Flipcart swot analysis
Post on 23-Aug-2014
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Flipkart.com
Group Members :•Manoj Kumar Patle (35)•Gyanendra Kushwaha (24)•Durgalal Ahir (19)•Surendra Patle (57)
Flipkart – One of the leading Indian e-commerce companies headquartered in Bangalore, Karnataka
Founded by Sachin Bansal and Binny Bansal in 2007 with 4 lakhs funding Raised two rounds of funding from Accel India and Tiger global management
Early focus on online sales of books and later expansion of product line.
Offers multiple payment methods Among the top 20 Indian Web sites in terms of
traffic regarded as the Amazon of India.
INTRODUCTION
ACQUISITIONS• 2010: WeRead, a social book discovery tool
• 2011: Mime360, a digital content platform company
• 2011: Chakpak.com is a Bollywood news site that offers updates, news, photos and videos
• 2012: Letsbuy.com is India's second largest e-retailer in electronics for an estimated US$ 25 million
Flipkart building Trust• COD• 24*7 Customer Service• Never Promise something that you don’t have – it built its own inventory• Delivery – its own courier company• No-Questions-Return policy and 30 days replacement policy - A recent study has
found that 89% of online buyers say return policies influence their decision to shop with an e-tailer
Growth Story…Started with books and went on toadd new products
2 employees, 2 suppliers to 4800 employees and more than 600 suppliers
Have their own internal courier services called flipkart logistics
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
Competitors in book market
5 sites cheaper than flipkart to buy books • Uread.com• Simplybooks.in• Bookadda.com• Landmarkonthenet.com• Infibeam.com - offering better discounts, consumers’ choices are
split and they seem less inclined to buy books only from Flipkart.
No. Of hits on the websites
Sep 2011- Aug 2012
Colour Codes Average Scores with respect to Flipkart
Flipkart.com 1
Ebay.in 0.82
Myntra.com 0.5
Jabong.com 0.3
Snapdeal.com 0.42
Performance measurement
• Profit gauge - Repeated transactions
- 70% of customers come back
• Reducing COD customers.
Flipkart Strengths
• Price reductions
• 24 hour a day shopping
• Complete freedom and time to choose
• Satisfied customers – purchase frequently and spending will increase
Segments Shopping Orientations
Internet Exposure
Experience as E – Shopper
Demographics
Convenience – oriented New Shoppers
Opening hours and time savings
Medium-low Men 25-44 Medium –High ClassBig Towns
Convenience – oriented experience shoppers
Opening hours and time saving
High Men 25-34 High ClassBig Towns
Involved shoppers Only medium available
High Men 14-24 Medium –High ClassBig Towns
Dual shoppers Only medium available
Medium- low Men 14-24 Medium –High ClassMiddle Towns
Price oriented shoppers Price reductions - - Men 25-34 Medium/ Medium –High ClassBig Towns
Informational recreational surfers
Low information search costs and easily comparison or try out
- - Men 25-34 Medium –High ClassBig Towns
Metros Vs Small Towns
• In small towns – - consumers value personal communication highly- they are less stressed- have fewer traffic problems
So they are less willing to buy online• Metros –
- encourages new channels such as internet- nuclear families- traffic problems and more stressed
123
•GiftsOccasions
•Discounts , free home delivery•Price comparison
Benefits
•Potential user•First time or second time userUser
Status
Behavioral Segmentation
Demographic Segmentation Age Kids – Baby care, ToysTeen – Playstation, Xbox, movies, music GenderMale – Computers, Mobiles and accessories, WatchesWomen – Beauty and Health care ,Home and KitchenOccupation Student – Books, Music, Movies, Stationaries Traveler – Camera, Luggage, BooksWorking – Mobiles, Computers, Watches
Segmentation Variables
PRIMARY ANALYSIS
<200 200-500
501-1000
1001-1500
1501-2000
> 2000
05
1015202530
20 2225
8
0
26
Sales
15%
15%
12%16%6%
37%
No. of events of online purchases in the last 12
months1 2 34 5 >=6
62%
29%
9%
USP of Flipkart
Cash/Card on Delivery
Easy to Order
Easy to replace Flipka
rt
Amazon
Snap
Deal
Myntra
Ebay
0
40
8077
4 102 7
Competition
Consumer oriented model
CostHeavy discounts on books
Free shipping for purchases above Rs. 300
ConsumerAvailability of products across 14
categoriesBooks can be ordered before
they are launchedPan India presence
CommunicationAdvertisements via Search
Engine OptimizationTransparent CommunicationOnce the customer places an order, progress can be tracked ConvenienceEase of finding the product and
related informationPurchase at the click of a button
Cash/ Card on Delivery
Marketing Mix
Decision making process
Evaluation of Alternatives
Customer perceived value
Wider range across all categories
Purchase Decision
Faster turn around time
Cash/Card on Delivery
Easy Return Procedure in case DOA
Post- Purchase behavior
Feedback on Flipkart website and other
blogs
Word of MouthAffiliate
Dot -Com Generation
Target group
PURCHASE
Time Poor Customers
Cost Effective
Non Tier 1 Cities
looking for wider range
Understanding the category
India is one of the fastest growing digital markets in the world
ASSOCHAM says the online retail market in India may grow to Rs 70
billion by 2015 from Rs 27.5 billion, today as internet access
improves
Online retail accounts for less than 1% of the total online
market in India thus provide a huge growth potential of the market for both domestic and
international players
Reasons for Online Shopping
Busy Life Style
Unavailability of a particular brand in a particular
region
Cash/Card on Delivery
Discounts and Offers
PORTER’S ANALYSIS
RIVALRY
•High Level of Promotion
NEW ENTRANTS •Low Entry and Exit Barriers
•Accessibility
SUBSTITUTE
•Price Wars
CUSTOMERS •Low Switching Cost
SUPPLIERS •Loyalty•New products
PORTER’S
FIVE FORCES
INTE
RNAL
FACT
ORS
EXTE
RNAL
FACT
ORS
STRENGTHS
•BRAND•SUPPLY CHAIN MANAGEMENT•QUICK TURNAROUND TIME•ADVERTISEMENT AND PROMOTION•STRATEGIC ACQUISITIONS•HUGE REACH
WEAKNESSES
•DELIVERY•INTERNET PENETRATION•PAYMENT GATEWAYS•HIGHER COSTS
•GROWTH IN e-TAIL•GROWTH IN e-BOOK CULTURE•BROADBAND PENETRATION•MOBILE APPS
OPPORTUNITIES
• NEW PLAYERS SUCH AS AMAZON
THREATS
SWHARMFUL
To achieving the objectivesHELPFUL
To achieving the objectives
OT
New Strategy
•None of the people who took the survey said they buy music online
•Songs are priced very high , Rs 6 - 15 per song
•5000 downloads a day
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