Flipkart Vs.

Amazon
Presented by Nagin 11128 Manan (kothewala) 11120 Jayesh 11110 Ravi (YO YO RAVI !!!!) 11143

Summary
Online retailer of millions of products (books, toys, Cookware etc..) Founded in 1995 by Jeff Bezos, in a computer science and electrical engineering graduate from Princeton University. Vision To build the worlds most customercentric company To establish a place where customers could buy anything Located in Seattle Close to the largest book wholesalers in Roseburg, Oregon The sales tax rate of small state is cheaper than big state Sites in 6 countries (US, Canada, UK, France, Germany, Japan); ship to > 200 countries Percentage of sales responsible majority of revenue Financial Status (Year of 2006) Net Sales:$8,49billion Net Income:$359million Achieve a surplus since the 4th quarter of 2002

Online Retail Industry analysis

Network Externality
(no customer base)

Network Externality +
(many customers )

Low Cost Standard + Universality + Distribution Channel + Transaction Cost Reducer + Mediation
(no social platform)

New Entrants

Mediation +
(reviews/community platform)

Distribution Channel (replacement)

Threat of New Entrants

Info Asymmetry Shrinker + Low cost +

Suppliers
Distribution Channel
(No control over channel)

Bargaining Power of Suppliers

Industry Competitors: Intensity of Rivalry

Threat of Substitutes

Bargaining Power of Buyers

Buyers

Info Asymmetry Shrinker +

(reduces asymmetry, so no manipulation over data)

Network Externality +
(large customer base)

Universality +
(existing suppliers)

Transaction Cost Reducer

(wholesale/retail)

Mediation +,

Universality
(regional focus)

Substitutes

(no social platform for sellers; great platform for buyers)

Universality

Distribution Channel +

Evolution: From Retailer to Retail Platform

Acquisitions/Partnerships Acquisitions
Acquisitions Book pages (April 1998, Amazon.co.uk) Telebuch (Telebook) Inc. (April 1998, Amazon.co.de) Paid $200M to acquire e-Niche, Inc., Music Find, Accept.com , and Alexia Internet Company (1999)

Partnerships : Bought 46% of Drugstore.com (1999) Bought 50% of Pets.com (1999) Bought 35% of Homegrocer.com (1999) Bought 49% of Gear.com (1999) Offered a co-branded credit card with Nextcard (1999) Announced plans to open a Target store at www.amazon.com (2001) Others partnered with: BabiesRUS, ToysRUS, and Borders Group (2001)

Sales Format
User choice Product from Catalogue Store 1 Locate Sellers Store 2 Merchant Storefronts

Transaction

Store n

Sales Format
-Communication (Reviews) -Low Cost -Large Variety -Distribution -Trust & Safety (seller ratings)

Amazon Web Services (AWS)

Amazon E-Commerce Service
Search catalog, retrieve product information, images and customer reviews Retrieve wish list, wedding registry Search seller and offer

Alexa Web Information Service

Retrieve information such as page rank, related sites given a target URL

Amazon Simple Queue Service

A distributed resource manager to store web services results

5 Benefits of Amazon Web Service

1. 2. 3. 4. 5. Pay-per use model Instant scalability Reliable/Redundant/Secure Most services accessed easily Superior Technical Support (Experience & Commitment)

Flow Chart

Flow Chart for Amazon.com

First-Mover Success
First to move booking retailing online (1994 Jeff Bezos) Brand recognized worldwide, most visited site in USA (2000) Established strong brand presence created psychological switching costs in consumers (collaborate filtering, privacy policies, builds trust) Pillars (quality of service, value for money, trust worthiness) WEB site easy to use, easy to find, and fast

Key Drivers
1. Low cost platform for transaction:

The Internet is certainly a lower cost platform for any transaction, communication or negotiation than any other electronic media.
2.Transaction cost reducer:

The Internet is reducing costs of commercial transactions dramatically by matching the right buyers to the right suppliers, for the right product at the right time.
3. Infinite virtual capacity: I 4.Creative destroyer:

The Internet is transforming the traditional retailing distribution structure; business is now conducted by Amazon to remove the middleman of the brick-and-mortar storefront, playing a role as a creative destroyer.

Challenges
Amazon uses huge amount of data storage to improve customer service. However, The server crashes can bring inconvenience and discomfort to the customers who use the website regularly. No Services like cash on delivery is provided by them

Intro
Flipkart went live in 2007 with the objective of making books easily available to anyone who had internet access. Theyre present across various categories including movies, music, games, mobiles, cameras, computers, healthcare and personal products, home appliances and electronics and still counting! With over 11.5 million book titles, 11 different categories, more than 2 million registered users and sale of 30000 items a day, theyre one of the leading e-commerce players in the country. Their success is largely due to their obsession with providing customers a memorable online shopping experience.

About Founders
Sachin Bansal CEO and Co-founder Sachin spent his early years in Chandigarh. He graduated from IIT-Delhi with a degree in Computer Engineering. In 2006 he joined Amazon.com in India which he later left to set-up Flipkart.
As CEO, Sachin oversees all the customer facing activities of the company ranging from technology to marketing. He is also in charge of Flipkart's corporate divisions which include the finance and legal departments.

