MINI PROJECT REPORT

ON

"EMERGING TECHNOLOGIES OF AMAZON"

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE

REQUIREMENTS

FOR THE
AWARD OF THE DEGREE OF

MASTER IN BUSINESS ADMINISTRATION

SUBMITTED BY: -

RATI SHARMA

MBA IST YEAR (2ND SEM)

SUBMITTED TO

DR LAVE KUMAR PATWA

ASST PROFESSOR
AKTU UNIVERSITY LUCKNOW

SACRED HEART INSTITUTE OF MANAGEMENT AND

TECHNOLOGY

NAIPALAPUIR SITAPUR
 DECLARATION

I declare that this written submission represents my ideas in my own words and where

others' ideas or words have been included, I have adequately cited and referenced the

original sources. I also declare that I have adhered to all principles of academic

honesty and integrity and have not misrepresented or fabricated or falsified any idea /

data / fact / source in my submission. I understand that any violation of the above will

be cause for disciplinary action by the Institute and can also evoke penal action from

the sources which have thus not been properly cited or from whom proper permission

has not been taken when needed.

 ACKNOWLEDGEMENT

I hereby take this opportunity to express my sincere gratitude to the following eminent
personalities who supported me to complete this project work successfully without
any difficulty.

I am indebted to Dr. Lave Kumar Patwa ,Assistant Professor, for his expertise
guidance and valuable suggestions which enable me to submit this project report.

I would like to express my deep regard to our beloved HOD (Head of Department)
,for providing us better support in my academic endeavors.

Finally, I would like to thank one and all who have helped me directly or indirectly in
preparing this report.
 PREFACE

INTERNET became more powerful and basic tools for every person's need and the

way people work by integrating various online management tools using internet,

innovative companies have set up the payment system for taking customer orders,

facilitate making of payments, customer service, collection of marketing data, and

online feedback respectively. These activities have collectively known as e-

commerce or Internet commerce. Online shopping made so easy for everyone with

their product variations and simple way to buy things. An attempt has been made to

critically examine various corporate and business level strategies of two big e-tailers

and those are Flipkart and Amazon. Comparison have been done considering e-

commerce challenges, their business model, funding, revenue generation, growth,

survival strategies, Shoppers‘ online shopping experience, value added differentiation,

and product offerings. Both these big players made their own mark in India, but who

is going to be ultimate winner or be the top one is going to be. A comparative study of

Flipkart.com with one of the close competitor Amazon.com delivers the information

about the different strategies to succeed in e-commerce market and different

opportunities available in India.

 TABLE OF CONTENTS

Contents Page

Declaration

Acknowledgements

Preface

Chapter 1:

 INTODUCTION

 LITERATURE REVIEW AND THEORITICAL FRAMEWORK

 E- COMMERCE IN INDIA

Chapter 2:
 AMAZON

Chapter 3:
 FLIPKART VS. AMAZON

 VEHICLE TRACKING CRUCIAL IN E-COMMERCE

 MARKETING MIX OF FLIPKART

 MARKETING MIX OF AMAZON

Chapter 4:

 ADVERTISING AND PROMTION

 SWOT ANALYSIS

 PESTEL ANALYSIS
Chapter 5:

 RESEARCH OBJECTIVES

 DATA ANALYSIS AND INTERPRETATION

 FINDING

Chapter 6: Conclusion & Recommendation

Chapter 7: Annexure
CHAPTER 1
LITERATURE REVIEW AND THEORITICAL FRAMEWORK

LITERATURE REVIEW:

Sharma and mittal (2009) in their study ―prospects of e-commerce in India‖, mentions that

India is showing tremendous growth in the e-commerce. Undoubtedly, with the middle class

of 288 million people, online shopping shows unlimited potential in India. The real estate

costs are touching the sky. Today e-commerce has become an integral part of our daily life.

There are websites providing any number of goods and services. The e-commerce portals

provide goods and services in a variety of categories. To name a few: apparel and accessories

for men and women, health and beauty products, books and magazines, computers and

peripherals, vehicles, software, consumer electronics, household appliances, jewelry, audio,

video, entertainment, goods, gift articles, real estate and services. Ashish gupta, senior

managing director of helion venture partners and one of the first backers of Flipkart as an

angel investor: ―Flipkart has been absorbing companies that have some potential (letsbuy,

myntra). In that process, some of the bets will go wrong, for sure. But that is par for the

course. The company (Flipkart) is consciously taking bets that allow it to either grow or

eliminate competition that reduces marketing spend and improves economics.‖

Miyazaki and fernandez (2001) substantiated that the prior experience was found to affect the

intention and behavior significantly and in a variety of ways. The results of this study imply

that the technology acceptance model should be applied to electronic commerce research with

caution. In order to develop a successful and profitable web shop, understanding customers'

needs is essential. It has to be ensured that products are as cheap in a web shop as purchased

from traditional channels. According to sharma and mittal (2009) in their study ―prospects of

e- commerce in India‖, mentions that India is showing tremendous growth in the e-

commerce.
Undoubtedly, with the middle class of 288 million people, online shopping shows unlimited

potential in India. The real estate costs are touching the sky. Today e-commerce has become

an integral part of our daily life. There are websites providing any number of goods and

services.

The e-commerce portals provide goods and services in a variety of categories. To name a

few: apparel and accessories for men and women, health and beauty products, books and

magazines, computers and peripherals, vehicles, software, consumer electronics, household

appliances, jewelry, audio, video, entertainment, goods, gift articles, real estate and services.

Samadi and ali (2010) compared the perceived risk level between internet and store shopping,

and revisit the relationships among past positive experience, perceived risk level, and future

purchase intention within the internet shopping environment.

Abhijit mitra. (2013), ―e-commerce in India-a review‖, international journal of marketing,

financial services & management research. Concluded that the e-commerce has broken the

geographical limitations and it is a revolution-commerce will improve tremendously in next

five years in India.

angeshwar. (2013),‖ e-commerce or internet marketing: a business review from Indian

context‖, international journal of u- and e- service, science and technology. Concluded that

the e- commerce has a very bright future in India although security, privacy and dependency

on technology are some of the drawbacks of e-commerce but still there is a bright future to e-

commerce.

