3. ❑ Indian ecommerce Industry is expected to grow of about $200
billion by 2026
❑ Growth in Industry due to penetration of Internet and smartphone
❑ Large young population, rising internet penetration and relative
better economic performance key to growth
❑ GOI introduction of 100% FDI in B2B e-commerce is beneficial for
the industry
❑
3
INDUSTRY OUTLOOK-ECOMMERCE
6. ❑ Over last two years , rising internet and mobile phone penetration
has changed the industry’s way of communication and doing
business
❑ Industry heavily dependent on internet and mobile phone
revolution
❑ E-retail is fast growing and is challenging the online travel which
currently holds 70% of market
❑
6
INDUSTRY-EVOLUTION
7. E-Commerce Industry faces following challenges-
❑ COUNTERFEIT PRODUCTS- Very difficult for aggregators to
proactively detect counterfeits or inferior quality products
❑ DUE- DILIGENCE CHECKS- Checking credentials of sellers and
quality of products and preventing unscrupulous sellers from
selling in market place
❑ REGULATORY ISSUES- E-commerce companies have been
pressing for 100% FDI in retail whereas various MSMEs are against
the policy as they may not receive FDI funding
7
RISKS AND CHALLENGES
8. E-Commerce Industry faces following challenges-
❑ Gaining momentum of government initiatives
❑ Increase in Internet Penetration
❑ Growth in Smartphone adoption
❑ Evolution of New payment Solution
❑ GST to enhance the Growth of E-commerce
❑
8
INDUSTRY GROWTH DRIVERS
10. 10
COMPANY OUTLOOK
FLIPKART PRIVATE LIMITED
❑ Indian e-commerce company based in Bengaluru
❑ Founders-Sachin Bansal and Binny Bansal,2007
❑ Initially focused on book sales
❑ Now has consumer electronics, fashion, home essentials & groceries, and
lifestyle products.
❑ Rivalries- Amazon India & Snapdeal.
❑ 39.5% market share of India's e-commerce industry
❑ Owns PhonePe mobile payments service based on the Unified Payments
Interface.
11. Strengths
1)Strong Brand Value
2)Own logistics Arm e Kart
3)Own Marketplace Model
Weakness
1)Investor driven organization
Or lack of Independent board
2)Secretive Political culture
3)Excessive focus on
expanding customer base
rather than pulling profits
Opportunities
1)Online fashion and
apparel business
2)Providing logistics
services to its competitors
3)Growth in retail sector in
India
Threats
1)Amazon
2)Snapdeal
3)Shopclues
SWOT ANALYSIS
12. PORTER’S FIVE FORCES
SUPPLIERS POWERS
1)Many suppliers-hence no power
2)Customer can select on their own
3) No Switching Cost
4) Companies want to sell their products
through e-retail platforms
BUYER POWER
1)Customers who purchase products
online
2)Buyers have lot of options to choose
3)Same products in several online retail
websites
THREATS- NEW ENTRANTS
1)government is going to allow 51% FDI in
multi-brand online retail
2)100% FDI in single brand online retail
3)Less entry barriers-less amount of money
and infrastructure required
THREATS-SUBSTITUTES
1)Purchase stores
2) Low Competition
3)Online Shopping Preference
RIVALRY
1)Flipkart
2)Myntra
3)Jabong
4)Snapdeal
5)Amazon
6)HomeShop18