed amount, where the Walmart-owned ecommerce giant had
acquired the intellectual property of Mech Mocha, which owns the country's first live social
gaming platform, "Hello Play" in order to strengthen the gaming strategy of Flipkart.
Flipkart had also taken over 10 games that Mech Mocha developed over the past five
years, including Ludo, Carrom, Snakes and Ladders, and Cricket.

25
Here's a look at the 11 recent acquisitions by Flipkart:

Name of the Company Acquired Date of Acquisition

ANS Commerce April 19, 2022

Yaantra January 13, 2022

Sasta Sundar November 19, 2021

Cleartrip April 15, 2021

Scapic November 17, 2020

Mech Mocha November 3, 2020

Walmart India July 23, 2020

Upstream Commerce September 9, 2018

Liv.ai August 21, 2018

F1 Info Solutions & Services September 26, 2017

eBay India April 10, 2017

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1. Myntra – It’s another ecommerce online store acquired by Flipkart in May 2014.
2. PhonePe – is an Indian digital payment and financial technology company that Flipkart
acquired in April 2016.
3. Cleartrip – This is a travel booking search engine globally famous for its incredible
service. Flipkart acquired 100 per cent of Cleartrip’s shareholding in April 2021.
4. Flipkart Health – This is an online pharmacy, also known as SastaSundar. Flipkart
acquired SastaSundar in December 2021.
5. Ekart – is a logistics company that delivers 10 million orders per month. Flipkart
acquired eKart in 2015.
6. Shopsy – Like Flipkart, shopsy is another ecommerce platform that Flipkart acquired
in July 2021.
7. Flipkart Wholesale – This platform mainly focuses on B2B, in other words, WS retail.
We have yet to learn the old name of this company, but Flipkart acquired it in 2012.
8. Jeeves-F1 – Jeeves & F1, both part of the Flipkart Group of companies, are among
India’s most prominent third-party neutral service providers offering comprehensive
lifecycle management for various categories, including Mobility Consumer Electronics,
Home Appliances, Furniture, IT & IT Peripherals, AV & Enterprise Solutions.
9. Yaantra – is a single window stopover that caters to all smartphone queries, such as
broken glass, water damage, software problem, power issue etc. with the best in the
industry services. Flipkart Group acquired electronics ecommerce firm Yaantra in
January 2022.
10. ANS Commerce – is India’s #1 full-stack e-commerce enabler helping brands sell
online. Flipkart acquired ANS Commerce in June 2022 to strengthen its e-commerce
system via technological innovation.

Revenue of Flipkart Private Limited between financial year 2014 and 2022:
(in billion Indian rupees)

27
 1.6.FUTURE PLANS OF FLIPKART
‘Flipkart Plans To Drive Growth In Grocery, Travel Segment’

 Flipkart Chief Executive Officer (CEO) Kalyan Krishnamurthy said groceries is a less
penetrated area for ecommerce.
 We think we can deliver value (in grocery) and selection along with speed while being
operationally effective: Flipkart CEO
 Last year, Flipkart announced the expansion of its grocery services to 1,800 cities across
India.

Ecommerce giant Flipkart is planning to give a strong push to its groceries segment.
The Walmart-backed ecommerce company sees considerable green shoots in the under-
penetrated segment where it can add value to customers.
Flipkart Chief Executive Officer (CEO) Kalyan Krishnamurthy said groceries is a less
penetrated segment for ecommerce although it is an everyday staple for the masses. The
ecommerce company is looking at driving growth in this area, Krishnamurthy added as
reported by The Hindu BusinessLine.
We are doing well in the grocery. That is the segment we want to work in and add value
for the customers, as 99% of India is value-conscious. We think we can deliver value and
selection along with speed while being operationally effective,” Krishnamurthy said.He also
noted that Flipkart is the second largest player in grocery.
Last year, Flipkart announced the expansion of its grocery services to 1,800 cities
across India. “The e-grocery market continues to see increased demand as consumers from tier
2 and 3 markets will get access to high quality selection of staples and household items from
reputed brands at great value,” Flipkart Grocery vice president, Smrithi Ravichandran, said at
the time of the announcement.
However, Flipkart scaled down its quick-commerce service ‘Flipkart Quick’ in the later
part of 2022 and consolidated the business with its next-day grocery delivery platform ‘Flipkart
Supermart’ as the Walmart-owned company was bullish on the grocery vertical.
In the quick commerce grocery space, players such as Dunzo, Zepto, Swiggy Instamart
are leading the segment. On the other hand, Flipkart rival Amazon too sees huge opportunity
for its grocery service in India and plans to continue expansion of this segment. In November
2021, Amazon integrated its grocery stores Fresh and Pantry into a single unified store called
Amazon Fresh. The service was available across 300+ Indian cities as of July, 2022.
Reliance’s JioMart, on the other hand, recently stopped its quick grocery service
delivery of the JioMart Express as it did not want to burn cash heavily. Hence, JioMart now
delivers groceries in a few hours of the day.
The Indian online grocery market was pegged at $3.95 Bn in 2021 and is expected to
grow at a CAGR of around 33.00% to reach $26.63 Bn by 2027, according to a report by
Research And Markets.

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 The next segment for Flipkart after grocery is travel. The company also plans to expand
in the travel space where it onboarded 400 Mn users over the past 12 months. Thanks to the
digital-led nature of travel and ticketing, travel leaves scope for market opportunity, according
to the Flipkart CEO.
Last year, the ecommerce major launched its hotel booking service called Flipkart
Hotels. It also planned to start services such as EMI options for Flipkart Hotels users to shore
up bookings.

