Flipkart - A giant in the making Flipkart went live in 2007 with the objective of making books easily available to anyone who had internet access. Today, they’re present across various categories including movies, music, games, mobiles, cameras, computers, healthcare and personal products, home appliances and electronics, stationery, perfumes, toys, apparels, shoes – and still counting!. Wow sounds an impressive list but reaching this far wasn't easy. As a matter of fact Flipkart and its investors at this stage are seemingly losing money. They pulled out of large electronics items as customer experience was not up to the mark. Their logic was simple if they can’t offer customer a delightful experience they will not do it. Moreover, their online music store Flyte Music was shut down a little over a year after launching it. In the words Sachin Bansal, CEO of Flipkart - Flyte didn’t offer a potential for massive business. Statistics showed that Flipkart’s music CD section attracted only 1/6th of the traffic but its revenue was 3 times that of digital downloads (pay per download). It churns out a skewed ratio of 18:1 in favor of music CD’s. Digital music is not happening in India right now, it's a niche business. Flipkart realized that customer is against this model and dropped Flyte. Flipkart have always had this experimental temperament about its business and they’ll keep on improvising as a startup is not built to be small, it has to grow big. However, in the long run it’ll be a different story as E commerce in India has just reached less than 1/10th of its potential. Out of 120 Crore Indian population not more than 1.5 crores use E Commerce frequently. Looking at burgeoning internet users the market should reach at least 15 ... ... middle of paper ... ...till early days for Flipkart. In order to scale up to the levels of Amazon and EBay a lot needs to be done. One can say so far so good but there's still a mountain to climb for the giant in the making. “Nothing is predestined. The obstacles of your past can become the gateways that lead to new beginnings.” ― Ralph H. Blum Works Cited http://www.medianama.com/2013/05/223-why-Flipkart-shut-Flyte-music/ http://www.Flipkart.com/about-us http://www.livemint.com/Opinion/ZlFCafHLaEHndqzK0M2vfJ/Flipkart-and-the-fate-online-retail-in-India.html http://www.quora.com/Is-Flipkart-making-a-profit http://www.nextbigwhat.com/sachin-bansal-Flipkart-ipo-297/ http://articles.timesofindia.indiatimes.com/2013-10-10/internet/42899953_1_Flipkart-tiger-global-accel-partners http://www.bloomberg.com/news/2013-11-11/alibaba-breaks-sales-record-on-china-singles-day-amid-discounts.html
Toys R Us ventured into a partnership with Amazon.com to improve the e-commerce division of their business. Internet retailing was cutting into the profits and the market share of Toys R Us. This financial effect was the reason they the needed to improve and establish themselves in the Internet market. This Internet market was clearly the way the trend was going, as indicated by the growth of retailers such as eToys.com and SmarterKids.com. Toys R Us needed to establish itself in this market, since bricks and mortar retai...
... strategy of cutting cost is planned in the next one or two years by 2016. The target for online shopping that the company estimates to increase by 8 million people is to be achieved by 2020.
Jeff Bezo’s began Amazon in his garage in July 1995 with three Sun workstations setting on wooden doors for tables and extension cords running from everywhere (Academy of Achievement, 2010). Right from the beginning he was a visionary leaving his well paying job as a senior vice president with D. E. Shaw to begin Amazon.com (Academy of Achievement, 2010). Being the visionary that he is he saw an opportunity prompted by the huge growth rate of internet use in a single year and ran with it never looking back. Jeff realized that the internet had “no real commerce to speak of” so he began researching possible businesses (Academy of Achievement, 2010). “After reviewing 20 mail order businesses and deciding which could be conducted more efficiently over the internet than by traditional means he decided on books” (Academy of Achievement, 2010). He thought books were perfect because attempting to send huge catalogs for all the available books would be expensive and cumbersome, but an online resource database that was easy to navigate would provide customers with easy access and a single point from which to shop. “In 30 days, with no press, Amazon had sold books in all 50 states and 45 foreign countries, obviously by the success of Amazon he was right (Academy of Achievement, 2010). In a case study written by Javad Kargar called “Amazon.com in 2003” he stated that “Amazon's online store was a big hit, with about $5 million in the first year of operations” (2004). This huge success so quickly would have confirmed for Jeff that his idea was viable and drove him to continue to strive for more. Jeff Bezo’s charismatic-visionary leadership is the key to his and Amazon’s success.
