140409-company profile flipkart priya goswami

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FlipKart

flipkart.comCompany Profile

Table of ContentAnalysis of Market EnvironmentCompany OverviewBusiness Model AnalysisSuccess FactorsSWOT AnalysisPorters Five Forces Analysis ConclusionsReferences

Analysis of Market EnvironmentIndia is one of the worlds leading emerging markets, growing at a rate of 6-7% even through an era of global economic downturn.According to a survey conducted by Assocham, India's e-commerce market grew at a staggering 88% in 2013 to $ 16 billion, riding on booming online retail trends and defying slower economic growth and spiralling inflationIndia has Internet base of around 150 million as of August, 2013 and this number is increasing day by day facilitating the growth of the online retailing.It is estimated that in India, currently there are approximately 27 million active mobile internet users and 4% are purchasing products via mobile internet which can go even 20% in coming years.India is a big market and increasing living standard and internet usage is a major driver for development of e retail in India.Social networking sites like facebook, twitter, etc are playing a crucial role in influencing people for buying products online. Many of the vendors are using that platform as strong tool for marketing as well as sale.Among all the categories, Apparel and Accessories segment witnessed the highest growth in previous yearsCompany Overview: flipkart.comFlipkart is one of the leading Indian e-commerce companies established in 2007The company has over 11 different categories, more than 2 million registered users and sale of 30,000 items a day Among the top 20 Indian Web sites in terms of trafficAt the beginning, Flipkart focused on online sales of books but it later expanded to electronic goods and a variety of other productsIt raised funding from venture capital funds Accel India in 2009 and Tiger Global (US$10 million in 2010 and US$20 million in June 2011)HeadquarterBangalore, KarnatakaSales Turnover (2013)US $ 200 MillionStart Year2007Employees4578 (aprox.)Type of SiteOnline retailStand out pointFlyte Digital Music StoreCompany Introduction Geographical Presence : WarehousesProduct OfferingsCDs and DVDsMobile Phones & AccessoriesCamerasComputersComputer Accessories And Peripherals

Pens and Office SuppliesHome AppliancesKitchen AppliancesPersonal Care GadgetsHealth Care ProductsClothing and Accessories4Bangalore, KarnatakaChennai, Tamil NaduDelhiKolkata, West Bengal

Mumbai, MaharashtraNoida, Uttar PradeshPune, MaharashtraKochi, Kerala

Acquisition of Letsbuy.com, India's second largest e-retailer in electronics

Flipkart has bought the company for an estimated US$ 25 millionAcquisition of WereadFlipkart acquired this social book discovery tool for providing Flipkart a social recommendation platform for buyers to make informed decisions based on recommendations from people within their social network

Acquisition of Mime360Flipkart acquired Mime 360 a digital content platform companyKey InsightsIncrease internet usage in the country and people getting accustomed to making purchases onlineFlipkart was making operational losses on transactions of books that accounted for 65% of its sales volume and 40% of revenue.Merger and Acquisitions20102011Acquisition of Chakpak.com, a Bollywood news site that offers updates, news, photos and videosFlipkart acquired the rights to Chakpaks digital catalogue the company also mentioned that it will not be involved with the original site and will not use the brand name20112012Company Overview: flipkart.comRevenue in RsBusiness Model Analysis: flipkart.comFlipkart believes that the inventory model is out of trend and the concept of Marketplace Model is now the An online marketplace is a type of e-commerce site where product as well as the inventory information is provided to customer by multiple third parties, whereas transactions are processed by the marketplace operator.Under the Market Place Model, the company would not have its own inventory rather buyers can deal with sellers directly and the delivery will be done by Flipkart.The company has on-boarded 50 sellers that are selling in books, media, and consumer electronics categories. Clothes, shoes and other categories are expected to follow soon.The flipkart business model has following key points:Users have COD/EMI options and return/replacement policies.Flipkart takes care of shipping and doorstep delivery through its logistics partners.It is expected that there will be soon complaint resolving program launched by Flipkart.A good mass of online shoppers have an opinion that the user experience that is product selection, customer service and logistics is very smooth with variety of products.

Buyer 1Buyer 2Buyer 3Seller 2Seller 3Seller 1Platform 1Platform 2Platform 3B2B

MarketplaceMultiple Buyers to Multiple SellersCompetitive Bidding- Auction, Exchange, Grouped Buying, reverse AuctionSuccess Factors: flipkart.comFirst Mover AdvantageFlipkart enjoys the top-of-the-mind brand recall as far as buying books is concerned. Other portals such as Uread and Dial-a-Book are still struggling to register their presence into the consumers mind.Cash on DeliveryThis system simplified the online shopping as many people do not know how to make payments online. People do not have immense trust in e-commerce also got facilitated via this.Strong Marketing StrategyFlipkart has been mostly marketed by word of mouth advertising. Customer satisfaction has been their best marketing medium. The company wisely used SEO (Search Engine Optimization) and Google Ad-words as the marketing tools to have a far reach in the online worldCongenial PurchaseIts not necessary to register on the website for buying products. The website allows a user to purchase products as guest visitor too.E-commerce BackgroundThe founders are ex-Amazon employees, hence they are bringing in the required expertise and skillset needed to run and grow an ecommerce portal.

SWOT Analysis: flipkart.comPorters Five Forces Analysis: flipkart.comSupplier Power: Low

Large supplier baseThe readers are reducing thus weakening the suppliers positionBarrier to Entry: LowHigh market potential for this industry Low entry barriers, but sustaining is tough

Competitive RivalryMediumMany small players such as Snapdeal and NaaptolEntry of international giant such as Amazon in IndiaBuyer Power:HighPresence of multiple playersFew number of online shoppers

Threat From Substitute:LowTraditional book stores.Advent of electronic book readers such as I Pad and Kindle.

ConclusionThe company was funded by the owners themselves with Rs 400,000, Flipkart has since then raised funding from venture capital fundsAccel Indiain 2009 and Tiger Global (US$10 million in 2010 andUS$20 million in June 2011) The company registered high growth in sales and number of website visitorsBeing a very new industry in Indian market almost every factor contributes to the key success of an online book store. The company changed its business model in February 2013, moving from online retail to the marketplace model, in which third parties use its platform to sell products to the customers.Flipkart India sold its technology platform and related intellectual properties to another entity called Flipkart Internet Pvt. Ltd effective on 31 December 2012. The value of the sale of business to Flipkart Internet was approximately Rs.94.15 crore, as suggested by its filings.The strong marketing strategy, variety of products, on time delivery, cash on delivery, etc factors are the major factors behind the rapid growth of the flipkart.The operational loss was due to the investments the company was making in technology, supply chain, logistics, customer support and marketing to scale up the business

Referenceshttp://www.thehindubusinessline.com/todays-paper/tp-new-manager/article2507045.ecehttp://www.sramanamitra.com/2010/10/04/building-indias-amazon-flipkart-ceo-sachin-bansal-part-1/http://www.cxotoday.com/story/indian-e-commerce-market-grew-at-88/http://www.academia.edu/4120009/E-COMMERCE_TRENDS_IN_THE_CURRENT_SCENARIOhttp://www.flipkart.com/about-ushttp://en.wikipedia.org/wiki/Flipkarthttp://swot.advisorgate.com/swot-f/14920-swot-analysis-flipkart-com.htmlhttp://www.deccanherald.com/content/190213/indian-e-commerce-firm-flipkart.htmlhttp://subscriber.hoovers.com/H/company360/overview.html?companyId=862603314Many others