A PROJECT REPORT

ON
“FLIPKART”

A Project report Submitted for the Partial fulfillment of the requirement

for the award of POST GADUATE DEGREE
Or
MASTER OF BUSINESS ADMINISTRATION
SCHOOL OF MANAGEMENT STUDIES
(Dr Shyama Prasad Mukherjee University, Ranchi)
(2021-2023)

Submitted By :- Under The Guidance OF:-

Group – I Vikas Sharma
MBA - 1 Priyanka Mishra
Faculty
 CERTIFICATE
This is to certify that the case study Project of FLIPKART have
been submitted by the Group I Members namely, Roushan kumar,
Swadesh Kumar Bhardwaj, Nasim Akhtar, Bably Singh, Somdutt
Pandey, Ashish Raushan, Beauty Kumari, Manish Kumar Singh,
Adity Priya, Vinay Kumar Mahto, Rahul Kumar Dubey, of MBA-I
Session 2021-2023 in Partial fulfillment of the requirement for the
award of Master of Business Administration from school of
Management Studies, Dr Shyama Prasad Mukherjee University,
Ranchi
The result embodies in the project have not been submitted to any
other University or institution for the Award of any Degree.

Dr Ashok Kumar Nag

(Director)
Department of MBA
School of Management Studies
Dr Shyama Prasad Mukherjee University
Ranchi

EXAMINED:

EXAMINER I EXAMINER II
DECLARATION
We hereby declare that the project report entitled "
A case study on the Flipkart and its SWOT
(Strength, Weakness, opportunity and threat), has
been undertaken by us for the award of Master of
Business Administration. We have completed this
study under the guidance of Vikash Sharma.
We also declare that this project has not been
submitted, not shall be submitted in future to any
other
University or Institution for the award of any
Degree or Diploma.

Date: 20th March 2022

Group: (I)
 ACKNOWLEDGEMENT
We have taken a lot of effort into this case study.
However, completing this case study would not have
been possible without the support and guidance of a lot of
Individuals. We would like to extend our sincere
Thanks to all of them.
We are highly independent to Dr. Ashok Nag sir (Director,
MBA Department DSPMU)
Vikas Sir AND Priyanka Mam for their guidance
and Supervision. We would like to thanks them for
providing the necessary information and resources for
This Case Study.
We would like to express our gratitude towards ours
parents & our friends for their kind co-operation and
encouragement which helps us a lot in completing this
Case Study
Our thanks and appreciations also go to our colleague
In developing the Case Study. Thank you all the
people who have willingly helped us out with there
abilities.
 NAME OF STUDENT’S

Roushan Kumar 81 Swadesh Kumar Bhardwaj 82 Nasim Akhatar 83

Bably Singh 84 Somdutt Pandey 85 Ashish Raushan 86

Beauty Kumari 87 Manish Kumar Singh 88 Aditi Priya 89

Vinay Kumar Mahto 90 Rahul Kumar Dubey 91

 Dr Ashok Kumar Nag
Director of MBA
Dr Shyama Prasad Mukherjee University
Ranchi
OUR MENTORS

Vikas Sir

Priyanka Mam
CHAPTER TOPICS PAGE
NO NO
1 Introduction
1
2 Flipkart – Founder and Team
3
3 Flipkart -Start up Story
5
4 Flipkart Subsidiaries
6
5 Funding and Investors
8
6 Flipkart-Product/Services
10
7 Flipkart - Growth and 11
Revenues
8 Flipkart - Mergers and 13
Acquisitions

9 Flipkart – Partnerships 14
10 Where is Flipkart now? 15
11 Organization Profile
1. Strengths of Flipkart 17
2. Weakness of Flipkart 19
3. Opportunities of 21
Flipkart 23
4. Threat of Flipkart 25
5. Product Lifecyle

12 Top Competitor
28
13 Flipkart financials
33
14 Flipkart - Future Plans 34
15 Conclusion
35
16 Bibliography
37
Company Overview – Flipkart

Flipkart is an Indian e-commerce company founded by Sachin Bansal and

Binny Bansal in 2007. The company is headquartered in Bengaluru, India.
Since its launch Flipkart has only seen highs, selling a wide variety of
products online like Amazon. Flipkart was acquired by Walmart, an
American retail giant, for $16 billion in May 2018.

