Management of Growth

Ventures Member Roll Number

Abhinav Gupta 17ME10001

EP60006 Aniket Raut 17MI31004

Ayush Vajpeyi 17EE10062

End-Term Project Kotipalli Leelaram Srikar 17AE30025

TEAM FLIPKART Sagar Nagrani 17EE10037

Shreyansh Vats 17ME10077

THE BEGINNING HUSTLE: FLIPKART’S GENESIS AND INITIAL YEARS
IDEA INITIAL YEARS

Sept 2007 : Quit Amazon to start own

envisioned E-commerce
revolution

E- Commerce Oct 2007 : Launched Flipkart.com; an

Market, online bookstore trailer-made
Similar to Amazon
but interests of
Indian customers Jan 2008 : ‘Go-to- work’ website; started
at heart 24*7 services

Jan 2009 : Grinding rendered 100 orders

SACHIN BANSAL & BINNY BANSAL per day; with joining of Lyappa

Beginning Momentum Competition Troubles Progression

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LEVERAGING MOMENTUM: FLIPKART ASCENDS WITH FULL STEAM
₹ 40M ₹ 200M ₹ 750M
Annual Sales

2009 2010 2011 2012

US $350M from
Investments US $1M from Accel US $10M from Tiger US $20M from Tiger Naspers Group and
India Global Global Iconiq Capital

Acquired
Acquired digital content digital content
service Acquired electronics
Acquired socialstartups,
book Chakpak and Mime360 service e-tailer Letsbuy to
Acquisitions recommendation startups, Chakpak and boost its mobile
portal, ‘WeRead’ Mime360 services

Opens offices in Delhi Introduced new Enhanced delivery Further expanded

Expansion and Mumbai. categories such as network to over 600 cities categories to fashion,
Headcount leaps to games, mobiles, and launched eKart healthcare and
150 movies etc. electronics

Innovative Launched a unique Launched digital wallet Launched mobile

Cash-On Delivery shopping app and
measures payment method
feature
Flyte MP3

Beginning Momentum Competition Troubles Progression

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 THE RAT RACE: FLIPKART IN THE INDIAN E-COMMERCE TUSSLE

High Acquisition of
“Big Billion
Myntra and

Growth Drivers
Increasing Days” in 2014
Internet PhonePe

Impact
Rising Middle Penetration
Class Size

Market Size of $8.5 Bn in 2012

Low

Growth Restraints
Low

Impact
Congruence
Snapdeal’s Syndrome
$2 Bn genesis in 2010
Projected Growth of $55 Bn in Entry of Investment by
2013-2018 Amazon via Amazon
High
Junglee.com

Beginning
Executive     Momentum
Logistics Competition
B2B & B2C Troubles
Overseas Progression
Impact
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 TROUBLED WATERS: FLIPKART FACED LOWS BUT CAME OUT STRONG

WHAT HAPPENED? WHY DID IT HAPPEN? RESPONSE

2016 was a bad year for Flipkart which saw its Previous Model Website Experience Binny Bansal became CEO
valuation decline considerably due to a series of Flipkart Group
of markdowns and cuts made by its investors.
Experimental App-only Experience (Even Strengthening Kalyan Krishnamurthy
Model during Big Billion Sale) Leadership became CEO of Flipkart.com
$15.5 Bn
Customer Streamlining of digital traffic
Tectonic Shift to Competitors
Response Consumer Satisfaction
Valuation

Laser Focus
Innovation for Growth

$5.6 Bn Strategic Acquisitions

Huge investments by
Leadership Change Sachin Bansal quit as CEO Financial Microsoft, Tencent, eBay,
Confidence Walmart
2015 2016
“We are a growth company and that is by far the single biggest agenda. Execution, growth and innovation are the buzzwords for 2017.”
Kalyan Krishnamurthy, CEO, Flipkart

Beginning
Executive     Momentum
Logistics Competition
B2B & B2C Troubles
Overseas Progression
Impact
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EXPECTATIONS: GOING STRONG AND MOVING FORWARD

AI in Industry New Markets Sustainability Goals

Revolution 4.0

FLIPKART •Augmented reality to •Flipkart Video, •Joined Climate

enhance user Flipkart Grocery, Group’s EV100
experience. Flipkart Wholesale. initiative.

