Professional Documents
Culture Documents
Flipkart Intership Report
Flipkart Intership Report
Flipkart Intership Report
NO PARTICULARS PAGE NO
2. Introduction 3-4
4. Background 8-9
5. Nature of Business 10
9. Ownership Pattern 18
10. Achievements 19
Page | 1
EXECUTIVE SUMMARY
The e-commerce industry has grown at almost 35% CAGR in the past few years, from
$3.8billion in 2009 to around $12.6 billion in 2013. The tremendous growth seen by the
ecommerce companies is seen because of the rising internet and mobile phone penetration
in our country. In the metro cities, time constraint is the major driver for consumers mov-
ing to online shopping while in smaller towns, the variety of products and easy delivery
options make them opt for the online retailers.
Flipkart minimizes its cost by using its in-house logistics and also third party
logistics which has played an important part in the success of the company. Flipkart also
has well-developed reverse logistics which handles the 30-day return policy of Flipkart.
The ban of Foreign Direct Investment (FDI) by India in online retailing, Flip-
kart has created many inter-connected independent entities through which it raises massive
amounts of money which they use to build an integrated e-commerce business. With the
entry of new players, both domestic and foreign, in the Indian e-commerce sector, Flipkart
now needs to adopt innovative marketing strategies to retain its existing customer base and
also add new customers. The existing marketing strategies adopted by Flipkart have
proved to be fruitful for the company with Flipkart having almost 44% of the total market-
share.
Page | 1
Company overview
Name - Flipkart
Type - Private
Founded - 2007
IndiaArea served -
Industry - net
Services - E-commerce
Employees - 33000
Website - www.flipkart.com
Alexa rank - 87
Users - 26 million
Page | 2
CHAPTER 1
Page | 3
INTRODUCTION
Flipkart has followed the same business model of amazon.com i.e. staring from
selling books therefore we can call it as “Flipkart”. The Amazon of India, “however Flip-
kart is now regional based e-business portal i.e. only targeting 5Indian market more inter-
esting is that, the minds that worked to start Flipkart are also the ex. Amazon employees.
Page | 4
CHAPTER 2
Page | 5
ORAGANIZATIONAL PROFILE
Leading e-commerce player Flipkart has been aggressively hiring top-level talent for the
past several months. With nine senior vice-presidents and 14 vice-presidents in place, the
Bangalore-based company appears to have built a strong foundation to tackle the rapid
growth in the sector, but it wants to do more.
Flipkart will continue to modify and evolve its organizational structure in line
with the changes in the domestic e-commerce industry, according to officials. With no es-
tablished example to follow in the sector, Flipkart plans to depend on experimentation and
learning.
“The organizational structure of Flipkart will continue to evolve, and you could see
a new structure every few years, or possibly even sooner. The rate of change that technol-
ogy is driving in our lives is very rapid,” Mekin Maheshwari, chief people officer at Flip-
kart, told Business Standard. “This change would mean that businesses and companies will
need to remain agile and change rapidly in line with the need of the day. If an organiza-
tional structure is far from the reality of what the business is or what the world is, it will
get out-dated.”
In the past, Flipkart has made several organizational changes. For example, the
firm moved from being a hierarchically-flat start-up to a company with around 2,000 em-
ployees. Through this process, it brought in layers of senior vice-presidents, vice- presi-
dents, senior directors, directors, and managers. Maheshwari also said the company made a
transition when it moved its focus from website to mobile.
Through this year, Flipkart has inorganically added to its senior leadership and
also promoted several insiders to leadership roles. Among others, Sanjay Baweja joined
Flipkart as its chief financial officer (CFO) after heading finance at Tata Communications
for several years. The company also brought on board Rishi Vasudev, who was heading
Calvin Klein India, as its head of fashion retail earlier this month. Internally, Flipkart pro-
moted Ankit Nagori, Vaibhav Gupta, Sameer Nigam and Rajnish Bawejaas as senior vice-
presidents.
