Amazon vs flipkart

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Presented By : Jenil Patel MEB-I (04) Kunj Sukhadia MEB-I (06) Rahi Raval MEB-I (10)

Transcript of Amazon vs flipkart

Presented By :Jenil Patel MEB-I (04)Kunj Sukhadia MEB-I (06)Rahi Raval MEB-I (10)

Owner of flipkart: Sachin & Binny Bansal.

Introduction • Flipkart is an e-commerce company founded in 2007 by Sachin Bansal

and Binny Bansal. • It is a Singaporean company which operates in India, where it is

headquartered in Bangalore, Karnataka. Flipkart has launched its own product range under the name "DigiFlip" with products including tablets, USBs, and laptop bags.

• Both alumni of the Indian Institute of Technology Delhi. They had been working for Amazon.com previously

• The business was formally incorporated as a company in October 2007 as Flipkart Online Services Pvt. Ltd.

• The first product sold by them was the book Leaving Microsoft To Change The World, bought by VVK Chandra from Andhra Pradesh.

• Flipkart now employs more than 33000 people. • Flipkart allows payment methods such as cash on delivery, credit or debit

card transactions, net banking, e-gift voucher and card swipe on delivery.Strategic Evaluation: Flipkart

2008 2009 2010 20110

2000

4000

6000

200 600 900

5000

Sales

Sales Years

Sale

s in

mill

ions

Funding• Initially funded by the Bansals themselves with 4 Lakhs(INR).

• Flipkart has since then raised two rounds of funding from venture capital funds Accel India (in 2009) and Tiger Global Management (up to the tune of US$10 million) (in 2010).

• Private equity firms Carlyle and General Atlantic are in talks to jointly invest about $150 million to $200 million in Flipkart, according to sources.

•The company announced, on 10 July 2013, that it has raised an additional $200 million from existing investors including Tiger Global, Naspers, Accel Partners and Iconiq Capital.

Owner of Amazon: Jeff Bezos.

Introduction• Amazon founder Jeff Bezos• The company was founded in 1994• American International Headquartered at Seattle• Started as online bookstore• Soon diversified selling CDs, DVDs, software, electronics, furniture,

toys, etc• Mission: To be world’s largest Customer Centric Company• Additionally, a name beginning with "A" was preferential due to the

probability it would occur at the top of any list that was alphabetized. The company began as an online bookstore, an idea spurred off with discussion with John Ingram of Ingram Book.

Business ModelAmazon-to-Buyer Sale Approch

Multi level E-Commerce

Customer Tracking

It operates 7 websites that support their business operation globally and offers 20 million items for sale.

 Revenue Amazon registered a sales of Rs.6000 Crores in the year 2014 which was

more then expected by Jeff bezoz the founder of amazon.

Amazon is looking for sales of Rs.12000 Crores in the current fiscal year i.e 2015 viz double then the last year.

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Mobiles Laptop Tablets Cameras Total0200400600800

10001200140016001800

834

449

167256

1706

777

311163

284

1535

Flipkart SKUs Amazon SKUs

Products

SKU

s (S

tock

kee

ping

uni

t)

Men's

watche

s

Men's

jeans

Men's

Sungla

sses

Hair ca

re : S

hampo

os

Baby S

trolle

rs an

d pra

ms

Women

Sports

shoe

s

Board

Gam

es

Suitca

se

Pressu

re C

ooke

r

Skin C

are M

oistur

izers

0

50

100

150

200

250

130 145 135

210

2845

75

19 28

135

45

110

60 6539 38

6425 36

60

Brand Count-Flipkart vs Amazon 2014-15

Flipkart Amazon

Products

Sale

s in

Tho

usan

ds

Amazon.in   Flipkart.com2-4 delivery days one day delivery Rs99/item

Services, support and delivery

2-4 delivery days Rs90/item

25-40% for promotional item

Discounts and pricing 10-25% on an average

Free for a limited time Shipping costs Rs 50 an order less then Rs 500 order

Goods sellers like Croma retail, J.J Mehta etc available

Sellers and Credibility Wholesaler, Retailer- major seller

9/10 Overall rating 8.97/10

Price ControlAmazon

• Amazon still manage to get a hold on its price differentiation when compared to other physical or online store.

Flipkart

• But with flipkart , they are still not getting it. Customer still find a wide gap in price b/w flipkart and other online store.

Goals for Next PeriodAmazon• Amazon.com works hard to

achieve value-added differentiation through customer-focused information services. Amazon.com's site retains customer preferences and provides automated customization for users.

Flipkart• Lesson : should focus on the

customer preferences and give them advantage of customization of product.

Particular Flipkart.com (millions)

Amazon.in (millions)

Total Unique Visitors

15.20 8.78

Average Daily Visitors

2.15 1.02

Total Visits 50.44 14.66

Site visitors during the year 2014-2015

Storage of products

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