In the initial years, Flipkart focused on selling books but today the
catalogue covers categories like electronics, fashion, home essentials,
groceries, and lifestyle products. More than 1 billion people have shopped
using Flipkart, making the e-commerce giant the leading e-retailer in India.
Flipkart also has subsidiaries like Myntra, Phone Pe, eBay, E kart, Jeeves,
and Jabong. Flipkart also launched Shopsy on July 2, 2021, which is
designed to behave like an app that will encourage the nation's
entrepreneurs to reap all the benefits of digital eCommerce that comes
their way without investments. The app will have 0% commission from the
sellers and will extend to around 200-500 million budget-friendly
customers.

Today, Flipkart has over 100 million registered users, 100 thousand sellers,
and 21 state-of-the-art warehouses. It also boasts about 10 million daily
page visits and over 8 million shipments/month. Flipkart currently works as
a subsidiary of Walmart. The current CEO of Flipkart Group is Kalyan
Krishnamurthy.
Flipkart – Founder and Team
Flipkart was founded by Sachin Bansal and Binny Bansal in May
2007. Kalyan Krishnamurthy is the CEO of the company, who was
appointed as the CEO of the company in January 2017, when he replaced
Binny Bansal.

Sachin Bansal
Sachin Bansal is the co-founder of Flipkart. After obtaining a Bachelor's
Degree in Computer Science from IIT Delhi, Sachin started with Amazon as
a Senior Software Engineer after a brief stint at Tech span. He then left his
job at Amazon and co-founded Flipkart.

In Flipkart, he managed the positions of CEO and Chairman before

resigning in 2018 following Walmart's major acquisition of Flipkart, where
the American multinational company acquired around 77% stakes in the
Indian eCommerce company. Bansal eventually joined Navi and is serving
as a Chairman at Navi. The net worth of Sachin Bansal is 130 crores USD.
Binny Bansal
An IIT Delhi alumnus, much like Sachin, Binny completed his Bachelors in
Computer Science and Engineering, after which he co-founded Flipkart.
Binny Bansal was the COO and the CEO of Flipkart.

Sachin was the CEO since the inception of Flipkart and in 2016, Binny
Bansal took over as the CEO while Sachin Bansal became the executive
chairman of the company. However, Binny also resigned from Flipkart in
2018 due to personal misconduct allegations of Flipkart.

Bansal also served as the Group CEO of the organization. Binny has also
served as a Board Advisor at Acko, Blackbuck, Grey Orange, Udhyam
Learning, and more such companies. Binny Bansal is currently serving as a
Co-founder and Executive Chairman at xto10x Technologies. The net worth
of Binny Bansal is 130 crores USD.

Flipkart operates with an employee strength of 33,000 employees.

Flipkart -Start up Story

The IIT- Delhi graduates, Sachin and Binny Bansal were employees at
Amazon when they began thinking of building their own company in India.
Though Sachin was an employee working with Amazon for some time,

Binny was referred to join the same by Sachin and the former appeared to
be quite bored with the company.

It was like a "12 to 3 job or something" for Binny Bansal, who decided to
quit the company as soon as Sachin and he emerged with the idea of
establishing an eCommerce business.

Sachin and Binny started Flipkart as an online book store from a two-
bedroom apartment in Bengaluru’s Kormangala area. They initially started
with a funding of Rs 4,00,000 from their own pockets.

When Sachin and Binny received a positive response and success in selling
books back in the year 2007, they planned to expand to electronics as well
and by 2014, the company became one of India’s most valuable startups by
reaching a valuation of USD 1 Billion.

When the duo founded Flipkart, online shopping in India was even a distant
dream for them, but the hard work and consistency paid off and made
Sachin and Binny into wildly successful entrepreneurs.
Flipkart Subsidiaries

The subsidiaries of Flipkart are Myntra, PhonePe, Mallers, eBay, Ekart,

Jeeves, Mech Mocha, Upstream Commerce, Ugenie, DSYN Technologies,
AdIQuity Technologies, Jabong, ClearTrip, Shopsy, Yaantra, Liv.Ai, F1 Info
Solutions and Services, Fx Mart, Appiterate, ngpay, Mime360, WeRead,
Chakpak, and Sasta Sundar.