With Flipkart re-aligning its internal structure over the last year when it was
bringing in talent from outside, the company saw some top-level exits, like that of the then
CFO Karan deep Singh and HR head Aparna Ballukar. Both of these executives moved
out of Flipkart within around a year of joining. Maheshwari refused to comment on the
reasons for these exits.
Page | 6
"During early stages, lack of resources and need for flexibility makes it important
for employees to wear many hats. As companies grow, the organization structure has to
evolve to address changing needs. This is a natural consequence of growth," said Sid-
dhartha Shekhar Singh, associate professor of marketing at the Indian School of Business
(ISB). "As far as organizational structure is concerned, it is important to understand that
there is no standard model that one must adopt for success.''
While Flipkart has no role-model in India that it could take lessons from, Mahesh-
wari, who has earlier headed technology at Flipkart, said the company learns from global
examples and from players in allied sectors like supply-chain. "We seek out learning; we
seek out where have these things played out, and how are these things structured. But then
we look at what is relevant for us at our stage today and what is relevant for Indian cus-
tomers today. That's how we arrive at the right solution," Maheshwari said.
ISB's Singh also believes that while there are global companies in the e- com-
merce space that are at more advanced stages of evolution, it would be "risky" for the In-
dian players to copy them without "experimenting and tailoring" their models to the "In-
dian context".
Page | 7
i. BACKGROUND
Flipkart founders Sachin Bansal and Binny Bansal are both its graduates. Both come
from Chandigarh, but they are not relatives, even though they share the same last
name.. It was Sachin Bansal that got Binny Bansal to join amazon.com, but later they
both quit and decided to launch Flipkart. Sachin Bansal is now the executive chairman
of Flipkart whereas Binny Bansal has been promoted to the chief executive officer
(ceo).
Walmart Inc. is close to finalizing a deal to buy a majority stake in India’s lead-
ing e-commerce company for at least $12 billion and may complete the agreement in the
next two weeks, according to people familiar with the matter.
All the major investors in Flipkart Online Services Pvt are now on board with
the Walmart purchase, after an earlier debate over an Amazon.com Inc. acquisition, said
the people, asking not to be named because the matter is private. Tiger Global Manage-
ment will sell nearly all its 20 per cent stake in Flipkart, while Softbank Group Corp. will
offload a substantial part of its 20 per cent-plus holding, the people said. Walmart will
likely end up with 60 per cent to 80 per cent of Flipkart, valued at about $20 billion, they
said.
Among the issues still to be resolved are whether Flipkart’s founders will lead
the business after the purchase, how much each existing investor sells and what Wal-
Mart’s final stake will be. It’s also possible that terms will change or the talks will fall
apart said.
“There isn’t another country with this kind of an opportunity,” said Satish Meena, a
New Delhi-based senior forecast analyst at Forrester Research Inc. “India may not be a big
deal now, but it’s the future opportunity that Walmart and Amazon are eyeing.”
Walmart declined to comment, while Flipkart didn’t respond to requests for com-
ment. Flipkart’s board had seriously considered Walmart and Amazon as potential part-
ners, but ultimately decided Walmart could close a deal more easily. Amazon has already
been aggressively expanding in India on its own. Founder Jeff Bezos has committed $5.5
billion to the country and his local chief, Amit Agarwal, has made progress by adapting
the site to local conditions.
Page | 9
ii. NATURE OF BUSINESS
Flipkart claims to have lakhs of sellers on board across India who list their
products in over 80 categories. The average consumer might not care who the
seller is had has a relationship with Flipkart, whereas the seller who may not
have reached the consumer at all can now do so thanks to Flipkart’s platform.
To facilitate this transaction and fulfill the order, Flipkart charges a varying as
a commission fee from the seller.
Page | 10
iii. VISION MISSION AND QUALITY POLICY
VISION:
MISSION:
QUALITY POLICY:
Step 4: Post production batch testing – international quality check process with samples
As a horizontal player, Flipkart gets data by category. For whatever consumer needs which
are unmet, they create products to solve those needs.