Martin dodge. (1999),‖finding the source of Amazon.com: examining the hype of the earth‘s

biggest book store‖, center for advanced spatial analysis. Concluded that Amazon.com has

been one of the most promising e-commerce companies and has grown rapidly by providing

quality service.
Vijay govindarajan is one of the world‘s leading experts on strategy and innovation.

Govindarajan, coxe distinguished professor at dartmouth college‘s tuck school of business

and marvin bower fellow at harvard business school, is also a best-selling author. The biggest

opportunity in India is e-commerce. Why? Three important factors will drive this: 1) mobile

phone penetration; 2) a young demographic that is used to ordering things using the mobile

platform; 3) growth of consumerism with more Indians with higher disposable income. We

will see many new innovative business models in the e-commerce space in the next five

years. No doubt we will see new innovative high-growth companies—Indian equivalents of

alibaba.

E-COMMERCE IN INDIA

India had an internet user base of about 354 million as of june 2018 and is expected to cross

500 million in 2019. Despite being the second-largest userbase in world, only behind china

(650 million, 48% of population), the penetration of e-commerce is low compared to markets

like the united states (266 million, 84%), or France (54 m, 81%), but is growing at an

unprecedented rate, adding around 6 million new entrants every month. The industry

consensus is that growth is at an inflection point. In India, cash on delivery is the most

preferred payment method, accumulating 75% of the e-retail activities. Demand for

international consumer products (including long-tail items) is growing much faster than in-

country supply from authorized distributors and e-commerce offerings. Largest e-

commerce companies in India are Flipkart, Snapdeal, Amazon India, paytm.

Market size

India's e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6 billion

in 2013. In 2013, the e-retail segment was worth us$2.3 billion. About 70% of India‘s e-

commerce market is travel related.

According to google India, there were 35 million online shoppers in India in 2014 q1 and is

expected to cross 100 million mark by end of year 2016. Cagr vis-à-vis a global growth rate

of 8–10%. Electronics and apparel are the biggest categories in terms of sales. By 2020, India

is expected to generate $100 billion online retail revenue out of which $35 billion will be

through fashion e-commerce. Online apparel sales are set to grow four times in coming years.

Key drivers in Indian e-commerce are:

 Large percentage of population subscribed to broadband internet, burgeoning 3g

internet users, and a recent introduction of 4g across the country.

 Explosive growth of smartphone users, soon to be world's second largest smartphone

userbase.

 Rising standards of living as result of fast decline in poverty rate.

 Availability of much wider product range (including long tail and direct imports)

compared to what is available at brick and mortar retailers.

 Competitive prices compared to brick and mortar retail driven by disintermediation

and reduced inventory and real estate costs.

 Increased usageof online classified sites, with more consumer buying and selling

second- hand goods.

CHAPTER 2

 FLIPKART
 AMAZON
 AMAZON

E-commerce giants like Amazon uses demographic & psychographics segmentation to

segment the markets. Amazon‘s segmentation is based on actual purchase behavior: not what

people might have expressed interest in, but what they actually did. Amazon‘s micro-level

segmentation targets each customer individually, allowing the company to convert visitors

into long-term, high-value customers. Customer segmentation often involves creating

personas who will buy in a certain way & certain products. Similarly Amazon targets the

middle class & upper class people who have got hands on experience in the basic technology

but don‘t have time or prefer convenience over shopping from the physical outlets. Amazon

has successfully positioned itself as a glocal (go global act local) e-commerce giant where

one can buy anything & get it delivered at any remote locations. Using the catchphrase

#aurdikhao in its most recent campaign in India, it has further helped them carve a distinct

space in the consumer‘s mind.

MARKETING STRATEGY

In order to differentiate itself, company acquired many it & e-commerce start-ups like

pets.com, audible.com, junglee.com, imbd.com, zappos.com, woot etc. Which helped them in

providing high value to their customers using existing technology of the acquired partners at

low cost? Amazon has also achieved economies of scale through extensive product offerings

which include electronics, toys and games, apparels, diy and many more. These offerings

help Amazon to keep its prices low thereon passing on the benefits to the consumers.

Amazon‘s robust customer centric approach to analyse the customer buying behavior based

upon preferences has helped them to have competitive edge over their competitors. More than

50% of the consumers are the repeat buyers at Amazon.com. Furthermore,

Amazon is one of the longest players to be present in the online sector and has a solid hold in

European countries and us. This bottom line is helping the company to expand in new

markets.

 Brand equity in the marketing strategy of Amazon

 Competitive analysis in the marketing strategy of Amazon

 Customer analysis in the marketing strategy of Amazon

MARKETING MIX OF AMAZON

 Product in the marketing mix of Amazon

Amazon is an international ecommerce company, using connections to the internet from

various gadgets such as phones and tablets, to allow its customers to browse and purchase

products immediately. These products are then delivered to the customer, using delivery

service companies. Amazon has built up a huge product base, and sells almost everything,

including: kindle, books, dvds, mobile phones/tablets, gaming consoles and games, clothes

for men/women and children, jewellery, gardening equipment. Amazon initially started only

with books and it is till date known as the highest book seller in the world. This is why,

Amazon also introduced kindle. Kindly is an ebook reader from Amazon and it is the reason

that the publishing market is having such a big revolution of converting hard paper to digital

ebooks because ease of reading by kindle.

 .Place in the marketing mix of Amazon

In the recent past, sites such as Indiaplaza and allshcoolstuff were forced to close due to the

lack of trust when buying goods online. However, the brand image of Amazon enables it to

have a far and wide presence and the bottom line of the company is enough to enable massive

r&d efforts to secure the website.

Amazon has customer service bases in many of the countries where it has an online presence,

with most bases being located in the different states of the usa. Amazon employees are

friendly and relaxed.

