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8/10/2019 FLIPKART- Business Model
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FROM AMAZON TO ALIBABNIYATHACHITILAPILLY
PHILIPTHOMAS
PRAVEENRICHARD
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VISION & MISSION
VISION- TOBECOMEAMAZONOFINDIA
MISSION- PROVIDINGADELIGHTFULCUSTOMEREXPERIENCE
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GENESIS
FLIPKARTISANE-COMMERCECOMPANYFOUNDEDIN2007, BYSACHINANDBINN
ITOPERATESEXCLUSIVELYININDIA, WHEREITISHEADQUARTEREDINBANGALORE,KARNATAKA.
ITISREGISTEREDINSINGAPORE, ANDOWNEDBYASINGAPORE-BASEDHOLDINGC
FLIPKART'SWEBSITEISONEOFTHE10 MOSTVISITEDWEBSITESININDIA.
FLIPKARTHASLAUNCHEDITSOWNPRODUCTRANGEUNDERTHENAME"DIGIFLIP", OCAMERABAGS, PEN-DRIVES, HEADPHONES, COMPUTERACCESSORIES, ETC.
LEGALLY, FLIPKARTISNOTANINDIANCOMPANYSINCEITISREGISTEREDINSINGAPOMAJORITYOFITSSHAREHOLDERSAREFOREIGNERS.
BECAUSEFOREIGNCOMPANIESARENOTALLOWEDTODOMULTI-BRANDE-RETAILININDIA, FLIPKARTSELLSGOODSININDIATHROUGHWS RETAIL.
OTHERTHIRD-PARTYSELLERSORCOMPANIESCANALSOSELLGOODSTHROUGHTHEPLATFORM.
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BUSINESSOBJECTIVES
FLIPKART AIMSTOBECOMETHELARGESTRETAILEROFINDIA. FLIPKARTWANTSTOACROSSALLCATEGORIES, EXCEPTINGROCERIESANDAUTOMOBILES.
THECEO SAID. OURTARGETISNOTJUSTTHOSEWHOSHOPONLINE. WEWANTTHIGHLIGHTTHECONVENIENCEOFE-COMMERCETOTRADITIONALOFFLINESHOPPERTHUS, HELPGROWTHEMARKET.
2020LARGESTRETAILERININDIA, ENTERGLOBALMARKETS
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SEPT
TechnologicalSocial:
EconomicalPolitical
Government support forincreasing penetrationin India, Tax benefits tocorporates, Increase instock holding % forforeign investors incompanies (2012)
Resistance againstforeign retailers
Booming IndianEconomy,Increasing spendingpower, Skyroketingfuel prices, Base ofinternet usersmultiplied by 10times in 6 years
Advent of mobileshopping, Increasingpenetration rate ofbroadband and wirelessinternet, Bettermanaged E-Commercesite for ease, privacyand advancements innet banking
Better comfort leveland trust in onlineshopping, High priorityon time andconvenience ,Improving usage ofbroadband and highcomputer literacy.
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ORGANIZATIONAL APPRAISAL
Competitors:(High)
Low entry barriers
Huge Market.
New Entrants:(Moderate)
Low CapitalInvestment.
High TechnologicalPlayers
Buyer:(Low)
Presence of MultiplePlayers and
traditional retailstores.
Cheap old or usedbook vendors.
Substitutes: (Low)
Traditional Book stores.
Advent of Ebookreaders like Ipad and
Kindle
Supplier : (High)
Large supplierbase.
Decreasing
popularity ofprinter books.
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SWOT ANALYSIS
Strengths
Supply chain
Quick turnaround
Advertisement &Promotion
Strategic acquisition
Huge reach
Weakness
Delivery
Internet penetration
Payment gateways
Higher costs
Opportunities
Growth in E-tail
Growth in e-Book
Mobile Apps
Broadband Penetration
Threats
New players
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MERGERS AND ACQUISITION
STARTEDOPERATIONIN 2007 ANDBREAKEVENINAUGUST2010
TOGROWINORGANICALLYTHROUGHACQUISITIONS
HAVETHEIROWNSCM COMPANYNAMESEKART
ACQUISITIONS
2010: WEREAD, ASOCIALBOOKDISCOVERYTOOL.