Adarsh Menon, Vice President and Head of Private Labels at Flipkart, explains the
process: “We introduce products in small scale, get market feedback – which is quicker
online for reaction from the customer (in less than a month) – and then make changes in
the next batch. For instance, we had introduced an earphone without a mic at a particular
price range. But since customers asked us for the mic as well, it had to be remade from the
next batch. Also, the price range of Mixes stays between Rs 1,300 and Rs 1,500; but we
give an extra jar due to customer request.”
The checklist for each category is different. But there are certain common criteria too:
safety from electric shocks or sharp ends, reliability (functioning well despite repeated us-
age), functionality (hard core performance), extreme conditions (low voltages for electric
items, harsh detergent for bed sheets), and customer usage.
Need of the hour With growing competition, quality has beaten pricing as the differentia-
tor for the consumer in the purchase of high ticket items and electronics. As a result, de-
mand for Total Quality Assurance (TQA) solutions is increasing. The brands are not satis-
fied with just the quality and safety of physical components and reliability of their pro-
cesses.
Finding the right partner When Flipkart was launching its private label it obviously
needed a framework for safeguarding its quality. Adarsh says that since Intertek works
with a bunch of brands they had the requisite expertise.
Page | 11
Location-agnostic Adarsh says that it’s not the location they are worried about but the
quality of work. They are keen on processes and high on automation. “This results in a
lesser cost of manufacturing, as well as in better standards of products and efficiency. We
are picky about sellers who procure inventory, assemble, and sell to us,” he adds.
For instance, Sharetronic Group - which manufactures power banks for Flipkart –
also serves top brands including Lenovo, Huawei, and Toshiba. “Our core strength of
R&D and state-of-the-art manufacturing is nicely complimented by Flipkart's wide reach,
customer focus and leadership in India. We work with several global brands such, and fol-
low the same quality control and turnaround time on Flipkart private label products,” say
the company spokesperson.
Page | 12
iv. WORK FLOW MODEL
Workflow when a user places an order in Flipkart, the following systems/stages work in
harmony to complete the Order Delivery:
Order Management System: registers the order, maintains the state of the order through
its life cycle, keeps track of the order, and forwards details of the order to the Order Ful-
fillment System.
Order Fulfillment System: arranges for faster and cost-effective product delivery, veri-
fies the availability of inventory in the warehouse, notifies the warehouse of the order, and
identifies the logistics partner.
Page | 13
Warehouse: Reserves the product in shelves, assigns a picker to pick, pack and dispatch
as shipments to the sortation center.
Sortation Center: A Sorts shipment based on pin codes and loads them into designated
trucks for transportation to the Delivery Hub.
Delivery Hub: Caters to one pin code with separate areas in it. Delivery executives deliver
the products from the Delivery Hub to the Customer’s address.
In the whole workflow, we can optimize various supply chain workflows to improve the
efficiency of operations. This article discusses the various reusable components that serve
as building blocks to model any workflow in Flipkart Supply Chain operations.
Inbound process: operations involving transferring of goods into the warehouse. The
inbound workflow involves tasks such as unload the truck, receive inventory, check
Page | 14
Outbound process: operations involving transferring of goods out of the warehouse.
The outbound workflow involves tasks such as pick inventory, check the quality,
pack shipment and load delivery truck. If the order has over one item housed in dif-
ferent places, then the products are picked and collated in an aggregation area before
checking quality.
Page | 15
The Process Orchestrator of the Warehouse system receives the Service Request (SR). It
connects with the Process Capacity View component to reserve resource capacity for the
specific process and Process Planner to generate a process plan. A mapping engine assists
Process planner in service decomposition breaking down the SR into multiple child srs.
Process Resource View aids in blocking resources. The process orchestrator creates the
child SRs.