 Promotion in the marketing mix of Amazon

While Amazon has broadcast television commercials, these are mostly in the american

market. Amazon uses mainly web based advertising, and they make some use of billboard

and smaller methods of advertising. Amazon also uses advertising networks online so that

whenever you check something on Amazon, you will see an ad for the same thing somewhere

else on some other website. Search engine marketing and getting the company‘s name high

up the search engine‘s results is also a smart promotional strategy by Amazon. The founder

of Amazon had this in mind when creating the company, deciding that it should start with an

‗a‘.

 Price in the marketing mix of Amazon

Amazon is competitive with its prices, and has little ways of staying ahead of its market

contemporaries. For example, if you are looking to buy a book, Amazon offers you a new

copy, or a used copy as well, complete with pricing and condition. Another initiative is to pay

to have a premium account, ensuring faster deliveries. Amazon can also keep their prices

competitive due to their use of staff. Minimum numbers – but well trained – ensure that

consumers benefit from the lack of overheads, and the result is shown in the prices online.

.
VEHICLE TRACKING CRUCIAL IN E-COMMERCE

Vehicle tracking plays a significant role in providing necessary control and effective route

planning for faster delivery. Since the logistics market is highly unorganized in India, under-

utilization of resources is not surprising. Increasing adoption of technology in operations is

essential to keep up customer satisfaction. Amazon added that fast, reliable and resourceful

internet connectivity across devices will help us use technology better for vehicle tracking.

Flipkart benefited by its investment in blackbuck in capturing data on vehicular movement

and utilization, and utilizing the data for better planning. ―the efficiency improvement on

information gathering and orchestration is a primary focus area for us in the next year as

well‖. Logistics solutions provider loginext–which caters to paytm, myntra and Amazon

among others– even, provides ‗heat maps‘ for giving information on those areas where

maximum delays are happening. Loginext working with cold chain logistics service providers

for delivering perishables. Our scheduler takes input from the system about the products

being transported and accordingly schedules the deliveries. Also, the temperature and other

settings required for a particular product could be set via their app used by deliveryboys.

FLIPKART

1. Delivery within two days: the first few e-commerce web sites broke the trust

of many Indian customers by not delivering the order product on time.

Flipkart realized this problem and in order to bring the customer back to on

line shopping it came up with idea of delivering the product in 2 days and if

there is a delay then the customer is paid interest on the value of product.
 2. Thirty days return policy: in order to satisfy the Indian

customer after the product is delivered, Flipkart came up with idea

of providing thirty day return policy. This is done to ensure that the

product delivered to the customer is not faulty.

3. Card swipe on delivery: Flipkart realized that most of Indian

customers are not comfortable sharing their credit card details

online, as there is always a risk of fraud. For solving this problem it

came up with the idea of card swipe on delivery. The delivery guy

brings the card swipe machine so that all the transaction happens

before customer.

LOGISTICS PARTNER

E-kart provides logistic solutions for Indian e-commerce giant Flipkart. Flipkart today is 3

companies: ws retail, which is the primary retailer on Flipkart.com, ekart logistics, the

shipping partner for ws retail and others, and Flipkart itself, which builds, maintains and runs

the marketplace. Flipkart tied up with partner stores that act as alternative delivery channels

(such as ecom express, blue dart, gatti etc), so that customers can pick up their shipments at

their convenience. ―by bringing together core capabilities of iot, devices, data and

automation, we have started implementing the automation technology to pick and move

packages to designated picking station, among several other applications that make

warehouse processes quicker and smoother.

 PROCEDURE

Flipkart team will map their supply chain end to end and know exactly how many hours and

minutes would it take for the item to reach from one step to next. E.g. How long would it take

to pick an item in our fulfillment centre (fc), how much time would it take to pack it and

finally how soon can them handover to the logistics partners for transport? Then they

proceeded to do a thorough analysis and optimization to achieve the best-possible

timelines for each step. In logistics, they needed to know the exact transport connection

timings with their transport time and reliability. They had to work closely with

vendors/airlines to ensure reliable connection and delivery of in-a-day packages without

any offloading. In fact, there were some airline partners which were piloting their express

delivery capabilities along with their pilot for in-a- day. Airlines were even helping our

partners grow. In the last mile logistics, they had to ensure that the delivery is attempted

within the promised time without fail and had dedicated field executives to guarantee the

delivery.

TECHNOLOGY USED

To promise in-a-day guarantee to the customers, Flipkart developed a new product called

promise engine. This engine knew all about our fulfillment capabilities and thus exactly

where the item would be shipped from (depending on seller's inventory location).

Hence, it could calculate an accurate promise date for the customer. This engine also needed

to be able to provide multiple delivery speed options to customers to choose from. Once an

order is placed, the fulfillment system gave an exact hour and minute‘s deadline to fcs to

process the item. This deadline also accounts for the transport connection between the source

and the destination. The deadline feature helps us to ensure seamless processing of both in-a-

dayandregularorders.
. Flipkart claims that its algorithm on routing makes delivery and pick-up more accurate and

faster than anyone else in this business. Flipkart‘s investment in mapmyIndia has helped the

company too. Ekart spokesperson said: ―the accurate address data for both sellers and buyers

will allow us to better schedule deliveries and pickups.‖

AMAZON

Amazon India, the company received 65 per cent orders from tier ii and iii cities in 2015. To

establish rural distribution centers in rural India, Amazon has been training teams in

packaging, checking shipments, tracking deliveries through a mobile app, route planning to

make deliveries on time etc. Many of these centers have witnessed a five-fold increase in the

number of deliveries. Amazon has a ‗service partner‘ programme too for last-mile delivery in

remote areas. ―budding entrepreneurs in these areas act as Amazon.in‘s local distribution

network providers and create the last-mile delivery footprint. This programme now covers

more than 100 satellite towns and tier ii and iii towns and villages.

