Comparative analysis of Flipkart and

Amazon

NIKITA SINGH
PGDM - M1 - 171
Introduction to the industry
 Ecommerce is commercial transactions
conducted electronically on the Internet
 E-commerce (electronic commerce or EC) is the
buying and selling of goods and services on the
Internet, especially the World Wide Web
 Online shopping made so easy for everyone with
their product variations and simple way to buy
things
 Market Size: Indians are shopping more
on Amazon, but Flipkart earns more
revenue. Thus Flipkart has large market share in
India
 An attempt has been made to critically examine
the comparison of two big e-tailors which are
Flipkart and Amazon
 B2C e-commerce accounted for 0.16 percent of
the GDP in India
Graphical Representation
 Introduction to the company- Amazon
 Founders: Jeff Bezos, in July 1994
 Subsidiary: Amazon owns over 40 subsidiaries, including
Zappos, Shop bop, Diapers.com, Amazon Robotics, Audible,
Goodreads, Teach street, Twitch and IMDb
 Headquarters: Seattle, Washington (United States), Hyderabad
(India)
 Net worth: $111 billion (Globally)
 In 2018, Bezos announced that its two-day delivery service,
Amazon Prime, had surpassed 100 million subscribers worldwide
 Amazon distributes downloads and streaming of video, music,
and audible through its Amazon Prime Video, Amazon Music

 Vision: To be Earth’s most customer-centric company, where

customers can find and discover anything they might want to
buy online.
 Mission: We strive to offer our customers the lowest possible
prices, the best available selection, and the utmost convenience.
 Introduction to the company- Flipkart
 Founders: Sachin Bansal, Binny Bansal
 Subsidiary: PhonePe, Myntra, DSYN
Technology
 Headquarters: Bangalore and Karnataka
 Net worth: $20.8 billion
 On 4 May 2018, the US retail chain Walmart had
won a bidding to acquire a majority stake in
Flipkart for US$15 billion
 Flipkart held a 51% share of all Indian smartphone
shipments in 2018, overtaking Amazon India (33%)
 In August 2019, Flipkart entered into a partnership
with Authentic Brands to distribute Nautica in
India.
 Vision: To become Amazon of India
 Mission: Providing a delightful and memorable
customer experience
Social Relevance

The roles of key

An ethical approach
towards society must be
a key organizational
paradigm
Objectives should be players such as the
balanced and respect board, the
the goals of all management or
interested parties staff/stakeholders
must be clarified

A decision-making
Equal concern must be Accountability and
process must be in place
given for all stakeholders transparency is
– reflecting the first three
– albeit some have necessary – to all
principles and giving due
greater weight than stakeholders
weight to all
others
stakeholders
Decision Making Leaders

Emily McNeal Sriram Venkataraman

SVP and Group CFO, Chief Operating Officer,
Flipkart Flipkart

Anil Goteti
Bijoya Roy SVP - Marketing, Merchandising &
General Counsel, Flipkart Monetization, Flipkart
Group
  Immediately raise any concern about possible
requests
 Raise any ethics concerns with a manager or by
contacting Ethics and Compliance
 If conflict not resolve by manager, raise it
through a different manager or contact Ethics
Code of and Compliance
 Cooperate with Flipkart Group’s investigations
conduct and report all information truthfully
 Inappropriate conduct of the type described here
is strictly prohibited, even if it occurs online
 Report any violations of wage and hour laws or
policies by contacting Ethics and Compliance
 Equal Employment Opportunity and Workplace
Harassment is taken care of
CSR activities

• Not all heroes wear capes: Men

and women who are seldom in the
spotlight, but work day and night

• Toys for a smile: On Children’s Day,

thousands of kids from government
schools across Karnataka were in for a
happy surprise
 CSR activities

• Kerala & kodagu flood relief: At Flipkart,

employees and teams swiftly came
together and partnered with NGO
Goonj to launch a donation drive on the
Flipkart app. Generous help poured in
from all corners of India and the world

• Painting with flipkart: It took the initiative

for helping the schools by allowing the
kids t show their skills in painting and
develop their interpersonal skills
Functional Perspective
Objective
 To investigate the major factors
that impact customer satisfaction
towards Amazon and Flipkart.
 To know about online consumer’s
buying behaviors towards online
shopping in Flipkart and amazon
 To know about the marketing
method adopted by Amazon &
Flipkart.
Methodology
Nature of Research: Descriptive
research Sample design: Random
sampling techniques Collection of data
 
