Flipkart Final Presentation

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flipkart- India’s largest Online Store!!!

Leading Indian E Commerce company headquartered in Bangalore.

Started by two IIT graduates (earlier employed with Amazon) in year 2007.

India’s largest online bookseller with over 11.5 million titles in offer.

Added other products like media, electronics, personal and health care.

Boasts 100% growth every quarter since founded.

Funded by owners “Bansals”, VCs Accel India and Tiger global.

Projected sales for year end 2011-12 stands at US $ 100 million.

Sells nearly 20 products per minute.

First company to introduce Cash On Delivery payment system.

First Mover in the Indian online retail Industry.

Registered User base of two million customers.

Prepared By:- AKASH TYAGI

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flipkart- India’s largest Online bookstore!!!

Top 30 Websites in India.

11.5 million titles available.

8 million visits every month.

4500 current team strength in 27 cities.

30000+ items shipped per day.

Projected to be India’s first Billion dollar Internet company by 2015.


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Flipkart Book store’s target customers

FLIPKART

Normal people

(for gifts, etc.)

Students/Academicians and

Corporate/executives

Book lovers


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flipkart- Vision, Mission and Values

Vision “To become Amazon of India”.

MissionProviding a delightful and memorable customer experience.

Objective “Completely hassle free shopping experience with best prices in India”.


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Porter’s five forces for Indian E Commerce market

• Low capital investment.

• High technological intensive players.

• Presence of multiple players & traditional retail stores.

• Cheap old/used book vendors.

• Large supplier base.

• Decreasing popularity of printed books.

• Traditional book stores.

• Advent of E book readers like I Pad and Kindle.

Threat of new Entrants

(Moderate)Bargaining

Power of Buyers (High)

Rivalry Among Competitors

(High)• Low entry

barriers • Huge market.

Existing: AttractiveEntrant: Not Attractive


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PEST Analysis framework

SOCIAL 1. Better comfort level and trust in online shopping.2. High priority on time and convenience.3. Improving usage of Broadband and high computer literacy.

TECHNOLOGICAL 1. Advent of Mobile shopping.2. Increasing penetration rate of broadband and wireless internet.3. Better managed E commerce site for ease, privacy and advancements in net banking.

ENVIRONMENT(Healthy)


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Market players: Selling New Books

Online Book Sellers (20 % market)- Direct

FLIPKART: Market leader with 80% share.

INFIBEAM: 7% share.

BOOKADDA: 5% share.

Others (EBay, India Times): 8% share.


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flipkart: Long term objectives

Strategic Objective: “Flipkart” aims to become the largest retailer of India. Flipkart wants to be present across all categories, except in groceries and automobiles, the CEO said. “Our target is not just those who shop online. We want to highlight the convenience of e-commerce to traditional offline shoppers and, thus, help grow the market.”

• US $ 100 million revenue.• Diversify product portfolio into home appliances, electronics, etc.

2012

Financial Objective:


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Traditional Bookstore

s

Pricing

Low Medium High

High

Bran

d aw

aren

ess

Low

Medium

Complete book market: Brand awareness versus Price

Flipkart:-

Traditional Bookstores:-

Book Adda:-

Infibeam:- The strategic map suggests that neither

Brand awareness nor Prices are key success factors in the market. Since

Flipkart is not the industry leader with high Brand equity and lower prices.


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s

Network

Low Medium High

High

Bran

d aw

aren

ess

Low

Medium

Complete book market: Brand awareness vs Network/ Reach

Flipkart:-


Book Adda:-

Infibeam:-

The strategic map suggests that Network reach of fragmented book shops is “Name

of the game” and it is amplified due to low internet penetration and online

shopping awareness in India. But with changing trend Flipkart will move to high

reach and thus grow its market share based on other competencies.


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s

Delivery

Low Medium High

High

Pric

ing

Low

Medium

Complete book market: Price versus Delivery time

Flipkart:-


Book Adda:-

Infibeam:-

The strategic map suggests that low delivery time is a KSF. It is obvious that

physical book stores will give immediate delivery while for any online book store it

will take a number of days. Flipkart is low on delivery time and guarantees 3 days

delivery on several items. But physical book stores also take advantage of on the spot

buying behavior.


