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WE ALL LIKE SHOPPING

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WE ALL LIKE SHOPPING


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& WE ALL LIKE THE INTERNET


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PUTTING THE 2 GETHER (SHOPPING+INTERNET)=?


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ON-LINE


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ONLINE SHOPPING=AMAZON FLIPKART


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FOUNDER Jeffrey Preston "Jeff" Bezos


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INTRODUCTION


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BUSINESS MODEL MISSION: TO BE WORLD’S LARGEST CUSTOMER CENTRIC COMPANY. TWO FACTOR: GROWTH DIVERSITY IN SELECTION PLATFORMS FOR MERCHANTS AND ASSOCIATES.


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ASSOCIATES


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INNOVATION COMPANY DON’T BELIEVE IN INNOVATING NEW THINGS. BUT RATHER INNOVATING IN THINGS THAT DON’T CHANGE. E BOOK READER AND AMAZON KINDLE ALL ENERGY IS USED IN IT.


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Acquisitions 1998: PlanetAll, a reminder service based in Cambridge, Massachusetts; Junglee, an XML-based data mining startup based in Sunnyvale;[Bookpages.co.uk,a UK online book retailer, which became Amazon UK on October 15, 1998. 1999: Internet Movie Database (IMDb);Alexa Internet, Accept.com, and Exchange.com[34] 2003: Online music retailer CDNow. By 2011, the website cdnow.com was defunct and in use by a different company. 2004: Joyo.com, a Chinese e-commerce website.[ 2005: BookSurge, a print on demand company, and Mobipocket.com, an e-Book software company.[CreateSpace.com (formerly CustomFlix), a distributor of on-demand DVDs, based in Scotts Valley, California.  CreateSpace has since expanded to include print on-demand books (POD), CDs, and video. 2006: Shopbop, a retailer of designer clothing and accessories for women, based in Madison, Wisconsin. 2007: dpreview.com, a digital photography review website based in London; Brilliance Audio, the largest independent publisher of audiobooks in the United States. 2008: Audible.com; Fabric.com; Box Office Mojo;AbeBooks; Shelfari; (including a 40% stake in LibraryThing and whole ownership of BookFinder.com, Gojaba.com, and FillZ);Reflexive Entertainment,a casual video game development company. 2009: Zappos,an online shoe and apparel retailer Lexcycle, SnapTell, an image matching startup, Stanza, a rival e-book reader to Amazon's Kindle. 2010: Touchco., Woot,Quidsi, BuyVIP, Amie Street. 2010: Toby Press[ 2011: LoveFilm, The Book Depository, PushbuttonYap, 2012: Kiva Systems,Teachstreet Evi 2013: IVONA Software, GoodReadsLiquavista 


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FOUNDERS SACHIN BANSAL & BINNY BANSAL


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INTRODUCTION


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THEN & NOW Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology Delhi. They worked for Amazon.com before quitting and founding their own company. Initially funded by the Bansals themselves with Rs. 4,00,000. In its initial years, Flipkart focused on online sales of books. Today , Flipkart is amongst the top 20 Indian Web sites and has been credited with being India's largest online bookseller with over 11 million titles on offer. In 2012, Flipkart added A.C, air coolers, stationery supplies & life style products to its product portfolio. As of today, Flipkart employs more than 4,500 people.


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RISKING IT ALL ON THE LINE There was huge risk taken by both the Bansal's as both of them got a high profile job in the worlds biggest e-commerce website named Amazon. Leaving Amazon to start their own company with just Rs. 4,00,000 involved a huge risk as there was no guarantee that their idea would succeed or not. It was result of this risk taking only that today Flipkart generates Rs 1.5 Crore a Day.  It has a record user base of 1 Million in India only.


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INNOVATION Flipkart brought may revolutionary innovative ideas to make online shopping much easier and fun than it was a few years back. Some of these innovations are :-


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DELIVERY WITHIN 2 DAYS The first few e-commerce web sites broke the trust of many Indian customers by not delivering the order product on time. Flipkart realised this problem and in order to bring the customer back to on line shopping it came up with idea of delivering the product in 2 days & if there is a delay then the customer is paid interest on the value of product.


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30 DAYS RETURN POLICY In order to satisfy the Indian customer after the product is delivered flipkart came up with idea of providing 30 day return policy. This is done to ensure that the product delivered to the customer is not faulty.


