Jaipuria Institute of Management,

Vineet Khand, Gomti Nagar

Lucknow – 226 010

Academic Year 2019-20

Batch 2019-21
Trimester 3rd Trimester
Programme PGDM-RM
(PGDM / PGDM-FS / PGDM-RM)
Name of Course Strategic Management
Section E
Name of Faculty Prof. VirVedRatna

Nature of submission Project Report

(Assignment / Project Report)
Topic of Assignment / Project Flipkart

Deadline for submission 20th March, 2020

Group/ Learning Team Number LT-E10

Submitted by:

Sl. Name of Student and Contribution Signature

No. Enrollment No.
1 Akash Singh (JL19RM002) Issue Priority Matrix, TOWS Matrix

2 Akash Srivastava (JL19RM003) Porter’s five forces, Current Market Strategy

3 Pooja Singh (JL19RM028) Product Portfolio & Conclusion, Co. Performance

4 Richa Kumar (JL19RM035) Introduction, Mission, Vision and VRIO Analysis

5 Saurabh Rai (JL19RM041) PESTEL, IFE Matrix

6 Nitesh Dubey (JL18RM036) EFE Matrix, SWOT Analysis

Date of receiving at PMC Signature of PMC staff

TABLE OF CONTENTS
TOPIC PAGE NO.
1|Page

INTRODUCTION 02

VISION 02

MISSION 03

GOALS 04

PRODUCT PORTFOLIO 05

ANALYSIS OF MARO ENVIRONMENT 06

PORTER’S FIVE FORCES 09

ISSUE PRIORITY MATRIX 09

EXTERNAL FACTOR EVALUATION MATRIX 09

VRIO ANALYSIS 11

SWOT ANALYSIS 13

TOWS MATRIX 14

IFE MATRIX 15

CURRENT MARKET STRATEGY 15

COMPANY PERFORMANCE 19

CONCLUSION 21
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Introduction
 Flipkart Private Limited,is an Indian, e-commerce company located
in Bengaluru, India.,,
 It was,started by Sachin, Bansal and Binny Bansal in, 2007.
 The companyoriginally focused on, book sales, before, expanding into other product,
categories such as consumer electronics, fashion, home essentials & groceries, and
lifestyle products.
 The service competes primarily, with Amazon's Indian subsidiary, and the domestic
rival Snapdeal.
 Flipkart is significantly dominant, in the sale of apparel, and was labelled as being "neck
and neck" with Amazon, in the sale of electronics and mobile phones.
 Flipkart also owns PhonePe, a mobile payment, service based on the Unified Payments
Interface (UPI).
 In August 2018, U.S.-based retail chain Walmart, acquired a 77% controlling stake in
Flipkart for US$16 billion, valuing it at $20 billion.

Vision
“To become Amazon of India.”

Mission
“Providing a delightful and memorable customer experience.”

Values
 Customer First- They putthe needs and requirements of their customers ahead of
anything and everything else.
 Ownership-Taking ownership by accepting responsibility for ensuring quick
redressal if there’s any problem.
 Impact- Ensuring to make an impact leading to a positive customer
experience, building brand loyalty and affinity which in turn will help the business to retain
revenue and earn new customers.
 Honesty- They are honest with the customers as it is important to gain their loyalty,
earn their trust and successfully building credibility for Flipkart.
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 Communication- It is the most important part of customer service because good

customer service requires listening to a customer's needs and then effectively planning to
meet those needs.
 Innovation- Serving customers based on their needs by focussing on a new product
or service that will transform their business structure altogether. For example, in 2016,
“Making wishes affordable and exchange easy” was an innovation made by Flipkart in
which they launched ‘No Cost EMI’ — an innovative payment option for online shoppers.

