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Prepared by AKASH TYAGI | Section Bflipkart- Indias largest Online Store!!! Leading Indian E Commerce company headquartered in Bangalore. Started by two IIT graduates (earlier employed with Amazon) in year 2007. Indias largest online bookseller with over 11.5 million titles in offer. Added other products like media, electronics, personal and health care. Boasts 100% growth every quarter since founded. Funded by owners Bansals, VCs Accel India and Tiger global. Projected sales for year end 2011-12 stands at US $ 100 million. Sells nearly 20 products per minute. First company to introduce Cash On Delivery payment system. First Mover in the Indian online retail Industry. Registered User base of two million customers.2Prepared By:- AKASH TYAGIflipkart- Indias largest Online bookstore!!!3Prepared By:- AKASH TYAGIFlipkart Book stores target customers 4Prepared By:- AKASH TYAGIflipkart- Vision, Mission and ValuesVision To become Amazon of India.

MissionProviding a delightful and memorable customer experience.

Objective Completely hassle free shopping experience with best prices in India.5Prepared By:- AKASH TYAGIPorters five forces for Indian E Commerce marketRivalry Among Competitors(High) Low entry barriers Huge market.

Existing: AttractiveEntrant: Not Attractive6Prepared By:- AKASH TYAGIPEST Analysis framework7Prepared By:- AKASH TYAGIMarket players: Selling New Books8Prepared By:- AKASH TYAGIflipkart: Long term objectivesStrategic Objective: Flipkart aims to become the largest retailer of India. Flipkart wants to be present across all categories, except in groceries and automobiles, the CEO said. Our target is not just those who shop online. We want to highlight the convenience of e-commerce to traditional offline shoppers and, thus, help grow the market.9Financial Objective:Prepared By:- AKASH TYAGITraditional BookstoresPricingLowMediumHighHighBrand awarenessLowMediumComplete book market: Brand awareness versus PriceFlipkart:- Traditional Bookstores:- Book Adda:- Infibeam:- The strategic map suggests that neither Brand awareness nor Prices are key success factors in the market. Since Flipkart is not the industry leader with high Brand equity and lower prices.10Prepared By:- AKASH TYAGITraditional BookstoresNetworkLowMediumHighHighBrand awarenessLowMediumComplete book market: Brand awareness vs Network/ ReachFlipkart:- Traditional Bookstores:- Book Adda:- Infibeam:- The strategic map suggests that Network reach of fragmented book shops is Name of the game and it is amplified due to low internet penetration and online shopping awareness in India. But with changing trend Flipkart will move to high reach and thus grow its market share based on other competencies.11Prepared By:- AKASH TYAGITraditional BookstoresDeliveryLowMediumHighHighPricingLowMediumComplete book market: Price versus Delivery timeFlipkart:- Traditional Bookstores:- Book Adda:- Infibeam:- The strategic map suggests that low delivery time is a KSF. It is obvious that physical book stores will give immediate delivery while for any online book store it will take a number of days. Flipkart is low on delivery time and guarantees 3 days delivery on several items. But physical book stores also take advantage of on the spot buying behavior.12Prepared By:- AKASH TYAGIKey Success Factors: Indian New Books market Key Success FactorWeightFlipkartInfibeamBookaddaPhysical book storesNetwork/Reach0.531.5110Delivery/ Spot buy 0.541.5110Total weighted score13.51.5110Total market share100%16%2.50%1.50%80%13Prepared By:- AKASH TYAGIConclusion: Competition in Indian new Book Market Competitors :- Online Book stores and Physical Book stores. Online Book Store markets projected growth at 30-35% in next 5 years. 52 million active Internet users with only 40 per cent online shoppers. Largely scattered physical book stores across the towns and cities. Spontaneous/physical buying behavior of Indian consumers visiting malls. Books are amongst the most gifted items in Indian youth. Displays large disparity between online and physical book stores target customers. Online Book stores will eat the market share of Physical book stores but only after customer transition to Internet medium of purchases. Flipkart will be directly competing with Online book stores while increasing the trend of online book shopping behavior through its excellent service.