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Card Swipe on Delivery Flipkart realised that most of Indian customers are not comfortable sharing there credit card details online. As there is always a risk of fraud. For solving this problem it came up with the idea of card swipe on delivery i.e- the delivery guy brings the card swipe machine so that all the transaction happens before customer.


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BROWSING- MADE EASY http://www.flipkart.com/


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COMPARISON-MADE EASY http://www.flipkart.com/mobile/compare?ids=MOBDKVGZUEGRAYZD,MOBDHMYXDFYCZCVC,MOBDH2XTNHMHA6BU,MOBDGPDZ5BRABR2W


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PROMOTIONAL TECHNIQUES ADVERTISING


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Sales promotion techniques like --- Rebate Discounts Refunds Quantity deals/gifts Usable benefits Full finance @ 0%


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BUSINESS RESULTS In FY 2011–2012, Flipkart crossed the INR5 billion (US$100 million) mark as Internet usage in the country increases and people get accustomed to making purchases online. Flipkart projects its sales to reach INR10 billion by year 2014. On average, Flipkart sells nearly 20 products per minute and is aiming at generating a revenue of INR50 billion (US$1 billion) by 2015.


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Acquisitions 2010: WeRead, a social book discovery tool. 2011: Mime360, a digital content platform company. 2011: Chakpak.com is a Bollywood news site that offers updates, news, photos and videos. Flipkart acquired the rights to Chakpak’s digital catalogue which includes 40,000 filmographies, 10,000 movies and close to 50,000 ratings. Flipkart has categorically said that it will not be involved with the original site and will not use the brand name. 2012: Letsbuy.com is India's second largest e-retailer in electronics. Flipkart has bought the company for an estimated US$25 million. Letsbuy.com had been closed down and all the traffic of Letsbuy is diverted to Flipkart.


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Glowing reviews:  AMAZON 80 percent of Amazon’s product reviews were positive. people who received free products from publishers, agents, authors, and manufacturers. FLIPKART The lesson: Encourage reviews of your business, especially when you’ve got a happy customer on your hands.


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Niche Product AMAZON (E-BOOK) People are reading more than ever because of the ease of E-books. E-books from Amazon are also popular among those with iPads because of Amazon’s expansive selection FLIPKART Lesson: If you’ve got a niche product that you’re known for, keep your focus on it and maintain a wide selection


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Value-added differentiation AMAZON Amazon.com works hard to achieve value-added differentiation through customer-focused information services. Amazon.com's site retains customer preferences and provides automated customization for users FLIPKART Lesson : should focus on the customer preferences and give them advantage of customization of product


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Price Control AMAZON Amazon still manage to get a hold on its price differentiation when compared to other physical or online store FLIPKART But with flip kart , they are still not getting it. Customer still find a wide gap in price b/w flip kart and other online store.


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3 possible scenarios Amazon buys Flipkart: (Probability: 40%) This is the dream Flipkart founders /investors are hoping for day in and day out. The question then will be about what the price will be. If we look at history, it's similar to what Ramesh Chauhan of Parle soft drinks faced when Coke was trying to enter India. He sold off 4 brands: Thumsup, Gold sport, limca and one other for a price of 750 crores when a reasonable value was more likely 275 to 300 crores. It's rumored that Flipkart founders have already asked for 2 billion USD which Amazon thought was ridiculous and turned down. This is the kind of exits current investors are hoping for.


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3 possible scenarios Amazon crushes Flipkart: (Probability: 50%) Amazon brings in its own expertise, processes, patents, IP, brand and offers superior buying experience thereby wiping flipkart out of existence. The problem which flipkart has solved( Logistics) is a commodity and can easily be replicated. I am assuming that flipkart doesn’t have any IPR or patent ( In fact the founders having worked with Amazon earlier might have exploited Amazon's IPR ). The customers quickly switch to Amazon. Finally, Flipkart is sold for a small amount to Amazon. It would be disastrous for founders and investors.


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3 possible scenarios Flipkart does a Lagaan: (Probability: 10%) Amazon is not able to find its feet in the country. Flipkart finds the battle tough. If Bansals get the government to protect it. They bribe Momota di / Fernandez who go on rampage and either drive Amazon out of India or, just like the Naukri Versus Monster showdown, Flipkart becomes #1 and Amazon is comfortable playing the second fiddle.


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THE END


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