E business strategies of Myntra

E-BUSINESS STRATEGIES OF

Submitted by:Santhi Biju (31)

Submitted to :Prof.A Srinivasa Rao

CONTENTS

1. Introduction 2. What is e-business?3. E-business models4. Supply chain 5. ERP6. CRM7. EdI8. Intranet,Internet,Mail9. Web server,Firewall10. Conclusion11. Referances

E-retailing strategies of myntra

INTRODUCTION

Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers(Harland, 1996). Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (supply chain).

Myntra was established by Mukesh Bansal, Ashutosh Lawania and Vineet Saxena in February 2007. Myntra’s headquarter is in Bangalore, with regional offices in New Delhi, Mumbai and Chennai.

It began its operations in the B2B (business to business) segment with the personalization of gifts, which included :- clothing, footwear, cosmetics

In 2010, the company shifted its strategy to becoming a B2C (business to customer) oriented firm, expanding its catalogue to fashion and lifestyle products.

Myntra.com is ranked among the top 10 e-commerce companies in India . In the last 3 years, Myntra has become the most popular destination for personalized products in the country. E-retailing strategies of myntra

INTRODUCTION

• Myntra.com is into the e-commerce (online shopping) business. It is an online retailer of fashion and lifestyle products in India.

• It began its operations in the B2B (business to business) segment with the personalization of gifts, which included :- clothing, footwear, cosmetics

• In 2010, the company shifted its strategy to becoming a B2C (business to customer) oriented firm, expanding its catalogue to fashion and lifestyle products.

• Myntra.com is ranked among the top 10 e-commerce companies in India . In the last 3 years, Myntra has become the most popular destination for personalized products in the country.

• Myntra pioneered the personalization of sports jerseys and offered sports jerseys of several cricket and football teams such as Team India, IPL & FIFA . These jerseys could be personalized with a name and number of the customer’s choice.



PRODUCTS

• Myntra has tied up with top fashion and lifestyle brands in India, such as Nike, Reebok, Puma, Adidas, Lee, Converse, Lotto, FIFA, John Miller, Indigo Nation etc.

• To offer a wide range of current season merchandise from these brands Myntra currently offers products from more than 200 Indian and international brands. These include shoes for running, tennis, football, basketball and fitness, along with casual footwear from world-renowned industry leaders.

• There are also casual and dressy footwear for women from Catwalk, Carlton London and Red Tape to name a few.


WHAT IS E-BUSINESS?

• E-business (or electronic business) is the term used to describe using the internet to operate your business. E-business represents only a fraction of worldwide business, but is one of the fastest growing sectors and provides entrepreneurs with excellent opportunities to enter the market.

• In a historical sense, the internet is a relatively new way in which to do business, with the growth of e-business taking off in the 1990's. The internet provides consumers with an increasing amount of ways to interact with businesses and has made buying and selling more competitive worldwide. The rate of globalization has been significantly impacted by the internet, making it easier for people and organizations separated by distance to communicate and interact with each other.


• E commerce considered the following attributes:-• Direct electronic interaction between two computer applications(application to

application) or between a person using a computer .• Interaction involves the completion of a specific transaction or part of a

transaction• The transaction crosses enterprise boundaries either between two

businesses(B2B) or between a business and a consumer (B2C).• Two ways of Transactions:-• Buyer/ seller Transaction• Producer/Consumer Transaction

BUYER SELLER TRANSACTION

Transactions are exchanges that occur when one economic entity sells a product or service to another entity. When buyer/seller transaction occur in the electronic market place information is accessed, absorbed, arranged, and sold in different ways.E-commerce also involves payment mechanisms for customers to make electronic payments and funds transfers.


BUYER

• Digital products

• Information• Services

INFORMATION FLOW

• Online transactions payment flow

SELLER

• Digital data & documents

• Multimedia content

• Software programs

• Products/Service


PRODUCER/CONSUMER TRANSACTION

Production process that converts digital inputs into a value added output through a set of intermediaries. This will give more refined information ,which can lead to a better decision making for the customer

CONSUMERDigital products Processed Order Services

INTERMEDIARIESONLINE PRODUCTION PROCESS

PRODUCERDigital data & documents

Multimedia content Information

ELECTRONIC RETAILING

• The e-retailing(less frequently; e-Retailing, e-Tailing, etc.) is the concept of selling of retail goods using electronic media, in particular, the internet.. e-retailing is synonymous with business- to- consumer (B2C) transaction model of e-commerce. Although e-retailing is an independent business model with certain specific constituents like; trust model, electronic transaction process, etc, but in reality it is a subset of e- commerce by nature.• Electronic retailing or e-tailing, as it is generally being called now, is the

direct sale of products, information and service through virtual stores on the web, usually designed around an electronic catalogue format and auction sites.