Each child SR is a work request categorized into one of the OCC in the workflow — Re-
ceive, Transfer and Quality Check modeled on micro-service architecture. We architect a
typical OCC in the same way as the Process orchestrator aided by independent Capacity
view and Planner. The Plan contains DAG of Tasks and Task groups. A Task group is a
logical grouping of tasks. There is a Task group DAG to carve out dependencies among a
group of Tasks. The Executor is essentially a DAG of tasks that occur in the pre-set order
of execution as governed by the OCC.
Page | 16
vi. Ownership pattern
Amidst the raging controversy over the exit of co-founder Binny Bansal from Flipkart,
Wal-Mart has quietly gone ahead and increased its stake in Flipkart to 81.3 per cent from
77 per cent, which it had acquired for $16 billion in May.
The other equity holders in Flipkart are: Ten cent 5.37 per cent, Tiger Global 4.77 per cent,
Binny Bansal 4.2 per cent, Microsoft 1.53 per cent, Accel 1.38 per cent, Iconiq Capital
0.98 per cent, Temasek 0.29 per cent and UBS 0.19 per cent, as per data sourced from data
intelligence platform, paper.vc.
In May, Wal-Mart had said that it is acquiring a 77 per cent stake in Flipkart for $16 bil-
lion. This included an equity infusion of $2 billion into the e-commerce venture. A good
part of the total equity infusion might have resulted in an increase in its stake by 4.3 per
cent.
Post Wal-Mart primary, as per estimates, Softbank Vision had a 19.08 per cent stake, Tiger
Global 18.83 per cent, Naspers 11.78 per cent, eBay 5.61 per cent, Ten cent 5.41 per cent,
Accel 5.31 per cent, Sachin Bansal 5.10 per cent and Binny Bansal 4.82 per cent.
Page | 17
vii. ACHIEVEMENTS AND AWARDS
In April 2016, Sachin Bansal and Binny Bansal were named in 100 most
influential people by TIME.
In September 2015, Sachin Bansal and Binny Bansal entered Forbes In-
dia rich list debuting at the 86 th position with a net worth of $1. 3 billion
each.
Co-Founder of Flipkart, Sachin Bansal got the entrepreneur of the year
award 2012-2013 from economic times, leading Indian economic daily.
Flipkart.com was awarded Young Turk Of The Year at CNBC TV 18s IN-
DIA BUSINESS LEADER AWARDS 2012 (IBLA).
Flipkart.com got nominated for India MART Leaders of Tomorrow
Awards 2011.
Flipkart.com, secured second position in the list of cheapest mobile
store 2013, completed by Indian e-commerce observer Zoutons.com.
Page | 18
viii. FUTURE GROWTH AND PROSPECTS
The company has set the targets to reach a GVM of $ 8 billion, add 100,000 sell-
ers o its platform and sells 25 million products per month by the end of this
year. The company is also said to have set a target of selling 1 billion goods in
a year by the end of 2017.
Online marketplace giant Flipkart plans a major drive to bring 50,000 medium and micro,
small and medium enterprises (MSMEs) under their fold by the end of this year. The com-
pany claims to have almost 100,000 MSMEs on the platform. This move, the firm be-
lieves, will create a million secondary jobs as part of the necessary logistics that would
have to be in place for rapid growth.
For Flipkart, on boarding MSMEs as sellers on the platform is crucial as it will help the
firm in sourcing maximum number of categories locally as well as help in faster deliveries
and cut logistics costs. In the next phase of growth, which heavily hinges on expansion in
tier-III cities and small towns, the MSMEs connect would help it cover maximum ground.
“Our knowledge and understanding of the Indian ecosystem allow us to construct frame-
works such as ‘Growth Capital’ through which sellers can scale their businesses, prosper,
create more employment opportunities, and continue to transform the country’s economy,”
Kalyan Krishnamurthy, group chief executive officer, Flipkart, said.
According to sources, in the past 12 months, over 2,500 sellers have conducted business of
more than Rs 1 crore. Group company Myntra has connected over 20,000 kirana stores in
24 states for its last-mile delivery programmed, helping build a new income source for
small shopkeepers.
