Flipcart swot analysis

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