Value and Mission analysis for the 9 elements

1. Customers: Who are the enterprise's customers?
There are around160 million registered users of Flipkart
2. Products or services: What are the firm's major products or services?
Flipkart has several in-house brands, including Citron (home appliances) and Digiflip
(previously for electronics). In 2017, Flipkart also launched several newer brands, including
Billion (smartphones), Smartbuy (electronics accessories, replacing Digiflip), and MarQ (for
large appliances)
Flipkart launched in app streaming named Flipkart Video as part of improvisations of their
products and services. This move was initiated to match its competitor- Amazon who are
offering premium video streaming options.
 In addition to this, Flipkart moved into original content offering named Flipkart Video
Originals.
3. Markets: Where does the firm compete?
Products of Flipkart are now available to online customers in around 200 countries through
the company's partnership with eBay. 
4. Technology: What is the firm's basic technology?
All software’s of Flipkart run on Linux. It uses MySQL for storage of data and
Memcached for caching. Hadoop is the software that is used by Flipkart for simplifying
evaluation and data management.
5. Concern for survival, growth, and profitability: What is the firm's commitment to
economic objectives?
Flipkart aims to become the largest retailer of India.
6. Philosophy: What are the basic beliefs, core values, aspirations and philosophical
priorities of the firm?
a. Customer Obsession
b. Ownership
c. Impact
d. Honesty
e. Selflessness
f. Communication
g. Innovation.
4|Page

7. Self-concept: What are the firm's major strengths and competitive advantages?
a. Providing convenience
b. Flexible return and exchange policy
c. On time delivery
d. Competitive prices
e. Works on customer-focus strategy
f. Caters to customers of all age groups

8. Concern for public image: Is the firm responsive to social, community, and
environmental concerns?
Flipkart has its official CSR program, Flipkart Cares. It aims to support those in need and
contribute to their nourishment to help build a fruitful future for them. Apart from donation
drives, they carry out outreach programs, and employee-enabled on-ground initiatives, 

9. Concern for employees: What is the firm's attitude/orientation towards employees?

a) As a result of an engagement survey, Flipkart introduced The FlexBen policy that
allows employees to customise their benefits package based on their individual
needs
b) Flipkart's initiative to break the stigmas surrounding “People with Disabilities” by
hiring the differently-abled people. This way it is not only empowering them, but
also eliminating discrimination and negative attitudes towards people with
disabilities.

Goals

Flipkart aims to become the largest retailer of India. It wants to be present across all product
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.”
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Product Portfolio

A product portfolio is the collection of all the product and services offered by the company.
Product portfolio analysis can provide views on a stock type, company growth prospects,
profit margin drivers, income contributors and operational risk. This is essential for investors
concluding equity research investors or analysts supporting internal corporate financial
planning
E-commerce portal Flipkart has expanded its product portfolio, adding two new categories:
Personal & Health, and Home Appliances. With this, Flipkart has graduated from being a
vanilla, online book seller to a big e-commerce portal, on the lines of international stores like
Amazon and BestBuy. While the Personal & Health Care category features products like hair
straighteners, dryers, shavers, trimmers, epilators, digital thermometers, BP monitors,
nebulizers, and massagers from brands such as Panasonic, Dr. Morepen, Philips, and Braun,
among others; the Home Appliances section features mixers, grinders, electric kettles, irons,
and coffee makers from brands like Inalsa, Morphy Richards and Bajaj.
The Products provided by Flipkart are divided into many categories like electronics, books
and media, men, women, baby and Home & Media. This category isfurther divided into sub
categories like the electronics sector is divided into mobile, tablets, accessories, laptops and
their accessories, home kitchen, personal appliances etc.
Flipkartis foraying into categories apart from electronics, mobiles.Flipkart is brining quite a
few changes such as adding home.
6|Page

Analysis of the Macro environment of Flipkart

Political:
GOI (The Government of India) is currently trying to boost the economy of the rural areas by
promoting online businesses in these regions. GOI’s plan may see new regulations in the e-
commerce industry, which will influence Flipkart’s operations. However, given that India
elects leaders every five years, considerable uncertainty on Flipkart’s interaction with the
GOI exists because, as Bazzi& Clemens (2013) note, some leaders may be unfriendly to
investors, which will negatively impact the company’s operations. Furthermore, in 2012, the
GOI opened up the retail sector to the entry of multi-brand MNCs (Patibandla, 2014) to
promote FDI (Financial-Direct-Investment), among other logistics that could improve India’s
e-commerce supply chain.