LOGISTIC PARTNER

Cloudtail India pvt. Ltd, a joint venture between Amazon.com inc. And n.r. Narayana

murthy‘s catamaran ventures, has become the biggest seller or merchant on Amazon India‘s

platform, underlining how the world‘s largest online retailer has used loopholes in the law to

deploy a mix of the marketplace and the direct-selling business model in India. Cloudtail is

now the key growth driver for Amazon India, generating at least 40% of the company‘s sales

in some months, three people familiar with the matter said. Cloudtail is particularly dominant

in electronics and fashion sales, two of the three largest categories for Amazon India

(promoted by Amazon seller services pvt. Ltd). Since it launched as a seller on Amazon in
july 2014, cloudtail has expanded aggressively. Its capital was increased to rs.500 crore last

month from just rs.500, 000 last july, according to documents available with the registrar of

companies (roc). The equity capital has been pumped in jointly by Amazon asia and

catamaran through an entity called prione business services pvt. Ltd. Apart from the rs.500

crore in equity capital, cloudtail has access to secured loans totaling rs.300 crore, roc

documents show. Atsl will be one of the logistics partners for Amazon's Indian marketplace.

PROCEDURE

Amazon has set up a logistics company in India to deliver products directly to consumers,

opening a new front in the battle for top honours in the country's fast-growing online retail

industry. Amazon transportation services private limited, a subsidiary of us-based Amazon,

will ship goods from sellers who transact on the company's online marketplace in India. Such

a service is already on offer from Flipkart through logistics company ekart, and snapdeal,

which bought a stake in delivery firm gojavas last week. The logistics arm has been set up to

aid in last- mile delivery as products can be shipped faster. Amazon currently operates nine

fulfilment centres, ecommerce jargon for warehouses, in eight Indian states. It was the first

online marketplace to offer two-day and one-day guaranteed delivery in India, a norm in the

us market. Amazon India also recently launched easyship, an assisted shipping platform for

12,000 out of its 20,000 sellers, a platform which the company has now taken global. With

easyship, our sellers can now choose their courier partners, and ship even on the same day.

More than 60% of our customers are eligible for next-day shipping on products fulfilled by

Amazon. Amazon has struggled with deliveries in cities where snarl-ups are frequent and

road signs unreliable. In response, firms have set up logistics networks and use motorbikes

instead of trucks. Another service introduced in India in may and considered for export to

other markets, seller flex, allows sellers to have the flexibility to store goods and ship them to
customers on their own, instead of routing them through Amazon. Amazon provides

technology and training to ensure goods are packed, labelled and delivered as the company

would. While Amazon in developed markets may not want to tweak its model for best selling

goods, analysts said, it could consider the made-in- India seller solution to cut down on

warehousing and delivery costs for thousands of ―non-core‖ products which are offered, but

infrequently bought. ―Amazon is becoming a lot more flexible about how it services its

customers smartphones. This was particularly problematic as a majority of Amazon‘s current

and future customers will own low-end smartphones that offer limited storage space. Clunky

apps also don‘t tend to work best on cheap smartphones.

CHAPTER 4
ADVERTISING ANDPROMTION
2015 ADVERTISING STATISTICS FOR E-COMMERCE FIRMS

2015 was the year when e-commerce companies opened up their war chest, built over years,

and spent heavily on advertising on garnering market share and brand building. The

advertising amount was spent across channels – tv, print and digital media – with tv ad

spends getting the lion‘s share. It was an interesting year. Advertising budget for a startup

had a direct correlation with the amount of funds raised by it. For eg. Limeroad, grofers and

craftsvilla collectively raised close to rs. 60 crores in 2015 of which rs. 28.5 crores were spent

in advertising.

Let‘s have a look at the highlights of the advertising spend done by various e-commerce

companies in 2015.

With an estimated advertising budget of rs. 350 crores, askme group was the biggest

advertiser among its peer. The group is backed by helion investments and astro malaysia.

2. During the festive period (sep – nov), e-commerce firms in India spent rs. 500 crore in

advertising. The entire advertising spent of e-commerce players, during 2014, was rs. 600

crores.

Jeff bezos owned Amazon spent 224 crore on advertising during the 3 months of festive

season whereas Flipkart spent almost 70 crores during the same period.

Flipkart owned fashion brand, myntra, spent around 30 crores on advertising while used-

goods marketplace, olx, spent over 55 crores during the peak season of sep-nov 2015.

According to tam media research pvt. Ltd., e-commerce firms have spent a total of rs. 1,200

crores in the first 9 months of 2015 (till sep 30, 2015).

This was an increase of over 46 percent over the corresponding period in 2014. Close to

70 percent of the advertising budget was spent on prime-time spots whereas over 40 percent

of the spend was done on non-fiction channels. Why non-fiction? Companies targeting youth

believed that these channels would give them better conversion and reach as compared to

traditional entertainment channels.

OMMERCE ADVERTISING LANDSCAPE TILL 2015

Spending big –Flipkart‘s annual advertising budget is about rs. 75 cr, while Amazon‘s

expected investment in advertising for 2014 is rs. 100-150 cr. In 2013, e-commerce

companies spent rs 1,355 cr on advertising overall. In 2015, nearly rs. 221 cr have already

been spent on advertising by the major players of the e-tailers in the first six months. This

does not include players in the travel industry such as makemytrip, yatra and cleartrip. Travel

contributes 70% to the e- commerce market in India. During recent festive season, snapdeal is

a clear winner with use of massive budget on advertising and literally flooding all tv shows

and movie channels with snapdeal advertisement. The exact figures are not available but

rough estimates amount up to rs 100 cr being spent on festive season advertising budget.

Print vs. Radio vs. Television vs. Online – in 2014, until now, print has been the

most widely used medium of advertising, with e-commerce companies spending rs. 599 cr on

it. In a country where 47.2% households have television sets, as compared to 11% of online

users, television is the next medium of choice, where online players have spent rs. 170 cr,

finally followed by radio at rs. 13.9 cr.

Capturing the market eye-balls in travel

Travel e-commerce is valued at $8 bn in India, accounting for 70% of the overall market, and

growing at a 32% cagr. Travel websites in India have so far preferred to wage fare wars,
competing on the value of sales offered in tickets and hotel bookings rather than direct

advertising. Those that have tie-ups with hotels and offer complete travel solutions also

compete on the types of package tours and their competitive pricing. Flash sales and fare

wars have increased the overall travel spends by 20-25% in 2014.

