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Porter’s Five Forces Analysis of Flipkart

<p align&equals;"justify">Sachin Bansal and Binny Bansal founded the Flipkart in the year&period; It is an e-commerce organization which offers online shopping in India&period;&nbsp&semi; It sales various products like laptops&comma; watches&comma; mobile phones&comma;&comma; books&comma; digital cameras and many more&period; Initially&comma; Flipkart started to sale online books and spreader to other many products&period; According to the mission and values of the organization&comma; we can say that they are in sync with each other&period; So&comma; until and unless you are concerned about your customers or obsessed with your customers&comma; you can&&num;8217&semi;t provide delightful experience&period; Flipkart entered into online E-Commerce industry very early&period; It also has a strong brand value in Indian community&period; <&sol;p>&NewLine;<p align&equals;"justify">Flipkart is producing its own logistics like an arm E-Kart&period; Recently&comma; it has developed its own payment solution provider in which customers usually save their credit card information like Payzippy&period; In Flipkart sellers registers their self&period; So buyers can negotiate with the sellers&period; It also helps company to reduce its own inventory&period; Flipkart will just deliver those products&period; Venture firms like Tiger global and Accel Partners invested most of the money&period;&nbsp&semi; So&comma; most of the decisions are approved by Investors&period; Company follows Secretive and political culture in which hiring is creating problems in this company&period; Flipkart is focusing on expanding on customer bases rather than pulling profits by having cash burn&period; Flipkart is involving risk into online apparel and fashion business&comma; where the gross rates are higher&period; With E-commerce which is going to boom in upcoming years&comma; online transactions which are also going to increase&period; So&comma; if Flipkart offers its logistical assistance to its competitors&comma; it can increase their profit from those transactions&period;<br &sol;>Porter’s five forces framework&colon;<&sol;p>&NewLine;<h2 align&equals;"justify">Supplier Power<&sol;h2>&NewLine;<p align&equals;"justify">In this industry&comma; suppliers are the producers of finished products like Apple&comma; Dell&comma; Nike&comma; etc&period; Online retail companies sell different products ranging from computer accessories to cosmetic’s to apparels to clothes&period; Since there are many producers for any specific category&comma; they cannot show their energy on online retail companies&period; For example&comma; if you see the computers category&comma; there are many producers like Apple&comma; Lenovo&comma; Toshiba and Dell&comma; who desires to sell their products using these online retail companies&period; So&comma; they will not be having the ability to operate the online retail companies&period; Online customers can choose the products and the changing costs in this scenario are zero&period; It is hard for manufacturers of finished products to come into industry because of challenges in Logistics&period; Online retail industry is important to producers because it plays as one of the medium to sell the products&period; Now&comma; most of the customers are purchasing online through online companies&comma; they can’t risk to lose this medium&period; So&comma; they can’t state their terms with online retail companies&period; So&comma; in this industry the producer’s power is low&period;<&sol;p>&NewLine;<h2 align&equals;"justify">Buyer Power<&sol;h2>&NewLine;<p align&equals;"justify">Purchasers in this industry are clients who purchase the items on the web&period; Since this industry is in flood of numerous players&comma; clients are having part of choices to choose the things&period; Changing expenses are likewise less for purchasers since they can without much of a stretch change benefit from one online organization to other one&period; Same items will be shown in a few online retail sites&period; In this way&comma; item separation is low&period; In this way&comma; every one of these elements make clients to have more power when contrasted with online retail organizations&period;<&sol;p>&NewLine;<h2 align&equals;"justify">Threat of New Entrants<&sol;h2>&NewLine;<p align&equals;"justify">• Threat of new participants is high in this online retail industry in view of taking after reasons&colon; <&sol;p>&NewLine;<p