Economic:
Indians’ rapidly growing economy assures investors such as Flipkart of continued markets.
Furthermore, the liberalisation of the Indian economy to allow international investors in
various industries including retail will contribute to economic growth. Furthermore, the
government requires that foreign companies in India should sell or use specific percentage
goods (for retailers) and resources (for manufacturers) respectively that are locally sourced
(Patibandla, 2014). Such a strategy is useful to ensure sustainable economic growth.

Socio-Cultural:
According to Rath&Samal (2015), most of the Indian population is rural, which stands at
about sixty-nine percent and, while the urban population contributes to sixty percent of the
total GDP. Rath&Samal (2015) expect that within the next 15 years, the urban population
will contribute to almost seventy-five percent of the GDP. This trend demonstrates the
importance of the urban population to organisations. However, with the current GOI
interventions to develop rural areas, these rural populations will be important to businesses
such Flipkart in the future.

Technological:
According to Padhy&Sampat (2017), Flipkart has implemented data analytics systems for
efficient business performance. Information systems in the company integrate the information
about market opportunities and predict sales that the company is likely to make. This strategy
enables the company to take advantage of technological advancements such as big data for
competitive advantage.

Environmental:
Despite the fact that Flipkart is an online retailer, its operations are subject to environmental
factors. Rising concerns by both governments and consumers about sustainable business and
low carbon emissions is a major issue (Marron &Toder, 2014). Governments promote
sustainable business practices through rules and regulations.
7|Page

Legal:
Chaudhany (2016) asserts that there are legal factors that affect operations of Flipkart. In July
2015, Westland books accused Flipkart of selling “Scion of Ishvaku”, yet Westlands alone
was given the rights to sell the book by Amazon. This conflict demonstrates the need for
Flipkart to be more aware of property rights such as licencing and trademarks. Furthermore,
the recent Zomato breach resulted in the theft of consumer data, which raises concerns about
the ability of online organisations to protect consumer data.

Porter’s five forces model

1. Threats of new entrants

Threat of new entrant’s shows how new market players risk the business oo the existing
market players. Higher the profitability of the industry, lower would be the barriers to entry
and finally it would attract large number of new entrants which would ultimately make the
threats to entrants high. The following factors help to reduce the threats of the new entrants-
 If any new firm wants to enter the existing market then resource and capital
investment can be major barriers. This force is not effective if product differentiation is high
and customers place high importance to the unique experience.
 Low threats can be imposed by making strict regulatory norms on the new
entrants(new firms).so in this case the firm cannot enter the market unless and until it has
fulfilled all the regulatory requirements
 The threat will be low if psychological switching cost for consumers is high and
existing brands have established a loyal customer base.
 New entrants will face a major challenge if the distribution network is highly
intensive.

2. Threat of Substitute Products or services

The availability of substitute in the market would make the environment of Flipkart highly
competitive and challenging for existing players. Higher the substitutes greater would be the
options available to switch to other players for product of similar need. Various factors
determine the intensity of this threat for Flipkart are-
The Threat of Substitute Products or services increases when;
 When the substitute available in other firms is cheaper than the firm.
 The psychological switching costs of moving from industry to substitute products are
low.
 When the substitute provided by the competitive firm is similar or superior to the
quality of the operating firm.

When the substitute product company However, this threat is substantially low for Flipkart
when;

 The switching cost of using the substitute product is high(ultimately economic cost
would be high.)
8|Page

 If customers do not get the same utility or value as that of the operating firm.

