SWOT analysis on Flipkart
If there was a list of top Indian online companies, then Flipkart will surely be on top. There are very few Indian companies worth more than 2 billion dollars and Flipkart as on date is worth more than 11 billion dollars. The company was started in 2007 by the brothers Sachin and Binny Bansal, who took it to staggering heights. .
Strengths of Flipkart
1. The largest E-Commerce Retailer of India: Flipkart has sold GMV (Gross Merchandising Value) of $4 billion by February, 2015 and is planning to double it to $8 billion dollars by December, 2015 which evidently shows it is the biggest player in the business.
2. Experienced founders: The founders of Flipkart are also not beginners without any prior experience in the
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Acquisition: With its series of acquisitions like Letsbuy.com, Chakpak.com,WeRead.com, Mine360, Myntra and the recent ones AdiQuity and Appiterate in 2015 has helped the company to expand in the E-commerce space & used the capabilities and existing resources of acquired companies.
4. High Brand recall: Flipkart has established itself as a renowned E-commerce company in India through TV ads, online branding and through its presence on social media. Brand activities like the “Big billion day” have really increased the brand recall of the
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Limited Distribution channel reach: Although its logistics arm has kept cost’s low, the reach has been affected which is a weakness for Flipkart. Due to use of outsourcing, Global giants like Amazon & eBay can deliver the product anywhere in the country. However, Flipkart is still struggling in this field.But Flipkart is intensively trying to overcome this weakness by following various techniques.
2. Cost of Acquisition: Due to stiff competition in the market & low customer retention, the cost of Acquisition is high because Flipkart acquires a lot of customers through online advertising. As per Flipkart data, the company spends R.s 400/- on acquiring a new customer on an average.
3. Power in the hand of buyers: Since this industry is flooded with many players, buyers have a lot of options to choose. Switching costs are also less for customers since they can easily switch a service from one online retail company to another. Same products will be displayed in several online retail websites. Product differentiation is almost absent and the fight then begins on the basis of price only.
Opportunities in the SWOT analysis of Flipkart
1. Expansion of business: By targeting other emerging markets company can increase their revenues as well as it can have Economies of
Introduction: Dollarama is a public retail company founded in the year 1992 by Larry Rossy. This company becomes well known all around Canada dealing in different consumer products. Now, Dollarama has its store in every province of Canada. It has multiple stores in Ontario only.
The current market is divided between a few powerful competitors that can relatively easily attract customers from one another as the switching costs are low and practical absence of product differentiation contributes to the easy loss of market share.
Breaking into new markets helps the company grow and brings in new customers, which leads to higher profit margins.
The growing popularity of online retailing is attracting competition from traditional and online multi-retailers such as Wal-Mart and Amazon which are gaining considerable market shares in many of the product segments included in the specialty retail sector.
Globalization among companies has been increasing due to the high potential profits and the lower costs of labor and resources. Venturing to other countries, which have lower costs of lower costs of living, can support their families on lower salaries. Companies that don’t have to spend as much on salaries and benefits are a great way for the company to save money and increase their profits. When looking to other countries to expand to, they will need to review their value chain to make sure they are able to keep their same values with their expansion.
Online retailing in China, dubbed ‘e-tailing’, has doubled every year since 2003. By 2020 the size of China’s online retail market is predicted to reach up to US$650 billion, exceeding the combined value of online markets in the USA, UK, Japan, German and France. With over 590 million internet users, China boasts the world’s largest online population - more than the US and Japan combined – and still growing at almost 10 per cent per annum.
The company should make sure that they invest heavily on products that are unique and that pose greater opportunities to double in terms of sales, including the tablets. In addition, it should make sure that it maximizing the areas such as China that have proven to be beneficial in terms of sales (Luo, 2001). In neutralizing the threats, the company should work on producing unique products, that are highly effective and affordable.
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
Based on the information provided in the case there were a few viable options in regards to expanding the business. However, many of them were resolved within the case. Fortunately enough, there were a few ends left untied specifically related to Zappos’ supply chain. In their supply chain they dealt with many inefficiencies that go beyond their organization.
Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, a company will decide to venture internationally due to a saturated market or fierce competition in the current country of operation. The demand for a company’s products may have diminished as a result of an economic crisis thus the company will target a foreign market to sustain its sales. In other words, the firms expand internationally to seek new customers for its products. For example, the current Euro zone crisis led to low demand in Europe and many companies extended their businesses to emerging markets where demand was high. A company may also venture in the international market to enhance the cost-effectiveness of its operations especially for manufacturing companies that will benefit from low costs of production in developing world. Global expansion is a long term project as it involves demanding logistics to be successful. Thorough research must be undertaken to ensure that the expansion will create value for share...
well as digital retail. The company relies heavily on their Every Day Low Price (EDLP) strategy which seeks
Another part of Amazon’s retail strategy is to serve as the channel for other retailers to sell their products and take a percentage of cut of every purchase. Amazon does not have to maintain inventory on slower-selling products. This strategy has made Amazon a ‘long tail’ leading retailer, expanding its available selection without a corresponding increase in overhead costs.
By study their viewpoint of business, this can give value to international business. Every business as part of its economic objectives always wants to grow. Domestic market is likely to saturate after a limit and ...
The Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, 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 2008 as Flipkart Online Services Pvt. Ltd. During its initial years, Flipkart focused only on books, and soon as it expanded, it started offering other products like electronic goods, Air Conditioners, Air coolers, stationery supplies and life style products and e-books. 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 4,500 people.Flipkart's offering of products on Cash on Delivery is considered to be one of the main reasons behind its success. Flipkart also allows other payment methods- Credit or Debit card transactions, net banking, e-gift voucher and Card Swipe on Delivery. The company has employee base of over 4500 and Global Alexa ranking of 142 (10 in India) which is Best Ranking in Ecommerce product line category industry and regarded as the Amazon of India since 2007 Till 2013 Flipkart raised 541 million us dollar from market Naspers, Accel partner, Morgan Stanley and Tiger global is majority contributor . The online megastore integrated campaign consist of four sub campaign use same theme to convey the messages but different target audience and different group of peoples. All the campaign conceptualized by the same team that is Happy creative agency founded in 2007 by Kartik Iyer to the objective of provide the communication and design service to the client also to do great work have fun and be happy with belief of an idea can change everything. First campaign was “No kidding n...
The specialty retailers with the highest sales are Zale Corp ($2.2Bn), Signet US($1.7Bn), Tiffany ($.8Bn) other players include Friedman’s ($.4Bn) Whitehall ($.3Bn), and Samuels ($.1...