COMPREHENSIVE MODEL OF

STRATEGIC MANAGEMENT
BY CHANDRESH DEDHIA – XMBA 54
 INDEX

• ESTABLISHING STRATEGIC INTENT

• VISION & MISSION
• BUSINESS DEFINITION & OBJECTIVES
• FORMULATION OF STRATEGIES –
• ENVIRONMENT APPRAISAL, ORGANIZATIONAL APPRAISAL,
• SWOT ANALYSIS , CORPORATE LEVEL STRATEGIES
• BUSINESS LEVEL STRATEGIES , STRATEGIC CHOICE
• STRATEGY IMPLEMENTATION -
• PROJECT, PROCEDURAL, RESOURCE ALLOCATION
• STRUCTURAL, BEHAVIORAL, FUNCTIONAL AND OPERATIONAL
• STRATEGIC EVALUATION
 VISION & MISSION

• VISION - TO BECOME AMAZON OF INDIA

• MISSION - PROVIDING A DELIGHTFUL CUSTOMER EXPERIENCE

 BUSINESS DEFINITION

• FLIPKART IS AN E-COMMERCE COMPANY FOUNDED IN 2007, BY SACHIN AND BINNY BANSAL

• IT OPERATES EXCLUSIVELY IN INDIA, WHERE IT IS HEADQUARTERED IN BANGALORE,
KARNATAKA.
• IT IS REGISTERED IN SINGAPORE, AND OWNED BY A SINGAPORE-BASED HOLDING COMPANY.
• ACCORDING TO ALEXA INTERNET, FLIPKART'S WEBSITE IS ONE OF THE 10 MOST VISITED
WEBSITES IN INDIA.
• FLIPKART HAS LAUNCHED ITS OWN PRODUCT RANGE UNDER THE NAME "DIGIFLIP",
OFFERING CAMERA BAGS, PEN-DRIVES, HEADPHONES, COMPUTER ACCESSORIES, ETC.
• LEGALLY, FLIPKART IS NOT AN INDIAN COMPANY SINCE IT IS REGISTERED IN SINGAPORE
AND MAJORITY OF ITS SHAREHOLDERS ARE FOREIGNERS.
• BECAUSE FOREIGN COMPANIES ARE NOT ALLOWED TO DO MULTI-BRAND E-RETAILING IN
INDIA, FLIPKART SELLS GOODS IN INDIA THROUGH A COMPANY CALLED WS RETAIL.
• OTHER THIRD-PARTY SELLERS OR COMPANIES CAN ALSO SELL GOODS THROUGH THE
FLIPKART PLATFORM.
 BUSINESS OBJECTIVES

• FLIPKART” AIMS TO BECOME THE LARGEST RETAILER OF INDIA. FLIPKART

WANTS TO BE PRESENT ACROSS ALL CATEGORIES, EXCEPT IN GROCERIES
AND AUTOMOBILES, THE CEO SAID. “OUR TARGET IS NOT JUST THOSE WHO
SHOP ONLINE. WE WANT TO HIGHLIGHT THE CONVENIENCE OF E-COMMERCE
TO TRADITIONAL OFFLINE SHOPPERS AND, THUS, HELP GROW THE MARKET.

• 2012 - US $ 100 MILLION, DIVERSIFY PRODUCT REVENUES

• 2015 - US $ 1 BILLION INDIA, AGGRESSIVE MARKETS, STRONGER SUPPLY
CHAINS
• 2020 – LARGEST RETAILER IN INDIA, ENTER GLOBAL MARKETS
 ENVIRONMENTAL APPRAISAL

• Political • Economical

Government support for

increasing penetration in Booming Indian
India, Tax benefits to Economy, Increasing
corporates, Increase in stock spending power,
holding % for foreign Skyroketing fuel prices,
investors in companies Base of internet users
(2012)
multiplied by 10 times
Resistance against foreign
retailers
in 6 years

Better comfort level and Advent of mobile shopping,

trust in online shopping,
High priority on time and
convenience , Improving
usage of broadband and
high computer literacy.
Increasing penetration rate of
broadband and wireless
internet, Better managed E-
Commerce site for ease,
privacy and advancements in
net banking

• Social: • Technological
 ORGANIZATIONAL APPRAISAL

New Entrants: (Moderate)

Low Capital Investment.
High Technological Players

Buyer:(Low)
Supplier : (High) Competitors: (High) Presence of Multiple
Large supplier base. Players and traditional
Low entry barriers retail stores.
Decreasing popularity
Cheap old or used book
of printer books. Huge Market. vendors.

