2. About the company
• Flipkart started by Sachin Bansal and Binny Bansal(not
related), went live in 2007.
• Presence across various categories including
multimedia, games, mobiles, electronics and many
more.
• Over 11.5 million book titles, 11 different
categories, more than 2 million registered users and
sale of 30000 items a day.
• Broke even in March 2010 and claims to have had at
least 100% growth every quarter since its founding.
3. Mission, Vision, Objective
MISSION
“Providing a delightful customer experience”
VISION
“To become Amazon of India”
OBJECTIVE
“Making books easily available to anyone who has
internet access”
4. Detailed Analysis
Porters Five Force
Threat of New Entrants
High
- Market potential is huge.
- Low entry barriers
Bargain Power of
Bargain Power of Industry Rivalry Buyers
Suppliers. High
Medium
Low - Best deals online
- Large number of small
- Book readership - Cash on delivery
reducing YoY players.
- International players - One stop shop
- Inventory turnover lower
than ever venturing the entry - Faster delivery
possibility
Threat Of Substitutes
Low
- Diminishing brick and mortar
stores.
- Increasing need for customer ease
5. Detailed Analysis (Contd)..
VRIO Framework and TOWS
Summary of VRIO, Competitive Implications, and Economic Implications
Costly to Organized Competitive Economic
Valuable? Rare? SWOT Category
Imitate? Properly? Implications Implications
Above Normal
Temporary Strength and Core
Yes Yes No Yes (at least for some
Advantage Competence
amount of time)
Strengths and Weaknesses
• Designing website to support local language.
• Build on early mover advantage to constantly upgrade for more services.
Strengths and Threats
• Expanding to villages and small towns and exploiting benefits of e-commerce
• Creating barriers to entry by differentiating services provided
Strengths and Opportunities
• Build on existing features to introduce the product to emerging market
• Expanding to logistics and distribution management using acquisition
• Strategic partnership with big retailers for home delivery
Opportunity and Threats
• Increasing attractiveness to market due to high growth rate.
• Need to create entry barriers
6. Why flipkart?
• Discoverability
• “We Do Not Sell Used Books” tagline.
• Customer preference for payment - Cash on delivery
• Low inventory turnover ratio
• Great logistics and customer first motto
• Promotion through word of mouth (High Goodwill)
7. Road Ahead Analysis
Directional Policy Matrix
High
Phased
Market Attractiveness
Disinvest Double or Quit
Withdrawal
Snapdeal eBay
Medium
Phased
Custodial Growth Try Harder
Withdrawal
Infibeam Naaptol
Goal of these
Low
companies is to
Cash Generation Growth Leader Leader
capture market
Goal of company is
to sustain its
Flipkart share and obtain
position and capture
growth leader
multiple market Strong Medium Low position
segments
Business Strength
8. Road Ahead
• Funding from VC’s - Accel India and Tiger Global Management
(US$10 million)
• Private equity firms Carlyle and General Atlantic (US$150 million)
• Acquistion of Chakpak’s digital catalogue, Mime360, and We Read.
• Prepaid Wallet feature to its e-commerce platform
• Online retail industry in India pegged to reach $1.5 billion (2015)
• Amazon entering the Indian market.
• Focus on Nine Building Blocks of Company
Customer Segments Revenue Streams
Value Proposition Key Resources
Channels Key Activities
Customer Relationship Key Partnerships
Cost Structure
9. References
• “Frameworks and Chart for strategic analysis” –
Mahesh Narayan compilation
• About the company - www.flipkart.com
• “What it takes to do online retail in India”, mint.com
• “Interview with Sachin Bansal”, TOI, 20-Feb-2011
• “Continuous Development at flipkart” – Slideshare.com
• “Rags to riches – Evolution of garage enterprise” – TOI
• “A winning chapter” – Aarti Dua, Flipkart story
• “Generating Business models” – Alexander Osterwalter
and Yves Pigneur