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1.7.PRODUCT AND SERVICE DETAILS

Product Assortment:
Mobile Phones:
Flipkart has a mobile device appropriate for customers of all income levels and
technological inclinations, ranging from basic feature phones to cutting-edge smartphones.
Flipkart takes care of all the fundamentals, searching for bigger and fuller displays, batteries
that pack more power, lightning-quick CPUs, beauty apps, high-tech selfie cameras, or large
internal storage space.
Browse products from some of the most well-known companies in the nation,
including Samsung, Apple, Xiaomi, Realme, and Honor, to mention just a few. You can shop
with complete peace of mind knowing that you are only purchasing from the industry's most
reputable brands.
The Flipkart Complete Mobile Protection offers door-to-door services for various post-
purchase issues, including cracked displays, liquid damage to the phone, hardware and software
faults, and replacements. In addition, if you have the Complete Mobile Coverage Plan from
Flipkart, you won't ever have to worry about wasting time going from one service centre to
another. This package includes access to a variety of post-purchase options, beginning at as
cheap as 99 rupees!
Furniture and Home:
Moving to a new location is never simple, and it may be more difficult if you need to
purchase new furniture for the new home. It might be challenging to arrange all furniture, such
as beds, couch sets, dining table sets, closets, and TV units.
The journey may leave you feeling overwhelmed by the hundreds of different
possibilities that are available to you. Where can you go that you can count on, and what kinds
of furniture will last for years? It's important to ask these questions before settling on a shop.
Flipkart's Durability Certified Furniture Store offers a carefully chosen selection of furniture
with the contemporary Indian consumer in mind. It has furniture that has been tested and
certified to survive for at least ten years.
You can be confident that every piece of furniture you purchase from Flipkart has been
subjected to 35 different stability and load tests to ensure that it is of the highest possible
quality. Nilkamal, Godrej Interio, Urban Ladder, HomeTown, and Perfect Homes are a few
names that stand out as worth keeping an eye out for.
Flipkart Groceries:
Having easy access to goods is one of the many benefits that Flipkart offers its
customers. Now that Flipkart has entered the food space with Supermart, you can easily get the
necessities without going far. Flipkart is pleased to provide everything from beans and spices
to dairy products, personal and sanitary care products, staples for breakfast, health drinks,
ready-to-cook meals, grooming products, and cleaning agents. Flipkart is your one-stop shop
for all of your household needs.

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Subscription Services:
Flipkart Plus:
Plus was first conceived as a customer loyalty reward program that would be offered to all of
the company's regular customers at no additional cost.
To use this service, all you require is a deposit of 200 super coins. Plus members get four super
coins for every one hundred rupees spent on a Flipkart order, while non-plus members receive
two super coins for the same amount.
The most notable advantages of becoming a member of Flipkart Plus include:
o Receiving free shipping.
o Gaining early access to shopping events such as discounts and festivals.
o Receiving special exchange offers.
o Receiving priority support from the company's customer care team.
Simply put, you will accumulate more points as you make more purchases.
In addition to this, the Flipkart super coins may be redeemed for a variety of fascinating
services, such as a yearly Zomato Gold subscription, A membership to Hotstar Premium for a
whole year, a subscription to Gaana Plus for six months, and a discount of 550 rupees on flights
purchased via ixigo.

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1.8.COMPETITOR BASED ANALYSIS
Flipkart India competes primarily with Amazon's Indian subsidiary and the domestic
rival Snapdeal. As of March 2017, Flipkart held a 39.5% market share of India's e-commerce
industry.
Flipkart is significantly dominant in the sale of apparel (a position that was bolstered
by its acquisitions of Myntra and Jabong.com), and was described as being "neck and neck"
with Amazon in the sale of electronics and mobile phones.
To list some of Flipkart's competitors, they would be:
 Etsy
 Amazon
 eBay
 Alibaba
 Myntra
 Paytm
 Snapdeal

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 Flipkart has faced several competitors throughout its decade-long battle in the Indian
ecommerce industry. The major competitors included Myntra, Jabong, Snapdeal, eBay, Paytm,
and its strongest competitor, Amazon. Flipkart remained in the spotlight in the Indian
ecommerce industry through frequent mergers and acquisitions, acquiring most competitors
and increasing market share in an effort to compete with Amazon.
Paytm
Paytm, an acronym for Pay Through Mobile, is the largest mobile payment platform in
India. It is owned by One-97 Communications, and its headquarters is located in Uttar Pradesh,
India. Back in 2010, the company initially offered mobile recharge and utility bill payments.
Today, Paytm provides a full marketplace through its mobile apps. The company has over 100
million registered users and gets approximately 60 million orders per month. Paytm offers the
option of recharging a secure online wallet, Paytm-cash, enabling customers to shop from any
location.24 Paytm can also be accessed from a browser, and the Paytm app is accessible on
mobile devices compatible with Android, Windows, and iOS operating systems. Paytm has
attracted many notable investors, including Tata of India and Alibaba Group of China.
Transactions completed on Paytm are completely free with no concealed charges.25 Paytm
Mall has over 17 fulfillment centers across the country and over 40 courier partners for
sellers.26 In 2017, Flipkart cut the commission that it collected from sellers to combat Paytm
Mall. Reliance Capital invested about $41 million in Paytm, increasing valuation for Paytm’s
parent company, One-97 Communications. Paytm’s valuation is estimated to be approximately
$5 billion, whereas Flipkart’s is $5.39 billion.27 In March 2019, Paytm took on Amazon and
Flipkart as it launched its subscription-based loyalty program, Paytm First. Through this
program, the company aims to offer exclusive benefits over and above the regular Paytm
cashback offer, while looking to promote further usage (of its platforms) and to increase
customer retention.
Snapdeal
Snapdeal, founded by Kunal Bahl and Rohit Bansal (not related), is another rapidly
developing e-commerce company in India. Snapdeal evolved from a group coupon business to
an online marketplace that eventually turned into a billion-dollar company. Snapdeal has a
relatively young workforce, with an average age of about 25 years. Snapdeal’s values include
innovation, change, openness, honesty, and ownership, which have propelled the company to
great success. Snapdeal’s impressive growth is the result of relentless determination to prosper
as the best B2C (Business to Customer) marketplace in India. Snapdeal’s most important
success factor was investment by Vani Kola, a venture capitalist. Snapdeal began as an offline
business and eventually went online in 2010. In November 2011, the founders of Snapdeal
were inspired by the success of Jack Ma’s Alibaba and wanted to develop a somewhat
analogous business. Hence, Snapdeal exited the deals Global Journal of Business Pedagogy
Volume 4, Number 1, 2020 91 business and moved into the online marketplace. The decision
was risky since Snapdeal held a large market share in the deals business. However, Snapdeal’s
value is now estimated to be around $1 billion, and, currently, there are more than 50,000 sellers
and approximately 5 million products on Snapdeal.29 The company has grown through
acquiring several companies since 2014