Substitutes: (Low)
Traditional Book stores.
Advent of Ebook readers
like Ipad and Kindle
 SWOT ANALYSIS

Strengths Weakness

Supply chain
Quick turnaround Delivery
Advertisement & Internet penetration
Promotion Payment gateways
Strategic acquisition Higher costs
Huge reach

Opportunities Threats

Growth in E-tail
Growth in e-Book New players
Mobile Apps
Broadband Penetration
 CORPORATE LEVEL STRATEGIES

STARTED OPERATION IN 2007 AND BREAK EVEN IN AUGUST 2010

TO GROW INORGANICALLY THROUGH ACQUISITIONS
HAVE THEIR OWN SCM COMPANY NAMES EKART

ACQUISITIONS
2010: WEREAD, A SOCIAL BOOK DISCOVERY TOOL.
2011: MIME360, A DIGITAL CONTENT PLATFORM COMPANY.
2011: CHAKPAK.COM, A BOLLYWOOD NEWS SITE THAT OFFERS UPDATES, NEWS, PHOTOS AND VIDEOS.
FLIPKART ACQUIRED THE RIGHTS TO CHAKPAK'S DIGITAL CATALOGUE WHICH INCLUDES 40,000
FILMOGRAPHIES, 10,000 MOVIES AND CLOSE TO 50,000 RATINGS. FLIPKART HAS CATEGORICALLY SAID
THAT IT WILL NOT BE INVOLVED WITH THE ORIGINAL SITE AND WILL NOT USE THE BRAND NAME.
2012: LETSBUY.COM, AN INDIAN E-RETAILER IN ELECTRONICS. FLIPKART HAS BOUGHT THE COMPANY
FOR AN ESTIMATED US$25 MILLION.
LETSBUY.COM WAS CLOSED DOWN AND ALL TRAFFIC TO LETSBUY HAVE BEEN DIVERTED TO FLIPKART.
2014: ACQUIRED MYNTRA.COM IN AN ESTIMATED INR 2,000 CRORE DEAL.
 BUSINESS LEVEL STRATEGIES

• FLIPKART HAS BEEN MOSTLY MARKETED BY WORD OF MOUTH ADVERTISING.

• CUSTOMER SATISFACTION HAS BEEN THEIR BEST MARKETING MEDIUM.
• FLIPKART VERY WISELY USED SEO (SEARCH ENGINE OPTIMIZATION) AND
GOOGLE AD-WORDS AS THE MARKETING TOOLS TO HAVE A FAR REACH IN
THE ONLINEWORLD.
• FLIPKART.COM OFFICIAL FACE BOOK PAGE HAS CLOSE TO 9 LAC LIKES.
• FLIPKART LAUNCHED A SERIES OF 3 ADS WITH THE TAG LINE - "NO KIDDING
NO WORRIES“
• KIDS WERE USED TO CREATE THE ADVERTS TO SEND OUT THE MESSAGE - IF A
KIDCAN DO IT, YOU CAN ALSO DO IT.
• ALL IN ALL TO CREATE A GREAT CUSTOMER EXPERIENCE.
 BUSINESS LEVEL STRATEGY

• IN 2007, FLIPKART STARTED WITH SELLING BOOKS. THE FIRST BOOK SOLD AT
FLIPKART.COM WAS —JOHN WOODS' LEAVING MICROSOFT TO CHANGE THE WORLD
TODAY
• IN 2010, THEY ADDED TO THEIR CATALOGUE, MEDIA (INCLUDING MUSIC, MOVIES Consumer
AND GAMES) AND MOBILE PHONES AND ACCESSORIES Cost
Heavy discounts on books Availability of products
• IN 2011, PRODUCT LAUNCHES INCLUDED CAMERAS, COMPUTERS, PENS & OFFICE Free shipping for purchases across 14 categories Books
above Rs. 300 Consumer can be ordered before they
SUPPLIES, COMPUTER ACCESSORIES, HOME AND KITCHEN APPLIANCES, PERSONAL are launched Pan India
presence
CARE, HEALTH CARE, GAMING CONSOLES, AUDIO PLAYERS AND TELEVISIONS.
• IN OCTOBER AND NOVEMBER 2011, FLIPKART ACQUIRED THE WEBSITES
MIME360.COM AND CHAKPAK.COM LATER, IN FEBRUARY 2012, THE COMPANY
REVEALED ITS NEW FLYTE DIGITAL MUSIC STORE. FLYTE, A LEGAL MUSIC
DOWNLOAD SERVICE IN THE VEIN OF ITUNES AND AMAZON.COM, WILL OFFER Communication Convenience
DRM-FREE MP3 DOWNLOADS. Advertisements via Search
Engine Optimization Ease of finding the product
Transparent Communication
• IN 2012, PRODUCT LAUNCHES INCLUDES HEALTH & BEAUTY PRODUCTS, LIFE STYLE Once the customer places an
and related information
Purchase at the click of a
PRODUCTS WHICH INCLUDES WATCHES, BELTS, BAGS & LUGGAGE. order, progress can be button Cash/ Card on
tracked  Delivery
• IN JULY 2012 FLIPKART ANNOUNCED THE LAUNCH OF ITS IN-HOUSE BRAND
DIGIFLIP. DIGIFLIP IS A BRAND OF DIGITAL ACCESSORIES WITH PRODUCTS LIKE
LAPTOP BAGS, LAPTOP SLEEVES AND CAMERA BAGS AMONG OTHERS
 STRATEGIC CHOICE

• STARTED SELLING BOOKS : WHY BOOKS WERE THE FIRST CHOICE?