3. Rivalry among existing firms

It relates to the competition that the firm faces in the target market. High rivalry shows
Flipkart can experience a strong pressure from the competitive firms, which closes the
opportunity for higher growth. Profitability in such industries is low as firms adopt aggressive
targeting and pricing strategies against each other.
The Rivalry among existing firms will be low for Flipkart if;

 number of players in the market are limited

 The growth of the industry is at a fast rate
 Market concentration is high.
 Products are well differentiated.
 The economic/psychological switching costs for consumers are high.
 The exit barriers are low, which means that the existing firms cannot leave the market
easily.

There are some factors that increase the Rivalry among existing firms for Flipkart
 If rivalry firms target the same market.
 Non loyalty of customers to the existing brand can be a major factor.
 Competitors with equal size and offerings, undifferentiated products with slow
industry growth tend to adopt aggressive strategies against each other.

4. Bargaining Power of Suppliers

Bargaining power of suppliers shows the “pressure exerted by suppliers on business
organizations by adopting different tactics like reducing the product availability, reducing the
9|Page

quality or increasing the prices”. Higher the bargaining powers of suppliers, higher the cost to
the firm. High supplier bargaining power can increase the competition in the industry and
lower the profit and Flipkart Similarly; weak supplier power can make the industry more
attractive due to high profitability and growth opportunity.
Bargaining power of suppliers will be high for Flipkart if:

 Higher concentration of suppliers than buyers in a region.

 strong when the cost to switch from one supplier to other is high for buyers
 Few suppliers and high demand for products
 Lack of market knowledge to the Flipkart.

High product differentiation by suppliers can be other reason.

The bargaining power of suppliers will be low for Flipkartif:

 Suppliers are not concentrated

 Switching costs are low
 Product lacks differentiation
 Substitute products are available

5. Bargaining Power of Buyers

Bargaining power of buyers indicates the” pressure that customers exert on the business
organizations to get high quality products at affordable prices with excellent customer
service”. This factor directly influences the Flipkart ability to accomplish the business
objectives. Higher the bargain power more would be the completion. Whereas, when buyer
power is weak, it makes the industry less competitive and increase the profitability and
growth opportunities for Flipkart.
There are some factors that increase the bargaining power of buyers:

 Concentrated customer base can be a major factor.

 Buyers npo. Is less and suppliers are high in number.
 Low switching costs.
 Consumers’ price sensitivity, high market knowledge and purchasing standard
products in large volumes also increase the buyers' bargaining power.

Some factors that decrease the bargaining power of buyers include

 lower customer concentration customers
 low price sensitivity
 lower market knowledge
 high switching costs and purchasing customized products in small volumes.
Issue Priority Matrix
It is the tool which helps in internal priorities. It gives the list of on-going activities and goals
of the company. It doing this practice the company gets the results as in which point to focus
more which can give the company better output. This matrix gives the high impact and high
probability as an outcome. Therefore the company works first on that part which gives the
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high impact and maximum change of conversion. Like in this case inflation, increase in
internet etc are main concern.
High Impact Medium Low Impact
Impact
High  Inflation  Best search  Less tax in online
Probabilit  Increase in engine. purchase.
y internet usage

Medium  Offer loan to  Competition  Mobile Application

Probabilit seller @ less  Threat to From different
y interest rate substitute platform
 Net neutrality
issue
 Boost rural
economy to
promote digital
India
Low  Increase in  Price  Promotion of green
Probabilit computer competition. environment.
y literacy
 Empowering
youth through
employment

External Factor Evaluation (EFE) Matrix

 
It is a tool used for strategic management and analysis created by Fred R.David. This tool is
very closely related to the SWOT/TOWS analysis. It serves the purpose of identifying the
main factors affecting the business in the external environment such as political, economic,
social, legal etc .This matrix depicts and prioritizes the main threats and opportunities that the
business is facing. It is usually used as the first step of creating a comprehensive SWOT
analysis, as it is aimed at reducing or amplifying the effects of the external factors, depending
on the impact they have on the company. The EFE matrix is complimentary to the IFE
(Internal Factor Evaluation) matrix which focuses on analyzing the internal factors affecting
the business.In other words, it shows the strengths and weaknesses of companies and how
they affect their performance.