“Flipkart’s initiative to increase the number of serviceable PIN codes for pick-up is a reit-
eration of our commitment to democratize e-commerce and spread the benefits of our plat-
form to sellers, MSMEs and artisans outside metro cities. We are working to empower
more small-and-medium-size businesses, to bring their products to pan-Indian customers
comprising 150 million,” Kalyan Krishnamurthy, CEO, Flipkart Group, said. This festive
season, the company said, would be the biggest ever for Flipkart and the ecosystem.
According to reports, the company is planning to double its sales numbers during the fes-
tive season compared to last year. It is also considering hosting a slew of launches in the
mobile phone, electronics, fashion and other segments.
Page | 19
CHAPTER 3
Page | 20
MCKENSY’S 7S FRAMEWORK
Page | 21
Page | 22
Page | 23
Page | 24
Page | 25
Page | 26
PORTER’S FIVE FORCE MODEL
Porters Five Forces is a framework for describing factors that affect the profitability and attractive-
ness of
Industries. Named after Michael E. Porter, this model identifies and analyzes 5 competi-
tive forces that
Shape every industry, and helps determine an industry's weaknesses and strengths.
1. Supplier Power
2. Buyer Power
3. Competitive Rivalry
4. Threat of Substitutes
5. Threat of New Entry
1. Supplier Power
Here we assess how easy it is for suppliers to drive up prices. This is driven by the number
of suppliers of each key input, the uniqueness of their product or service, their strength and
control over us, the cost of switching from one supplier to another, and so on. The fewer
the supplier choices we have, and the more we need suppliers' help, the more powerful the
suppliers are.
2. Buyer Power
This is driven by the number of buyers, the importance of each individual buyer to one’s
business, the cost to them of switching from one’s products and services to those of some-
one else, and so on . If you deal with few, powerful buyers, then they are often able to dic -
tate terms to you
3. Competitive Rivalry
What is important here is the number and capability of your competitors. If you have many
competitors, and they offer equally attractive products and services, then you'll most likely
have little power in the situation, because suppliers and buyers will go elsewhere if they
don't get a good deal from you. On the other hand, if no-one else can do what you do, then
you can often have tremendous strength/
4. Threat of Substitutes
Page | 27
This is affected by the ability of your customers to find a different way of doing what you
do – for example, if you supply a unique software product that automates an important
process, people may substitute by doing the process manually or by outsourcing it. If sub-
stitution is easy and substitution is viable, then this weakens your power.
Page | 28
Porter’s Analysis for US Drugstore Market
Threat of new
entrants
Page | 29
CHAPTER 4
Page | 30
SWOT ANALYSIS
Page | 31
Strengths in the SWOT analysis of Flipkart
1. 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.
2. Cost of Acquisition: Due to stiff competition in the market & low customer reten-
tion, 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.
3. 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 differen-
tiation is almost absent and the fight then begins on the basis of price only.
Page | 32
Opportunities in the SWOT analysis of Flipkart
1. Competition: Stiff competition from the global players like Amazon, eBay as well
as local player like Snapdeal, Tolexo and Shop clues who are continuously trying
to eat each other’s market share.
2. 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.
Page | 33
CHAPTER 5
Page | 34
ANALYSIS OF FINANCIAL STATEMENT
Flipkart financials
Page | 35
CHAPTER 6
Page | 36
LEARNING EXPERIENCE
The plan about training give and an opportunity to about the various functions
about the organization about the organizations working status
It was good exposure to learn about the working condition of industry
The production department will give the knowledge about how their product will
produced.
Maintains and HR department gives the information about the employee how re-
cruit the candidate.
How employee are motivated in term of monitory and non-monitory benefit or re-
warded to works and to achieve the target
The experience was to hard because of no proper resources and practically we
didn’t had real experience .
Page | 37
BIBLIOGRAPHY
https://www.flipkart.com
https://en.m.wikipedia.org
https://www.business-standard.com
Page | 38