More than 1 billion people have shopped using Flipkart, making the e-
commerce giant one of the most popular and trending e-retailers in India.
Myntra continues to operate alongside Flipkart as a standalone subsidiary;
the site focuses on an upscale, "fashion-conscious" market, while Flipkart
itself focuses on the mainstream market and major international brands.
 Company Acquisition/Launch Date
Yaantra Jan 2022
Sasta Sundar Nov 2021
Shopsy July 2021
ClearTrip Apr 2021
Mech Mocha Nov 2020
Upstream Commerce Sep 2018
Liv.ai Aug 2018
F1 Info Solutions & Services Sept 2017
eBay India Apr 2017
PhonePe Apr 2016
Jabong July 2016
Fx Mart Sep 2015
Ekart Sep 2015
Appiterate Apr 2015
DSYN Technologies Apr 2015
AdIQuity Mar 2015
Jeeves 2014
ngpay Sep 2014
Myntra May 2014
LetsBuy.com Feb 2012
ChakPak Digital Catalogue Nov 2011
Mime360 Oct 2011
Mallers Oct 2011
WeRead Dec 2010
Ugenie Apr 2010
Funding And Investors

Flipkart has raised a total of $12.8 billion in funding over 26 rounds. The
latest round Flipkart raised was brought $233 million for the company from
its Singapore-based holding company. The company mopped the funds
before two of its major sales – Flipkart TV Days and Big Bachat Dhamal.

The eCommerce giant raised its previous funding of $3.6 Billion on July 12,
2021, from a Corporate Round round led by GIC, Canada Pension Plan
Investment Board, SoftBank Vision Fund 2, Walmart, and other investors.

Flipkart started with an initial capital of $6000 in the year 2007. In 2008,
Accel India, a venture capital firm, provided funding of $1 million. By the
year 2012, Flipkart became a unicorn startup and South African Tec Major
Naspers announced further funding of $150 million. After Flipkart acquired
Myntra in the year 2014, it was able to raise a funding of $210 million from
DST Global.
Date Stage Amount Investors
$233
January 5, 2021 - Flipkart Pvt. Ltd
million
Private Equity Softbank Vision Fund, Canada Pension Plan
July 12, 2021 $3.6 billion
Fund Investment Board, GIC, Walmart
September 16, Corporate $62.8
Tencent
2020 Round million
Corporate
July 14, 2020 $1.2 billion Walmart
Round
December 3, Corporate $28.4
-
2019 Round million
September 10, Corporate $217
Flipkart
2019 Round million
September 4, Secondary $14.5
-
2019 Market million
January 16, Corporate $200.8
Flipkart
2019 Equity million
October 25, Corporate
- eBay
2017 Round
September 18, $133.9
Debt Financing SoftBank Vision Fund
2017 million
August 10, Secondary
$1 billion SoftBank Vision Fund
2017 Market

In August 2018, US-based retail chain Walmart acquired a 77% controlling

stake in Flipkart for US$16 billion, valuing it at $20 billion. This was further
increased to 81.3% in the month of November of the same year. The
acquisition was completed on 18 August 2018. Walmart also provided
US$2 billion in equity funding to the company.

Flipkart raised around $3.6 billlion on July 12, 2021, from a round led by
GIC, Canada Pension Plan Investment Board, SoftBank Vision Fund 2,
Walmart, and others in what is deemed to be one of the biggest financing
rounds in the history of consumer tech businesses in India.

With this recent addition, Flipkart is looking to invest in people, technology,

improve the supply chain, develop its infrastructure, digitize grocery stores,
and further add to it.

Furthermore, this infusion also marked the return of SoftBank, which took
its exit in 2018, when Walmart bought the company. Softbank is also in
talks with the Bangalore-based company to pump in around $300-500
million in the upcoming months.

Flipkart was last valued at $37.6 billion, as of July 12, 2021, and was
preparing for its upcoming public listing.
Flipkart-Product/Services
Flipkart is India's leading eCommerce marketplace with over 80 million
products across 80+ categories. Some of the products offered by Flipkart
are electronics like laptops, tablets, smartphones, and mobile accessories
to in-vogue fashion staples like shoes, clothing, and lifestyle accessories;
from modern furniture like sofa sets, dining tables, and wardrobes to
appliances that make your life easy like washing machines, TVs, ACs, mixer
grinder juicers, and other time-saving kitchen and small appliances.

From home furnishings like cushion covers, mattresses, and bedsheets to

toys and musical instruments, Flipkart got them all covered. You name it,
and you can stay assured about finding them all here.
Flipkart - Growth and Revenues

From its bootstrapped beginnings to the success Flipkart is witnessing

today proudly talks about its success. Though the company looked a bit
shaky with the arrival of US-based Amazon in the Indian markets the
danger is no more looming today with the assertion of Kalyan
Krishnamurthy as the Group CEO and the acquisition of Walmart of Flipkart.

