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 field. Both the brothers Sachin and Binny Bansal are Ex-Amazon Employees gave them the required knowledge to advance in the field strategically and are able to make an impact of their own.
3. 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 company.
5. Own Payment gateway & Logistic arm: Having its own Logistics arm E-kart & payment gateway Payzippy has helped the company to control its Expenses. Thereby passing the benefits to the end customers.
6. Exclusive & broad range of products: From having Exclusive righ...
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...anage the loosing sales on account of not making the product available due to delivery constraints.
5. Establishing in other developing economies: Like Amazon, Flipkart can slowly start expanding out of India and establish operations in other countries as well which will help improve revenues.
Threats in the SWOT analysis of Flipkart
1. Competition: Stiff competition from the global players like Amazon, eBay as well as local player like Snapdeal, Tolexo and Shopclues who are continuously trying to eat each other’s market share.
2. Government regulations on the issues related to FDI in multi branding retail has been a big hurdle in the success of the E-commerce industry in India.