The cash conversion cycle measures how long it takes for a company to convert cash invested in operations (raw materials, labor etc.) back into cash from the sale of goods or services. It is calculated as the operating cycle (time from procurement to cash collection) minus the payable period (time to pay suppliers). Network effects occur on the Flipkart platform where the value for buyers increases as more products are listed by affiliates, and the value for affiliates increases as more buyers use the platform to find products.
The cash conversion cycle measures how long it takes for a company to convert cash invested in operations (raw materials, labor etc.) back into cash from the sale of goods or services. It is calculated as the operating cycle (time from procurement to cash collection) minus the payable period (time to pay suppliers). Network effects occur on the Flipkart platform where the value for buyers increases as more products are listed by affiliates, and the value for affiliates increases as more buyers use the platform to find products.
The cash conversion cycle measures how long it takes for a company to convert cash invested in operations (raw materials, labor etc.) back into cash from the sale of goods or services. It is calculated as the operating cycle (time from procurement to cash collection) minus the payable period (time to pay suppliers). Network effects occur on the Flipkart platform where the value for buyers increases as more products are listed by affiliates, and the value for affiliates increases as more buyers use the platform to find products.
The cash conversion cycle measures how long it takes for a company to convert cash invested in operations (raw materials, labor etc.) back into cash from the sale of goods or services. It is calculated as the operating cycle (time from procurement to cash collection) minus the payable period (time to pay suppliers). Network effects occur on the Flipkart platform where the value for buyers increases as more products are listed by affiliates, and the value for affiliates increases as more buyers use the platform to find products.
Network effects • The Flipkart platform can be broadly classified into two groups of users: 1. The buyers who are looking for wide variety of product at a single place (Group1) 2. The affiliates who are looking to market and sell their products (Group 2) • Both user groups have different requirements. The derived value for the second group will go up if there are more customers visiting Flipkart in search of savings and variety of products and the derived value for the first group would go up if there are a large number of suppliers providing different products.