Flipkart India is currently leading the eCommerce site in India. The

Walmart-owned Indian eCommerce company has also clocked an
impressive 64% market share when last recorded during the festive sales in
October 2021.

Both Flipkart India and Flipkart Internet posted growths of 25% and 32% in
revenue from operations in FY21. The revenues of Flipkart Internet was
reported to be Rs 7840 crores but its losses also increased by 49% to Rs
2881 crore. On the other hand, Flipkart India also witnessed a 25% increase
in its revenue from operations, which is currently reported to be Rs 42941
crore, while its losses declines by 22% to Rs 2445 crore.

The eCommerce leader has managed to reduce its losses to INR 2,445.6
Cr, which is by 22%, in FY21 from INR 3,150 Cr in FY20.

The company started a unique feature of value preposition by offering 24 x

7 support to the customer. Flipkart charges a certain amount or percentage
of commission from the sellers, which varies depending on the type of
product and the kind of sales. This may range from 5% to 20% excluding
the taxes and discounts.

Flipkart announced the launch of 'Flipkart Xtra' on September 22, 2021,

which will serve as a new marketplace for the company that will onboard
several part-time delivery partners from across the country. Furthermore, it
will also help in offering flexible earning opportunities to individuals, service
agencies, and technicians. Besides, this new marketplace is also designed
to support Flipkart's supply chain to ensure faster and seamless delivery of
products to Indian customers.

The new ‘Flipkart Xtra’ app will allow the delivery partners of the company
to sign up from anywhere along with offering them the flexibility of
choosing their preferred schedule to deliver shipments.

Launched in July 2021, the Shopsy app of Flipkart has only passed 100
days of its launch but claims to have garnered over 2.5 Lakh sellers and 51
Lakh users and is basking in its own success, as of October 9, 2021.

The social commerce venture of Flipkart has witnessed 35x growth of the
pre-festive daily average, in the festive sale that is ongoing, as per 9th
October 2021's reports. Shopsy witnessed 35x growth of the pre-festive
daily average.

Furthermore, the company is also seeing around a 100x week-on-week

growth on its social commerce model, which helps in assisted shopping,
and charges commission from advertisements and sellers working through
its platform. This is why the company is striving to get a bigger share in the
grocery ecosystem in the upcoming months.

Here are some growth highlights of the brand at a glance:

• Flipkart is a market leader.

• It is one of the pioneering eCommerce marketplaces in the country.
• Flipkart presently boasts of having more than 375K sellers/resellers.
• The company is currently serving 150 million+ users in the country.
Flipkart - Mergers and Acquisitions
Flipkart has acquired more than 17 companies to date, as per the reports
dated January 13, 2022. Flipkart most recently acquired repair and
refurbishing startup Yaantra on January 13, 2022. Noida-based Yaantra has
already proven expertise in product assessment and refurbishment and will
be aiding to boost the eCommerce giant's recommerce business, thereby
strengthening the after-sales offerings of the customers in the
smartphones segment.

The company had acquired numerous companies among which the

acquisition of a 100% stake in Walmart India in July 2020 and Upstream
Commerce on Sep 9, 2018, are memorable along with its other acquisitions
of Myntra, which it acquired in 2014, in a deal worth $300 million; Jabong,
which it acquired for $70 million in 2016 and that of PhonePe. In April
2017, eBay announced that it would sell its Indian subsidiary eBay.in to
Flipkart and make a US$500 million cash investment in the company.
Flipkart – Partnerships

Flipkart has seen a wide range of partnerships throughout the years it has
been active. Some of the most prominent of its partnerships are:

• Flipkart started partnering with Authentic Brands to license and

distribute Nautica in India in August 2019.
• The Indian eCommerce marketplace announced a strategic and
commercial partnership with the Adani Group on April 12, 2021, to
enhance its supply chain and logistics infrastructure.
• Flipkart partnered with Urbanic on September 8, 2021, to target
young consumers across India.
• Flipkart started collaborating with the leading Indian kids' fashion
brand, Hopscotch to strengthen its kids' fashion segment.
• The eCommerce major partnered with the Indian Institute of
Management, Sambalpur, with an aim to support and promote small
businesses.
Where is Flipkart Today?
Sachin Bansal, along with Softbank, eBay and Naspers, sold their entire stake to Walmart. After the
acquisition, the company’s top management started reporting to Walmart eCommerce US CEO,
Marc Lore. At the end of the year, the company’s revenue stood at Rs 217 billion.

