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FROM AMAZON TO ALIBABA

NIYATHA CHITILAPILLY
PHILIP THOMAS

PRAVEEN RICHARD

VISION & MISSION

VISION - TO BECOME AMAZON OF INDIA


MISSION - PROVIDING A DELIGHTFUL

CUSTOMER EXPERIENCE

GENESIS
FLIPKART IS AN E-COMMERCE
IT OPERATES EXCLUSIVELY
KARNATAKA.
IT IS REGISTERED

COMPANY FOUNDED IN

2007, BY SACHIN AND BINNY BANSAL

IN INDIA, WHERE IT IS HEADQUARTERED IN

BANGALORE,

IN SINGAPORE, AND OWNED BY A SINGAPORE-BASED HOLDING COMPANY.

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
MAJORITY OF ITS SHAREHOLDERS ARE FOREIGNERS.

IN SINGAPORE AND

BECAUSE FOREIGN COMPANIES ARE NOT ALLOWED TO DO MULTI-BRAND E-RETAILING IN


INDIA, FLIPKART SELLS GOODS IN INDIA THROUGH WS RETAIL.
OTHER THIRD-PARTY SELLERS OR COMPANIES CAN ALSO SELL GOODS THROUGH
PLATFORM.

THE FLIPKART

BUSINESS OBJECTIVES

FLIPKART AIMS TO BECOME THE LARGEST RETAILER OF INDIA. FLIPKART WANTS


ACROSS ALL CATEGORIES, EXCEPT IN GROCERIES AND AUTOMOBILES.

TO BE PRESENT

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.
THE

2020 LARGEST RETAILER IN INDIA, ENTER GLOBAL MARKETS

SEPT
Political

Economical

Resistance
against
foreign retailers

Booming
Indian
Economy,
Increasing spending
power, Skyroketing
fuel prices, Base of
internet
users
multiplied by 10
times in 6 years

Better comfort level


and trust in online
shopping, High priority
on
time
and
convenience
,
Improving usage of
broadband and high
computer literacy.

Advent
of
mobile
shopping,
Increasing
penetration
rate
of
broadband and wireless
internet,
Better
managed E-Commerce
site for ease, privacy
and advancements in
net banking

Government support for


increasing penetration
in India, Tax benefits to
corporates, Increase in
stock holding % for
foreign
investors
in
companies (2012)

Social:

Technological

ORGANIZATIONAL APPRAISAL
New Entrants:
(Moderate)
Low Capital
Investment.
High Technological
Players

Supplier : (High)
Large supplier
base.
Decreasing
popularity of
printer books.

Competitors:
(High)
Low entry barriers
Huge Market.

Substitutes: (Low)
Traditional Book stores.

Advent of Ebook
readers like Ipad and
Kindle

Buyer:(Low)
Presence of Multiple
Players and
traditional retail
stores.
Cheap old or used
book vendors.

SWOT ANALYSIS

Strengths

Weakness

Supply chain
Quick turnaround

Delivery

Advertisement &
Promotion

Internet penetration

Strategic acquisition

Higher costs

Payment gateways

Huge reach

Opportunities

Threats

Growth in E-tail
Growth in e-Book
Mobile Apps
Broadband Penetration

New players

MERGERS AND ACQUISITION


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.

MARKETING STRATEGIES

FLIPKART HAS BEEN MOSTLY


CUSTOMER

SATISFACTION HAS BEEN THEIR BEST MARKETING MEDIUM.

FLIPKART VERY WISELY


WORDS

MARKETED BY WORD OF MOUTH ADVERTISING.

SEO (SEARCH ENGINE OPTIMIZATION) AND GOOGLE ADAS THE MARKETING TOOLS TO HAVE A FAR REACH IN THE ONLINEWORLD.
USED

FLIPKART.COM OFFICIAL FACE BOOK PAGE HAS CLOSE TO 9 LAC LIKES.


FLIPKART LAUNCHED A SERIES OF 3 ADS WITH
A KID CAN DO IT, YOU CAN ALSO DO IT.

ALL IN ALL TO CREATE A GREAT CUSTOMER

THE TAG LINE

EXPERIENCE.

- "NO KIDDING NO WORRIES, IF

MARKETING STRATEGIES

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 AND
GAMES) AND MOBILE PHONES AND ACCESSORIES

IN 2011, PRODUCT LAUNCHES INCLUDED CAMERAS, COMPUTERS, PENS & OFFICE


SUPPLIES, COMPUTER ACCESSORIES, HOME AND KITCHEN APPLIANCES, PERSONAL 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 DRM-FREE MP3 DOWNLOADS.

IN 2012, PRODUCT LAUNCHES INCLUDES HEALTH & BEAUTY PRODUCTS, LIFE STYLE
PRODUCTS WHICH INCLUDES WATCHES, BELTS, BAGS & LUGGAGE.

