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By Pavan Wadhonkar
By Pavan Wadhonkar
Pavan Wadhonkar
Market leader in E-commerce:
- Market share more than 33 % with Amazon at second position with 18 % market
share
- Currently valued at more than $ 5 billion
- Started with just Rs 4 lac initial investment in 2007
- It made Rs 6000 crore or $ 1 billion in revenue in 2013–14
- It is a significant jump from Rs 1,180 crore the company reported in
2012-13 and Rs 205 crore reported in 2011-12.
High Prospects:
- The company’s promoters believe that the business could be worth
$100 billion over the next five years
- Indian e-commerce industry is expanding at a rapid scale, and
flipkart has shown potential of leading this market expansion
Before recommending economic and business strategies we will first see the
strengths and weaknesses of Flipkart.
Strengths:
Industry has shown tremendous growth (49% from 2007 to 2011) and
continues to grow at high rate. According to a Deutsche Bank report, the
industry would grow at a CAGR of 10% to reach US$111 billion by 2020
FlipKart itself has grown very fast increasing its revenue 2.7 times in fiscal
year 2012-13 compared to previous year
Has confidence of the investors with recent investments of $ 1 billion from a
consortium of investors
Not heavily dependent on courier services, have developed delivery network
Customer services and exception warehouse delivery system
Variety of payment options, making it convenient for customers to order
Strengthened CoD options through partnership with Ekart
Features among the top 30 websites
Concentration on customer satisfaction, logistics and distribution
Wallet (prepaid) feature is introduced to make online shopping easy and
increase customer’s switching cost
Weaknesses
It had losses of Rs 281 crore in the fiscal year 2012-13