Key External Factor Weight Ratin Weighted

g Scores
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OPPORTUNITIES

1 Market size is growing . 4 .

10 40
2 More things can be easily sold . 2 .
on the internet 05 10
3 Number of rural internet users . 3 .
are growing 05 15
4 Acceptance of E- Commerce . 4 .
10 40
5 Providing logistic services to . 4 .
its competitors 15 60
. 1.
55 65
THREATS

1 Increasing competitors and . 2 .

copycat sites 05 10
2 Lack of innovations in finding . 2 .
new revenue streams 10 20
3 Preference for try-and-buy . 2 .
habits for clothing 10 20
4 High competition from direct . 3 .
and indirect sources 10 15
5 Ease of entry into market . 3 .
10 30
. .
45 95
Total 1 2.
.00 60

Analysis of EFE Matrix

  ,
1.  Flipkart can offer its logistics services to its competitors in online retail sector with its
logistics arm E-kart. With online commerce sector going to boom in the coming years, online
transactions are going to increase. So, if Flipkart offers its logistics services to its
competitors, it can gain money from those transactions.
2. Flipkart is facing a lot of competition from some of the online retailers like Amazon,
Snapdeal, Indiaplaza
3.Flipkart has its own marketplace model where sellers need to register in this platform and
buyers can negotiate with the sellers on varied service levels and it also helps company to
reduce its own inventory. Flipkart will just deliver those products.
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VRIO Analysis Framework

Capability Valuable Rare Imitable Organization Competitive Advantage

Financial Resources Yes Yes No Yes Sustained

Local Food Products Yes Yes Yes Yes Competitive Parity

Employees Yes Yes Yes No Temporary

Patents Yes Yes No No Unused

Distribution Network Yes Yes No Yes Sustained

Cost Structure No No Yes No Competitive Disadvantage

Research & Development No No Yes No Competitive Disadvantage

Valuable
 The financial, resources of Flipkart are,extremely valuable as it helps in investing in
external opportunities. It also, helps in fighting external threats.
 The local food products are a valuable resource as they are highly segregated. This
increases the value proposition for the customers.
 Flipkart's employees are a valuable resource to the firm. A substantialpercentage of
the workforce is highly skilled, and this leads to more creativeproductivityyield for
the organisation. The employees are loyal, and employee retention is high.
 Its patents are a valuable resource as it allows the firm to sell its products without
competitive intrusion. This results in greater returns for Flipkart. It also provides,
licensing revenue when it licenses these patents out to other producers.
 Flipkart’s distribution network is a valuable resource as it helps in serving more and
more customers. This guarantees greater revenues for Flipkart. In addition to this, it
also ensures that promotion activities,convert into sales as the products are easily
accessible.
 Its cost structure is not a valuable resource, because the methods of production lead to
higher costs, which affects the total profits. Therefore, its cost structure is a
competitive disadvantage that needs to be controlled.
 Research and development arenot a valuable resource because research and
development are incurring costs more than the benefits obtained in the form of
invention. Therefore, research and development are a competitive disadvantage for
Flipkart.
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Rare

 The financial resources are found to be rare, as strong financial resources are only
owned by a few firms.
 The local food products are not rare as they are easily available in the market by other
competitors. Its easy for the competitors to use these resources in the same way as
Flipkart, hindering the competitive advantage resulting in competitive parity.
 The employees are a rare resource as the employees are highly trained and skilled,
unlike employees of other organizations. The good compensation and work
environment make sure that these employees do not leave for other firms.
 The patents are a rare resource as, the patents are not easily obtainable and are not
possessed by competitors. This allows Flipkart com to use them without intrusionof
the competition.
 The distribution network is a rare resource, because competitors would need a great
amount of monetary investment and timely investmenthave a better distribution
network than that of Flipkart.