•Pledged to use EVs

•Liv.ai platform •Independent for delivery.
acquisition. markets: ‘2GUD’.

•Warehouse robots •Own brands:

for efficient ‘Ardenex’, ‘Smartbuy’,
Customers Employees Leaders transportation. ‘Citron’.

Beginning Momentum Competition Troubles Progression

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 Decisive Innovation
leadership driven
Strategic

The Pressing Focus on

Indian
customers
Strong
response to
downsides
partnerships
like with
Walmart

Question
Will Flipkart become the largest
online conglomerate in India?

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REASSESSING FLIPKART’S CORE COMPETENCY
CASH ON DELIVERY

Flipkart caught the eye of the Indian

customers when it launched the Cash On
Delivery. It truly empathizes with the
Indian customers.

RETENTION PRICING

With such a wide range of With such a wide range of

products, Flipkart has done well products, Flipkart has done well
on keeping the prices on keeping the prices
competitive and reasonable. competitive and reasonable.

SELF-CAPABILITIES MASS MARKET

Rather than compromising on

quality and timely delivery, Starting off from just selling
Flipkart has developed excellent books, Flipkart has expanded to
self-owned product delivery become a mass appeal business.
network.

Assessment Supply in 4.0 New Avenues Partnerships Expansion

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 SWOT ANALYSIS: OBSERVING THE CURRENT BUSINESS SCENARIO

STRENGTHS WEAKNESSES
● Reach is affected by Limited Distribution channel.
● One of the largest e-commerce companies of India.
● The cost of acquisition is high because Flipkart
● Backed by giant investors such as Walmart.
● Acquisition strategy includes promising businesses acquires a lot of customers through online
advertising.
such as Myntra, PhonePe. ● Product differentiation within competitors is almost
● Own logistics arm E-Kart and payment gateway.
● Differentiation and localized offerings. absent and the fight then begins on the basis of
price only, boosts the competition.

THREATS OPPORTUNITIES
● Expanding their Product categories will increase
● Stiff competition from Amazon, eBay as well as local
their customer base & at the same time will reduce
players like Snapdeal, Tolexo and Shopclues.
● Government regulations on the issues related to the cost of acquisition and customer switch.
● Increasing internet penetration and e-commerce
FDI in multi branding retail.
● Seller’s commission is very high. If a company offers comfort in India.
● Flipkart can start expanding out of India.
fewer sellers commission then sellers may switch to ● Better online secure payments can instill more
those e-commerce platforms
confidence in people to shop online.

Assessment Supply in 4.0 New Avenues Partnerships Expansion

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A8 SCAN MATRIX: FLIPKART IS ON A PROMISING PATH
Metric Assessment Score

Achievable KSF? Highly Positive (Reaction-oriented rather than excellence-oriented) 4

Appropriate KASH? Highly Positive (Great human resource and talent pool, with sustainable uses of technology) 4

Approachable Profit? Negative (In India, the company has got negative yearly returns for a long time now) 2

Affordable Cash? Positive (Indian operations, in view of the profitability status, is a concern) 3

Accessible Financing? Highly Positive (Large investments and immensely huge market in the world with its inclusion in 4
Walmart)

Agreeable Growth? Negative (One of the top e-commerce companies in the country with an expected valuation of $50 2 SCORE: 26
billion by 2021)

Adequate Highly Positive (Excellent engineering, strong business in India, great teams) 4
Infrastructure?

Absorbable Risk? Positive (Being a large group, it is capable of absorbing failures/market catastrophes) 3

Assessment Supply in 4.0 New Avenues Partnerships Expansion

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 SUPPLY CHAIN MANAGEMENT IN INDUSTRY 4.0

Fraud Detection Warehouse Management

Cutting edge AI and ML techniques Autonomous mobile robots
can be used to detect fraud (AMRs) for efficient inhouse
sellers/buyers/reviewers on the transportation of products.
online marketplace. Manual labour to be used
minimally.