E-BUSINESS MODELS

Creating an e-business solution mainly involves creating and deploying an e-commerce site. The first step in the development of an e-commerce site is to identify the e-commerce model. Depending on the parties involved in the transaction, e-commerce can be classified into 4 models.

These are:Business – to – Business (B2B) modelBusiness – to – Consumer (B2C) modelConsumer – to- Consumer (C2C) modelConsumer – to – Business (C2B) model


Business-to-Business (B2B) Model

The B2B model involves electronic transactions for ordering, purchasing, as well as other administrative tasks between houses. It includes trading goods, such as business subscriptions, professional services, manufacturing, and wholesale dealings. Sometimes in the B2B model, business may exist between virtual companies, neither of which may have any physical existence. In such cases, business is conducted only through the Internet.The advantages of the B2B model are:It can efficiently maintain the movement of the supply chain and the manufacturing and procuring processes .It can automate corporate processes to deliver the right products and services quickly and cost- effectively. The B2B model is predicted to become the largest value sector of the industry within a few years. This is said to be the fastest growing sector of e-commerce




Business-to-Consumer (B2C) Model

The B2C model involves transactions between business organizations and consumers. It applies to any business organization that sells its products or services to consumers over the Internet. These sites display product information in an online catalog and store it in a database. The B2Cmodel also includes services online banking, travel services, and health information.the consumer might doubt that his information is secured and used effectively by the business organization. This is the main reason why the B2C model is not very widely accepted. Therefore, it becomes very essential for the business organizations to provide robust security mechanisms that can guarantee a consumer for securing his informationhttp://www.eservglobal.com/uploads/files/index.pdf

http://www.eservglobal.com/uploads/files/index.pdf



Consumer-to-Consumer (C2C) Model

The C2C model involves transaction between consumers. Here, a consumer sells directly to another consumer However, it is essential that both the seller and the buyer must register with the auction site. While the seller needs to pay a fixed fee to the online auction house to sell their products, the buyer can bid without paying any fee. The site brings the buyer and seller together to conduct deals.



Consumer-to-Business (C2B) Model

The C2B model involves a transaction that is conducted between a consumer and a business organization. It is similar to the B2C model, however, the difference is that in this case the consumer is the seller and the business organization is the buyer. In this kind of a transaction, the consumers decide the price of a particular product rather than the supplier. This category includes individuals who sell products and services to organizations.


WEB ENABLED SUPPLY CHAIN

• Infrastructure - Shared , global networks• Information - World Wide access to whoever is authorized• Members - Members join and leave quickly, securely and with consistent,

easy to use administration.• Control - Permission controlled, where data is accessible from anywhere in

the world with sophisticated security for authentication and authorization.• Process - Virtual product modeling and world wide simultaneous

engineering with integrated video conferencing and Internet telephone links


SUPPLY CHAIN

Myntra.com is an aggregator of many brands. Its business model is based on procuring current season merchandise from various brands and making them available on the portal at the same time as in respective retail brand outlets. All these products are offered to customers on MRP. It is a Business to Customer (B to C) revenue model.

CUSTOMER

CUSTOMER ORDERS FROM WEBSITE AND

MAKES PAYMENT

FIRM

ORDER PROCESSING

PACKAGING

SHIPPING


VALUE CHAIN ANALYSIS

Firm Infrastructure -The basic requirement of Myntra was for the office to reflect youthfulness, freshness, and vibrancy while incorporating fashion as the overall theme. The design team left no stone unturned in making this dream a reality.

Human resource management- is one such support activity that can make or break any organization in the long run. It is a very employee friendly organization. The firm focuses on work-life balance.

Technology- Its technology allows online retail to be possible by hosting the website in which the customer can browse through the online catalogue, choose what he wants to buy, make online payment and receive the goods at his/her doorstep.


Procurement is important for Myntra as they deal in merchandising; they receive the finished goods from various brands, store them at their various warehouses and then ship them to the customer when ordered.

Outbound logistics is one of the critical activities for Myntra. They use a third party courier for their outbound logistics. It is their responsibility to give the demanded product to the third party courier as soon as possible. They then keep track of the lead time and try to reduce it with collaboration from the courier company.

