Sachin Bansal and Binny Bansal founded the Flipkart in the year. It is an e-commerce organization which offers online shopping in India. It sales various products like laptops, watches, mobile phones,, books, digital cameras and many more. Initially, Flipkart started to sale online books and spreader to other many products. According to the mission and values of the organization, we can say that they are in sync with each other. So, until and unless you are concerned about your customers or obsessed with your customers, you can’t provide delightful experience. Flipkart entered into online E-Commerce industry very early. It also has a strong brand value in Indian community.
Flipkart is producing its own logistics like an arm E-Kart. Recently, it has developed its own payment solution provider in which customers usually save their credit card information like Payzippy. In Flipkart sellers registers their self. So buyers can negotiate with the sellers. It also helps company to reduce its own inventory. Flipkart will just deliver those products. Venture firms like Tiger global and Accel Partners invested most of the money. So, most of the decisions are approved by Investors. Company follows Secretive and political culture in which hiring is creating problems in this company. Flipkart is focusing on expanding on customer bases rather than pulling profits by having cash burn. Flipkart is involving risk into online apparel and fashion business, where the gross rates are higher. With E-commerce which is going to boom in upcoming years, online transactions which are also going to increase. So, if Flipkart offers its logistical assistance to its competitors, it can increase their profit from those transactions.
Porter’s five forces framework:
Supplier Power
In this industry, suppliers are the producers of finished products like Apple, Dell, Nike, etc. Online retail companies sell different products ranging from computer accessories to cosmetic’s to apparels to clothes. Since there are many producers for any specific category, they cannot show their energy on online retail companies. For example, if you see the computers category, there are many producers like Apple, Lenovo, Toshiba and Dell, who desires to sell their products using these online retail companies. So, they will not be having the ability to operate the online retail companies. Online customers can choose the products and the changing costs in this scenario are zero. It is hard for manufacturers of finished products to come into industry because of challenges in Logistics. Online retail industry is important to producers because it plays as one of the medium to sell the products. Now, most of the customers are purchasing online through online companies, they can’t risk to lose this medium. So, they can’t state their terms with online retail companies. So, in this industry the producer’s power is low.
Buyer Power
Purchasers in this industry are clients who purchase the items on the web. Since this industry is in flood of numerous players, clients are having part of choices to choose the things. Changing expenses are likewise less for purchasers since they can without much of a stretch change benefit from one online organization to other one. Same items will be shown in a few online retail sites. In this way, item separation is low. In this way, every one of these elements make clients to have more power when contrasted with online retail organizations.
Threat of New Entrants
• Threat of new participants is high in this online retail industry in view of taking after reasons:
• Indian government will permit 51% FDI in multi-mark online retail and 100% FDI in single brand online retail at some point or another. Along these lines, this implies outside organizations can come and begin their own online retail organizations.
• There are less boundaries to passage like less measure of cash required to begin a business, less measure of framework required to begin business. 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, and a tie up with online installment portal supplier like bill work area.
• Industry is additionally going to develop at a fast rate. It will touch 76 billion $ by 2021. Industry will encounter an exponential development rate. Along these lines, clearly nobody needs to miss this huge open door.
Threat of Substitutes
Substitute for this industry starting at now is physical stores. 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, exertion, and cash. With the coming and infiltration of web and advanced mobile phones, future in retail has a place with online retail. When we think about relative quality, relative cost of item that he/she purchases online with physical store, both are practically same and now and again, online rebates will be accessible which makes clients to purchase items on the web.
Rivalry with in Industry
Flipkart is facing a lot of competition from many online retailers like Snapdeal, Amazon, Homeshop18, Indiaplaza and many more. Flipkart is working in online retail industry. Online retail industries worth’s 1.4-1.6 billion dollars. According to a recent TechnoPak report, e-tailing has the abilities to grow in more than hundred-fold in upcoming 9 years and to reach $76 billion approximate in 2021. This growth will be increased by the country’s growing Internet users, which will may be comprising 180 million broadband users approximate 2020, and a rapidly increasing class of Internet users. In few years, Indian online retail industry will grow to approximately 10 billion dollars. Some of the major challenges faced by online retailers are education, trust and customer loyalty. Many customers like Cash on Delivery option in place of credit/debit card payment. Rivalry is high in this industry with such a large number of players like Flipkart, Myntra, Jabong, Snapdeal, Amazon, Indiaplaza, Homeshop18 and so on.
References
Strategic Analysis of Flipkart competitive. (2017). Retrieved from http://geniicon.blogspot.com/2013/05/strategic-analysis-flipkart-competitive_27.html.
Flipkart strategic positioning. (2017). Retrieved from
http://strategyatheinz.blogspot.com/2013/05/flipkarts-strategic-positioning-and.html.
Five forces analysis recommendations porters model. (2017). Retrieved from
http://panmore.com/amazon-com-inc-five-forces-analysis-recommendations-porters-model.