Imitable

 The financial resources are costly to imitate as these resources have been attained by
the company through extended profits over the years. New entrants and competitors
would require, similar profits for a long period of time, to accumulate these amounts
of financial resources.
 The local food products are not that costly to imitate as identified by the VRIO
Analysis of Flipkart com. These can be acquired by competitors as well if they invest
a significant amount in research and development. These also do not require years
long experience. Therefore, the local food products by Flipkart com provide it with a
temporary competitive advantage that competitors can too acquire in the long run.
 The employees of Flipkart are also not costly which makes it easy to imitate. This is
can make other firms, to train their employees to improve their skills. These firms can
also hire employees from Flipkart by providing them with better compensation
packages, work environment, benefits, growth opportunities, etc. Thisprovides a
temporary competitive advantage.
 The patents of Flipkart are very hard to imitate. because legally it is not allowed to
imitate a patented product.
 The distribution network of Flipkart is also very costly to imitate. Competitors, would
have to invest a noteworthy amount if they wish to imitate a similar distribution
system.

Organisation

 The financial resources of Flipkart are organised to capture value. These resources are
strategically used, to invest in the right places; making use of opportunities and
fighting threats. Therefore, these resources prove to be a source of continuous
competitive advantage for Flipkart.
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 The Patents of Flipkart are not well organised which means, that the organisation is
not using these patents, to their full potential. An unused competitive advantage exists
that can be transformed into a sustainable competitive advantage if Flipkart starts
selling patented products, before the patents expire.
 The distribution network of Flipkart is organised.Flipkart uses this network to reach
out to its customers by ensuring that products are available on all of its outlets.
Therefore, these resources prove to be a source of sustained competitive advantage for
Flipkart.

SWOT ANALYSIS

STRENGHTS WEAKNESS

 Return policy.  Time to build trust among the

 24 hours a day shopping. customers.
 Flip kart offers wide range of product  Access only via internet
line to their customers.  Not profit operationally.
 Own their delivery network.  Average transaction value is low.
 Industry condition: Lot of scope for  Rural customers are still not
growth. comfortable with online shopping.

OPPORTUNITIES THREAT

 Growing demand in global market.  High competition.

 Increase in internet penetration.  Government policies.
 Growth in online retail.  Investors showing less interest in investing
 M- commerce is the next development in money.
related market to get customer base.  Entry of Google in online e-books &
 Favorable regulations by government. movies market.
 100% FDI in B2B internet market and
pressure on govt. by Amazon for same
steps in B2C internet market.

TOWS Matrix
A TOWS analysis help company to focus on: leveraging strengths, avoiding weakness, make
the most of opportunities, and manage threats.
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INTERNAL STRENGHTS: INTERNAL WEAKNESS

.
S1. Return policy
S2. 24rs a day shopping W1. Time to build trust among
S3. Flip kart offers wide the customers.
range of product line to their W2. Access only via internet
customers. W3. Not profit operationally.

EXTERNAL SO WO
OPPORTUNITIES
SO1. Due to increase in online W1. Due to increase in internet
O1. Growing demand in retail it becomes easy for the penetration company has the
global market company to offer wide range of chance to build trust.
O2. Increase in internet products.
penetration W2. As there is a growth in
O3. Growth in online retail. SO2. Increase in internet online retail company can earn
penetration helps company to profit and can be effective in
communicate with the product showcase.
customers.

EXTERNAL THREAT ST WT

T1. High competition ST1. To compete with the WT1. Flip-kart has to build the
T2. Government polices competitors the company has trust of new customers
T3. Investors showing less adopted strong return policy. frequently as to compete with its
interest in investing money. competitors.
ST2. As the company is dealing
with wide range of product, they WT2. Company can build
can build the interest the backup plan and if policy
investors. changes in that case company
may not suffers from crises.