Outlook for spend on advertising in 2016

According to a report by zenithoptimedia, the ad spend in major asian economies will

continue to grow in 2016, albeit at a lower rate of 8.4 percent when compared with 8.9

percent growth of 2015. The slowdown will primarily due to sluggish ad spending in china

which currently accounts for 74% of the total asian advertising spend. Besides, India and

china, the major asian economies include Indonesia, Malaysia, Pakistan, Philippines, Taiwan

and Vietnam.

FLIPKART ADVERTISING AGENCY

Happy creative services, which has been the brand's creative agency since 2010. Myntra, the

fashion e-commerce major which Flipkart had acquired in may 2014, will be handled by lowe

lintas, which had already been the brand's creative agency since march 2014. Flipkart and

myntra continue to operate as separate entities and myntra founder mukesh bansal is the head

the fashion business for Flipkart and join the Flipkart board. Flipkart's first tv commercial for

the e-retailer, 'fairytale', was an elaborate 100-second effort. Created in the old english style

of fairytales, it was the story of an old woman, a voracious reader, who lives in a cottage and

orders her daily read by clicking on a live mouse. The rest of the ads including 'no kidding',

'shopping ka naya address' and the most recent one, 'Flipkart it', have been etched in tv

viewers' minds owing to the unique approach of using child actors to communicate the ease

of shopping on Flipkart. In 2013, the e-commerce portal announced its entry into the realm
of fashion and lifestyle with a new tvc campaign titled 'fashion has a new address' - an

extension of its previous punchline, 'shopping has a new address'.

AMAZON ADVERTISING AGENCY

Orchard advertising India is Amazon India‘s advertising agency. Orchard advertising India

highlights the benfits of shopping on Amazon.com with # weIndians. Conceptualized and

executed by orchard India and directed by anurag kashyap, the one minute video shows

Amazon as a reliable place to shop from with original products, easy return policies and on-

time delivery. The video comes along with a song with lyrics by amitabh bhattacharya and

music by amit trivedi. #aurdhikhao to #trytohkar, #apni dukaan and now #weIndians are the

famous taglines used for Amazon India advertising.

 FLIPKART

Strengths:

India’s largest e-commerce retailer: Flipkart is the India‘s largest e-commerce company &

had sold gmv (gross merchandising value) of $1 billion till now.

Experienced founders: the founders of Flipkart, sachin & binny bansal are ex- Amazon

employees. Having prior experience in the e-commerce industry helped the founders to work

strategically and differentiate their business in a highly competitive market.

Acquisition: with its series of acquisitions like letsbuy.co,, chakpak.com, weread.com,

mine360 & the recent one myntra in 2014 has helped the company to expand in the e-

commerce space & used the capabilities and existing resources of acquired companies.
High brand recall: Flipkart has established itself as a renowned e-commerce company in

India through tv ads, online branding and through its presence on social media. Brand

activities like the ―big billion day‖ have really increased the brand recall of the company.

Own payment gateway & logistic arm: having its own logistics arm e-kart & payment

gateway payzippy has helped the company to control its expenses. Thereby passing the

benefits to the end customers.

Exclusive & broad range of products: from having exclusive rights to launch some

products like motog motox, xiaomi mi3 as well as personal designers segments in garments

category, has helped the company to differentiate and localize its offerings.

Weaknesses:

Limited distribution channel reach: although its logistics arm has kept cost‘s low, the reach

has been affected which is a weakness for Flipkart. Due to use of outsourcing, global giants

like Amazon & ebay can deliver the product anywhere in the country. However, Flipkart is

still struggling in this field.

Cost of acquisition: due to stiff competition in the market & low customer retention, the cost

of acquisition is high because Flipkart acquires a lot of customers through online

advertising. As per Flipkart data, the company spends r.s 400/- on acquiring a new customer

on an average.

Power in the hand of buyers: since this industry is flooded with many players, buyers have

a lot of options to choose. Switching costs are also less for customers since they can easily

switch a service from one online retail company to another. Same products will be displayed

in several online retail websites. Product differentiation is almost absent and the fight then

begins on the basis of price only.

Opportunities:

Expansion of business: by targeting other emerging markets company can increase their

revenues as well as it can have economies of scale.

Expanding their product categories: this will increase their customer base & at the same

time will reduce the cost of acquisition and customer switch.

Changing mentality of Indian customers: with increasing numbers of customers getting

comfortable with online shopping & increase in numbers of internet users in India, there is

huge potential in this industry.

Supply chain: by optimizing their supply chain they can compete with the other players &

can manage the loosing sales on account of not making the product available due to delivery

constraints.

Establishing in other developing economies: like Amazon, Flipkart can slowly start

expanding out of India and establish operations in other countries as well which will help

improve revenues.

Threats:

Competition: stiff competition from the global players like Amazon, ebay as well as local

player like snapdeal, tolexo and shopclues who are continuously trying to eat each other‘s

market share.

Government regulations on the issues related to fdi in multi branding retail has been a big

hurdle in the success of the e-commerce industry in India.

PESTEL Analysis of flipkart

Political

According to Chaudhany (2016), 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.
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.

Furthermore, Kumar (2017) states that the number of online consumers is rising daily and

there are expectations that approximately hundred million people will have gone digital by

2018; this will facilitate the growth of Flipkart.

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. Currently, Flipkart is struggling with its

logistics, which, understandably, are concentrated in the urban areas.

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. Furthermore, by 2019, approximately eight hundred

million people will be using smartphones, and a larger percentage will be able to access e-

payment platforms for an easier purchase of online products (Kumar, 2017).

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. Some of the most popular rules

pertain to carbon emissions and general environmental regulations (Marron & Toder, 2014).

In some cases, these rules introduce fines or taxes, to organisations, which lower profitability

margins for businesses.