2011: MIME360, ADIGITALCONTENTPLATFORMCOMPANY.
2011: CHAKPAK.COM, ABOLLYWOODNEWSSITETHATOFFERSUPDATES, NEWS, PHOTOSANDVIDEOACQUIREDTHERIGHTSTOCHAKPAK'SDIGITALCATALOGUEWHICHINCLUDES40,000 FILMOGRAPHIEMOVIESANDCLOSETO50,000 RATINGS. FLIPKARTHASCATEGORICALLYSAIDTHATITWILLNOTBEINTHEORIGINALSITEANDWILLNOTUSETHEBRANDNAME.
2012: LETSBUY.COM, ANINDIANE-RETAILERINELECTRONICS. FLIPKARTHASBOUGHTTHECOMPANYESTIMATEDUS$25 MILLION.
LETSBUY.COMWASCLOSEDDOWNANDALLTRAFFICTOLETSBUYHAVEBEENDIVERTEDTOFLIPKART.
2014: ACQUIREDMYNTRA.COMINANESTIMATEDINR 2,000 CROREDEAL.
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MARKETING STRATEGIES
FLIPKARTHASBEENMOSTLYMARKETEDBYWORDOFMOUTHADVERTISING.
CUSTOMERSATISFACTIONHASBEENTHEIRBESTMARKETINGMEDIUM.
FLIPKARTVERYWISELYUSEDSEO (SEARCHENGINEOPTIMIZATION) ANDGOOGLEWORDSASTHEMARKETINGTOOLSTOHAVEAFARREACHINTHEONLINEWORLD.
FLIPKART.COMOFFICIALFACEBOOKPAGEHASCLOSETO9 LACLIKES.
FLIPKARTLAUNCHEDASERIESOF3 ADSWITHTHETAGLINE- "NOKIDDINGNOWOAKIDCANDOIT, YOUCANALSODOIT.
ALLINALLTOCREATEAGREATCUSTOMEREXPERIENCE.
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MARKETING STRATEGIES
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BUSINESS LEVEL STRATEGY
IN2007, FLIPKARTSTARTEDWITHSELLINGBOOKS. THEFIRSTBOOKSOLDATFLIPKART.COMWASJOHNWOODS' LEAVINGMICROSOFTTOCHANGETHEWORLDTODAY
IN2010, THEYADDEDTOTHEIRCATALOGUE, MEDIA(INCLUDINGMUSIC, MOVIESANDGAMES) ANDMOBILEPHONESANDACCESSORIES
IN2011, PRODUCTLAUNCHESINCLUDEDCAMERAS, COMPUTERS, PENS& OFFICESUPPLIES, COMPUTERACCESSORIES, HOMEANDKITCHENAPPLIANCES, PERSONALCARE,HEALTHCARE, GAMINGCONSOLES, AUDIOPLAYERSANDTELEVISIONS.
INOCTOBERANDNOVEMBER2011, FLIPKARTACQUIREDTHEWEBSITESMIME360.COMANDCHAKPAK.COMLATER, INFEBRUARY2012, THECOMPANYREVEALEDITSNEWFLYTEDIGITALMUSICSTORE. FLYTE, ALEGALMUSICDOWNLOADSERVICEINTHEVEINOFITUNESANDAMAZON.COM, WILLOFFERDRM-FREEMP3 DOWNLOADS.
IN2012, PRODUCTLAUNCHESINCLUDESHEALTH& BEAUTYPRODUCTS, LIFESTYLEPRODUCTSWHICHINCLUDESWATCHES, BELTS, BAGS& LUGGAGE.