align&equals;"justify">• Indian government will permit 51&percnt; FDI in multi-mark online retail and 100&percnt; FDI in single brand online retail at some point or another&period; Along these lines&comma; this implies outside organizations can come and begin their own online retail organizations&period; <&sol;p>&NewLine;<p align&equals;"justify">• There are less boundaries to passage like less measure of cash required to begin a business&comma; less measure of framework required to begin business&period; All you need is to tie up with providers of items and you have to build up a site to show items so clients can arrange items&comma; and a tie up with online installment portal supplier like bill work area&period; <&sol;p>&NewLine;<p align&equals;"justify">• Industry is additionally going to develop at a fast rate&period; It will touch 76 billion &dollar; by 2021&period; Industry will encounter an exponential development rate&period; Along these lines&comma; clearly nobody needs to miss this huge open door&period;<&sol;p>&NewLine;<h2 align&equals;"justify">Threat of Substitutes<&sol;h2>&NewLine;<p align&equals;"justify">Substitute for this industry starting at now is physical stores&period; Their danger is low for this industry since clients are going for online buys as opposed to going to physical stores as it will spare time&comma; exertion&comma; and cash&period; With the coming and infiltration of web and advanced mobile phones&comma; future in retail has a place with online retail&period; When we think about relative quality&comma; relative cost of item that he&sol;she purchases online with physical store&comma; both are practically same and now and again&comma; online rebates will be accessible which makes clients to purchase items on the web&period;<&sol;p>&NewLine;<h2 align&equals;"justify">Rivalry with in Industry<&sol;h2>&NewLine;<p align&equals;"justify">Flipkart is facing a lot of competition from many online retailers like Snapdeal&comma; Amazon&comma; Homeshop18&comma; Indiaplaza and many more&period; Flipkart is working in online retail industry&period;&nbsp&semi; Online retail industries worth’s 1&period;4-1&period;6 billion dollars&period; According to a recent TechnoPak report&comma; e-tailing has the abilities to grow in more than hundred-fold in upcoming 9 years and to reach &dollar;76 billion approximate in 2021&period; This growth will be increased by the country&&num;8217&semi;s growing Internet users&comma; which will may be&nbsp&semi; comprising 180 million broadband users approximate 2020&comma; and a rapidly increasing class of Internet users&period; In few years&comma; Indian online retail industry will grow to approximately 10 billion dollars&period; Some of the major challenges faced by online retailers are education&comma; trust and customer loyalty&period; Many customers like Cash on Delivery option in place of credit&sol;debit card payment&period; Rivalry is high in this industry with such a large number of players like Flipkart&comma; Myntra&comma; Jabong&comma; Snapdeal&comma; Amazon&comma; Indiaplaza&comma; Homeshop18 and so on&period; <&sol;p>&NewLine;<h2 align&equals;"justify">References<&sol;h2>&NewLine;<p align&equals;"justify">Strategic Analysis of Flipkart competitive&period; &lpar;2017&rpar;&period; Retrieved from&nbsp&semi; <a href&equals;"http&colon;&sol;&sol;geniicon&period;blogspot&period;com&sol;2013&sol;05&sol;strategic-analysis-flipkart-competitive&lowbar;27&period;html">http&colon;&sol;&sol;geniicon&period;blogspot&period;com&sol;2013&sol;05&sol;strategic-analysis-flipkart-competitive&lowbar;27&period;html<&sol;a>&period;<&sol;p>&NewLine;<p align&equals;"justify">Flipkart strategic positioning&period; &lpar;2017&rpar;&period; Retrieved from&nbsp&semi; <br &sol;><a href&equals;"http&colon;&sol;&sol;strategyatheinz&period;blogspot&period;com&sol;2013&sol;05&sol;flipkarts-strategic-positioning-and&period;html">http&colon;&sol;&sol;strategyatheinz&period;blogspot&period;com&sol;2013&sol;05&sol;flipkarts-strategic-positioning-and&period;html<&sol;a>&period;<&sol;p>&NewLine;<p align&equals;"justify">Five forces analysis recommendations porters model&period; &lpar;2017&rpar;&period; Retrieved from&nbsp&semi; <br &sol;><a href&equals;"http&colon;&sol;&sol;panmore&period;com&sol;amazon-com-inc-five-forces-analysis-recommendations-porters-model">http&colon;&sol;&sol;panmore&period;com&sol;amazon-com-inc-five-forces-analysis-recommendations-porters-model<&sol;a>&period;<&sol;p>&NewLine;

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