STUDY OF BUSINESS MODEL AND BUSINESS STRATEGY OF E-COMMERCE GIANT FLIPKART   MIM 3rd year-Group2 Arpita Bhadra (05) Harshil Shah (50) Asmita Punjabi (42) Harshal Parikh (35) Vishal Raymangia (62) Sahil Sachdeva (45)

WHAT THEY DO E-commerce company founded in 2007 Lists 30 million products Ships 8 million packages a month Has 45 million registered users. Delivers in over 1000 Indian cities and towns.  Offer path breaking services like: Cash on Delivery 30-day replacement policy Easy Monthly Installment options (EMI) Free shipping Discounted prices, cash back & deals           Flipkart mobile app

Company growth and expansion

Rounds of funding and valuation

Acquisitions over the years

Inventory-led Business model Complete control of the entire system, from purchasing products to delivering them Pros: Scale of Operation gives high bargaining power to Flipkart therefore cost is low. High Margin Business: Margins in this business model are between 20-25%. Probability of repeat business is high because end objective of Flipkart by managing complete value chain is to increase customer satisfaction and reduce costs.

Inventory-led Business model Cons Requirement of huge revenue: Essential to maintain the product catalogue, logistics and smooth functioning of this model. Restricted range of products: Purchasing of products and maintaining them in their own warehouse can be a tough job in itself. This scenario leads to very lean product portfolio from selected brands. Unsold product inventory can also contribute to the financial loss of the company. Retaining the logistics: Customer satisfaction comes from smooth flow of logistics. If the Flipkart strategies in future are not able to maintain the quality in logistics, it can prove to be fatal for the company.

Marketplace business model Provide a platform for buyers and sellers to deal. No longer have an inventory of its own. Shipping and delivery of the products will be done by Flipkart. Operational efficiencies improve. Margins improve.

Revenues & Losses

Changes in Strategy Scaling up the size of its business. Taking complete advantage of advertising and branding power. It has launched 20 stores in 10 cities to let its customers collect the items they ordered online at their convenience. to address issues such as unavailability of customers during delivery. offer value-added services like instant returns, spot trials, open box deliveries and exclusive product demos. Add more features to its mobile shopping app to increase customers’ satisfaction & loyalty Considering having their own logistics so as to reduce dependability on the third party companies Launched its own Digital Accessories brand Digiflip, & its apparel brand Flippd

Future Prospects, ROI The industry is rightly positioned to see a vast growth, led by favorable demographics, multi-fold rise in internet penetration and scarce organized retail. E-tailers have replicated the role of the distributor/wholesaler and the retailer in the traditional brick-and-mortar supply chain The online retailing market will grow 10 times by 2020, based on internet penetration, per capita GDP, and total retail market size in the country Online retailers will turn profitable by 2020 as operating costs are likely to decline by 400 basis points. Discounts will come down by an estimated 700 basis points as growth moderates from current supernormal phase (to attract more consumers) to moderate growth phase (more users buying online for convenience, choice, etc.)

Opportunities Should look for International/ Overseas markets or Neighboring Countries Strategic alliance with International brands & suppliers i.e. sourcing & routing the international products in the domestic market & vice versa, this can help them get cost advantage & benefits Target more & more cities Invest into E-CRM & online reputation management Logistics & Supply Chain: should continuously aim to reduce delivery time cycle Portal should continuously aim to improve user experience invest in data analytics to gain real-time insights into customer buying behavior check their social media footprint with the number of likes and tweets about the brand and products

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