INJULY2012 FLIPKARTANNOUNCEDTHELAUNCHOFITSIN-HOUSEBRANDDIGIFLIP.DIGIFLIPISABRANDOFDIGITALACCESSORIESWITHPRODUCTSLIKELAPTOPBAGS,LAPTOPSLEEVESANDCAMERABAGSAMONGOTHERS
Cost
Heavy discounts on booksFree shipping for
purchases above Rs. 300Consumer
Communication
Advertisements viaSearch Engine
Optimization TransparentCommunication
Once the customerplaces an order, progress
can be tracked
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STRATEGIC CHOICE
WHYBOOKSWERETHEFIRST
CHOICE?
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STRATEGIC CHOICE
STARTEDSELLINGBOOKS: WHYBOOKSWERETHEFIRSTCHOICE?
LOWERTRANSACTIONSIZE
BETTERSHELFSIZE
SHIPPINGANDHANDLINGOFBOOKSISEASY
TOEMERGEASAPIONEERINBOOKRETAILINGRATHERTHANVENTURINGCOMPARISONSENGINE
GROWTHSTORY:
STARTEDWITHBOOKSANDWENTONTOADDNEWPRODUCTS
2 EMPLOYEES, 2 SUPPLIERSTO4800 EMPLOYEESANDMORETHAN600 SUPPLIERS
HAVETHEIROWNINTERNALCOURIERSERVICESCALLEDFLIPKARTLOGISTICS
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FINANCE
2007
THEFOUNDERSHADSPENT 4,000,000 ONLYFORMAKINGWEBSITETOSETUPTHEBUSINESS.
2009
FUNDINGFROMVENTURECAPITALFUNDSACCELINDIAUS$1 MILLION ANDTIGERGLOBALUS$1
2012,
FLIPKARTANNOUNCEDTHECOMPLETIONOFITS4THROUNDOF$150 MILLIONFUNDINGFROMMIOFNASPERSGROUP) ANDICONIQ CAPITAL.[
2013
FLIPKARTRAISEDANADDITIONAL$200 MILLIONFROMEXISTINGINVESTORSINCLUDINGTIGERGLONASPERS, ACCELPARTNERSANDICONIQCAPITALFLIPKARTRAISEDUSD 160 MILLIONFROMPRIVAINVESTORS.
http://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Tiger_Managementhttp://en.wikipedia.org/wiki/Tiger_Managementhttp://en.wikipedia.org/wiki/Tiger_Managementhttp://en.wikipedia.org/wiki/Tiger_Managementhttp://en.wikipedia.org/wiki/Naspershttp://en.wikipedia.org/wiki/Naspershttp://en.wikipedia.org/wiki/Naspershttp://en.wikipedia.org/wiki/Naspershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Naspershttp://en.wikipedia.org/wiki/Naspershttp://en.wikipedia.org/wiki/Naspershttp://en.wikipedia.org/wiki/Naspershttp://en.wikipedia.org/wiki/Naspershttp://en.wikipedia.org/wiki/Tiger_Managementhttp://en.wikipedia.org/wiki/Tiger_Managementhttp://en.wikipedia.org/wiki/Tiger_Managementhttp://en.wikipedia.org/wiki/Tiger_Managementhttp://en.wikipedia.org/wiki/Tiger_Managementhttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partnershttp://en.wikipedia.org/wiki/Accel_Partners8/10/2019 FLIPKART- Business Model
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STRATEGIC EVALUATION
FLIPKART'SREPORTEDSALESWERE
40 MILLIONINFY 20082009
200 MILLIONINFY 20092010
750 MILLIONFORFY 20102011
5 BILLION(US$100 MILLION) FOR2011-2012
FLIPKART.COM, THECOUNTRY'SFIRSTBILLION-DOLLAR-VALUEDINTERNETCOMPANY, ISSURELYINPERPETUALEXCITEMENT.
FLIPKARTISASTORYTHATCOMESFROMSMARTWORKANDANITISPOSSIBLE ATTITUDE.
THEUSP OFFLIPKARTISTOPROVIDETHECONSUMERSWITHTHEBESTONLINESHOPPINGEXPERIEN
THESEARETHEREASONSWHYMANYLOVEFLIPKART. SOMEPEOPLECALLINGITASAMAZONOFIFITSTOFLIPKART.