• LOWER TRANSACTION SIZE
• BETTER SHELF SIZE
• SHIPPING AND HANDLING OF BOOKS IS EASY
• TO EMERGE AS A PIONEER IN BOOK RETAILING RATHER THAN VENTURING
COMPARISON SHOPPING ENGINE

• GROWTH STORY:
• STARTED WITH BOOKS AND WENT ON TO ADD NEW PRODUCTS
• 2 EMPLOYEES, 2 SUPPLIERS TO 4800 EMPLOYEES AND MORE THAN 600 SUPPLIERS
• HAVE THEIR OWN INTERNAL COURIER SERVICES CALLED FLIPKART LOGISTICS
 PROJECT & PROCEDURAL

• LAUNCHED NO KIDDING, NO Evaluation of Purchase Post-Purchase

WORRIES Alternatives Decisions Behavior

• FDI NORMS SINCE ITS REGISTRATION • Customer • Faster • Feedback on

Value Turnaround Flipkart
IS IN SINGAPORE, NOT CONSIDERED Perceived Time websites and
AS INDIAN COMPANY • Wider range • Cash/Card on other blogs
across all delivery • Word of mouth
• TAX RULES AND REGULATIONS AS E- categories • Easy return affiliate
RETAIL AND E-COMMERCE procedure
 RESOURCE ALLOCATION

• STARTED WITH 2 EMPLOYEES AND NOW EMPLOYS 10,000 PEOPLE.

• HAS ITS OWN SCM COMPANY NAMED EKART TO OPERATIONAL EFFICIENCIES
 STRUCTURAL

Sachin Bansal
Binny Bansal

Sujeet Kumar (joined in
Karandeep Singh Sameer Nigam (joined in
Ankit Nagori (in Flipkart Maneesh Mittal (been with December 2008), president
 (joined the company in Mekin Maheshwari (since October 2011), VP (digital
Ravi Vora (joined in since 2010), VP Flipkart since September (operations) at Flipkart, is
January Sept 2009), president business), was the founder
March (categories), is an IIT- of Mime360.com, a digital 2009), VP (operations), is a a B.Tech in Civil
2012), Flipkart (engineering) at B.Tech from IIT-Delhi. Although Engineering from IIT
CFO, is the one who 2011), VP (marketing), Flipkart.com, is responsible Guwahati alumnus who distribution platform
seems to be the right hand heads multiple categories he joined the e-commerce Delhi. He has been there
handles all aspects of for leading the engineering solution which hosts music
man of the Bansals. and helps the e-tailer build company as a general manager, for quite some time and has
finance and corporate team, scaling up Flipkart’s streaming for labels like
its team across multiple he went on to become AVP been responsible for
governance.  business at a rapid speed Saregama, Universal Music
offices. and Inreco, which was (warehousing) and was finally building the company,
elevated to VP last year along with the Bansals
acquired by Flipkart last
October.
BEHAVIORAL
 FUNCTIONAL AND OPERATIONAL

• THOUGH AMAZON IS ONE OF THE EARLIER PLAYERS IN THE INDUSTRY, IT IS

FLIPKART WHICH IS ONE OF THE INDIAN PLAYERS IN THIS INDUSTRY WHICH
REALLY BROUGHT ABOUT THE GREAT CHANGE IN THE MINDSET OF INDIAN
POPULATION. 
 STRATEGIC EVALUATION

• FLIPKART'S REPORTED SALES WERE

• 40 MILLION IN FY 2008–2009
• 200 MILLION IN FY 2009–2010
• 750 MILLION FOR FY 2010–2011
• 5 BILLION (US$100 MILLION) FOR 2011-2012
• FLIPKART.COM, THE COUNTRY'S FIRST BILLION-DOLLAR-VALUED INTERNET COMPANY, IS SURELY IN A
STATE OF PERPETUAL EXCITEMENT.

• FLIPKART IS A STORY THAT COMES FROM SMART WORK AND AN ‘IT IS POSSIBLE’ ATTITUDE.
• THE USP OF FLIPKART IS TO PROVIDE THE CONSUMERS WITH THE BEST ONLINE SHOPPING EXPERIENCE.
• THESE ARE THE REASONS WHY MANY LOVE FLIPKART. SOME PEOPLE CALLING IT AS AMAZON OF INDIA
WHICH FITS TO FLIPKART.
STRATEGIC EVALUATION
 • OPEN TO
QUESTIONS

THANK YOU