33
Amazon
India Amazon, founded by Jeff Bezos in 1994, is an American e-commerce company
based in Seattle, Washington. It is the largest Internet-based company in the United States.
Amazon started as an online bookstore, but shortly diversified, offering compact discs, VHS,
video and MP3 downloads and streaming, software, video games, electronics, apparel,
furniture, food, toys, and jewelry. Amazon has individual retail websites for countries all over
the world, including: United States, United Kingdom and Ireland, France, Canada, Germany,
The Netherlands, Italy, Spain, Australia, Brazil, Japan, China, India, and Mexico. Amazon
provides international shipping to other specific countries for selected products. In June 2013,
Amazon started its Amazon India marketplace.
One month later, Amazon publicized that it would invest US $1.85 billion in India to
expand its business, seemingly in response to news that Flipkart decided to invest US $1 billion
in expansion.30 Amazon came into the Indian market with the reputation of being the king of
ecommerce. Initially, Amazon’s success in India was uncertain, as Indian consumers are
considerably different from the rest of the world. Amazon lags behind Asian e-commerce
companies such as Alibaba, overwhelmed by competitors in China, with no indication of
catching up. Amazon believes that the failure in China was because the company did not spend
enough
That is why Amazon is investing more in India. Amazon’s CEO Jeff Bezos enlisted
Amit Agarwal to lead Amazon’s India business. Agarwal told Forbes, “Amazon’s entry into
India is big, we can add significant customer value, and we can generate significant cash
flows.”32 Amazon already committed to spend $5 billion for Amazon India, and Bezos has
indicated additional investments will be made as time goes by.
One of the main reasons why Amazon stands out among Flipkart’s competitors is
because Amazon is customer-centric, similar to Flipkart’s business strategy. Amazon has an
edge in terms of reputation and brand recognition. The company is admired and well-known
for providing excellent customer service internationally. People are confident making
purchases with Amazon due to product replacement offerings and after-sales services.34
Flipkart has expanded by mergers and acquisitions. It has been trying to become selfsustained
by developing its own payment gateway and logistics services. However, Amazon is also
acquiring companies in India, although not on as grand a scale as Flipkart. For instance, in
2016, Amazon acquired Emvantage Payments Pvt. Ltd., an Indian payments company, to
facilitate online payments.

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1.8.1PORTER’S FIVE FORCES ANALYSIS

Porter Five (5) Forces Model was proposed by Michael E. Porter in 1979. The purpose
was to assess and evaluate the competitive positioning and strengths of business organisations.
The model has three horizontal competitive forces (Threat of Substitute Products or services,
the threat of new entrants and rivalry among existing firms) and two vertical forces (Bargaining
power of buyers and bargaining power of suppliers).
These forces shape the competition within any industry. The overall industry
competitiveness declines when these forces reduce profitability. Porter found SWOT analysis
lacking in rigour. Many new companies use the Porter Five (5) Forces Model to decide whether
it is profitable to enter in a particular industry

35
Threats of new entrants:
Threat of new entrants reflects how new market players impose threats to the existing
market players. If the industry will be profitable and barriers to enter the industry will be low,
it will attract more players and hence, the threat of new entrants. will be high.
Here are some factors that reduce the threat of new entrants for Flipkart com:
 Entry in the industry requires substantial capital and resource investment. This force
also loses the strength if product differentiation is high and customers place high
importance to the unique experience.
 Flipkart com will face the low threat of new entrants if existing regulatory framework
imposes certain challenges to the new firms interested to enter in the market. In this
case, new players will be required to fulfil strict, time consuming regulatory
requirements, which may discourage some players from entering the market.
 The threat will be low if psychological switching cost for consumers is high and
existing brands have established a loyal customer base.
 New entrants will be discouraged if access to the distribution channels is restricted.
Flipkart com will be facing high new entrants threat if,
 Existing regulations support the entry of new players.
 Consumers can easily switch the brands due to weak/no brand loyalty.
 Initial capital investment is high.
 Building a distribution network is easy for new players.
 Retaliation from the existing market players is not a discouraging factor.
Threat of Substitute Products or services:
The availability of substitute products or services makes the competitive environment
challenging for Flipkart com and other existing players. High substitute threat shows that
customers can use alternative products/services from other industries to meet their needs.
Various factors determine the intensity of this threat for Flipkart com
The Threat of Substitute Products or services increases when;
 A cheaper substitute product/service is available from another industry
 The psychological switching costs of moving from industry to substitute products are
low.
 Substitute product offers the same or even superior quality and performance as offered
by Flipkart com’s product.
 However, this threat is substantially low for Flipkart com when;
 The switching cost of using the substitute product is high (due to high psychological
costs or higher economic costs)
 Customers cannot derive the same utility (in terms of quality and performance) from
substitute product as they derive from the Flipkart com’s product