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STRUCTURAL
Sachin Bansal
Binny Bansal
KarandeepSingh(joined the
company in January2012), Flipkart
CFO, is the one whohandles all aspects
of finance andcorporate
governance.
Ravi Vora(joined inMarch
2011),VP (marketing),seems to be the right
hand man of theBansals.
MekinMaheshwari (since Sept
2009), president(engineering)atFlipkart.com, is
responsible for leadingthe engineering team,
scaling up Flipkartsbusiness at a rapid
speed
Ankit Nagori(in Flipkartsince 2010), VP
(categories), is an IIT-Guwahati alumnus who
heads multiplecategories and helps the
e-tailer build its teamacross multiple offices.
Sameer Nigam(joined in
October 2011), VP(digital business), was
the founder ofMime360.com, a digital
distribution platformsolution which hostsmusic streaming for
labels like Saregama,Universal Music andInreco, which was
acquired by Flipkart lastOctober.
Maneesh Mittal(Flipkart since Se
2009),VP (operaB.Tech from II
Although he joincommerce comgeneral manage
on to becom(warehousing)
finally elevatedyear
http://in.linkedin.com/in/kdstbbhttp://in.linkedin.com/in/kdstbbhttp://in.linkedin.com/pub/ravi-vora/4/a97/a31http://www.linkedin.com/in/mekinhttp://www.linkedin.com/in/mekinhttp://in.linkedin.com/in/ankitnagorihttp://www.linkedin.com/pub/sameer-nigam/0/38a/76http://in.linkedin.com/in/mittalmaneeshhttp://in.linkedin.com/in/mittalmaneeshhttp://in.linkedin.com/in/mittalmaneeshhttp://in.linkedin.com/in/mittalmaneeshhttp://www.linkedin.com/pub/sameer-nigam/0/38a/76http://in.linkedin.com/in/ankitnagorihttp://in.linkedin.com/in/ankitnagorihttp://in.linkedin.com/in/ankitnagorihttp://www.linkedin.com/in/mekinhttp://www.linkedin.com/in/mekinhttp://www.linkedin.com/in/mekinhttp://in.linkedin.com/pub/ravi-vora/4/a97/a31http://in.linkedin.com/pub/ravi-vora/4/a97/a31http://in.linkedin.com/in/kdstbbhttp://in.linkedin.com/in/kdstbbhttp://in.linkedin.com/in/kdstbb8/10/2019 FLIPKART- Business Model
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CHALLENGES FACED BY FLIPKART
Initially when they started out, it wasnt easy for them to earn the trust of the cu
Not having the display advantage, the browsing feature and not being able to promotional activities are some other obvious challenges.
The discomfort of paying by cards, on account of security fears is another challenow tried to address that by introducing the cash-on-delivery option.
The fact that highest number of orders and sales get registered during weekend
tough at times for logistics and customer service.
The fact that Flipkart has to work 24 / 7 and the customer perceptions around itdifficulty (For example, the customer places an order at 12 am and counts the nudelivery right from then!)
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WHAT MAKES IT STAND OUT?
The procurement model is at the heart of Flipkartssuccess, as most delays or tthis 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-com
An amazingly well-oiled warehousing and delivery system..
They offer a huge range of titles (more than 7 million) which really sets them aof the crowd.
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FLIPKARTSSUCCESS 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
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PREPAID WALLET FEATURE
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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 enha
Need to keep introducing more products, adapting to the changing needs of the time.
The entry of Amazon.com in 2012 in the Indian e-commerce space has been cite
challenge to Flipkart.
However We think that Flipkart is a respected Brand name in India and should bwith Amazon.
Remember Amazon being a very big company can bring in serious competition tAmazon can bear more losses in the beginning to gain customer base.
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BIG BILLION DAY
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BUSINESS MODEL OF FLIPKAR
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THANK YOU
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