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Key Success Factors: Indian New Books market

Key Success Factor Weight Flipkart Infibeam Bookadda Physical book stores

Network/Reach 0.5 3 1.5 1 10

Delivery/ Spot buy 0.5 4 1.5 1 10

Total weighted score 1 3.5 1.5 1 10

Total market share 100% 16% 2.50% 1.50% 80%


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Conclusion: Competition in Indian new Book Market

• Competitors :- Online Book stores and Physical Book stores.• Online Book Store market’s projected growth at 30-35% in next 5 years.• 52 million active Internet users with only 40 per cent online shoppers. • Largely scattered physical book stores across the towns and cities.• Spontaneous/physical buying behavior of Indian consumers visiting malls. • Books are amongst the most gifted items in Indian youth. • Displays large disparity between online and physical book stores target customers. • Online Book stores will eat the market share of Physical book stores but only after customer transition to Internet medium of purchases. • Flipkart will be directly competing with Online book stores while increasing the trend of online book shopping behavior through its excellent service.


15Pricing

Low Medium High

High

Bran

d Aw

aren

ess

Low

Medium

Online Book Stores: Brand awareness versus Price

Flipkart:-

Others:-

Book Adda:-

Infibeam:-

The strategic map suggests that both price and brand awareness are key

success factors in the market. Flipkart is the industry leader with 80% market

share having a very high Brand awareness and lowest prices.


16Availability

Low Medium High

High

Conv

enie

nce

Low

Medium

Online Book Stores: Convenience versus Availability

Flipkart:- Others:-

Book Adda:- Infibeam:-

The strategic map suggests that both Convenience and Availability

are key success factors. Convenience caters to user friendliness of portal,

tie ups with banks for reliable transactions. Availability refers to number of titles and various types

of additions.


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Online Book stores: KSFs and threshold factors.

Key Success Factors:

o Brand awareness.o Convenience (Delivery time and reach, user interface and

experience and Tie Ups for safe and reliable banking).o Availability (number of available titles, various editions and

print types like hard bound/paperback).

Threshold Factors:

o Being a very new industry in Indian market almost every factor contributes to the Key success of an Online book store. Going forward some of the KSFs will turn into thresholds.


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Key Success Factors: Online new books market

Key Success Factor Weight Flipkart Infibeam Bookadda Others

Brand awareness 0.15 10 3.5 3 4

Convenience 0.60

Delivery time 0.2 10 2 1 2

Delivery reach 0.2 9 2 2 2

User Experience 0.10 8 3 3 3.5

Reliability 0.10 9 4 4 4

Availability 0.15 10 3 2.5 4

Price 0.10 9 7 6 6

Total weighted score 1.00 9.4 3.175 2.725 3.35

Total market share 100% 80% 7.00% 5.00% 8%


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Flipkart ‘s existing triangle

Key Success factors:• brand awareness• convenience• delivery reach• delivery time• reliability• user experience

• availability• price

Competencies:• excellent product delivery• self owned delivery n/w• supplier network• first mover advantage• payment mode• excellent services• internet strategy (search engine optimization)• large loyal customer base.

Value proposition:

“Completely hassle free online shopping experience with best prices

in India”.


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Flipkart ‘s new triangle: raising the barKey Success factors:• brand loyalty• User experience• Reliability

• convenience• delivery reach• delivery time• mobile shopping

• availability• product modes (printed/ e-

books)• titles

Threshold factors: Brand awareness, price.

Competencies:• large self owned delivery channels• supplier network/ first to market• mobile shopping solution/ increased reach• innovation in services/payments/technology• excellent customer services• internet strategy (search engine optimization, platform advancement)• large loyal customer base.

Value proposition:

“Completely hassle free shopping experience with best services to

everyone, everywhere and everytime in India”.


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Future KSFs: Online books stores

Key Success Factor Weight Flipkart Infibeam Bookadda Others

Brand loyalty 0.30

User Experience 0.20 10 5 4 4

Reliability 0.10 10 5 3 3

Convenience 0.50

Delivery time 0.15 10 3 2.5 2

Delivery reach 0.20 10 3 2.5 3

Mobile Shopping 0.15 9 0 0 0

Availability 0.20

Product modes 0.10 9 2 2 4

Titles 0.10 10 5 4 5

Expected weighted score 1.00 9.75 3.25 2.575 2.9Expected market share 100% 90% 4.00% 2.5% 3.5%


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Future KSFs: Conclusions

Convenience: still remains the name of the game.o An online/mobile shopper still remains strong on the convenience touch point with main factors as Delivery reach to wide spread locations, short delivery times. Early advent into providing a mobile platform for on the go shoppers and shoppers with less access to other standard internet devices.

Brand Loyalty: o Excellent user experience on the e commerce website in terms of usability, speed, clarity will enhance the loyalty of existing customers and move a step ahead of brand awareness towards customer retention.