14Prepared By:- AKASH TYAGIPricingLowMediumHighHighBrand AwarenessLow MediumOnline Book Stores: Brand awareness versus PriceFlipkart:- Others:- Book Adda:- Infibeam:- The strategic map suggests that both price and brand awareness are key success factors in the market. Flipkart is the industry leader with 80% market share having a very high Brand awareness and lowest prices.15Prepared By:- AKASH TYAGIAvailabilityLowMediumHighHighConvenienceLowMediumOnline Book Stores: Convenience versus AvailabilityFlipkart:- Others:- Book Adda:- Infibeam:- The strategic map suggests that both Convenience and Availability are key success factors. Convenience caters to user friendliness of portal, tie ups with banks for reliable transactions. Availability refers to number of titles and various types of additions.16Prepared By:- AKASH TYAGIOnline Book stores: KSFs and threshold factors.Key Success Factors:

Brand awareness. Convenience (Delivery time and reach, user interface and experience and Tie Ups for safe and reliable banking). Availability (number of available titles, various editions and print types like hard bound/paperback).

Threshold Factors:

Being a very new industry in Indian market almost every factor contributes to the Key success of an Online book store. Going forward some of the KSFs will turn into thresholds.

17Prepared By:- AKASH TYAGIKey Success Factors: Online new books market 18Key Success FactorWeightFlipkartInfibeamBookaddaOthersBrand awareness0.15103.534Convenience0.60 Delivery time0.210212 Delivery reach0.29222 User Experience0.108333.5 Reliability0.109444Availability0.151032.54Price0.109766Total weighted score1.009.43.1752.7253.35Total market share100%80%7.00%5.00%8%Prepared By:- AKASH TYAGIFlipkart s existing triangleKey Success factors: brand awareness convenience delivery reach delivery time reliability user experience availability priceCompetencies: excellent product delivery self owned delivery n/w supplier network first mover advantage payment mode excellent services internet strategy (search engine optimization) large loyal customer base.Value proposition:

Completely hassle free online shopping experience with best prices in India.

19Prepared By:- AKASH TYAGIFlipkart s new triangle: raising the barKey Success factors: brand loyalty User experience Reliability convenience delivery reach delivery time mobile shopping availability product modes (printed/ e-books) titles Threshold factors: Brand awareness, price.Competencies: large self owned delivery channels supplier network/ first to market mobile shopping solution/ increased reach innovation in services/payments/technology excellent customer services internet strategy (search engine optimization, platform advancement) large loyal customer base.Value proposition:

Completely hassle free shopping experience with best services to everyone, everywhere and everytime in India.

20Prepared By:- AKASH TYAGIFuture KSFs: Online books stores Key Success FactorWeightFlipkartInfibeamBookaddaOthersBrand loyalty0.30 User Experience0.2010544 Reliability0.1010533Convenience0.50 Delivery time0.151032.52 Delivery reach0.201032.53 Mobile Shopping0.159000Availability0.20 Product modes0.109224 Titles0.1010545Expected weighted score1.009.753.252.5752.9Expected market share100%90%4.00%2.5%3.5%21Prepared By:- AKASH TYAGIFuture KSFs: Conclusions22Convenience: still remains the name of the game. An online/mobile shopper still remains strong on the convenience touch point with main factors as Delivery reach to wide spread locations, short delivery times. Early advent into providing a mobile platform for on the go shoppers and shoppers with less access to other standard internet devices. Brand Loyalty: Excellent user experience on the e commerce website in terms of usability, speed, clarity will enhance the loyalty of existing customers and move a step ahead of brand awareness towards customer retention. Availability: Choice/availability of printed mode or e- books will play a major role in catering to a larger audience with varied needs/interests. Number of titles in either product mode will still remain a strong factor in determining customers interest in purchasing from any Online book store.Prepared By:- AKASH TYAGISWOT : Strategic options23 External Analysis

Internal AnalysisOpportunity:Untapped mobile usersCoverage of all parts of IndiaTie ups with Book fairs/education institutes.Enter new untapped global marketsSelf e-publishing

Threat:Low internet penetrationLess usage/preference of online buyingSmall value orders in remote areas with high delivery costsAmazon will enter soon

Strength:Customer serviceOnline discoverabilityBrandInventory managementSelf owned delivery n/wSupplier network/relation Innovation and technology competence.