IFE Matrix
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  Internal Strengths Weight Score Weighted Score

1 Return policy 0.11 4 0.44
2 24 hrs a day shopping 0.1 4 0.4
3 Wide range of product line 0.12 4 0.48
4 Own their delivery network 0.09 3 0.27
5 Industry condition 0.08 3 0.24
  Internal Weakness      
1 Trust among the customer 0.11 1 0.11
2 Access only via internet 0.1 1 0.1
3 Not profit operationally 0.09 2 0.18
4 Average transaction value 0.1 1 0.1
5 Rural customer not comfortable 0.1 1 0.1
  TOTAL WEIGHTED SCORE 1   2.42

Strength
The major strength of the Flipkart is the wide range of product line as discussed earlier
Flipkart deals in variety of products ranging from the apparels, toys ,electronic items,
footwear. books, bags etc. The condition of the industry is a strength of the company but it is
not too effective as compared to the other strengths. Return policy of Flipkart is the 2nd best
strength when we relate it with other strengths.
Weakness
The 3 major weaknesses that industry should focus upon is the accessibility via internet,
average transaction value which is not high for the company so it has gained a low weighted
score. Comfortable environment for rural customer is a area where the company needs to
focus.

CURRENT MARKET STRATEGY OF FLIPKART

CORPORATE LEVEL STRATEGY-
Flipkart started its operation in 2007 and achieved its Break even in august 2010.The
company has a objective to grow through Acquisitions. They have their own supply chain
management company known as 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.
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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 let’s buy has
been diverted to Flipkart.
2014: acquired MYNTRA.COM in an estimated INR 2,000 crore deal.
2015:
AdIQuity: Common platform to promote advertisement agencies.
Appiterate –Delhi based mobile marketing automation firm.
FX Mart –the company engages in electronic payments, remittance, foreign exchange and
travel related business.
PhonePe -An online transaction platform/digital wallet and e commerce payment company
acquired by Flipkart in 2015.
Jabong.com -After acquisition of myntra.com. Flipkart also acquired the giant of ecommerce
industry I.e. Jabong.com.
2017:eBay. In- American based e commerce website that deals consumer to consumer and
business to consume sales through its website.

DIVERSIFICATION
2015:Flipkart is looking to evolve as a market leader in data, mobile and platform.
2016: Diversification in home furnishing and personal care segment
Diversification in online advertising and brand consulting.
2018: Business expansion into online travel agency through tie ups with specific industry
Venture capital funding and insurance business.

BUSINESS LEVEL STRATEGY

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 online world.
• 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 any worries“
• Kids were used to create the adverts to send out the message - if a kid can do it, you can
also do it.
• All in all to create a great customer experience
In 2007, Flipkart started with selling books. the first book sold at Flipkart.com was —john
woods' leaving Microsoft to change the world today
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• In 2010, they added to their catalogue, media (including music, movies and games) and
mobile phones and accessories
• In2011, 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.
• In2012, product launches includes health & beauty products, life style products which
includes watches, belts, and bags & luggage.

• InJuly 2012Flipkart announced the launch of its in-house brand dig flip. digs flip is a
brand of digital accessories with products like laptop bags, laptop sleeves and camera
bags among others.

• In2015: Flipkart tapped into Indian online retail market by targeting to obtain more
investment. The company strategy is to raise as much as 1 billion us dollars to fund the
various businesses and organizations in India.

• In2017, Flipkart major target is to occupy top position in India by replacing Amazon as
the leading ecommerce website and marketplace for the buyers and the sellers.
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FUNCTIONAL LEVEL STRATEGY

MARKETING STRATEGIES
• Behavioural and psychographic segmentation strategies are used by Flipkart to segment
the customers.
• Undifferentiated targeting strategies are used by the company.
• Positioning of Flipkart is done as most trustworthy and customer friendly brand.
• Ekart is the distribution channel owned by the company and payzippy is the payment
gateway.
• Target mainly middle-class social groups who are comfortable with online shopping and
find it convenient.