36
Rivalry among existing firms
The Rivalry among existing firms shows the number of competitors that give tough
competition to the Flipkart com High rivalry shows Flipkart com can face strong pressure from
the rival firms, which can limit each other’s growth potential. Profitability in such industries is
low as firms adopt aggressive targeting and pricing strategies against each other.
The Rivalry among existing firms will be low for Flipkart com if;
 There are only a limited number of players in the market
 The industry is growing at a fast rate
 There is a clear market leader
 The products are highly differentiated, and each market player targets different sub-
segments
 The economic/psychological switching costs for consumers are high.
 The exit barriers are low, which means firms can easily leave the industry without
incurring huge losses.
Similarly, there are some factors that increase the Rivalry among existing firms for Flipkart
com For example, the company will face intense Rivalry among existing firms if market players
are strategically diverse and target the same market. The rivalry will also be intense if
customers are not loyal with existing brands and it is easier to attract others’ customers due to
low switching costs. Competitors with equal size and offering undifferentiated products with
slow industry growth tend to adopt aggressive strategies against each other. These all factors
make the Rivalry among existing firms a major strategic concern for Flipkart .
Bargaining Power of Suppliers
Bargaining power of suppliers in the Porter 5 force model reflects the pressure exerted
by suppliers on business organisations by adopting different tactics like reducing the product
availability, reducing the quality or increasing the prices. When suppliers have strong
bargaining power, it costs the buyers- (business organisations). Moreover, high supplier
bargaining power can increase the competition in the industry and lower the profit and growth
potential for Flipkart com Similarly, weak supplier power can make the industry more attractive
due to high profitability and growth potential.
Bargaining power of suppliers will be high for Flipkart com if:
 Suppliers have concentrated into a specific region, and their concentration is higher
than their buyers.
 This force is particularly strong when the cost to switch from one supplier to other is
high for buyers (for example, due to contractual relationships).
 When suppliers are few and demand for their offered product is high, it strengthens the
suppliers’ position against Flipkart com Bargaining Power of Buyers
 Bargaining power of buyers indicates the pressure that customers exert on the business
organisations to get high quality products at affordable prices with excellent customer

37
 service. This force directly influences the Flipkart com’s ability to accomplish the
business objectives. Strong bargaining power lowers profitability and makes the
industry more competitive. Whereas, when buyer power is weak, it makes the industry
less competitive and increase the profitability and growth opportunities for Flipkart
com
 There are some factors that increase the bargaining power of buyers:
 A more concentrated customer base increases their bargaining power against Flipkart
com
 Buyer power will also be high if there are few in number whereas a number of sellers
(business organisations) are too many.
 Low switching costs (economic and psychological) also increase the buyers’ bargaining
power.
 In case of corporate customers, their ability to do backward integration strengthen their
position in the market. Backward integration shows the buyers' ability to produce the
products themselves instead of purchasing them from Flipkart com
 Consumers’ price sensitivity, high market knowledge and purchasing standardised
products in large volumes also increase the buyers' bargaining power.
 Some factors that decrease the bargaining power of buyers include lower customer
concentration (means the customer base is geographically dispersed), customers’
inability to integrate backwards, low price sensitivity, lower market knowledge, high
switching costs and purchasing customised products in small volumes.
 Suppliers’ forward integration weakens the Flipkart com’s position as they also become
the competitors in that area.
 If Flipkart com is not well educated, does not have adequate market knowledge and
lacks the price sensitivity, it automatically strengthens the suppliers' position against
the organisation.
 Other factors that increase the suppliers’ bargaining power include-high product
differentiation offered by suppliers, Flipkart com making only a small proportion of
suppliers’ overall sales and unavailability of the substitute products.
Contrarily, the bargaining power of suppliers will be low for Flipkart com if:
 Suppliers are not concentrated
 Switching costs are low
 Product lacks differentiation
 Substitute products are available
 Flipkart com is highly price sensitive and has adequate market knowledge.

38
Bargaining Power of Buyers
Bargaining power of buyers indicates the pressure that customers exert on the business
organisations to get high quality products at affordable prices with excellent customer service.
This force directly influences the Flipkart com’s ability to accomplish the business objectives.
Strong bargaining power lowers profitability and makes the industry more competitive.
Whereas, when buyer power is weak, it makes the industry less competitive and increase the
profitability and growth opportunities for Flipkart com
There are some factors that increase the bargaining power of buyers:
 A more concentrated customer base increases their bargaining power against Flipkart
com
 Buyer power will also be high if there are few in number whereas a number of sellers
(business organisations) are too many.
 Low switching costs (economic and psychological) also increase the buyers’ bargaining
power.
 In case of corporate customers, their ability to do backward integration strengthen their
position in the market. Backward integration shows the buyers' ability to produce the
products themselves instead of purchasing them from Flipkart com
 Consumers’ price sensitivity, high market knowledge and purchasing standardised
products in large volumes also increase the buyers' bargaining power.
Some factors that decrease the bargaining power of buyers include lower customer
concentration (means the customer base is geographically dispersed), customers’ inability to
integrate backwards, low price sensitivity, lower market knowledge, high switching costs and
purchasing customised products in small volumes.

39
 How Flipkart can tackle five forces

How Flipkart com can tackle the Threat of New Entrants?

 Flipkart com can develop brand loyalty by working on customer relationship
management. It will raise psychological switching costs.
 It can develop long-term contractual relationships with distributors to widen access to
the target market.
 Flipkart com can also an investment in research and development activities, get
valuable customer data and introduce innovative products/services to set strong
differentiation basis

How Flipkart com can tackle the Threat of Substitute Products or services?
 Flipkart com can reduce the Threat of Substitute Products or services by clearly
emphasising how its offered product/service is better than the available substitutes.
 It should provide convincing reasons to the customers by offering a better experience
and high value for money.
 It can raise switching costs by working on loyalty.
 Lastly, it can improve the quality, maximise value for money and set strong
differentiation basis to discourage customers from using the substitute product.

How Flipkart com can tackle the Rivalry among existing firms?
 Flipkart com should focus on the implicit needs and expectations of its customers to
strengthen the differentiation basis. It should raise switching costs by developing long-
term customer relationships.
 The organisation should also invest in research and development activities to identify
new customer segments. In some cases, collaborating with competitors can be mutually
beneficial. The organisation can look for this option as well.

How Flipkart com can tackle the Bargaining Power of Suppliers?

 Flipkart com can strengthen its position against suppliers by decreasing the dependency
on one or a few suppliers. It will increase its price sensitivity.
 Developing the long-term contractual relationships with suppliers from different
regions not only lowers their bargaining power but also allows Flipkart com to improve
its supply chain efficiency.
 Finally, Flipkart com can find the alternate ways of producing the product if product
demand is high enough and the firm has required competencies and expertise. However,
it requires detailed cost-benefit analysis to determine its feasibility.
 Product redesign and diversification of the product lines can also help the organisation
reduce the suppliers’ power in the market.

