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Establishing Strategic Intent Vision & Mission of Flipkart Business Definition & Objectives Formulation of strategies Environment Appraisal, Organizational Appraisal, SWOT Analysis , Corporate Level Strategies Business level Strategies , Strategic Choice Strategy Implementation - Project, Procedural, Resource Allocation Structural, Behavioral, Functional and operational Strategic Evaluation
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INDEX
• ESTABLISHING STRATEGIC INTENT
• VISION & MISSION
• BUSINESS DEFINITION & OBJECTIVES
• FORMULATION OF STRATEGIES –
• ENVIRONMENT APPRAISAL, ORGANIZATIONAL APPRAISAL,
• SWOT ANALYSIS , CORPORATE LEVEL STRATEGIES
• BUSINESS LEVEL STRATEGIES , STRATEGIC CHOICE
• STRATEGY IMPLEMENTATION -
• PROJECT, PROCEDURAL, RESOURCE ALLOCATION
• STRUCTURAL, BEHAVIORAL, FUNCTIONAL AND OPERATIONAL
• STRATEGIC EVALUATION
VISION & MISSION
• VISION - TO BECOME AMAZON OF INDIA
• MISSION - PROVIDING A DELIGHTFUL CUSTOMER EXPERIENCE
BUSINESS DEFINITION
• FLIPKART IS AN E-COMMERCE COMPANY FOUNDED IN 2007, BY SACHIN AND BINNY BANSAL
• IT OPERATES EXCLUSIVELY IN INDIA, WHERE IT IS HEADQUARTERED IN BANGALORE, KARNATAKA.
• IT IS REGISTERED IN SINGAPORE, AND OWNED BY A SINGAPORE-BASED HOLDING COMPANY.
• ACCORDING TO ALEXA INTERNET, FLIPKART'S WEBSITE IS ONE OF THE 10 MOST VISITED WEBSITES IN INDIA.
• FLIPKART HAS LAUNCHED ITS OWN PRODUCT RANGE UNDER THE NAME "DIGIFLIP", OFFERING CAMERA BAGS, PEN-DRIVES, HEADPHONES, COMPUTER ACCESSORIES, ETC.
• LEGALLY, FLIPKART IS NOT AN INDIAN COMPANY SINCE IT IS REGISTERED IN SINGAPORE AND MAJORITY OF ITS SHAREHOLDERS ARE FOREIGNERS.
• BECAUSE FOREIGN COMPANIES ARE NOT ALLOWED TO DO MULTI-BRAND E-RETAILING IN INDIA, FLIPKART SELLS GOODS IN INDIA THROUGH A COMPANY CALLED WS RETAIL.
• OTHER THIRD-PARTY SELLERS OR COMPANIES CAN ALSO SELL GOODS THROUGH THE FLIPKART PLATFORM.
BUSINESS OBJECTIVES
• 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.
• 2012 - US $ 100 MILLION, DIVERSIFY PRODUCT REVENUES
• 2015 - US $ 1 BILLION INDIA, AGGRESSIVE MARKETS, STRONGER SUPPLY CHAINS
• 2020 – LARGEST RETAILER IN INDIA, ENTER GLOBAL MARKETS
ENVIRONMENTAL APPRAISAL
•Technological•Social:
•Economical•Political
Government support for increasing penetration in India, Tax benefits to corporates, Increase in stock holding % for foreign investors in companies (2012)Resistance against foreign retailers
Booming Indian Economy, Increasing spending power, Skyroketing fuel prices, Base of internet users multiplied by 10 times in 6 years
Advent of mobile shopping, Increasing penetration rate of broadband and wireless internet, Better managed E-Commerce site for ease, privacy and advancements in net banking
Better comfort level and trust in online shopping, High priority on time and convenience , Improving usage of broadband and high computer literacy.
ORGANIZATIONAL APPRAISAL
Competitors: (High)
Low entry barriersHuge Market.
New Entrants: (Moderate)Low Capital Investment.
High Technological Players
Buyer:(Low)Presence of Multiple
Players and traditional retail
stores.Cheap old or used
book vendors.
Substitutes: (Low)Traditional Book stores.
Advent of Ebook readers like Ipad and
Kindle
Supplier : (High)Large supplier
base.Decreasing
popularity of printer books.