In 2019, Flipkart released the in-app streaming service “Flipkart Video” to compete with Amazon’s
premium video streaming service Amazon Prime. The service’s first original show, Back Benchers,
was released on October 19 of that year. At the end of the year, the company’s revenue exceeded Rs
436.15 billion, but according to an article in Business Today, the company’s net loss for the year was
$38.35 billion.

Flipkart Streaming Platform

In April 2020, Flipkart launched a digital platform for kiranas and local MSMEs that would allow
micro-market level B2B and B2C businesses to operate with more ease. In July of that year, Flipkart
bought a 27% stake in Arvind Youth Brands, a subsidiary of Arvind Fashions Ltd, for Rs 2.6 billion. In
October, Flipkart bought a 7.8% stake in Aditya Birla Fashion and Retail (ABFRL) for Rs 15 billion. In
September, Chinese giant Tencent bought a 5.37% stake in Flipkart for 72.7 million. Walmart
currently has 81.29% stake in Flipkart. In addition, co-founder Bini Bansal, Tiger GLobal, Microsoft
and Accel Partners have a stake of 4.2%, 4.77%, 1.53% and 1.38%, respectively. According to Statista,
the company’s total revenue at the end of 2020 stood at Rs 346.1 billion. However, according to a
Business-Standard article, the company’s net loss that year was Rs 31.5 billion.
Flipkart Revenue Report

The Bottom Line

Since its inception, Flipkart has been able to sustain their steady revenue growth every year. Due to
India’s rising state of the middle-class community and expanding internet users, there is a lot of
potential for e-commerce in the country. Realizing that Walmart’s investment in Flipkart was a very
timely decision. However, Flipkart’s competition is a world class global e-commerce giant Amazon
that has been giving the company a run for its money. Currently, the difference in market share
between the two companies is not much. Ever since entering the Indian market in 2013, Flipkart has
gradually built its reputation & worked to increase its market share. Besides, Flipkart is ruling the
market compared to others in the Indian fashion and lifestyle and budget smartphone segment. Will
the company be able to maintain its current position against Amazon in the future?

From 2BHK to 8.3 lakh sq feet: The Flipkart story so far

Strengths of Flipkart
Flipkart’s continuous dominance in online retail and is attributable to numerous internal factors.
These refer to the strengths of Flipkart, and here I will be taking you through some of them.

Exceptional Brand Recall

Flipkart enjoys an extensive degree of
brand recall through online branding,
social media and its quirky TV
advertisements.

Be it those kids acting like adults in

those TV ads or the frenzy around ‘Big
Billion Day’.

Over the years, Flipkart managed to

rope in icons like Alia Bhatt, Ranbir
Kapoor, Virat Kohli etc to connect with
its user segments.

Tag lines like ‘Ab Har Wish Hogi Poori’

and “India ka Fashion Capital’ are
trending amongst Indian consumers.

Experienced Foundation

The online retail industry in India was taking its baby

steps back in 2007-08.

And at that time, Flipkart’s founders (Bansal

brothers) who had just worked at Amazon were
leading the firm. Their technical expertise in online
retail industry eased Flipkart’s growth and
prominence.

Even after Amazon’s entry, the competition is still

cut throat owing to the great foundations laid by
them.
Strategic Acquisitions & Partnerships

Flipkart has consistently been able to establish tie-

ups with likes of Myntra, Jabong, Walmart because
it wanted to solidify its position.

Having a separate brand pertaining to fashion and

one for digital payments (Phone Pe) contributes
greatly to brand equity.

Further, Flipkart has entered many strategic

partnerships like Ekart, Chakpak, Letsbuy, Walmart
etc. This enables Flipkart to bolster their logistics,
payment gateways and digital content creation.

High Volume & Range of Products

Flipkart has a plethora of quality product options to

choose from in every category they sell.

Exclusive tie-ups with popular brands like Lifestyle,

Apple, Motorola, and Xiaomi in the past as well as
encouraging in-house brands like Citron, Digiflip & MarQ
etc have helped with their large catalogue of products.
Weaknesses of Flipkart
The online retail giant, Flipkart also faces some internal weaknesses. Let us have a look at some of
them.