Marketing and Sales is a core activity of Myntra. Through proper marketing Myntra is creating awareness among customer & enhancing their online shopping experience


VALUE CHAIN ANALYSIS

Firm infrastructure

Human resource management Technology Procurement

INBOUND LOGISTICS

OPERATIONS

OUTBOUND LOGISTICS

MARKETING AND SALES

SERVICE

PRIMARY ACTIVITIES

SUPP

ORT

AC

TIVI

TIES

MARGIN


SOFTWARES USED

Enterprise Resource Planning(ERP) originated as an extension of MRP(Material requirement planning) ; later manufacturing resource planning) and CIM (Computer Integrated Manufacturing). It was introduced by research and analysis firm Gartner, ERP systems now attempt to cover all core functions of an enterprise, regardless of the organizations business or charter. These systems can now be found in non-manufacturing business, non-profit organizations and governments. To be considered an Enterprise Resource Planning (ERP) system, a software package must provide the function of at least two systems. For example, a software package that provides both payroll and accounting functions could technically be considered an ERP software package.

ERP SYSTEM

ERP SYSTEM

FRM

SCMHRM

CRM

MRP


ERP- ENTERPRISE RESOURSE PLANNING SYSTEM FRM- FINANACE RESOURCE MANAGEMENTSCM- SUPPLY CHAIN MANGEMENTHRM-HUMAN RESOURCE MANAGEMENTCRM-CUSTOMER RELATIONSHIP MANAGEMENTMRP-MANUFACTURING RESOURCE PLANNING


THE STRUCTURE OF THE ERP SYSTEM

Enterprise resource planning (ERP) systems consist of different modules. A company can therefore decide which modules they need and only acquire them, not needing to purchase them all, The ERP systems on the market today have the same main structure, which is shown in the figure traditionally a system, must integrate three of the following core modules to belong to the ERP group; manufacturing, distribution ,finance, and human resources. At the heart of the ERP systems in the central database that draws from and feeds it into a series of application supporting diverse company function . Using a single database streamlines the flow of information throughout the business.

STRUCTURE OF ERP SYSTEM

E-retailing strategies of myntraEmployees

Sales force and customer service reps

Back office administrators

and staffs

Managers and stake holders

CUST

OM

ERS SUPPLIERS

Employees

Sales force and customer service reps


CUSTOMER RELATIONSHIP MANAGEMENT

CRM (customer relationship management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way.


SALES FORCE AUTOMATION

MARKETING CAMPAIGN MANAGEMENT ANALYSIS

CUSTOMER SREVICE & SUPPORT

CRM

EMAIL

PHONE

WEBFAX

PERSONAL INTERACTION


PROCESS


ELECTRONIC DATA INTERCHANGE (EDI)

• EDI provides a standardized system for coding trade transactions so that they can be communicated directly from one computer system to another.

• EDI removes the need for printed orders and invoices and avoids the delays and errors implicit in paper handling.

• EDI is used by organizations that make a large number of regular transactions. Examples are the large supermarket chains and the vehicle assemblers which use EDI for transactions with their suppliers

Search

Negotiate

Order

Deliver

Invoice

Payment

After Sales

Pre-Sale

Execution

Settlement

After Sale

EDI


E-BUSINESS STRATEGIES OF MYTRA.com

OUTSOURCING For a business, e-outsourcing is buying information technology products and

services that could be furnished in-house from one or a variety of sources on the Internet.

PARTNERSHIP• IndoUS, IDG & Accel Partners.LOGISTICS• Bluedart


INTRANET• Mailbox• QMS - Track quality in manufacturing parts with the same

integrated database as your manufacturing, accounting, customer management and supply chain management systems. This Software modules link directly to all your ERP and manufacturing-related information such as RMAs, non-conforming inventory, BOMs and much more with no redundant data entry. Training Calendar

EXTRANET• SAP – for Procurement.WEBSITEOfficial site -http://www.myntra.com/

Search

Negotiate

Order

Deliver

Invoice

Payment

After Sales

Pre-Sale

Execution

Settlement

After Sale

Internet

http://www.myntra.com/


WEBSITE


SERVER• The Server is a computer system linked into the internet and that can

be accessed by the clients .

WEB SERVER • Software that takes requests from client browsers, searches the web

and passes back the resultant pages to the browser. The server software will support TCP/IP. The server will, very probably, store a number of home pages that are available to local users and other internet users.

MAIL SERVER• Software that acts as a ‘post office’ for the e mail system. Mail created

on the client sites is passed to the appropriate post-box within the system or sent out over the internet to its intended destination. Mail from outside is stored in post box files and uploaded to the users machine when requested by the mail client. As with the web server, the mail server uses TCP/IP for its Internet transmissions.