40
How Flipkart com can tackle the Bargaining Power of Buyers?
 Flipkart com can manage the bargaining power of buyers by increasing and diversifying
their customer base. It can be done by introducing new products, targeting new market
segments and adopting the product diversification strategies.
 Marketing and promotional strategies can also be helpful in this regard. Building loyalty
by embedding innovation and offering excellent customer experience can raise the
switching costs, which will ultimately reduce their bargaining power.
 Flipkart com can adopt these strategies to strengthen its competitive positioning in the
market

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1.9.AREAS OF DEVELOPMENT
SWOT ANALYSIS:
Every company might take those important decisions while being aware of its
capabilities and limitations in the industry.
SWOT analysis of brands helps identify their untapped potential and opportunities. It
also explains the “Why” behind their operations and decisions. SWOT analysis lists down the
Strengths, Weaknesses, Opportunities & Threats of a company – hence the acronym SWOT.
The assessment helps companies to make an informed, rational decision and be better
prepared to deal with issues.Again, strengths and weaknesses are internal aspects of a
company. Threats and Opportunities are understandably investigated to determine external
factors about the industry the company deals in.

Strengths Weakness

1. Brand Value 1. Heavy Dependence on Discounts

2. Strong market position
3.Innovative marketing strategies
4. Strong financial backing
5. Large customer base
6. Purchasing convenience
7. Strong Supply Chain
8. Responsible Hiring
2. High Cash Burn
3. Double-Edged Sword of
Customer Satisfaction
4. Legal and regulatory issues
5. Near-zero margin business
models

Opportunities Threats

1. Rapidly growing e-commerce 1. Increase in counterfeit product

market
2. Big Billion Days sale
3. Continuous Acquisition
4. Expansion into new markets
5. Increasing penetration of
smartphone
2. High return rates
3. High commission fees
4. Government regulations
5. Intense competition from
websites

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 Strengths in Flipkart SWOT Analysis

1. Brand Value
Flipkart is a well-established brand in India’s e-commerce market. It has a strong brand
image and is recognized as a trusted online retailer. As a result, Flipkart’s brand value in 2022
was more than 37.6 billion US dollars.
2. Strong market position
With a reported market share of over 30%, it stands as one of the largest e-commerce
companies in India. The company’s commitment to providing quality products, outstanding
customer service, and punctual delivery has enabled it to establish a trustworthy reputation
among its customers.
3. Innovative marketing campaigns
Flipkart’s marketing campaigns have been instrumental in establishing its unique
position among its competitors. The company has effectively leveraged various marketing
channels, including social media, television, and print media, to promote its brand and
showcase its products.
For example, the “Big Billion Days” sale is a well-known campaign that has
contributed significantly to the company’s sales figures. Additionally, Flipkart has successfully
launched targeted marketing campaigns for specific segments, such as the fashion industry,
with initiatives such as “India ka Fashion Capital”. These efforts have not only boosted sales
but have also helped to create a strong emotional connection between the brand and its
customers.
4. Strong financial backing
Flipkart is backed by some of the world’s largest and most successful investors,
including Walmart and Softbank, which gives it access to capital for growth and expansion.
5. Large customer base
Flipkart has a significant consumer base, with more than 200 million active registered
users. This enables the business to cater to a diverse group of clients and provide each one a
unique purchasing experience.
6. Purchasing convenience
Online shopping has eliminated the need for consumers to physically visit a store,
allowing them to browse and make purchases from the comfort of their homes. A survey
conducted by CreditCards.com found that 52% of US online shoppers have acknowledged
overpaying for a purchase at least once.
Flipkart has capitalized on this trend by offering a seamless buying experience through
its website and mobile app, enabling it to thrive in the Indian e-commerce market and position
itself as a leading player.

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7. Strong Supply Chain
Flipkart has been able to offer the fastest delivery times in the industry due to its robust
supply chain. Ekart, Flipkart’s own logistics arm, has been instrumental in enabling this level
of service. With over 3,000 delivery hubs, 23 warehouses, and more than 12,000 delivery
executives, Ekart has created an extensive network that allows Flipkart to deliver over 10
million shipments per month across India. This has resulted in numerous success stories, such
as delivering packages to the world’s highest-altitude post office in the Himalayas and even
delivering a customer’s order within 10 minutes of it being placed.
Ekart’s reach is truly impressive, covering over 95% of all the serviceable pin codes in
India. With its robust supply chain and logistics capabilities, Flipkart is well-positioned to
continue delivering exceptional service to its customers and drive growth in the e-commerce
industry.
8. Responsible Hiring
According to chief people officer Krishna Raghavan, Flipkart is committed to
responsible hiring practices and does not engage in large-scale layoffs to reduce headcount.
This sets Flipkart apart from many other startups that have been criticized for hiring
large numbers of employees and then conducting layoffs. It’s focus on responsible hiring can
help create a stable and trustworthy environment, which can be a game changer in attracting
and retaining top talent.