Excessive Advertisement Expenses

Flipkart spends as much as 30% of its annual revenues on marketing and advertising, much higher
than HUL. Now, that’s a steep benchmark!

Flipkart relies on heavy discounts, spending crores to attract and retain customers because it wants
higher visibility across mediums.

And, Flipkart reported a loss of Rs 1950 crores in FY2020 even though revenue grew by 32%.

Therefore, ‘Big Billion Day’ has become a trademark yearly sale event for online shoppers. But
excessive spends on ads is not sustainable in the long run.

Flipkart Plus

‘Flipkart Plus’ is nothing more than a simple rewards program for shoppers.

They have failed to build greater impetus around it and branding it for users to spend money to get
that ‘Plus’ subscription.
Lack of Technological Innovation

Flipkart distribution
channels and outreach are
limited and nowhere
comparable to its top
competitors.

The supply chain and

logistics for the products
delivered to users needs
massive upliftment.

The Just-in-Time inventory

philosophy needs to be
followed as shipping times
and lead times to
completing order is too high for Flipkart.

Further, Flipkart has lacked on the R&D aspect of technology - routing users from various mediums
to their website exactly what Alexa does for Amazon.

Rapid Acquisition Spree

Flipkart has been lately looking

to up the game by focusing on
improving user experience.

It has acquired a host of start-

ups like Mech Mocha(social
gaming) and AR start-up Scapic.

Given that the company is

reportedly posting losses, and
competition is heating up, so
siphoning funds on improving
user engagement on their
platform isn’t exactly first
priority.

This rapid acquisition spree might turn out to be damaging for the finances.
Opportunities of Flipkart
While there are many obstacles on the way, there are situations where Flipkart can benefit and
leverage from. Let’s take a look at the Opportunities:

Post-Pandemic Sentiments
Just like COVID has wreaked havoc globally, it
also provides great impetus for embracing
‘digital’. As more and more consumers are
being aware and switching to online
consumption of services.

You might be ordering your daily essentials

though these E-commerce websites.

It Is a golden opportunity for Flipkart to grab

on. They should extend its range of offerings
focusing

on consumer sentiments and insights.

Market Development

Owing to the thrust towards digital economy

and retail, Flipkart should indulge in new
market development and extend its services.

Flipkart has to be move across borders of

India and serve customers from
neighbouring geographies like South-East
Asian countries. Because these countries
have a high demand for online retail.

Entering into joint ventures with local

players, Flipkart can look to diversify its
revenue from alternate markets.
Delivery Excellence

Order returns, refunds, cancelations,

redressal of delivery issues, and fake
product deliveries etc are issues
Flipkart should enhance in their
ranks.

Flipkart should try to reduce the

delivery times and increase its
operational efficiency for tier 2 & 3
cities because rural dwellers are
now surging to online shopping.

Secure and Streamline Payments

Better online secure payments can instill

more confidence in people to shop online.
India has one of the highest no of
smartphone users in the world.

Flipkart can look to streamline payments for

their orders through an in-house payment
service like AmazonPay to include new
product lines.

And Flipkart can also look to ride on the wave

of ‘Vocal for Local’ sentiments in India
allowing more MSMEs to sell on their
platforms.
Threats of Flipkart
In this era of intense competition for survival, there are some threats of Flipkart that it must be vary
of. Let’s take a look at them

Threat of Intense Rivalry

There is no dearth of competitors in

the online retail space. Be it
international players like Amazon,
eBay, and Alibaba or local ones like
Shopclues, Snapdeal, and Paytm etc.

Presence of so many rivals selling

similar products immensely reduces
revenues.

Two top firms in Amazon & Flipkart

are locked in a battle of burning cash,
offering festive sales, and ambitious
money infusions from investors.
Because they both want to conquer
the Indian online retail market and
oust the other.

Buyer Power & Switching

The online retail market is saturated with

Snapdeal, Paytm, Ebay, Myntra Reliance Digital,
and Nyka etc.

Customers visibly have lower switching costs;

they instantly switch from one online shopping
website to another.

The products are mostly the same apart from a

few brands. Hence, ‘standing out’ is tough to say
the least.
Stringent Government Regulations

It is hard to sustain losses and keep doing business if the government regulations keep hindering the
business.

