Strategic Systems

Analysis of Snapdeal.com
By-
Amulya Kumar Sahoo(UR18005)
Apporv Srivastava(UR18007)
Pallavi Bhatia(UR18050)
Raktima Das(UR18042)
Soumyakant Mohakud(UR18026)
E-Commerce Industry

• E-Commerce or Electronic commerce, refers to use of the

Internet to conduct business transactions
• Products being sold are DVD’s, CD’s, PC’s, books, phones,
mobiles, perfumes, bicycles, furniture, households articles,
etc.
• Snapdeal is one of the leading players
• It was founded by Rohit Bahl and Kunal Bansal in 2010.
1) Structure of the Industry

• Competitive forces- Based on Porter’s five forces:

a. Threat of new entrants
b. Rivalry among existing firms
c. Bargaining power of buyers
d. Bargaining power of suppliers
e. Threat of substitute product or services

• New Market Entrants- Paytm Mall

• Power of Suppliers- Suppliers like Woodland and Puma have their
own e-commerce websites
• Power of Customers- Numerous Options per product
• Substitute Products- Amazon, Flipkart, Brick and Mortar Outlets
• Basis of Competition- Flipkart can offer more cash backs than
competitors
• Direction and Nature of change within Industry- E –Commerce
Industry is rapidly growing .
2) IT in Firm vis-à-vis Industry Standards

• Snapdeal acquired Freecharge in 2015 and entered into

market of wallet and recharge.

• Uses Referral Program to attract customers

• Smartphone oriented application

3) IS IT ALIGNED WITH OUR GOALS &
BUSINESS STRATEGY? (Actual)
A. Articulation of VMG, Policy and Strategy
I. Vision:- To create Indians most powerful digital
commerce ecosystem that creates life changing
experiences for buyers and sellers
II. Mission:- Aims at making life fun for consumer.
III. Goal:- To sustain position and capture multiple
market
• Policy- To collect extensive data across all sections of society
in India and expand its inventory of technology
• Strategy- Based on user Login Id, IP address recommends user
specific products
B. Is IT improving the right Business Processes-
Yes, incorporation of IS not only gets more number of customers
but also enables to tackle costs.

C. Orgnisation using the right “Metrics” to measure progress

towards goals & is IS helping to measure those metrics?
I. Site Visitors- No. of visitors tells us how the business is doing.
II. Page View- Popular content by maximum views
III. Bounce Rates- Why people leave the site
IV. Keywords and phrases- Customer requirements are tracked
4) IS IT ALIGNED WITH OUR GOALS &
BUSINESS STRATEGY? (POTENTIAL)
1. Articulation of VMG, Policy and Strategy-
I. Snapdeal is trying to ape Amazon.
II. Amazon has an IMDB affiliation, Snapdeal acquired Freecharge

2. Can IT improve business processes?

• Snapdeal can also introduce products like Amazon Kindle, App
Store, Music and Cloud.

3. Can correct & better Metrics be used to measure progress

towards goals & can IS help to measure those Metrics?
• Snapdeal has invested in high capacity servers to handle huge
traffic.
5) IS STRATEGY ? (ACTUAL)

1. Contribution of IS in business Value chain-

• All kinds of behavioral, demographic, and usage data go into
making product recommendations or trying to ensure a
customer doesn’t drop out

2. Is firm benefiting by using IS in Value Webs- Yes to hold and

retain existing customers and clients.

3. Is firm benefiting by using IS within a Business Ecosystem-

To tackle existing competitors
5. Is IS helping “Core Competency” of Firm-
Core competency of Snapdeal is excellent product delivery and
customer service.

6. Is IS helping Firm to achieve “Synergy”-

To remain relevant in current markets

7. Is IS helping firm to exploit N/W Economics-

To handle huge web traffic

8. Is firm getting advantages of ERP/SCM/CRM systems-

Snapdeal uses ERP systems in sales management and pricing
strategies.
6) IS STRATEGY? (POTENTIAL)

• Where in “Business Value Chain” can IS provide better value-

To garner new customer.

• Can firm benefit better by using IS within Value Webs-

To increase maximum reach.

• Can firm benefit better by using IS within a Business

Ecosystem-
To increase services like online payment via wallets etc.
• Can IS help “Core Competency” of Firm-
To tie up with different delivery service providers

• Can IS help Firm to achieve “Synergy”-

To divert customers from other e-commerce websites to its
own

• Can IS help Firm to exploit N/W Economics-

To intensify huge traffic handling capabilities

• Can firm use ERP/SCM/CRM systems for its advantage-

Market competitive pricing strategies
7. WHAT IS STRATEGY’S is FOLLOWED?
(ACTUAL)
• Focus on market niche.
• Young Generation
• Educational Institutions
• Internet-friendly people
• Socially Connected people
• Shopaholics

• Differentiation
• Snapdeal has different sections for different commodities:
clothes, electronics, home appliances.
• Strengthen Customer & Supplier Intimacy
• The pages for “kids” are further sub-categorized depending on
their ages, such as : 0-2 yrs, 2-4 yrs.

• Low Cost Leadership

• The business-model is designed to attract the niche customer
segments in the virtual market.
8) What IS STRATEGY’S can be followed?
(POTENTIAL)
• Strengthening Customer-Supplier intimacy
• Snapdeal should give customer a chance to enjoy physical touch
in virtual market.

• Low Cost Leadership

• It should be able to compete with online competitiors like
Flipkart and Amazon

• Product Differentiation
• Should be open to expand product base.

• Focus on market niche

• Ability to approach to new customers.
THANK YOU