SWOT ANALYSIS – FLIPKART

Flipkart is an e-commerce company founded by Sachin Bansal and Binny Bansal , who were
both alumni of the Indian institute of Technology Delhi and formerly worked at Amazon.

It is a Bengaluru based startup which initially focused on book sales, before expanding into
other product categories such as consumer electronics, fashion and lifestyle products.Now
delivering over 300 cities across India.

Initially, the bansals spent ₹400,000 (US$5800) on developing the site. It raised more than
US$1.4 billion from Tiger global, Accel partners, Naspers and Iconiq Capital over the course of
next 7 years. In 2017, Softbank invested US$2.2 billion and eBAY sold their subsidiary eBay.in
them and made US$500 cash investment in it too. On 4 may,2018 Walmart won the bidding
war and acquired majority stake in flipkart for US$15 billion. Following that eBay sold their
stock back to the company for US$1.1 billion approximately, and re-launch its Indian
operations.

Two of its biggest competitors are AMAZON and SNAPDEAL

Flipkart continues to be bigger than Amazon in terms of revenue ($3.8 Bn vs $3.2 Bn), although
Amazon is catching up quickly and continues to grow much faster (82% vs 47%).

Last year just when everybody thought that Snapdeal was out of the race they turned the tables
and are back in the game and are planning to buy shopclues at a valuation of US$250 million

So the competition between these three is going to be a fierce one in these coming years.

SWOT ANALYSIS

Strength:

1.Brand Image – Being originated in India, It has captured the heart and minds of the general
population.

2.Acquisition- Being acquired by Walmart might just be the push it needed to survive in this
competitive environment.

3.Range of Products- The range provided by Flipkart is huge and that gives people a sense of
relief and belonging while shopping from it.

Weaknesses:

1.Non-Deliverance during sale- Till now when the sale comes the task of placing an order
becomes uphill and the site is just not smooth enough for customers
2.Limited Distribution- The distribution for flipkart is limited as compared to its rivals like
amazon and eBay.

3. Slow delivery channels- The delivery channels of flipkart are slow as compared to its rivals.

Opportunities:

1.Business Expansion- As Walmart has acquired a major share it has also injected capital in it
and now it can think about expanding the business.

2.Easy and Better Online payments- It can minimize the fuss during payments and also make it
more secure so that customers feel easy doing that.

3.Categories Expansion- In this ever expanding nation the demands for various types of
products are going to be increased. Hence there can be many products which can be added.

Threats:

1.Cut throat competition – The competition to in market is very much increasing every time.
Hence the company should always be looking for betterment else it won’t survive

2.Government Regulations- It should always be up to date with all the documents which are
being required. That too according to the new rules and regulations if any.

3.Takeover- The acquisition might prove to be a bane too as it might hinder with the working
which was going on there.