Automated quality checking Inventory Management

Current manual checking
Use of demand analytics and
methods are highly
forecasting to predict
inefficient and unreliable.
optimum amount of
Automation would result in
inventory for maximum
overall process optimization
profits

Sustainability One-Day Delivery

Building adequate manufacturing
Drones and other delivery
facilities to mass produce eco-
robots to facilitate premium
friendly packaging for all delivered
one-day delivery in
products. .
accessible areas.
Assessment Supply in 4.0 New Avenues Partnerships Expansion
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 NEW AVENUES - I

OTT: The Next Battlefield ?

★ Flipkart has its own entertainment platform named
Flipkart video embedded into the main app.

★ Flipkart video can be spun off into its own app like
PhonePe to compete with Amazon’s Prime Video.

★ Flipkart acquired ★ Phone pe is now

★ Flipkart now has a
PhonePe in 2015, its own entity with
foothold into the
when it didn't even a valuation of $5.5
Fintech space.
have a viable Billion.
working product.
vs

What other golden eggs is Flipkart nesting ?

?
Assessment
Executive       Supply in 4.0
Logistics New
B2BAvenues
& B2C Partnerships
Overseas Expansion
Impact
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 NEW AVENUES - II

➢ A revolutionary experimental hyperlocal delivery

★Flipkart wholesale is a B2B marketplace for Indian kirana stores
and other small retailers.
★Flipkart is leveraging its strengths to diversify into different roles
of the supply chain.
★Directly in competition with well established competitors like
Udaan & Indiamart and still beating them in their own game.
★75 % growth in just one month in DEC-2020.
system.
➢ Guarantees delivery in less than 90 minutes.
★ Flipkart created Local Dark stores to fulfill
orders.
★ They are just like neighborhood grocery
stores but won't be open for customers and
are instead managed by flipkart personnel.

2010 - 2020 : Delivery in days

2020 - 2030 : Delivery in minutes

Assessment
Executive       Supply in 4.0
Logistics New
B2BAvenues
& B2C Partnerships
Overseas Expansion
Impact
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 ACQUISITIONS AND INVESTMENTS - I

FASHION RETAIL TECHNOLOGY

Flipkart's descent into the fashion
industry dates back to its acquisition of
Myntra. We see them entering the Retail
industry through Fashion itself since it
already supports well-known brands.
Strengthening its grip on logistics by investing
Flipkart can be seen developing an AI for
in 'Blackbuck' and 'Shadowfax,' Flipkart's
dictating the future fashion trends;
offline presence can also be predicted. This
similarly, its acquisition of 'Liv.ai' displays
can be facilitated through Walmart's stores in
a vision of a simpler Flipkart accessible
India, creating a one-stop solution for its
to every Indian.
online and offline customer base.

By 2030, we visualize Flipkart ruling the holy trinity of fashion, retail and technology in India.

Assessment Supply in 4.0 New Avenues Partnerships Expansion

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 ACQUISITIONS AND INVESTMENTS - II: WHERE CAN IT ENTER NOW
OTT: HEAVY INVESTMENTS
Flipkart may invest even more heavily in
Flipkart Video looking at the recent
trends in market.

BANKING
Augmented Reality Real Estate Gaming PhonePe can prove to be vital for Flipkart
SCAPIC NESTAWAY MECH MOCHA Group, evident from the recent valuation
surge of the acquired startup.

Assessment Supply in 4.0 New Avenues Partnerships Expansion

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 OPENING RURAL BUSINESS HUBS: OUR AUGMENTATION THEORY

Rural India is becoming very Augmentation Index

= Per Capita Income x Distance from Nearest Location
important for e-commerce
industries. Flipkart will try to
Our self-formulated Augmentation Index helped us speculate
expand strategically expand. Our what might be Flipkart’s expansion strategy in the rural
team has tried to predict how it regions of India.
might target expansion in rural
EXAMPLE: HOW FLIPKART MIGHT NEAR A TIER II CITY (BHOPAL)
India.