Sample size: 100 clients from the
accompanying territories: College
( Chetana’s Institute of management
and research, Mumbai ), Frequent
online purchasers, People who work in
the retail divisions, home makers
 SWOT analysis

Strengths Weakness Strengths Weakness

• Supply chain • Late delivery • Global Expansion & • Thin profit margin
• Brand value & brand • IT infrastructure presence • Late entry in
awareness • Everyday low price emerging markets
• Advertisement & strategy • Issues with fake
Promotions • Effective resource products
• Strategic acquisition management

• Growth in E-tail • Technology up • Expansion to other • Price competition

• Growth in E-books gradation by markets • Technical issues
• Mobile Apps competitors • New improved • Central target of
• Broadband • New players product introduction competition
presentation • FDI regulation • Strategic alliances
• Diversification

Opportunities Threats Opportunities Threats

 Comaprision
2-4 days delivery Service support & One day delivery for prime
delivery products
10-25% on average Discount & Pricing 25-40% on promotional
products
2.15 million Total visitors 1.02 million
Free shipping charge above Shipping costs Free shipping for prime
500Rs. members
Wholesalers, retailers – Major Sellers & credibility Goods sellers like Croma, JJ
sellers Mehta etc.
9/10 Overall rating 8.75/10
Less return of products Guarantee Products return are high
15 million Products listed 17 million
$20.8 billion Net worth $16 billion 
 Strategy for growth
Launch of private label- flipkart smart buy &
Divastri
Use of artificial intelligence to understand
buying behaviour
Adopted Microsoft azure for data
optimization
Project Mira shopping assistant
F7 labs: AI based product research
Big billion days
Setting up data science team for analysis
Product launch of kindle app, amazon
prime, echo dot
Uses data obtained by AI for special
targeting for each category
Acquired kiva systems to enhance mobile
robotic fulfilment
Launched prime now which delivers in 90
minutes or next day
Track the inventory demands by data
analytics
Great Indian Festival
Uses AI & ML to solve quality issues
 Marketing Strategy
Social Listening: Flipkart does a great job on their
customer queries/complaints providing them with
solutions
Flipkart runs a contest on Twitter, where tweets
can win you a gift which increases awareness &
interaction.
Flipkart’s ads: 12 year olds enacting like
grownups and addressing the real concerns of life
Re-Marketing: view a certain product on Flipkart
the same product will be marketed on facebook
Flipkart handles all their online properties very
consistently
Does 360 marketing for each of its campaign
majorly big billion sale
The queen of cross-platform promotions, from
Instagram to Twitter
The evergrowing Amazon Prime community
Twitter: Engaging with customers (149 replies
over the last 30 days, versus 3 regular tweets
and retweets)
Facebook: have a strong predilection for videos
on this specific platform
Instagram: their creative use of Instagram
stories also allows them to promote interviews
with artists, authors and influencers
Amazon Reviews: A social network of its own
Amazon science of recommendation
 Questionnaire
Q. How often respondent shop online? Q. Preferred online site by
respondents?
17

30 30

Once a month 41.9

Flipkart
Once in two Amazon
months
Others
Most frequently
Very rare
15.7
24.3 41.1

Q. How Respondent choose E-comm site? Q. Occasions preferred to do shopping?

10
10 20
8.6

Festival
40 Refer by friend Gift
7.1
Ad Offers
30
Online review Wedding
Others Others

54.3
 Questionnaire
Q. Most Faced Problem? Q. Which gender shops the most?
45
40
12.9
21.4 Delay in delivery 35
30
10 Product damange
25
Cheap quality product 20 No. of buyers
14.3 15
Non delivery 10
5
Other
41.4 0
Male Female

Q. How many time consumer does online or

offline shopping?
5 8

Online regular
Offline regular
online seldom
36
offline seldom
52
 Findings of the study
 Female respondents are showing more interest in
online shopping than males
 Customers prefer quality product
 Flipkart is trying to reach the level of Amazon
 Most preferred site of Indians are Flipkart
 Both have made their impact on customers to get
loyal customers
 People get influenced by their friends to try out new
products
 Both advertise very well to capture the eye of the
consumers
Conclusion
 Flipkart is performing good but to reach its
mission which is to become the amazon of India
would require more of strategy to be induced
 Innovative advertising have caused Flipkart to
get major impressions on mind of customers
 Amazon have introduced many innovative
products into the market but due to low margin
rate its market share in India is less than flipkart
as they have higher profit margin