Analysis of Growing e-commerce Retail SPACE IN INDIA

NJ Krupashankar (11223)

• Presence across various categories including multimedia.About the company • Flipkart started by Sachin Bansal and Binny Bansal(not related). • Over 11. . • Broke even in March 2010 and claims to have had at least 100% growth every quarter since its founding. 11 different categories. went live in 2007. electronics and many more. games.5 million book titles. mobiles. more than 2 million registered users and sale of 30000 items a day.

Mission. Vision. Objective MISSION “Providing a delightful customer experience” VISION “To become Amazon of India” OBJECTIVE “Making books easily available to anyone who has internet access” .

International players venturing the entry possibility Bargain Power of Buyers High .Best deals online .One stop shop .Book readership reducing YoY . .Inventory turnover lower than ever Industry Rivalry Medium .Increasing need for customer ease .Faster delivery Threat Of Substitutes Low .Large number of small players.Cash on delivery .Detailed Analysis Porters Five Force Threat of New Entrants High . Low .Market potential is huge.Low entry barriers Bargain Power of Suppliers.Diminishing brick and mortar stores. . .

Competitive Implications.. • Build on early mover advantage to constantly upgrade for more services.Detailed Analysis (Contd). • Need to create entry barriers . Strengths and Threats • Expanding to villages and small towns and exploiting benefits of e-commerce • Creating barriers to entry by differentiating services provided Strengths and Opportunities • Build on existing features to introduce the product to emerging market • Expanding to logistics and distribution management using acquisition • Strategic partnership with big retailers for home delivery Opportunity and Threats • Increasing attractiveness to market due to high growth rate. VRIO Framework and TOWS Summary of VRIO. and Economic Implications Valuable? Rare? Costly to Imitate? Organized Properly? Competitive Implications Economic Implications Above Normal (at least for some amount of time) SWOT Category Yes Yes No Yes Temporary Advantage Strength and Core Competence Strengths and Weaknesses • Designing website to support local language.

Why flipkart? • Discoverability • “We Do Not Sell Used Books” tagline. • Customer preference for payment .Cash on delivery • Low inventory turnover ratio • Great logistics and customer first motto • Promotion through word of mouth (High Goodwill) .

Road Ahead Analysis Directional Policy Matrix High Market Attractiveness Disinvest Phased Withdrawal Snapdeal Double or Quit Medium eBay Try Harder Phased Withdrawal Custodial Growth Infibeam Naaptol Goal of these companies is to capture market share and obtain growth leader position Low Cash Generation Growth Leader Flipkart Leader Goal of company is to sustain its position and capture multiple market segments Strong Medium Business Strength Low .

Focus on Nine Building Blocks of Company Customer Segments Value Proposition Channels Customer Relationship Revenue Streams Key Resources Key Activities Key Partnerships Cost Structure .Accel India and Tiger Global Management • • • • • • (US$10 million) Private equity firms Carlyle and General Atlantic (US$150 million) Acquistion of Chakpak’s digital catalogue. Mime360. Prepaid Wallet feature to its e-commerce platform Online retail industry in India pegged to reach $1. and We Read.5 billion (2015) Amazon entering the Indian market.Road Ahead • Funding from VC’s .

mint.flipkart.com • “What it takes to do online retail in India”. 20-Feb-2011 • “Continuous Development at flipkart” – Slideshare.com • “Rags to riches – Evolution of garage enterprise” – TOI • “A winning chapter” – Aarti Dua.com • “Interview with Sachin Bansal”. Flipkart story • “Generating Business models” – Alexander Osterwalter and Yves Pigneur . TOI.www.References • “Frameworks and Chart for strategic analysis” – Mahesh Narayan compilation • About the company .

Thank You .