HR STRATEGY
• Policies based on leaves for employees to put their best focus commitment to the
company.
• Policies to enhance productivity of employees in the organization.
• Travel policies for employees in business class during official work.
• Work life balance strategies for employees.

FINANCE STRATEGY
• Insurance products and credit to consumers and sellers on its platform.
• Financial solutions to the customers.
• Tie up with Banks and NBFC to offer EMI on big purchases.

PRICING STRATEGY
• 8-35% on sale price of product.
• High margin category- toys, watches, beauty, healthcare and luggage.
• Mid margin category-books, TV, home and kitchen, Gaming, belts, bags
• Low margin category-mobile and cameras, computer accessories.
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COMPANY PERFORMANCE

As we can see in the above data that the Revenue figures during FY18 is 216.5 cores which is
really high as compared other FY. During the year FY17 FY16 FY 15 and FY14 there is
gradual increase in the revenue figures and hence the growth in percentage of revenue is high
in FY18 as compared to the other years. The profit for the company is gradually decreasing in
the subsequent years as the revenue figures are increasing. So, let me explain the reason of
decreasing profit with increasing Revenue.

So, for what reason is Flipkart making losses while its income increments:
1. Advertising Expenses
2. Employee Costs
3. Finance Costs
4. Other Expenses
Advertising Expenses
Money consumed—it has been a consistent accomplice of internet business organizations.
Amazon and Flipkart have both kept on depending on overwhelming limits, spending crores
to draw in and hold clients and guarantee greater deceivability across mediums.
In this manner, it's nothing unexpected that advertising costs have demonstrated substantial
for these online business organizations. For Flipkart's situation, Flipkart Internet's advertising
and advancement costs of the organization expanded to 56% arriving at INR 1,141 Cr,
featuring exactly that it is so hard to get clients to shop online regardless of being the market
head in the web-based business classification.
Further, Flipkart India's B2B unit promoting costs came up to INR 189 Cr for the financial.
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Employee Costs
Flipkart Group's Employee advantage costs increment up by 58% arriving at INR 4254 Cr in
FY19. Further for Flipkart Internet, its worker costs, including pay rates and Employee stock
proprietorship plans (ESOPs), rose to 91%, totalling to INR 1,889 Cr. With the extension and
scaling up, there is certainly a greater push for employing inside Flipkart, particularly as it
hopes to upgrade its vender relations and improve its coordination.
Finance Costs
Financing cost is the different costs that a substance brings about regarding the getting of
assets. This was high for Flipkart Group a year ago because of reasonable worth losses on
subordinate money related instruments. This was seen as the primary explanation behind the
improvement in losses for FY19. Further, Flipkart India recorded financing expenses of INR
637 Cr in FY19.

ORGANIZATIONAL CHART
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Conclusion
Online retail is going to blast in the coming years, it is essential for this industry to have co-
ordinations support. Along these lines, since Flipkart is as of now having its own co-
ordinations arm E-kart, it can give this co-ordinations administration to its rivals in online
retail industry.
Right now, industry, value matters a ton to clients. In the today’s scenario where the same
product is offered by two online platforms people will go for the least cost and best quality.
Thus, Flipkart should attempt to offer the items at lower costs. This should be possible by
upgrading its co-ordination administrations. Since co-ordinations cost assumes a significant
job in deciding the cost of the item. Flipkart should attempt to improve its inventory network
in such a way, that its store network expenses ought to be exceptionally less and attempt to
offer items at lower value contrasted with its rivals.
Huge information and prior investigation are going to assume a major job later on. There are
numerous instruments like SQL access the information and to discover the examples. Along
these lines, Flipkart can utilize information about its clients like what are they purchasing,
what are their purchasing behaviours and can target them by utilizing prior examination.
Flipkart can likewise utilize relationship showcasing into it. Rather than for the most part
concentrating on client obtaining, it ought to likewise concentrate on client maintenance.
Since faithful clients are increasingly gainful when contrasted with new clients.