Strategic Analysis - Flipkart

Flipkart: Comprehensive model of
strategic management
By GROUP D1:
2018PGP004 Amit Gautam
2018PGP027 Prachi Bhardwaj
2018PGP034 Raashika Gupta
2018PGP044 Sayan Bhattacharya
2018PGP045 Sayan Chaudhary
2018PGP053 Charudutta Sonone
1
About Flipkart PEST Analysis:
• Political • Economical
• Flipkart is an e-commerce company founded
in 2007, by Sachin and Binny Bansal
Indian e-commerce
• It operates exclusively in India, where it is Since 2014, the market is expected to
Government of India grow to $ 200 billion by
headquartered in Bangalore, Karnataka has announced various 2026 from $ 38.5 billion
• Third-party retailers sell goods through the initiatives namely, in 2017. Online retail
Digital India, Make in sales in India are
Flipkart platform India, Start-up India, expected to grow by 31
• It is registered in Singapore, and owned by a Skill
Innovation
India and per cent to touch US$
32.70 billion in 2018,
Singapore-based holding company and led by Flipkart, Amazon
hence legally is a foreign company
• To circumvent FDI rules, Flipkart sells goods Trust has gradually Advent of smartphones,
in India through a company called WS Retail. increased on online retail, Increasing penetration of
High priority on time and mobile data, better E-
• In August 2018, U.S.-based retail chain convenience , Improving Commerce sites for ease,
usage of broadband and privacy and advancements in
Walmart acquired a 77% controlling stake in high computer literacy. digital payments
Flipkart for US$16 billion, valuing it at $22

billion • Social: • Technological
Porter’s Five Forces Analysis Strategies used
Threat of new entrants: (moderate)
Despite low Capital Investment and
favorable FDI norms establishing for Competitive More than 100 million registered users
new player will take lot of time and will level
be difficult to knock off existing giants •Big Billion Days several times a year
strategy
•Tie up with several leading electronics manufacturers
Supplier : (low) Buyer:(high

) Corporate Consistent growth strategy - Multiple acquisitions including
Suppliers are level LetsBuy, Myntra, Jabong, Phonepe
finished Presence of strategy Acquired by Walmart in 2018
product Competitors: (low) other
manufacturers online
Currently, only noteworthy
who are retailers Business Customer focus, expansion, competitive prices
competitor is Amazon. But
increasingly and offline level Embodies Indian entrepreneurial spirit, the top management
more considering the growth in
stores strategy has shown insight, trust, ambition from the get go
dependent on the industry, there is space
mean that
online channels for two players to expand
the buyer
due to shift in has more Functional To create great customer experience, initial innovative
customer opportunity level campaigns used
preference to change strategy Using the Indian festivals and buying habits effectively
Threat of substitutes: (high) Operational Efficient procurement, logistics and customer support
Physical stores are the only substitutes. level Tie ups with payment vendors for smooth transactions
There are established offline retailers strategy
providing great deals, instant delivery and
customer services 3
SWOT Analysis Going forward
Strengths Weakness • Even after its acquisition by Walmart, Flipkart

will continue to be run by its board of directors.
Efficient Supply chain Last mile delivery
Internet penetration still not at
The deal has been structured in a way so as to
Advertisement & Promotions
Strategic acquisitions and fund
international levels allow for a public listing of Flipkart in a few
Issues in payment gateways
management years’ time
Huge reach due to rising internet Huge investment leading to losses
penetration over the years • Launching of new businesses such as grocery,
flight tickets, movie tickets, and expanding into
more remote areas where connectivity is
increasing rapidly
• Use of AI in order to improve customer
Opportunities experience in areas such as personalization,
Growth in E-tail
predicting returns, complex searches,
Threats
Lots of untapped product categories understanding rating, talking to the platform,
Expansion to other countries
Global Competitors like Amazon fraud and duplicate prevention
Ever expanding internet penetration
in India
Compliance to FDI regulations • Taking on Amazon: The takeover by Walmart
Takeover by Walmart provides them with an opportunity to fight
against arch-rivals Amazon in an emerging
market
4
Thank You !!

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Flipkart: Comprehensive model of

Flipkart for US$16 billion, valuing it at $22

Supplier : (low) Buyer:(high

Strengths Weakness • Even after its acquisition by Walmart, Flipkart

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