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

Consumer
Cost
Heavy discounts on books
Free shipping for
purchases above Rs. 300
Consumer

Communication
Advertisements via
Search Engine
Optimization Transparent
Communication
Once the customer
places an order, progress
can be tracked

Availability of products
across 14 categories
Books can be ordered
before they are launched
Pan India presence

Convenience
Ease of finding the
product and related
information Purchase at
the click of a button
Cash/ Card on Delivery

STRATEGIC CHOICE

WHY BOOKS WERE THE FIRST


CHOICE?

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

FINANCE

2007

THE FOUNDERS HAD SPENT

4,000,000 ONLY FOR MAKING WEBSITE TO SET UP THE BUSINESS.

2009
FUNDING FROM VENTURE CAPITAL FUNDS

ACCEL INDIA US$1 MILLION

AND TIGER

GLOBAL US$10 MILLION

2012,

FLIPKART ANNOUNCED THE COMPLETION OF ITS 4TH ROUND OF $150 MILLION FUNDING FROM MIH (PART
OF NASPERS GROUP) AND ICONIQ CAPITAL.[

2013

$200 MILLION FROM EXISTING INVESTORS INCLUDING TIGER GLOBAL,


NASPERS, ACCEL PARTNERS AND ICONIQ CAPITALFLIPKART RAISED USD 160 MILLION FROM PRIVATE EQUITY
INVESTORS.
FLIPKART RAISED AN ADDITIONAL

STRATEGIC EVALUATION

FLIPKART'S REPORTED SALES WERE


40 MILLION IN FY 20082009

200 MILLION IN FY 20092010


750 MILLION FOR FY 20102011
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.

STRUCTURAL

Sachin Bansal
Binny Bansal

Karandeep
Singh (joined the
company in January
2012), Flipkart
CFO, is the one who
handles all aspects
of finance and
corporate
governance.

Ravi Vora (joined in


March
2011), VP (marketing),
seems to be the right
hand man of the
Bansals.

Mekin
Maheshwari (since Sept
2009), president
(engineering) at
Flipkart.com, is
responsible for leading
the engineering team,
scaling up Flipkarts
business at a rapid
speed

Ankit Nagori (in Flipkart


since 2010), VP
(categories), is an IITGuwahati alumnus who
heads multiple
categories and helps the
e-tailer build its team
across multiple offices.

Sameer Nigam (joined in


October 2011), VP
(digital business), was
the founder of
Mime360.com, a digital
distribution platform
solution which hosts
music streaming for
labels like Saregama,
Universal Music and
Inreco, which was
acquired by Flipkart last
October.

Maneesh Mittal (been with


Flipkart since September
2009), VP (operations), is a
B.Tech from IIT-Delhi.
Although he joined the ecommerce company as a
general manager, he went
on to become AVP
(warehousing) and was
finally elevated to VP last
year

Sujeet Kumar (joined in


December
2008), president
(operations) at Flipkart,
is a B.Tech in Civil
Engineering from IIT
Delhi. He has been
there for quite some
time and has been
responsible for building
the company, along
with the Bansals

CHALLENGES FACED BY FLIPKART


Initially when they started out, it wasnt easy for them to earn the trust of the customer.
Not having the display advantage, the browsing feature and not being able to carry out
promotional activities are some other obvious challenges.
The discomfort of paying by cards, on account of security fears is another challenge. They have
now tried to address that by introducing the cash-on-delivery option.
The fact that highest number of orders and sales get registered during weekends proves to be
tough at times for logistics and customer service.
The fact that Flipkart has to work 24 / 7 and the customer perceptions around it also bring some
difficulty (For example, the customer places an order at 12 am and counts the number of hours for
delivery right from then!)

WHAT MAKES IT STAND OUT?

The procurement model is at the heart of Flipkarts success, as most delays or troubles occur in
this part of business.
Flipkart employed consignment model i.e. procurement based on demand.
It is the robust logistics at Flipkart that sets it apart from other wannabe e-commerce sites.
An amazingly well-oiled warehousing and delivery system..
They offer a huge range of titles (more than 7 million) which really sets them apart from the rest
of the crowd.

FLIPKARTS SUCCESS MANTRA!

Great customer service


Easy to use website, hassle free payment system
Cash on delivery/Card on delivery mode of payment
Focused on user experience

PREPAID WALLET FEATURE

THREATS TO ITS CROWN

There are no major foreseeable threats in the future.


The company has built a great brand name, they just have to maintain and enhance the same.
Need to keep introducing more products, adapting to the changing needs of the customer with
time.
The entry of Amazon.com in 2012 in the Indian e-commerce space has been cited as a big
challenge to Flipkart.

However We think that Flipkart is a respected Brand name in India and should be able to compete
with Amazon.
Remember Amazon being a very big company can bring in serious competition to Flipkart, since
Amazon can bear more losses in the beginning to gain customer base.

BIG BILLION DAY

BUSINESS MODEL OF FLIPKART!

THANK YOU