Availability: o Choice/availability of printed mode or e- books will play a major role in catering to a larger audience with varied needs/interests. Number of titles in either product mode will still remain a strong factor in determining customer’s interest in purchasing from any Online book store.


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SWOT : Strategic options External Analysis

Internal Analysis

Opportunity:1. Untapped mobile users2. Coverage of all parts of India3. Tie ups with Book fairs/education

institutes.4. Enter new untapped global

markets5. Self e-publishing

Threat:1. Low internet penetration2. Less usage/preference of online

buying3. Small value orders in remote

areas with high delivery costs4. Amazon will enter soon

Strength:1. Customer service2. Online discoverability3. Brand4. Inventory management5. Self owned delivery n/w6. Supplier network/relation 7. Innovation and technology

competence.

S1S3S7O1: Provide mobile platforms.S2S4S5O2: Increase the reach.S3S4O3: Target students and education sector.S2S3S5S6O4: Enter new attractive global markets. E.g. Srilanka.S2S3O5: Tie up with authors to acquire rights.

S2S6S7T1T1: Mobile consumersS1S3S7T2: marketing to educate reliability to customerS4S5T3: Save costs and provide package deals for higher value orders. S1S3S4S5S6T4: Enhance brand loyalty ,customer service and build on delivery and supplier n/w.

Weakness:1. No control over small value orders2. Free shipping built costs3. Less reach as compared to

physical book stores.4. Global reach.

W1O3: Tie up with educational institutes for providing bulk orders to students/schools.W2O2O5: reduce delivery costs with widespread warehouses and promoting high margin e-books.W3O1O2O3O4: Improve reach, enter new untapped cities.

W1W2T2T3: Minimize small value orders.W3T1: Promote other mediums of buying like mobile, telephone or may be small retail outlets.W4T4: expand to new untapped markets and acquire small players.


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Strategic Options filter specific to Flipkart’s book store

Short/ long term Strategic options Long term objectives (.30)

Value proposition (.30)

Capability (.30)

Alignment to goals (.10)

Weighted Score

Increase the reach using mobile platform, telephone or physical medium.

9 8 9 9 8.7

Tie ups with educational institutes across India to cater students and reducing costs through similar order delivered once.

7 7 9 6 7.5

Setting up own E-publishing house by acquiring rights from authors to publish high margin e-books.

4 4 3 3 3.6

Enter new untapped/unserved global markets like neighboring Srilanka.

9 9 8 8 8.6

Reduce costs by increasing warehouses and suppliers across the country.

9 9 10 10 9.4

Increase margins through bundled deals for small value customers .

10 10 9 10 9.7

Marketing efforts to educate Flipkart’s reliability and safety shopping to conventional consumers.

8 8 9 10 8.5


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Recommendations to Flipkart

Short Term: Flipkart must develop mobile application/solution for huge cell-phone customer base of India helping it to increase its reach. Increasing margins while reducing losses by providing attractive bundled deals to low value shoppers. Provide small mobile outlets in cities with limited reach to internet and increasing demand.

Long Term: Enter new international markets which is either un-served or untapped. Focus on high margin products like e-novels for a book store. Diversify into all product categories (achieved) to achieve economies of scale. Educate Indian conventional customer by marketing efforts. Increase bulk selling and reach to student customers by ties with educational institutes for academic curriculum supplies.


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IA to O framework

Outputs O Internal actions IA

ProfIts

Innovate

Lower costsPrepared By:- AKASH TYAGI

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CCC “Costumer company connect” frameworkRespect the customer->

loyal Customer->

WIN

Connect to customers-

increase the reach.

Employee strength

Supplier relations

Constant Innovation

Cost advantage


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References http://www.pluggd.in/flipkart-story-ecommerce-differentiator-297/

http://blog.flipkart.com/

https://www.flipkart.com

http://www.thehindubusinessline.com/todays-paper/tp-new-manager/article2507045.ece

http://www.iamwire.com/2012/02/flipkart-is-all-set-to-buy-letsbuy-com/

http://www.deccanherald.com/content/190213/indian-e-commerce-firm-flipkart.html

http://www.guardian.co.uk/books/2009/apr/22/books-india-china

http://timesofindia.indiatimes.com/business/india-business/Flipkart-faces-heat-of-rivals-discounts/articleshow/13029174.cms

http://www.sramanamitra.com/2010/10/04/building-indias-amazon-flipkart-ceo-sachin-bansal-part-1/

http://www.slideshare.net/VarunAthreya/flipkart

http://www.slideshare.net/krupashankarnj/flipkart-12116318


29Prepared By:- AKASH TYAGI

THANK YOU

Documents

Flipkart Final Presentation