In fact, Flipkart was recently investigated related to violations of competition laws in 2020 by
CCI(Competition Commission of India).

Indian government also exercises strict control and monitoring of FDI and funds from foreign
investors into Indian firms. This led to many legal issues and operational problems for Flipkart

(now owned by US-based Walmart).

Also, in wake of Indo-China tensions, proliferation of fake goods on online retail sites has been met
with stringent measures.

The proposed policies expect e-commerce companies like Amazon and Flipkart to ensure that
shipments from abroad are channelised through the customs route and have a registered business
entity in the country
ORDER LIFECYCLE
▪ Attract user to site
Family , Friends, SEO, SEM, WoM, Brand Building
▪ Provide Selection
Make it easy to Find and Discover Products
▪ Provide details to Evaluate a product
Discription, Specifications, UGC
▪ Price Well
Have to be compititive to the most obvious options
▪ Provide Convenient payment options
Online, COD
▪ Confirm Payment
Get the item
▪ Procure from Supplier (just in time) (supplier selection)
Keep Inventory (Inventory Prediction, Planning)

Clean and check for sanity

▪ Pages missing, MRP printed lesser than told to you

Pack the item
▪ Tamper proof, weather proof, breakage proof
Select Courier and Hand-over
▪ Courier performances vary across region a LOT
Get Tracking Id and communicate to customer
▪ Follow up for timely delivery
Take care of returns (faulty product/user changes their mind)
Minimize returns
Top Flipkart Competitors
1) Amazon

Amazon is arguably the world’s largest online shopping store. It offers a wide
array of services including online retail, consumer electronics, multimedia
content and computing services among others. It is ranked as the leading
online retailer in the US generating an estimated net sales of close to $140
billion in 2016.

A considerable part of its revenue is generated from the online sale of

electronics and other related goods. It is also one of the most valuable
brands in the world with approximately 400 million customers with active
accounts globally. Amazon also offers its services through mobile App and
digital products like music and videos. It currently has over 370,000
employees worldwide. Amazon is the topmost Flipkart competitor due to its
increasing market share.
2) Snapdeal

Snapdeal is another Indian based e-commerce company that offers online

retail services. It was founded in 2010 but has risen to become one of the
biggest e-retailers in India. It serves a significant number of sellers and
consumers of different products from different location all over the country.
It has a broader assortment of products estimated to be over 35 million
obtained from more than 125,000 retailers and brands, both local
and international.

Over the period of its existence, it has been able to acquire some businesses
such as Grabbon.com, esportsbuy.com, and Doozton.com, which has made
it possible to expand and become a solid competitor in the e-retailing sector,
especially in India. Recently, Snapdeal has dropped much in its brand equity
and its online sales has dropped drastically. However, due to its legacy, it is
still one of the top Flipkart Competitors.
3 Alibaba

Alibaba is another giant company that offers online commerce services. It

was founded in 1999 as a simple B2B online shopping portal but later grew
to become the biggest e-commerce portal in Asia offering B2B, C2C, and
B2C online services. The total revenue that this company generated in 2017
financial is estimated to be around 158.3 bn RMB, an equivalent of over $24
billion.

As a leading e-retailer in Asia and also penetrating other parts of the world.
Alibaba has employed over 51,000 employees to help in facilitating various
processes involved in buying and selling of different products on the platform.
Astonishingly, Alibaba has been able to receive a total number of record an
average of approximately 812 million orders per day in the entire 2017.
4) Paytm

Paytm is an Indian-based online payment and e-commerce Company that

offers allows the users to make payments upon purchase of a wide range of
products including fashion items, electronics, home appliances and digital
products among many more. Paytm is an abbreviation for Payment through
mobile has over 13,000 employees working in different divisions hence
making the user experience fast, secure and efficient.

It was founded in 2010 but operates as a subsidiary of One97

Communications. Paytm is increasingly becoming a strong competitor in this
industry particularly in India, where it has over 3 million merchants in different
parts that operate offline. Because of complete backing by Alibaba, Paytm is
the strongest upcoming Flipkart Competitors.
5) Shopclues

Shopclues is an online platform that offers consumers with the opportunity to

shop and make payments for different types of products. It was founded in
2011, but it has improved its services and brand visibility to become among
the highly regarded online marketplaces in India. It deals explicitly with home
appliances, kitchen wares, electronics and fashion products that are owned
by local and regional brands.