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 (Kumar, 2017). As online

business continues to grow, governments and corporations alike develop regulations. Some

of these rules may complicate business practices or raise operation costs, which can influence

profitability margins.
PESTEL analysis of amazon

PESTEL - Synthesis

The PESTEL Analysis allows to analyze and anticipate the opportunities and threats of a

company‘s macro-environment (all external variables with an impact on the business). It

distinguishes six categories of macro-environmental influences. We followed 3 steps:

 Brainstorming & information searches in the media

 Grouping factors to define trends

 Define whether these factors groups are opportunities or threats

Political

Amazon's activities and development could be impacted by more or less aggressive

protectionist policies. The United States is not a symbol of trade openness, other economic

states follow suit and show their determination and claim their rank of great economic

countries. The meetings of Donald Trump (President of the USA) with Xi Jinping (General

Secretary of the Chinese Communist Party) and Vladimir Poutine (President of the Russian

Federation) as well as the concerns of NATO indicate that the game of global alliances could

change the balance through economic pressures and influence the rights and duties of large

international groups like Amazon. It is specially true as substitutions to Amazon remain

easily conceivable with finally few constraints (as long as the hypermarkets and malls still

exist). Sometimes politic community can indirectly push towards e-commerce. For example,

France has a specific government plan named ―plan très haut débit‖ in which the French

government wants to accelerate the 4G and optical fiber network deployment.

This kind of political decision facilitates the access to the Internet, so to all services based on

the Internet (e-business included).

Economical

Since the economic crisis of the beginning of the 1980-90s (stock market crash of October

1987), the world population consumes less and is back to an almost systematic search for the

best deal. People want more comfort, always for the lowest price. The competition game

pulls prices down (appearance of the "low cost" concept), and unsurprisingly, after the

decrease of computers and Internet accesses prices emerged systems of optimized supply

chain sales such as Amazon (overpressure of intermediaries, removal of physical stores in the

city). This movement is still ongoing (e.g., the recent democratization of smartphones and 4G

packages) and is maintained by the disappearance of the middle class. Jeff Bezos is in some

ways an "Edward Leclerc" (founder of the first French cooperative society and hypermarket

chain) at worldwide network level. So we can think that Amazon has in front of it a very

favorable economy to continue to grow up.

Social

As previously pointed out, the Internet brings in more and more users because:

Subscriptions are becoming more affordable

People (assisted by governments and competition between Internet Service Providers) have a

better network coverage. The development of the goods and people movements at a global

level means that we need global networks to monitor them all the time and everywhere. All

the countries around the world are opening up to the world, making large, formerly emerging

countries new economic powers whose population is eager for new technologies, information

and new services (e.g., China, India).

Our modern societies (and our governments) tend to restore gender equality. With an

everincreasing life cost, couples see that both people have to work. Therefore, both man and

woman are less and less at home. This society evolution means that household chores such as

errands become a waste of time that one would rather spend on leisure if possible. The e-

commerce and the "drive-in solutions" are a response to this time optimization need. Beyond

the search for "low cost", e-business has changed our societies and is now becoming

unavoidable and inseparable from our modern consumption patterns. The consumer changes

his habits according to the constraints he experiences in his environment, meaning that the

consumer interest in e-commerce is not foolproof. The consumer behavior will evolve further

in the coming years depending on the opportunities (e.g., technological developments, new

services) that will minimize the impact of his daily constraints. One can also imagine that if

the concept of a universal salary were to come into being (tests are ongoing in Finland) and

became global to the world, the constraints currently applied to the consumer would be

turned upside-down and that he could then get some time again to hang out in physical stores

and would turn away from e-commerce.

Technology

―All modern societies are characterized by a shortage of time: the more modern a societ y is,

the less time it has. It is not the oil that we will miss one day, but rather the time‖ says the

German sociologist and philosopher Hartmut Rosa. The more we innovate to do the things

quicker (the more we save time), the less we have time per task (so the less we enjoy life, so

the less we live). According to Harmut ROSA, ―acceleration is not the fault of the technique.

One can imagine a world where, thanks to technical progress, it would be possible to release

a surplus of time if the rate of growth were not so strong. Technical progress broadens our

both what we expect from others than what they expect from us. Technology allows the
horizon and our possibilities. It changes the perception of opportunities and obstacles and

also changes social expectations, acceleration of the life beat, but does not impose it. It gives

us the means to dispose of it freely‖. But it has yet to be implemented. Hundreds of

innovations grew in the recent decades and even more will in the upcoming years.

Innovations fuel innovation and today the devices to browse the Internet are diverse:

computers, tablets, hybrid computers, mobile phones, watches, etc. Channels are also more

plentiful: ADSL, CPL, optical fiber, 3G, 4G, etc. Overall, all these tools are more efficient

and more effective. As a result, more data can be processed and potentially more users can be

attracted. In addition, artificial intelligence (e.g., Alexa) and ―AWS machine learning

services‖ (making predictions more reliable) make it easier and more commonplace to buy.

Environmental

This technical innovation acceleration, accompanied by an ever more targeted marketing

favoring social competition, boosts the purchases. There is a real frenzy pushing to renew

faster and faster our favorite products. Product lifetimes are shorter (sometimes voluntarily;

see recent (in 2017) legal proceedings against Apple and Epson) and the products are often

no longer "economically repairable" (the repair cost is often higher than the OEM production

cost). This unbridled consumption draws on the resources of our planet and weakens its

balance. It generates, despite the efforts of the politicians, a lot of pollution during the

manufacture, the distribution and the waste treatment. This pollution is at the origin of global

warming that we know today and causes more and more natural disasters. CSR initiatives are

becoming more and more frequent because, fortunately, more and more people and

companies feel concerned and responsible for the future of our children. Even if all countries

(e.g., the USA during the G7) do not deploy the same energy, globally, governments vote

laws encouraging companies to reduce their ecological impact.