By the 1980s, just before the rise of Wal-Mart, Kmart had become complacent. It believed it would be the king of discount retailing, now and forever. It didn't perform an accurate SWOT analysis, but to be fair, who could have seen the rise of Wal-Mart to the position of the world's number-one retailer? Still, as Wal-Mart built new stores in town after town, supported by cutthroat pricing and solid logistics, Kmart's complacency would cost them. Part of the problem was that as Wal-Mart was pouring money into information technology (IT), Kmart's IT budget continued to shrink – not just once, but several years in a row. While Wal-Mart's logistics and supply chain management got sharper, Kmart's stagnated. And while Wal-Mart was able to squeeze more value out of its stores and its systems, Kmart lost ground. By the time Kmart had finally decided to start devoting more resources to IT, it was so far behind Wal-Mart that catching up would have been a near-impossible task without the recession in the early part of this decade. With the effects of the recession taken into account, Kmart instead was consigned to also-ran status among discount retailers.
Amazon's customer base has increased dramatically from 180,000 in 100 countries in 1996 to 12 million in 160 countries by mid-1999. In 1998, Amazon began to expand into other product categories. The Company began to sell music products and videos, and within two months o...
1. In the case study, Amazon.com: An E-Commerce Retailer from Strategic Management and Business Policy, Wheelen, T. L. and Hunger, J. D. 11th ed., Jeff Bezos, Amazon’s CEO is faced with evaluating and possibly formulating new strategies in order to keep Amazon.com on the forefront of what consumers are looking for in online shopping, to remain competitive, and profitable. One alternative is to expand the business into online auctions, such as the company E-Bay. The product offerings would exponentially become much larger but the day to day operations would possibly be too costly for cost-effectiveness. The second alternative is to partner with other retailers to add variety to their product lines and utilize their IT capabilities to create partnerships that mutually benefit the companies.
The best companies embrace change and make plans to create a future for their business like Amazon did. Amazon did not have to wait very long for their strategy to take affect because that the way that the future of business was going. All they did was waiting until the demand flourished and took over the book giant’s like Barnes and Noble and Borders market share. This proves that Amazon did their research and plan accordable so that their demand matches their supply. This also shows the type of value chain process and evaluation that they did in order to continue to conduct business which is quite genius. Their demand has increasable giving them many opportunities to expand. ...
Launched by Jeff Bezos, the Amazon.com website started in 1995 and is today considered as one of the most prominent retail website on the internet with a record turnover of US$ 14.87 billion in 2007. Jeff Bezos’s intention was to create an internet based company with the most dedicated product portfolio on the internet where customers could find anything they might want. Amazon’s success is based on technology, services and products (Jens et al., 2003).
Diversification-moving away from core competence- At the beginning, Amazon’s focus was selling books online and they have now moved onto difference ventures. While branching out helps the company to grow, they may be doing too much and losing their strategic advantage. If they don’t focus in on what made them successful, they could get lost in the shuffle and open themselves up to
This paper describes the various aspects of the Zappos case. The objective is to evaluate the depth analysis of the Zappos strategy. It enables to determine the Zappos strategy, business model & marketing strategy, and smartness of the Zappos acquisition.
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 most important factor for any stockholder is for their share to keep rising. When Amazon creates a product or a new market-line they need to consider the impact it might have on their stock. For example, when the Kindle was launched the stock soared with the response received by the consum...
E-commerce, a system by which people can buy, sell and deal without even seeing the person on the other side, has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking.... ... middle of paper ... ...
The Amazon was founded in 1994 by Jeffery Bezos with a sole aim of exploiting the internet to reach more and more customers given the fact that internet was increasing at a rapid phase. However, the company was at first focused on online bookstore but as it grew it invested in other goods such as electrical appliances. Currently, the company is placed in top 100 lists of fortune companies despite the ever growing competition in the online retailing business in the world today. However, the company has never fallen short of ideas, concepts, and strategies aimed at monitoring and developing plans that can put Amazon at the leading place in the global Internet retailing industry. This assignment will attempt to cover in details how Amazon can
E-marketing is a fast growing and rapid platform for any form of business. EBay has been highly successful over recent years and this is a perfect example of an online business. The internal and external environments are constantly changing and in order to keep up with these changes, businesses and organisations must make relevant changes, and generate new strategies to keep up with contemporary developments in e-marketing and to also maintain their position in their market in comparison to their competitors.