S1S3S7O1: Provide mobile platforms.S2S4S5O2: Increase the reach.S3S4O3: Target students and education sector.S2S3S5S6O4: Enter new attractive global markets. E.g. Srilanka.S2S3O5: Tie up with authors to acquire rights.

S2S6S7T1T1: Mobile consumersS1S3S7T2: marketing to educate reliability to customerS4S5T3: Save costs and provide package deals for higher value orders. S1S3S4S5S6T4: Enhance brand loyalty ,customer service and build on delivery and supplier n/w.Weakness:No control over small value ordersFree shipping built costsLess reach as compared to physical book stores.Global reach.W1O3: Tie up with educational institutes for providing bulk orders to students/schools.W2O2O5: reduce delivery costs with widespread warehouses and promoting high margin e-books.W3O1O2O3O4: Improve reach, enter new untapped cities.

W1W2T2T3: Minimize small value orders.W3T1: Promote other mediums of buying like mobile, telephone or may be small retail outlets.W4T4: expand to new untapped markets and acquire small players. Prepared By:- AKASH TYAGIStrategic Options filter specific to Flipkarts book store24Short/ long term Strategic optionsLong term objectives (.30)Value proposition (.30)Capability (.30)Alignment to goals (.10)Weighted ScoreIncrease the reach using mobile platform, telephone or physical medium.98998.7Tie ups with educational institutes across India to cater students and reducing costs through similar order delivered once.77967.5Setting up own E-publishing house by acquiring rights from authors to publish high margin e-books.44333.6Enter new untapped/unserved global markets like neighboring Srilanka.99888.6Reduce costs by increasing warehouses and suppliers across the country.9910109.4Increase margins through bundled deals for small value customers .10109109.7Marketing efforts to educate Flipkarts reliability and safety shopping to conventional consumers. 889108.5Prepared By:- AKASH TYAGIRecommendations to Flipkart25Short Term: Flipkart must develop mobile application/solution for huge cell-phone customer base of India helping it to increase its reach. Increasing margins while reducing losses by providing attractive bundled deals to low value shoppers. Provide small mobile outlets in cities with limited reach to internet and increasing demand.

Long Term: Enter new international markets which is either un-served or untapped. Focus on high margin products like e-novels for a book store. Diversify into all product categories (achieved) to achieve economies of scale. Educate Indian conventional customer by marketing efforts. Increase bulk selling and reach to student customers by ties with educational institutes for academic curriculum supplies.

Prepared By:- AKASH TYAGIIA to O framework26ProfIts InnovateLower costsPrepared By:- AKASH TYAGICCC Costumer company connect framework27Employee strengthSupplier relationsConstant InnovationCost advantagePrepared By:- AKASH TYAGIReferences 28http://www.pluggd.in/flipkart-story-ecommerce-differentiator-297/

http://blog.flipkart.com/

https://www.flipkart.com

http://www.thehindubusinessline.com/todays-paper/tp-new-manager/article2507045.ece

http://www.iamwire.com/2012/02/flipkart-is-all-set-to-buy-letsbuy-com/

http://www.deccanherald.com/content/190213/indian-e-commerce-firm-flipkart.html

http://www.guardian.co.uk/books/2009/apr/22/books-india-china

http://timesofindia.indiatimes.com/business/india-business/Flipkart-faces-heat-of-rivals-discounts/articleshow/13029174.cms

http://www.sramanamitra.com/2010/10/04/building-indias-amazon-flipkart-ceo-sachin-bansal-part-1/

http://www.slideshare.net/VarunAthreya/flipkart

http://www.slideshare.net/krupashankarnj/flipkart-12116318

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