It surpassed the half a million mark in regards to merchants in the platform

in 2016, which is apparently seen as one of its most significant milestones
since it was established. Shopclues employs more than 11,000 workers, and
it’s projected that the number will rise in the coming years going by the
improvements made in this online marketplace and increasing number of
both sellers and buyers.
Flipkart Financial Report
Flipkart reports strong revenue growth in FY21
Flipkart Internet, the Walmart-backed e-commerce company’s marketplace arm
reported a 32% jump in revenues for the financial year 2020-21 on the back of Covid-
19 related push.

Flipkart Internet
clocked
operational
revenues of Rs
7,840 crore during
the period, while
Flipkart’s
wholesale
arm, Flipkart
India reported a
25% growth in
revenues to Rs
42,941 crore.

Flipkart Internet,
which generates
revenues through
verticals such as
logistics,
marketplace fees
and payment
gateway, however,
witnessed its net
losses widen to Rs
2,881 crore during
the same fiscal.

This is a 49 % increase from the last financial year. The company’s total expenses for
the fiscal were reported as Rs 10,996 crore, showed data sourced from business
intelligence firm, Tofler.

Flipkart India, which acquired 100% stake in its parent Walmart’s cash & carry
operations in 2020, reported a net loss of Rs 2,445 crore during the same fiscal. This
is a 22 % decrease from the last financial year.

The company’s total expenses for the fiscal were reported as Rs 45,801 crore.
Flipkart, which competes with US rival Amazon and Reliance Retail in India, is
currently doubling down on its grocery business and newer ventures such as
hyperlocal arm Shopsy.
Flipkart - Future Plans

Currently, both the founders, Sachin and Binny Bansal don’t serve Flipkart
anymore but the brand continues to stand tall despite all the challenges.
Flipkart has been one of the most prominent faces in the Indian startup
ecosystem.

Flipkart has never been afraid of taking risks and that is one of its key
advantages. From books to electronics and household products and
whatnot, it has evolved a lot in the past 12 years and will continue to
expand irrespective of the change in shareholders or competitors.

Walmart's major investment in Flipkart means better service and market

presence for the latter. Advancement in e-commerce, a wider range of
products, better products, and upgraded integrations with small businesses
are just a small chunk of the innovations we can expect from Flipkart in the
coming time.

After the latest fundraising and the addition of Softbank to its investors'
list, Flipkart is readying for its upcoming public listing in 2022.
Flipkart’s ever-growing influence in the online retail industry has been well
documented here. We have focused on the various products of Flipkart and its
business competencies and loopholes.
We started with Flipkart’s core strengths and its weaknesses which hinder its
progress. Along with that, we also shed more light on the opportunities that lie
ahead and the threats to be vary of for the company.
We hope we managed to answer your questions surrounding Flipkart like,

The eruption of the COVID19 pandemic has led to many repercussions in

various industries across the world, from education, health, retail,
transport to tourism. Yet when we put in focus the sector of E-
Commerce, we realize the impact of the lockdown has been largely
favorable to this industry in particular as well as for the ones that are
involved in it, be it directly or indirectly, opening up an avenue of
potential opportunities for the booming sector.

While the pandemic has overturned pretty much every aspect of our
lives, the reliance of the users on online shopping has escalated tenfold
now when it's no longer just an option and more of a necessity. Amidst
the COVID-19, a bizarre number of consumers have tilted towards online
shopping as a preferred alternative in terms of availability, convenience,
and safety factor.
One prominent e-commerce firm that has gradually flourished further
amidst this pandemic is Flipkart. Starting out in 2007 as an online
bookstore confined within a two-bedroom apartment in Koramangala,
Bengaluru, the service has now expanded as one of the biggest
companies in India, becoming an inspiring example of the scope of
success held by Indian startups.

In the end, we would conclude with this It not only helps us understand the
core competencies but the limitations and loopholes in business strategy of a
firm
BIBLIOGRAPHY
We have taken help from these sites

• https://en.m.wikipedia.org/wiki/Flipkart

• http://www.sandeepdighe.com/flipkart.html

• https://flipshope.com/flipkart-price-graph/

• https://www.ipl.org/essay/Swot-Analysis-
OfFlipkart-FK93WCK36J48R

•
https://dare2compete.com/competition/flipka
rt -wired-50-flipkart-190111

• https://stories.flipkart.com/flipkart-
annualawards-2019

People
• Vikas Sir
• Priyanka Mam