44
 Weaknesses in Flipkart SWOT Analysis

1. Heavy Dependence on Discounts

In the FY 2022, Flipkart reported a net loss of INR 3,400 crores, compared to a loss of
INR 2,445 crores in the previous year. This increase in losses can be ascribed mostly to
deteriorating gross margins, which is related to Flipkart’s excessive reliance on discounts and
deals to attract customers.
2. High Cash Burn
The company has consistently spent more cash than it generates due to heavy
investments in marketing, logistics, and infrastructure.
The filings reveal that Flipkart burned through USD 3.7 billion in a year ending
September 2022, despite raising USD 3.6 billion in July 2021. The quick depletion of these
funds highlights the company’s vulnerability, as its high cash burn model could potentially
have a detrimental effect on its long-term sustainability.
3. Double-Edged Sword of Customer Satisfaction
Flipkart’s customer-centric approach, while successful in creating a loyal customer
base, also leaves the platform vulnerable to counterfeit and substandard products. Moreover,
fraudulent activities, such as false claims of non-delivery and product swapping before return,
also take place. However, to prevent such losses, the company has implemented stringent
refund-checking procedures that can inconvenience genuine customers. Globally, counterfeit
product selling is a big business amounting to almost $500 billion annually posing as a
weakness for the company.
4. Legal and regulatory issues
The company has faced numerous legal and regulatory challenges, including antitrust
probes, tax disputes, and alleged foreign investment violations. These issues have resulted in
substantial financial costs and have damaged the company’s reputation.
Furthermore, the violation of foreign investment laws has made Flipkart vulnerable to
a penalty of INR 1.35 billion by India’s financial-crime agency. The latest penalty imposed on
Flipkart by the Central Consumer Protection Authority (CCPA) of INR 1 lakh for allowing
the sale of substandard domestic pressure cookers on its platform highlights the risks of legal
and regulatory non-compliance for the company.
5. Near-zero margin business models
Flipkart’s main weakness lies in its low-profit margin business model, as highlighted
by industry experts and analysts. Despite being a market leader with sales as high as INR
511.76 billion, the company’s profitability has been severely hampered by the nature of its
business model.

45
 Opportunities in Flipkart SWOT Analysis

1. Rapidly growing e-commerce market

The Indian e-commerce market is experiencing rapid expansion and is anticipated to
achieve a value of $350 billion by 2030. This surge is being fueled by a rise in internet
usage, growing preference for online shopping, and an increase in smartphone adoption. As a
major player in the Indian e-commerce space, Flipkart is primed to take advantage of
this growth potential and seize the opportunities presented by this expanding market.
2. Big Billion Days sale
Flipkart’s Big Billion Days sale is a great opportunity for the company to generate a
surge in sales by leveraging psychological concepts such as exclusivity and high discounts. In
2022, the company witnessed the highest-ever number of concurrent users with 1.6 million
users per second, highlighting the immense potential of the sale. The perception of Big Billion
Days sale as a major shopping event has been ingrained in the minds of Indian consumers, and
this event has become synonymous with attractive deals and exclusive product launches.
3. Continuous Acquisition
Flipkart’s acquisitions, such as Scapic, Mech Mocha, Cleartrip, Upstream Commerce,
and Aditya Birla Fashion and Retail, offer tremendous synergy benefits to the company. These
acquisitions provide Flipkart with the opportunity to capitalize on their technology, gaming,
travel, pricing, &retail expertise. By integrating these startups into its existing platform,
Flipkart can create a unique and differentiated customer experience, thereby gaining a
competitive advantage in the market.
4. Expansion into new markets
While Flipkart has already established its dominance in the Indian e-commerce market,
the company has the opportunity to broaden its horizons and venture into untapped markets
across Asia, Africa, and the Middle East. These regions are experiencing a rising demand for
online shopping, providing a window of opportunity for Flipkart to expand its reach and tap
into new consumer bases.
5. Increasing penetration of smartphone
The increasing penetration of smartphones in India presents a significant opportunity
for Flipkart, which has demonstrated its strength in smartphone sales. With a projected 1 billion
smartphone users in India by 2026, Flipkart can leverage its strong distribution network and
partnerships with leading smartphone brands to capture a larger share of the smartphone market
sale.

46
 Threats in Flipkart SWOT Analysis

1. Increase in counterfeit product

Flipkart has been facing criticism as its platform has been used to sell counterfeit
products by some of its registered sellers. This has led to customers losing trust in the platform,
and Flipkart being referred to as Flopkart, Fakekart, and Fraudkart by some people.
However, it is important to note that it is not Flipkart itself that sells fake products, but
rather the third-party sellers who use its platform. This poses a significant threat, as it can
damage its reputation and cause a decline in customer loyalty.
2. High return rates
Flipkart’s business model faces a notable challenge in the form of high return rates,
with estimates indicating that up to 20% of online purchases are returned. These returns not
only result in elevated costs for the company but also have the potential to diminish the
customer’s shopping experience, leading to a decrease in loyalty and lost sales.
3. High commission fees
High commission fees charged by Flipkart pose a significant risk to its market position,
especially as some emerging e-commerce platforms like Meesho are not charging any
commission and earning solely through ad revenue.
According to reports, Flipkart charges commissions ranging from 10-25% on sales,
making it difficult for small sellers to sustain their businesses. As such, Flipkart needs to revisit
its strategies and potentially consider alternative business models to remain competitive in the
market.
4. Government regulations
The Indian government’s implementation of new regulations on e-commerce
companies, such as restricting discounts on products and introducing TCS, pose a significant
threat to Flipkart’s operations. It needs to navigate these regulations carefully to continue its
growth in the highly regulated Indian e-commerce market.
5. Intense competition from websites
Flipkart is facing intense competition from various e-commerce websites like Ajio,
Shopclues, Tata cliq, Jabong and Amazon, among others. This has posed a significant threat to
Flipkart’s market share and revenue growth.

47
 2.CASE STUDY DESCRIPTION

2.1. AREA OF IMPROVEMENT IDENTIFIED:

An invoice is a document that shows goods sold or shipped and the amounts for each.
The invoice is prepared by the seller and acts as the document that the buyer will use to make
payment.
In logistics, an invoice is used to keep track of shipments and ensure that payments are
made in a timely manner. An accurate and up-to-date invoicing system is essential for efficient
operations.
When goods are sold or shipped, an invoice is generated. This document lists the items
that were shipped, the quantities, the prices, and any other relevant information. The purpose
of an invoice is to provide a record of the transaction so that both parties can keep track of what
was purchased and when payment is due. Invoices are typically generated by the seller, but
they can also be created by the buyer. In either case, the invoice should include all relevant
information about the shipment so that there are no misunderstandings later on. This includes:
 the date of shipment,
 the mode of transportation,
 the weight and dimensions of the goods,
 any special instructions.
Once an invoice has been generated, it will be sent to the buyer. The buyer will then
use this document to make payment. In most cases, payment is due within a certain period of
time, such as 30 days. Prompt payment is essential to maintaining a good relationship with
your logistics provider.
If you are using a third-party logistics provider, it is important to ensure that their
invoicing system is accurate and up-to-date. This will help to avoid any delays or problems
with payments. An efficient invoicing system is essential for smooth operations and strong
customer relationships.
Issue regarding various formats of invoice arose in the company and the company
decided to work on that .Hence,the area of improvement identified is ‘LOGISTICS AND
SUPPLY CHAIN MANAGEMENT’.