FIREWALL

Firewall is a mechanism used to protect a trusted network from an un trusted network, usually while still allowing traffic between the two. Typically, the two networks in question are an organization’s internal (trusted) network and the (un-trusted) internet. However , nothing in the definition of a firewall ties the concept to the internet.• NEED OF FIREWALLSome people try to get real work done over the internet, and others have proprietary data they must protect. Usually, a firewall purpose is to keep the jerks out of your network while still letting you get your job done. In a case where a company policies dictate how data must be protected, a firewall is very important, since it is the embodiment of the corporate policy. Firewall provides not only the real security – it often plays an important role as a security blanket for management


INTRANET & EXTRANET

• Intranet and Extranet become an vogue. Intranet and extranet share the common protocol( TCP/IP) and web technologies with the Internet.

• Intranet is closed, business wide network-A web designed for the use by the employees of an organization – a private Internet. The Intranet can be used to replace documents such as staff manuals, Internet telephone directories and office notices. Their advantage is that they are always readily available and that they can be easily updated.

• Extranet is a private WAN running on public protocols. Some organizations have web sited available on the internet but with access limited to account holders by a password system; such a facility is called an Extranet .Extranets are used in business to business trading where customers are required to have an account. To assure security and privacy, an extranet relies on secured channel using tunneling protocols and digital ID


WEBMASTER

Webmaster is responsible for the provision of web services for the organization. Responsibilities include setting up and maintaining the server software and the home page for the organization..


CONCLUSION

E- Business signifies a complete new & profitable way to do business, providing the all requirements as desired.The Internet is equivalent to online world where all the resources are not fully exploited and where customers may gain advantages. Here corporations may upsurge their profits further and users may find the desired product or service easily without stress of shopping around.Customers keep coming back only if earlier shopping experiences have been pleasant and successful. In this intricate business world, the e-retailing will become tremendous business strategic concept. Most profitable method of business process in coming decade to the textile and garment industries.


REFERENCES

• http://www.myntra.com/• http://

retail.economictimes.indiatimes.com/news/e-tailing/myntra-explains-its-one-hour-delivery-management-for-some-e-commerce-purchases/21950837• http://www.mxmindia.com/2012/07/well-continue-focus-on-customer-delight-says-m

yntras-bansal/• http://onkarsule.files.wordpress.com/2012/08/erp2.pdf• http://www.velink.com/ERP%20Applications.html• http://searchcrm.techtarget.com/definition/CRM• http://www.answers.com/topic/electronic-data-interchange

http://www.myntra.com/

http://retail.economictimes.indiatimes.com/news/e-tailing/myntra-explains-its-one-hour-delivery-management-for-some-e-commerce-purchases/21950837




http://www.mxmindia.com/2012/07/well-continue-focus-on-customer-delight-says-myntras-bansal/



http://onkarsule.files.wordpress.com/2012/08/erp2.pdf


http://www.velink.com/ERP%20Applications.html

http://www.velink.com/ERP%20Applications.html

http://searchcrm.techtarget.com/definition/CRM

http://searchcrm.techtarget.com/definition/CRM

http://www.answers.com/topic/electronic-data-interchange


• http://www.investopedia.com/terms/c/customer_relation_management.asp• http://www.webopedia.com/TERM/C/CRM.html• http://

ecommerceok.blogspot.in/2012/01/e-commerce-to-improve-supply-chain-and.html

• http://onkarsule.files.wordpress.com/2012/08/erp2.pdf• http://www.eservglobal.com/uploads/files/index.pdf• http://

retail.economictimes.indiatimes.com/news/e-tailing/myntra-inks-pact-with-uk-apparel-firm-raised-on-denim/25681656

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www.bluelinkerp.com/products/ecommerce-webstore-integrated-erp-software.asp

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http://www.webopedia.com/TERM/C/CRM.html

http://ecommerceok.blogspot.in/2012/01/e-commerce-to-improve-supply-chain-and.html







http://retail.economictimes.indiatimes.com/news/e-tailing/myntra-inks-pact-with-uk-apparel-firm-raised-on-denim/25681656



http://www.business-standard.com/article/companies/e-commerce-cos-fighting-on-delivery-time-113083100545_1.html



http://www.slideshare.net/ali_2009/erp-e-commerce

http://www.slideshare.net/ali_2009/erp-e-commerce

http://www.websitepipeline.com/

http://www.websitepipeline.com/

http://www.bluelinkerp.com/products/ecommerce-webstore-integrated-erp-software.asp




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E business strategies of Myntra