SWOT ANALYSIS
Strengths
Supply chainQuick turnaroundAdvertisement &
PromotionStrategic acquisition
Huge reach
Weakness
DeliveryInternet penetrationPayment gateways
Higher costs
Opportunities
Growth in E-tailGrowth in e-Book
Mobile AppsBroadband Penetration
Threats
New players
CORPORATE LEVEL STRATEGIES
STARTED OPERATION IN 2007 AND BREAK EVEN IN AUGUST 2010
TO GROW INORGANICALLY THROUGH ACQUISITIONS
HAVE THEIR OWN SCM COMPANY NAMES EKART
ACQUISITIONS
2010: WEREAD, A SOCIAL BOOK DISCOVERY TOOL.
2011: MIME360, A DIGITAL CONTENT PLATFORM COMPANY.
2011: CHAKPAK.COM, A BOLLYWOOD NEWS SITE THAT OFFERS UPDATES, NEWS, PHOTOS AND VIDEOS. FLIPKART ACQUIRED THE RIGHTS TO CHAKPAK'S DIGITAL CATALOGUE WHICH INCLUDES 40,000 FILMOGRAPHIES, 10,000 MOVIES AND CLOSE TO 50,000 RATINGS. FLIPKART HAS CATEGORICALLY SAID THAT IT WILL NOT BE INVOLVED WITH THE ORIGINAL SITE AND WILL NOT USE THE BRAND NAME.
2012: LETSBUY.COM, AN INDIAN E-RETAILER IN ELECTRONICS. FLIPKART HAS BOUGHT THE COMPANY FOR AN ESTIMATED US$25 MILLION.
LETSBUY.COM WAS CLOSED DOWN AND ALL TRAFFIC TO LETSBUY HAVE BEEN DIVERTED TO FLIPKART.
2014: ACQUIRED MYNTRA.COM IN AN ESTIMATED INR 2,000 CRORE DEAL.
BUSINESS LEVEL STRATEGIES
• FLIPKART HAS BEEN MOSTLY MARKETED BY WORD OF MOUTH ADVERTISING.
• CUSTOMER SATISFACTION HAS BEEN THEIR BEST MARKETING MEDIUM.
• FLIPKART VERY WISELY USED SEO (SEARCH ENGINE OPTIMIZATION) AND GOOGLE AD-WORDS AS THE MARKETING TOOLS TO HAVE A FAR REACH IN THE ONLINEWORLD.
• FLIPKART.COM OFFICIAL FACE BOOK PAGE HAS CLOSE TO 9 LAC LIKES.
• FLIPKART LAUNCHED A SERIES OF 3 ADS WITH THE TAG LINE - "NO KIDDING NO WORRIES“
• KIDS WERE USED TO CREATE THE ADVERTS TO SEND OUT THE MESSAGE - IF A KIDCAN DO IT, YOU CAN ALSO DO IT.
• ALL IN ALL TO CREATE A GREAT CUSTOMER EXPERIENCE.
BUSINESS LEVEL STRATEGY
• IN 2007, FLIPKART STARTED WITH SELLING BOOKS. THE FIRST BOOK SOLD AT FLIPKART.COM WAS —JOHN WOODS' LEAVING MICROSOFT TO CHANGE THE WORLD TODAY
• IN 2010, THEY ADDED TO THEIR CATALOGUE, MEDIA (INCLUDING MUSIC, MOVIES AND GAMES) AND MOBILE PHONES AND ACCESSORIES
• IN 2011, PRODUCT LAUNCHES INCLUDED CAMERAS, COMPUTERS, PENS & OFFICE SUPPLIES, COMPUTER ACCESSORIES, HOME AND KITCHEN APPLIANCES, PERSONAL CARE, HEALTH CARE, GAMING CONSOLES, AUDIO PLAYERS AND TELEVISIONS.
• IN OCTOBER AND NOVEMBER 2011, FLIPKART ACQUIRED THE WEBSITES MIME360.COM AND CHAKPAK.COM LATER, IN FEBRUARY 2012, THE COMPANY REVEALED ITS NEW FLYTE DIGITAL MUSIC STORE. FLYTE, A LEGAL MUSIC DOWNLOAD SERVICE IN THE VEIN OF ITUNES AND AMAZON.COM, WILL OFFER DRM-FREE MP3 DOWNLOADS.
• IN 2012, PRODUCT LAUNCHES INCLUDES HEALTH & BEAUTY PRODUCTS, LIFE STYLE PRODUCTS WHICH INCLUDES WATCHES, BELTS, BAGS & LUGGAGE.