48
2.2. PROBLEM STATEMENT:
In the Flipkart marketplace model, Myntra printed shipping and customer invoices on
A4 sheets. Flipkart wants to ensure that all of their vendors could complete the selling process
without facing any technological barriers. Because they were aware that not all merchants
could afford thermal printers that could print paste -type shipping labels, they provided this
kind of invoice.
Unlike Myntra, who had their inventory model based on paste-style shipping labels.
They were technologically ahead of other market sellers because they already had a variety of
venues for selling the brands they owned. Due to the barcode’s rapid obsolescence, Myntra has
difficulties processing and accepting returns.
Their ability to follow the shipment even during the delivery process is complicated by
the fact that these A4 page printouts lose colour after multiple contacts in the supply chain.
Additionally, processing goods in the returns processing centre is difficult because barcodes
will soon become obsolete.
This had a significant impact because every product whose barcode was rendered
obsolete had to be sold as an assortment at a loss. With the goal of lowering the shipping invoice
cost, they were able to offset such losses and promote smooth logistics process Myntra needed
a solution from Flipkart.

2.3.KEY AREAS ADDRESSED:

 IPP (Item per person)
 Time reduction
 Process streamlines
 Packaging cost savings
 Orphan resolution
 Receiving RTO (Return to origin)

Item Per Person (IPP):

Item per person here is the number of labels that can be sticked by the individual within
a minute. If the A4 papers are used then the IPP rate will be 60 per hour and if the Shipping
labels are used then the IPP would be 105/ hour. Since the number of units has been increased
per minute using Shipping labels the man power employed here either could be reduced and
could be redirected to other works which could improve the efficiency and effectiveness or
could be reduced to cut the cost.

Time Reduction:
Since the IPP has been increased the time reduction for sticking an invoice has
happened which is obviously increasing the effectiveness of the process.

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Process Streamlining:
Streamlining processes refers to the practice of identifying and eliminating repetitive
and unnecessary steps or activities in a process in order to make it more efficient and effective.
The goal of streamlining processes is to reduce waste, improve efficiency, and increase
productivity. The process has been streamlined in both forward and return leg.
Cost savings:
The cost of an invoice bill printed using A4 is higher when compared to the Shipping
labels. The cello tape is an additional component in the case of A4 invoices and the manpower
used to stick the invoice is high in the case of A4. Along with this the return and the delivery
of product with obsolete bar code which happens in the case of A4 invoice brings huge loss to
the company and could be avoided using the Shipping labels.
Orphan Resolution:
Orphan is the term used to indicate a product whose barcode became obsolete. Using
the Shipping labels the Number of Orphan products could be reduced and the problem could
be resolved.
Return To Origin:
In case of A4 nearly 20% of products will fail to reach the origin in case of return
because of the damaged or faded barcode. The Shipping labels reduce this to 2-5% which is a
huge saving for the company.

2.4. CONCEPTUAL OUT LAY:

Conceptual design is an early phase of the design process, in which the broad outlines
of function and form of something are articulated. It includes the design of interactions,
experiences, processes, and strategies.

Cost of invoice per Orders Per Cost Saving Per

Process Components
Shipment Month Year

A4 sheet printing

Shipping
Label(3*5)

Process IPP(Item Per Person) Orders per day Manpower Cost savings per year

A4 sheet printing

Shipping Label (3*5)

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 Process Package Cost (Yearly) Manpower Cost Yearly Total Cost Total savings

A4 sheet printing

Shipping Label (3*5)

2.5. ASSUMPTIONS:
It is assumed that by employing this plan,
 Cost,
 Time
 Man power could be reduced in comparison with the previous model.
When it comes to process, streamlining of the return process was the major concern
and by using this model it is assumed that the number of Orphan Products could be reduced
and which in case will help to cut huge loss for the company.

2.6. JUSTIFICATION:
 IPP (Item per person) production improvement from 60 to 105
 Time reduction for packing one item from 60 sec to 36 sec.
 Process streamlines of both Forward and Returns Leg
 Packaging cost savings
 Orphan resolution
 Receiving RTO (Return to origin) shipment with no issues

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 3.ANALYSIS AND RECOMMENDATION

3.1. ANALYSIS IN ELOBORATE WITH FACTS AND FIGURES:

The problem has been identified, that is the invoice in which is printed in the A4. So
the Myntra approached flip kart operations team with the intention of solving their problem
since the process has been going smoothly in their own model but in the chaos occurred flip
kart market place model because of their different way of printing invoice. Flipkart carefully
gone through the idea which has been proposed and introduced both the A4 way of printing
invoice and the shipping labels
Myntra has created a thorough report while outlining the idea’s,
 Costs for components,
 Labour
 other important considerations like RTO (Return To Origin)

Process Components Cost per Shipment Orders Per Month Cost Saving Per Year

A4 sheet

A4 sheet printing Cello tape 1.45 900,000 15,660,000

Carbon toner

DT Label
Shipping Label (3*5) 0.5 900,000 5400000
Carbon toner

Process IPP Orders per day Manpower Cost savings per year

A4 sheet printing 60 30000 56 14666667

Shipping Label (3*5) 105 30000 32 8380952

The tables clearly indicates the advantage of shipping labels over A4 sheet printing.

