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 ECOMMERCE 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

Social:

Economical

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

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
Advertisement &
Promotion
Strategic acquisition
Huge reach

Delivery
Internet penetration
Payment gateways
Higher costs

Opportunities

Threats

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

New players

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 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

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
WORRIES
FDI NORMS SINCE ITS
REGISTRATION IS IN SINGAPORE,
NOT CONSIDERED AS INDIAN
COMPANY
TAX RULES AND REGULATIONS AS
E-RETAIL AND E-COMMERCE

Evaluation of
Alternatives
Customer
Value
Perceived
Wider range
across all
categories

Purchase
Decisions
Faster
Turnaround
Time
Cash/Card
on delivery
Easy return
procedure

Post-Purchase
Behavior
Feedback on
Flipkart
websites
and other
blogs
Word of
mouth
affiliate

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

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

Ravi Vora(joined in
March
2011),VP(marketin
g), 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 e-commerce
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

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 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.

STRATEGIC EVALUATION

 OPEN TO
QUESTIONS

THANK YOU