About Founders
Binny Bansal COO and Co-founder Born and raised in Chandigarh, Binny went on to get a degree in Computer Engineering from IIT Delhi. He had a brief stint at Amazon before taking the entrepreneurial plunge with Flipkart. At Flipkart, Binny oversees all operational activities that come into play from the time the customer places an order till the time of delivery. This spans across divisions like warehousing, logistics and customer support.

Flipkart Story
Flipkart, was established by Sachin Bansal and Binny Bansal both are alumni of Indian Institute of Technology Delhi and worked for Amazon.com before quitting and founding their own company. Initially they used word of mouth to popularize their company. Within two years through word of mouth of their services, Flipkart became one of the top 100 Indian sites and was credited for being India's largest online bookseller with over 10 million titles on offer.

Flipkart broke even in March 2010 and claims to have had at least 100% growth every quarter since its founding.
Flipkart employs over 3000 people.

Contd..
Also it had experienced 2 million unit sales and 4 million unique visitors per month with sales growing at 25% per month, eyeing a $50 million run rate as reported by TechCrunch. Its been about a year since Flipkart started moving from being a pure bookstore to selling mobiles/DVDs etc. Since then, Flipkart went for a major brand makeover, making it look more upmarket.

There has been large newspaper ads, TVCs and a lot of web ads.

Evolution of Logos

Funding
Initially funded by the Bansals themselves with 4 Lakh(INR). Flipkart has since then raised two rounds of funding from venture capital funds Accel India (in 2009) and Tiger Global Management (up to the tune of US$10 million) (in 2010).

Private equity firms Carlyle and General Atlantic are in talks to jointly invest about $150 million to $200 million in Flipkart, according to sources.

Acquisitions
2010: We Read, a social book discovery tool. The stated goal was to give Flipkart a social recommendation platform for buyers to make informed decisions based on recommendations from people within their social network. 2011: Mime360, a digital content platform company. 2011: Acquired the rights to Chakpaks digital catalogue which includes 40,000 filmographies, 10,000 movies and close to 50,000 ratings. Chakpak.com is a Bollywood news site that offers updates, news, photos and videos.

Screenshot..

Why flipkart?
Discoverability SEO We Do Not Sell Used Books tagline.

We DO NOT sell old books or used books. All the books listed at Flipkart.com are new books. The books listed at Flipkart.com are NOT available for free download in eBook or PDF format....

Why flipkart?
Payment cash on delivery.,.. auto redirection to banking site... Inventory... Not like only when an order is placed they get the product. The products are all there in the godown. When u order u get it after the specified number of days. Strictly abide by never promise something that u don't have rule.

Why flipkart?
Delivery.. Most similar looking envelopes are never delivered thinking that it is a marketing package and no one would track it. They would be willing to bargain on rates but would never say anything about the service. Paying a premium may not solve the problem always. Flipkart is seen delivering through their own delivery boys in Bangalore and at times within 12hrs from order. Flipkart is looking to build its own courier company. The recent $20Mn funding from Tiger Global was only part of a larger sum they are known to be raising.

 Flipkart has added a prepaid Wallet feature to its e-commerce platform that allows shoppers to store money on the site and use it to purchase items, without having to reach for their credit card for each transaction, according to a MediaNama report.

Contd..

Order Lifecycle
Attract users to the site

Family, Friends, SEO, SEM,WoM, Brand Building

Provide selection

Make it easy to Find & Discover products

Provide details to evaluate a product

Price well
options

Description, Specifications, UGC

Have to be competitive to the most obvious Online, COD

Provide convenient payment options

Confirm payment

Order Lifecycle(cont.)
Get the item

Procure from Supplier (Just-in-time) (Supplier selection) Keep Inventory (Inventory Prediction, Planning)

Clean & Check for sanity

Pages missing, MRP printed lesser than told to you Tamper proof, weather proof, breakage proof Courier performances vary across regions a LOT Follow-up for timely delivery

Pack the item

Select courier & hand-over

Get tracking id & communicate to customer

Take care of returns (faulty product/user changes their mind)

Minimize returns

Conclusion
Flipkart, the first billion dollar Internet company from India(going by 2015 estimates )is by far the leading online store in the nation. Now that Amazon is reportedly entering India in early 2012, this news becomes even more significant, considering that Amazon has previously, and unsuccessfully, tried acquiring the company, with Flipkart demanding a very high buyout price. With online retail industry in India pegged to reach $1.5 billion (2015), sources suggest that e-commerce is just hotting up in India and we may soon seen many more Internet companies achieving similar success.

Comparison in Short
India biggest online seller Dont have presence in E book system at all Payment system is traditional Provides just B2C services Cash on delivery is available to all Has good established supply chain and logistics in India Sells just the new things Worlds biggest online seller Have started selling own products like KINDLE Payment system in more advanced and has copyright Provides both B2B and B2C No cash on delivery available Dont have proper logistics service in India and sell via other partners