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3.2. SOLUTION ADRESSED:

A solution has been addressed with the proof that using the shipping label model works
effectively over the A4 model in terms of cost, labour, process streamlining and the product
returns. After implementing this process, the total savings is recorded as 45% which is a drastic
advantage for the them. Initially Flipkart considered the local sellers whom could not afford
this kind of printers and gave the option of printing invoice in A4. Later on, it realised and
enabled option for seller to use any of the printing option according to the convenience od the
seller

Process Package Cost Yearly Manpower Cost Yearly Total Cost Total savings

A4 sheet printing 15,660,000 14,666,667 30,326,667 -

Shipping Label (3*5) 5,400,000 8,380,952 13,780,952 45%

3.3 SELECTING THE BEST SOLUTION FOR PROBLEM AREAS WITH

MANAGEMENT MODELS:
Cost leadership is a business-level strategy employed by companies who wish to gain
a competitive advantage by being the lowest-cost producer of a service, production process, or
commodity. Michael Porter, an economic theorist and strategic management expert, coined cost
leadership as one of three competitive.

3.4 IDENTIFICATION BEST MODEL WITH SPECIFIC DETAILS:

COST LEADERSHIP MODEL:
A cost leadership strategy hinges on a company's ability to lower costs of production to
offer quality products at low prices. It's an effective strategy for large companies with lots of
buying power.
Here by using 3*5 Shipping labels the company reduces the cost by 45% which will
create a huge impact for its Business in the market. Some advantages of cost leadership strategy
are Low costs enable low prices, Cost leaders are more able to withstand price wars, Cost
leaders may enjoy increased market share.

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 CORPORATE SOCIAL RESPONSIBILITY

FLIPKART FOUNDATION:
With a focus on supporting improved market access for under-served communities,
entrepreneurship, skill development, community development, livelihood opportunities and
environmental responsibility, the Foundation aims to impact 20 million lives directly and
indirectly over the next decade
New Delhi (India CSR):The Flipkart Group, India’s homegrown internet ecosystem,
today announced that it has constituted and has launched the Flipkart Foundation with a vision
to facilitate an inclusive, equitable, empowered and sustainable society in India. The
Foundation will carry forward Flipkart Group’s efforts towards bringing opportunities for
ecosystem partners and convenience to stakeholders through a technology-led digital
commerce model. This will enable it to drive inclusive growth with a mission to drive grass-
root level, at-scale and institutionalised impact for sustainable livelihoods and growth
opportunities in India for the underprivileged.
The Foundation was formally launched in New Delhi by the Union Minister for Social
Justice and Empowerment, Dr. Virendra Kumar, Union Minister of State for Micro, Small and
Medium Enterprises, Shri Bhanu Pratap Singh Verma and Minister of State for Rural
Development and Minister of State for Consumer Affairs, Food and Public Distribution, Smt.
Sadhvi Niranjan Jyoti, in the presence of Rajneesh Kumar, Chief Corporate Affairs officer,
Flipkart Group, Krishna Raghavan, Chief People Officer, Flipkart, among other senior officials
from the government and Flipkart.
Flipkart Foundation aims to drive transformational work by collaborating with diverse
stakeholders across government organisations, NGOs and community leaders across four key
areas, namely:
 Market access to the underserved and underrepresented sections of the society for
sustained growth opportunities for entrepreneurship and livelihood opportunities
 Skill development
 Community development, and
 Environmental Responsibility
With the focus on rural areas and providing equitable access to growth opportunities
for women and other disadvantaged communities, the Flipkart Foundation aims to positively
impact 20 million lives directly and indirectly in the next decade.

54
 Speaking at the launch event, Dr. Virendra Kumar, Union Minister for Social Justice
and Empowerment, said, “While India is full of opportunities, there is a need to drive
equitable growth. To help drive this, it is important for businesses to offer support to
underprivileged sections of society to make them a part of the country’s growth story.Our Prime
Minister’s vision of Sabka Saath, Sabka Vishwas aims to bring the government and the industry
on a common platform to work harmoniously in achieving prosperity for all. Organisations like
the Flipkart Group play an important role in this endeavour, and the launch of the Flipkart
Foundation is a decisive step in this direction to create widespread social impact.”
Rajneesh Kumar, Chief Corporate Affairs Officer at Flipkart, said, “With a vision
of Building a New India Together, the Flipkart Foundation is our commitment to engage with
diverse stakeholders to enable transformational development work for society and the
economy. The Foundation will address several critical societal concerns ranging from art and
craft revival to employment opportunities for the underserved, to disaster relief – all aimed at
driving inclusive development and contributing to nation-building. We have set audacious
targets for the Foundation and aim to influence 20 million lives directly and indirectly in the
coming decade across a wide array of areas by utilising our learnings over the years.”
Flipkart Foundation’s operations are grant-based, with contributions from the Flipkart
Group and through the ‘Charity Checkout’ feature available on Flipkart platforms, which
provides an easy and seamless way for philanthropic giving.
The establishment of the Foundation is in line with the Flipkart Group’s continuing
efforts toward nation-building by supporting livelihoods through direct and indirect
employment creation and opportunities enabled by its technology and innovation-driven
marketplace for lakhs of MSMEs, sellers and artisans, along with infrastructure development
through its supply chain and other group services and offerings.

55
REFERENCES:

1. https://startuptalky.com/flipkart-success-story/
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756703.html#:~:text=Job%20Description%20%3A,Operations%20and%20iden
tify%20improvement%20opportunities.&text=%2D%20Planning%2C%20forec
asting%20and%20operation%20control%20through%20process%20monitorin
g
4. https://www.talkwalker.com/blog/flipkart-marketing-
strategy#:~:text=Flipkart%20relies%20heavily%20on%20influencer,as%20well
%20as%20advertising%20online
5. https://www.marketing91.com/swot-analysis-of-flipkart/
6. https://indiacsr.in/csr-flipkart-group-launches-flipkart-foundation-to-support-
development-in-socio-economic-areas/
7. https://businessconnectindia.in/the-success-story-of-flipkart/
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100222.html#:~:text=%2D%20Overall%20responsibilities%20include%20Talen
t%20Management,is%20critical%20to%20the%20business
9. https://www.careers360.com/premium/work-experience-of-logistics-manager-at-
flipkart

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