Priority for location

Increasing internet More usage and
penetration benefits

High Per Capita More spending on

Income living standards

Assessment Supply in 4.0 New Avenues Partnerships Expansion

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 CONQUERING OVERSEAS: OUR EXPANSION THEORY
ASIA-PACIFIC
COMPARATIVE TERRITORY INDEX (CTI) Philippines
New Zealand

EUROPE
CTIₕ = CIₕ x EIₕ Poland
Germany

Choice Index (CIₕ) = (Apparent Online Use)²/(E-Commerce Revenue x Import Index) Favourable
proportional
Expansion Index (EIₕ) = Weighted Score of Various Business Environment Factors expansion to gain
market share
(Asia-Pacific) and
Foreign Direct Investment growth (Europe).
Manufacturing PMI

Ease of Doing Business

Our self-devised Comparative Territory Index helped us assess
Competitive Index
countries within Asia-Pacific and Europe. Striking resonance
Import Prices Index
between demand and opportunities, Philippines and New
Taxation Zealand in Asia-Pacific and Poland in Europe might be winners.
Factors Including World Economic Forum metrics
% Weights Awarded

Assessment Supply in 4.0 New Avenues Partnerships Expansion

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 TROUBLE AHEAD: THE RIVAL TECHNOLOGY DISRUPTION

Futuristic Futuristic Impact

Technology

Assessment Supply in 4.0 New Avenues Partnerships Expansion

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 FLIPKART

Conclusion
Inclusion Entrepreneurship Sustainability

Largest Indian e-commerce and a

formidable overseas player by 2030.
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THANK YOU!
APPENDIX 1: AUGMENTATION INDEX CALCULATION
District Per capita income FY Distance to closest city (km) (Y) Index Value
2020 (X)

Sehore 8000 38.3 208.8772846

Raisen 14000 43.7 320.3661327

Hoshangabad 18000 76.5 235.2941176

Sanchi 17500 48.6 360.0823045

Vidisha 16000 57.4 278.7456446

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APPENDIX 2: CHOICE INDEX CALCULATION
E-commerce Revenue
Countries Chosen (in Billion USD) Apparent Online Use Import Index Choice Index
ASIA PACIFIC
Japan 99.284 69.782 6.455 7.60
Philippines 1.915 11.697 7.214 9.90
Thailand 4.246 21.416 16.745 6.45
Australia 5.493 6.097 1.86 3.64
New Zealand 0.667 0.897 0.382 3.16
EUROPE
Germany 39.627 37.032 23.096 1.50
France 14.45 15.552 14.589 1.15
Turkey 33.743 27.657 12.337 1.84
Poland 8.956 16.426 10.96 2.75
Netherlands 6.657 5.875 9.582 0.54

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 APPENDIX 2: EXPANSION INDEX CALCULATION
Ease of Doing Corporate Expansion
Countries Chosen FDI Normalized PMI Normalized Competitive Index Import Price Index
Business Tax Index
Japan 26.32125025 0 2.421129861 82.27 82.7 30.62% 24.90822105
Philippines 26.44836926 2.247191011 0 61.87 97.74 30% 24.37494898
Thailand 26.14174909 7.865168539 3.748733536 68.11 92.31 20% 26.22730514
Australia 37.70130061 26.96629213 6.155015198 78.5 107 30% 36.51465165
New Zealand 26.68345434 62.92134831 100 76.75 121 28% 60.39230596
Germany 29.70090832 100 3.529980658 81.8 97.6 30% 47.58626863
France 27.11965398 15.73033708 2.094414894 78.8 106 28% 30.20884659
Turkey 26.32260595 19.1011236 1.998710509 62.14 84.45 22% 26.79774861
Poland 100 12.35955056 1.462765957 68.89 96.5 19% 49.3224633
Netherlands 0 52.80898876 1.342451874 82.39 92.9 25% 28.38428813

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