Legal

Laws evolve to try to preserve our planet in the long term but they are also evolve to deal

with globalization. Since the 19th century with the corporate tax ceiling put in place by the

state of New Jersey (USA), the major international groups are looking for the best

organization of their "holding" allowing the best possible tax optimization (this is called

aggressive optimization). Noting the millions (and sometimes the billions) of taxes that elude

governments, they adapt regularly through lawsuits and new laws of tax laws more binding

for companies. At a minimum, international groups must provision in the event that they are

the subject of legal proceedings. They cannot ignore that social protection (even if it is not

perfect) has made much progress (as for example in the USA) this last century.

MAJOR PLAYERS IN E-COMMERCE INDUSTRY :-

CHAPTER 5
 RESEARCH OBJECTIVE

 DATA ANALYSIS

INTERPRETATION

 FINDING
 Research

Business research can be described as a systematic and Organized effort to investigate a

specific problem that needs a solution. More specifically, it is a process of planning,

acquiring and analyzing relevant data and information. We can define business research as an

Organized systematic, data-based, critical, objective, scientific problem undertaken with the

purpose of finding answers to it. In fact, research provides the needed information that guides

managers to make decisions. They can deal, successfully, with problems.

Research comprises defining and redefining problems, formulating hypothesis or suggested

solutions, collecting, Organising, and evaluating data, making deductions and reaching

conclusion.

Research methodology

Research is an art of scientific investigation. It refers to a search for knowledge. The advance

Learner‘s Dictionary English lays down the meaning of research as, ―A careful investigation

or inquiry especially through search for new facts in any branch of knowledge.‖

Research Methodology is a way to systematically solve the research problem. The research

begins its formation when the problem or objective of the research is identified for which a

research report is conducted.

Research Design:-

A research design is the arrangement of conditions for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with economy in procedure.

In fact, the research design is the conceptual structure within which research is conducted; it

constitutes the blueprint for the collection, measurement and analysis of data.
Different types of Research Design are as follows:-

 Research design in case of exploratory research studies.

 Research design in case of descriptive studies.

 Research design in case of diagnostic research design.

 Research design in case of hypothesis-testing research design.

In this study Descriptive research studies is used because descriptive research studies are

those studies which are concerned with describing the characteristics of a particular

individual, or a group and situation etc.

The design in such studies must focus attention on the following or process in

descriptive research design is as follows:-

 Formulating the objective of the study.

 Designing the methods of data collection.

 Selecting the sample

 Collecting the data.

 Processing and analyzing the data.

 Reporting the findings.

Sources Of Data:-

The task of data collection begins after a research problem has been defined and research

design plan chalked out. Basically two types of data are available to the research namely:-

Primary Data:- We collect primary data during the course of doing experiments research

but in case we do research of the descriptive type and performs surveys, whether sample

survey or census surveys, then we can obtain primary data either through observation or
through direct communication with respondents in one form or another or through personal

interviews.

Secondary Data:- Secondary data means data that are already available i.e., they refer to

the data which have already been collected and analyzed by someone else.In the present

study, primary as well as secondary data has been used.

Sample Design:-

In most of the research design it becomes almost impossible to examine the entire universe.

So the only alternative is to report to sampling. This is true for the present study as well.

Basic principles to be followed in sampling are that the sample chosen must be representative

of entire universe to be studied.

Universe and Survey Population:-Universe is the set of objective to be studied. It can

be finite and infinite. And survey population is a part of universe that represents the whole

universe.

In this present study universe is 120 and survey population is 50 peoples.

Sample Size:-

In this present study we have taken the sample size of 50 peoples to get their views regarding

online shopping.

Sampling Method:-

In the present study, convenience sampling method has been used.

Q1:- Have you ever done online shopping?

OPTIONS RESPONDENTS %AGE

Yes 41 82%

No 9 18%

Total 50 100%

Yes No

18%

INTERPRETATION:-

82% of peoples shows interest in online shopping, on the other hand, 18% of peoples does

not want to shop online.

Q2:- How do you make payments when shopping online?

OPTIONS RESPONDENTS %AGE

Debit card 29 58%

Cash on delivery 10 20%

Credit card 5 10%

Third party(paytm 6 12%

wallet,paypal etc.)

Total 50 100%

Debit card Cash on delivery Credit card Third party(paytm wallet,paypal etc.)

12%

10%

58%
20%

INTERPRETATION:-

58% of peoples make payment through debit card, 20% of peoples choose the cash on

delivery, 10% of peoples using credit card services, 12% of peoples uses other payment

methods
Q3:- which online service is more satisfied in terms of products, customer
care and delivery?

OPTIONS RESPONDENTS %AGE

Flipkart 20 40%

Amazon 25 50%

Snapdeal 3 6%

Others 2 4%

Total 50 100%

flipkart amazon snapdeal others

4%
6%

40%

50%

INTERPRETATION:-

40% of peoples is more satisfied in terms of products, customer care & delivery services from

flipkart, 50% of peoples with amazon, 6% of peoples with snapdeal, and 4% of peoples with

others.
Q4:- How often do you shop online?

OPTIONS RESPONDENTS %AGE

Once in month 32 64%

Once In two month 5 10%

More frequently 3 6%

More often 10 20%

Total 50 100%

Once in month Once In two month More frequently More often

20%

6%

10%
64%

INTERPRETATION:-

64% of peoples shop online once In month, 10% of peoples once in two months, 6% of

peoples more frequently, and 20% of peoples shop online more often.
Q5:- How do you choose online shopping site?

OPTIONS RESPONDENTS %AGE

Referred by friends 24 48%

Advertisements 15 30%

Online interviews 11 22%

Total 50 100%

Referred by friends Advertisements Online interviews

22%

48%

30%

INTERPRETATION:-

48% of peoples choose online shopping site from referred by friends, 30% of peoples from

advertisements, 22% of peoples from online interviews.

Q6:- Which online shopping site will you suggest to your family and
friends?

OPTIONS RESPONDENTS %AGE

Flipkart 20 40%

Amazon 16 32%

Snapdeal 9 18%

Paytm 2 4%

Others 3 6%

Total 50 100%

flipkart amazon snapdeal

6
4

18 40

32

INTERPRETATION:-

40% of peoples suggests flipkart to their family and friends, 32% of peoples suggest amazon,
18% of peoples snapdeal, 4% of peoples paytm, and 6% of peoples suggest others.
Q7:- Which online site do you prefer most?

