Week-7

Flipkart 7-S McKinsey Model

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. When
we talk of e-commerce, we can’t afford to miss FLIPKART. Flipkart was co-founded by
Sachin Bansal and Binny Bansal in Oct 2007. Both are graduates from IIT-Delhi and have
prior work experience in Amazon.com. The company has since its exception has been doing
good. Here, I try to study the organization through 7-S McKinsey Model.

Systems Systems designed to run business looked fine. The organization has a
robust supply chain and it has been able to deliver great results because of
it.
Strategy Segmentation targeting positioning in the market strategy of Flipkart
 Behavioral and psychographic segmentation strategies used by
Flipkart to segment the market to cater to the customers changing
needs & wants
 Flipkart uses undifferentiated targeting strategy, since people of all
demography purchase items online which is available to everyone
where the delivery is possible
Structure As a result of its rapid growth, Flipkart had consistently revised its
organizational structure from a flat hierarchy-less to a matrix archetype.
The case highlights a dilemma about Flipkart’s futuristic organizational
structure that ensures optimal performance in ever changing competitive
landscape.
Shared There are five cornerstone Flipkart Values —
Values  Customer First
 Ownership
 Bias for Action
 Audacity
 Respect
All Flipkart employees possess these traits and demonstrate these qualities
Staff  Flipkart has 30000 employees

 They have diverse Staff and well skilled staffs

 Staffs are very much oriented towards the company's vision and
Mission

 Delivery boys are very motivated and goal-oriented

 Customer support team are more customer service oriented

Style  Flipkart is in a very strong leadership position being second in the
market after Amazon. It has clear leadership in smartphone and
fashion

 To build a world-class customer experience, the expanded Supply

chain infrastructure helps reach all parts of India, drive Innovations
in mobile commerce and bringing in disruptive technologies

 To spread the benefits of e-commerce across the length and breadth

of India
Skills  Flipkart have staff who have made the platform to handle large
customers

 Flipkart is a brand trusted by millions across India back by a robust

seller ecosystem and world-class technology

 High-end technology and marketing strategy to understand the

customer requirements and delivering to them

 Using data of the customer Behavior to provide fast and good

service to the customer