• IN JULY 2012 FLIPKART ANNOUNCED THE LAUNCH OF ITS IN-HOUSE BRAND DIGIFLIP. DIGIFLIP IS A BRAND OF DIGITAL ACCESSORIES WITH PRODUCTS LIKE LAPTOP BAGS, LAPTOP SLEEVES AND CAMERA BAGS AMONG OTHERS
Cost Heavy discounts on
books Free shipping for purchases above Rs. 300
Consumer
Consumer
Availability of products across 14 categories Books can be ordered
before they are launched Pan India presence
Communication Advertisements via
Search Engine Optimization Transparent
CommunicationOnce the customer
places an order, progress can be tracked
Convenience
Ease of finding the product and related
information Purchase at the click of a button
Cash/ Card on Delivery
STRATEGIC CHOICE
• STARTED SELLING BOOKS : 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
• GROWTH STORY:
• STARTED WITH BOOKS AND WENT ON TO ADD NEW PRODUCTS
• 2 EMPLOYEES, 2 SUPPLIERS TO 4800 EMPLOYEES AND MORE THAN 600 SUPPLIERS
• HAVE THEIR OWN INTERNAL COURIER SERVICES CALLED FLIPKART LOGISTICS
PROJECT & PROCEDURAL
• LAUNCHED NO KIDDING, NO WORRIES
• FDI NORMS SINCE ITS REGISTRATION IS IN SINGAPORE, NOT CONSIDERED AS INDIAN COMPANY
• TAX RULES AND REGULATIONS AS E-RETAIL AND E-COMMERCE
Evaluation of Alternatives
• Customer Value Perceived
• Wider range across all categories
Purchase Decisions
• Faster Turnaround Time
• Cash/Card on delivery
• Easy return procedure
Post-Purchase Behavior
• Feedback on Flipkart websites and other blogs
• Word of mouth affiliate
RESOURCE ALLOCATION
• STARTED WITH 2 EMPLOYEES AND NOW EMPLOYS 10,000 PEOPLE.
• HAS ITS OWN SCM COMPANY NAMED EKART TO OPERATIONAL EFFICIENCIES
STRUCTURAL
Sachin Bansal Binny Bansal
Karandeep Singh (joined the
company in January 2012), Flipkart CFO, is the one
who handles all aspects of finance and corporate
governance.
Ravi Vora (joined in March
2011), VP (marketing), seems to be the
right hand man of the Bansals.
Mekin Maheshwari (since Sept
2009), president (engineering) at
Flipkart.com, is responsible for leading the engineering team, scaling up Flipkart’s business at a rapid
speed
Ankit Nagori (in Flipkart since 2010), VP (categories), is an IIT-Guwahati alumnus who
heads multiple categories and helps the e-tailer build its
team across multiple offices.
Sameer Nigam (joined in October 2011), VP (digital business), was the founder of
Mime360.com, a digital distribution platform solution which hosts music streaming for
labels like Saregama, Universal Music and Inreco, which was
acquired by Flipkart last October.
Maneesh Mittal (been with Flipkart since
September 2009), VP (operations), is a B.Tech from IIT-Delhi. Although he
joined the e-commerce company as a general
manager, he went on to become AVP (warehousing) and was finally elevated to
VP last year
Sujeet Kumar (joined in December
2008), president (operations) at
Flipkart, is a B.Tech in Civil Engineering from IIT Delhi. He has been there for quite some time and has been
responsible for building the company, along with the Bansals
FUNCTIONAL AND OPERATIONAL
• THOUGH AMAZON IS ONE OF THE EARLIER PLAYERS IN THE INDUSTRY, IT IS FLIPKART WHICH IS ONE OF THE INDIAN PLAYERS IN THIS INDUSTRY WHICH REALLY BROUGHT ABOUT THE GREAT CHANGE IN THE MINDSET OF INDIAN POPULATION.
STRATEGIC EVALUATION
• FLIPKART'S REPORTED SALES WERE
• 40 MILLION IN FY 2008–2009
• 200 MILLION IN FY 2009–2010
• 750 MILLION FOR FY 2010–2011
• 5 BILLION (US$100 MILLION) FOR 2011-2012
• FLIPKART.COM, THE COUNTRY'S FIRST BILLION-DOLLAR-VALUED INTERNET COMPANY, IS SURELY IN A STATE OF PERPETUAL EXCITEMENT.
• FLIPKART IS A STORY THAT COMES FROM SMART WORK AND AN ‘IT IS POSSIBLE’ ATTITUDE.
• THE USP OF FLIPKART IS TO PROVIDE THE CONSUMERS WITH THE BEST ONLINE SHOPPING EXPERIENCE.
• THESE ARE THE REASONS WHY MANY LOVE FLIPKART. SOME PEOPLE CALLING IT AS AMAZON OF INDIA WHICH FITS TO FLIPKART.