OPTIONS RESPONDENTS %AGE

Flipkart 29 58%

Amazon 6 12%

snapdeal 5 10%

Paytm mall 7 14%

Others 3 6%

Total 50 100%

Flipkart Amazon snapdeal Paytm mall Others

6%

14%

10%
58%

12%

INTERPRETATION:-

58% of peoples prefer flipkart online site while making shopping online, 12% people uses

amazon , 10% of snapdeal, 14% of peoples uses paytm mall, and 6% of peoples using others

websites.
 FINDING

58% of peoples make payment through debit card, 20% of peoples choose the cash

on delivery, 10% of peoples using credit card services, 12% of peoples uses other payment

methods

40% of peoples is more satisfied in terms of products, customer care & delivery

services from flipkart, 50% of peoples with amazon, 6% of peoples with snapdeal, and 4% of

peoples with others.

48% of peoples choose online shopping site from referred by friends,30% of peoples

from advertisements, 22% of peoples from online interviews.

46% of peoples have problems with flipkart, and 40% of peoples with amazon ,

10% of peoples with snapdeal, and 4% with online shopping sites.

32% of peoples are satisfied with the pricing strategies of flipkart, 38% of peoples

with amazon, 14% with snapdeal, 10% with paytm, 6% of peoples are satisfied with pricing

of others.

40% of peoples suggests flipkart to their family and friends, 32% of peoples suggest

amazon, 18% of peoples snapdeal, 4% of peoples paytm, and 6% of peoples suggest others.
CHAPTER
 SUGGESTION
 CONCLUSION
 BIBLIOGRAPY
 SUGGESTIONS

Flipkart is performing ok but not good enough. There are so many cases where people felt

that packing might have been better than this. Either it may be big or small / expensive or not

product has to be treated with care. Some of the products mostly apparel‘s are turning out

with original cover of supplier, which shows negligence of them. In this issue Amazon made

a mark among us, because whatever the product is their packing will obviously safe and

secure.
 CONCLUSION

The study consisted with all the work flows of major e-commerce players in India, Flipkart

and Amazon. How they are performing and how they are running perfectly in the competitive

world has been explained. The innovative thinking of them to reach more and more

consumers is appreciable. They increased their network as much as possible with ultimate

aim of reaching more and more customers. They made consumers work more easy and

comfortable. In this competitive market one has to be lead and rest will follow. Based upon

consumer‘s survey we got our clear winner and it is Amazon. Even though it is an

international company it understood Indians very well and made its roots stronger in India.

Flipkart is also giving very tough competition to Amazon even though it is new company

when compared to Amazon. May be it takes some time to overcome, but definitely they are

doing very well in Indian e-commerce market.

 BIBLIOGRAPY

In order to obtain more information regarding the present study and to substantiate it with
theoretical proof, the following references were made

Websites visited:

www.flipkart.com

www.rbi.org.in

www.google.com

www.amazon.com
 QUESTIONNAIRE CORPORATE SALARY ACCOUNTS

1. Have you ever done online shopping?

a. Yes
b. No

2. How do you make payments when shopping online?

a) Debit card c) Cash on delivery

b) Credit card d) Third party (Paytm wallet, Paypal etc)

3. Which online service is more satisfied in terms of products, customer care and
delivery? services?

a) Flipkart
b) Amazon
c) others

4. How often do you shop online?

a) Once in month c) More frequently

b) Once in two month d) More often

5. How do you choose online shopping site?

a) Referred by friends b) Advertisements

c) Online reviews

6. Which online site will you prefer most?

a) Flipkart b) Amazon c) Snapdeal d) Paytm Mall.

7. Which online shopping site will you suggest to your family and friends?

a) Flipkart b) Amazon c) Snapdeal d) Paytm

8. Does promotional activities impact your purchasing decision?

a) Strongly agree

b) Agree

c) Neither Agree nor Disagree

d) Disagree

9. How confident are you that your personal information is kept confidential
when buying products online?

a) Extremely confident

b) Quite confident

c) Moderately confident

d) Slightly confident

e) Not at all confident

10 of which company are satisfied most for receiving after sales assistance? if any

a) Amazon

b) Flipkart

c) Snapdeal

d) others
Q 8:- Does promotional activities impact your purchasing decision?

OPTIONS RESPONDENTS %AGE

Strongly agree 19 38%

Agree 14 28%

Neither agree nor 11 22%

disagree

Disagree 4 8%

Strongly disagree 2 4%

Total 50 100%

Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree

4%
8%

38%
22%

INTERPRETATION:-

38% of peoples are strongly agree with they make purchasing decisions due to promotional

activities, 28% of peoples are agree, 22% of peoples are neither agree nor disagree, 8% of

peoples are disagree, and 4% of peoples are strongly disagree.

Q 9:-How confident are you that your personal information is kept confidential

when buying products online?

OPTIONS RESPONDENTS %AGE

Extremely confident 17 34%

Quite confident 13 26%

Moderately confident 8 16%

Slioghtly confident 2 4%

Not at all confident 10 20%

Total 50 100%

Extremely confident Quite confident Moderately confident

Slioghtly confident Not at all confident

20%
34%
4%

16%

26%

INTERPRETATION:-

34% of peoples are extremely confident with their personal information is kept confidential when

purchasing online, 26% of peoples quite confident , 16% of peoples are moderately confident , 4%

of peoples are slightly confident, 20% of peoples not at all confident.

Q10:-Of which company are you satisfied most for receiving after sales
assistance? if any

OPTIONS RESPONDENTS %AGE

Flipkart 12 24%

Amazon 18 36%

Snapdeal 10 20%

Others 10 20%

Total 50 100%

flipkart amazon snapdeal others

20%
24%

20%

36%

INTERPRETATION:-

24% of peoples are satisfied with flipkart, 36% of peoples with amazon , 20% with snapdeal,

and 20% of peoples with others are satisfied most for receiving after sales assistance.
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