Flipkart Case Study Essay Example for Free

crackkart Case Study EssayFlipkart.com is a story of the two young computer science graduates brothers Sachin Bansal (26) and Binny Bansal (25) from IIT-Delhi 2005 muddle who left their cables in amazon.com (an American multinational E-commerce company) in 2007 with a dream to become Indias top retail Outlet In E-commerce Industry. They came up with an thinker to sell books including novels online. Flip karts timeline shows it was to let down as a price comparison platform, but there werent enough e-commerce sites to compare. So, both the Bansals, who were colleagues at IITDelhi, and then at Amazon.com, thought, why not start an e-commerce site? That was the genesis of Flip kart. From an initial investment of Rs. 4 Lakh this So they started to make a website, although it was a large task to create a website with 50,000 titles but wouldnt be impossible for IITians so finally they created which took about a month and a half to start a basic working website with 50,000 titles and grown our document to over 1 Lakh ready(prenominal) titles. On 5th September 2007 they launched the companys uniform resource locator i.e. Flipkart.com for the first time in just an apartment room. . The website was launched on 15th Oct 2007. Flip kart is an Indian ecommerce company headquartered in Bangalore, Karnataka. From a start-up with an investment of just quaternity lakh rupees, Flip kart has grown into a 100 million revenue online retail giant in just five courses.Flip kart focused on online gross revenue of books initially. The process involved in online shopping for books has gone through drastic changes and is more secure right now. A customer could use our user-friendly web page to place an order, once the order is placed online the book is taken off the online inventory. In case of unavailability it will be purchased from a supplier. The Book will then get packed and couriered on the same day. Flip kart is currently tied up with around 12 courier portion p roviders. Flip kart also use Indian Postal services to consecrate areas without courier providers. Logistics play an important role in our backing. But it later expand to electronic goods and a variety of other products. The key differentiators are Availability of variety of goods of various categories, online shopping experience on the site and post sales experience. Apart from this the Cash on Delivery service is also one of the main reasons which keep it apart fromother E-commerce portals. The cash-on-delivery modalityl adopted by Flip kart has proven to be of great significance since ascribe card and net banking penetration is very low in India. . Flip kart offers multiple payment methods analogous credit card, debit card, net banking, e-gift voucher, and Cash on Delivery. IDEABinny Bansal and Sachin Bansal saw a good opportunity in the market around e-commerce. Also, regular job was not as challenging. The excitement and satisfaction that comes with building something of a extensive lasting value is addictive enough for them to continue this. They started flipkart.com because they themselves felt the need for a good online book store. E-commerce sector is one of the toughest to get into in India. They believe that they can make a difference here. They wanted to create something which has a long lasting value and which we can be proud of. An attractive neutral name is what they looked for. Good domain names were hard to get. They were looking at names that did not just speak of books alone, but one that could suit any category of Products that we may add in future. Also, they wanted to have a knavish name with high recall potential. Flip kart could in simple terms mean Flipping things into your Kart.CURRENT POSITION OF FLIP KARTFlip kart started with selling books. In 2010, they added to their catalogue media (including music, movies and games) and mobile phones and accessories. In 2011, product launches included cameras, computers, pens office su pplies, computer accessories, home and kitchen appliances, personal care, health care, gaming consoles, audio players and televisions. In 2012, product launches includes health apricot products, Life style products which includes watches, belts, bags luggage. In November 2011, Flip kart launched a new Electronic Wallet feature that allows shoppers to purchase credit to their Flip kart account using credit or debit cards, and can subsequently be utilised to make purchases on the site, as and when required. From June 2012, Flip kart allowed people to buy toys, posters and from October 2012, Flip kart entered into apparel retailing.ACQUISITIONS do BY FLIPKART.COM2010 WE READ, social book discovery tool2011 MIME260, a digital content platform com2011 Chakpak.com is a bolly wood news show site that offers updates, news photos and videos 2012 Letsbuy.com is Indias second largest e-retailer in electronics. Flip kart has bought the company for an estimated US$25 million.ACHIEVEMENTS MA DE BY FLIPKART.COMFlip kart owners have been featured in Business Today as one of the top 25 start-ups of 2009.They have been also nominated for Ernst and young award for the best entrepreneur of 2010. Apart from that they have been featured multiple quantify in start up news as well as mainstream news. Today, they are recognized as number one in the industry. As a testimony to the superior customer experience, the company has consistently recorded repeat purchase rates of more than 50%. They have also managed to get a registered buyer in every small town and city and hope to constantly improve their service standards. Flip karts reported sales as follows-IN FY 20082009- 40 millionIN FY 20092010- 200 millionIN FY 20102011- 750 millionIN FY 20112012- set to cross the 5 billionAs net income usage in the country increases and people get accustomed to making purchases online. Flip kart projects its sales to reach US$1billion by year 2014 and is aiming at generating a revenue of 50 billion (US$1billion)2015. Ranks among the countries top 30 website.Customer base of more than 2 million.30 shipment on daily basis effortless sales have increased to 2.5 crores.POPULAR PRODUCT CATEGORIES1. Clothing T-shirts, Jeans, Sports Wear, Trousers, and so on2. Footwear Casual Shoes, Formal Shoes, Flats, Heels, etc.3. Beauty Personal Care Trimmers, Shavers, Soaps, Brushes, etc. 4. Mobiles Tablets Samsung, Micromax, Nokia, Sony, etc.5. Laptops Accessories HP, Dell, Sony, Lenovo, Pen Drives, etc. 6. Books Literature Fiction, Biographies, Novels, EBooks, etc. 7. Baby Care Toys Vehicle Action Toys, Stuffed Toys, Diapers, etc. 8. Sports Fitness Cricket, Football, Basketball, Badminton, etc.TOP BRANDS1. Clothing Adidas, Puma, Reebok, Lee, etc.2. Footwear Puma, Adidas, Reebok, Fila, etc.3. Watches Casio, Fastrack, Citizen, Timex, etc.4. TV Sony, LG, Samsung, Philips, Panasonic, etc.5. Sports Fitness Speedo, Nivia, Yonex, CoscoBUSINESS MODELCreating and maintaining a person-t o-person trading community Function as a value added facilitatorProvide a supportive infrastructureZero inventory without having traditional sales forceProfit centersDomestic businessInternational business andPaymentLargest online trading forumCompelling and entertaining environmentEstablishing trust safety programsCost effective and Convenient tradingStrong community kinshipAn intuitive user interfaceORDER LIFECYCLEGet the itemProcure from Supplier (Just-in-time) (Supplier selection)Keep Inventory (Inventory Prediction, Planning)Clean Check for sanityPages missing, MRP printed lesser than told to you ask the itemTamper proof, weather proof, breakage proofSelect courier hand-overCourier performances vary across regions a LOTGet tracking id relegate to customerFollow-up for timely deliveryTake care of returns (faulty product/user changes their mind) Minimize returnsMARKETING STRATEGYFlip kart has been mostly marketed by rallying cry of mouth advertising. Customer satisfaction has been their best marketing medium. Flipkart very wisely used SEO (Search Engine Optimization) and Google Ad-words as the marketing tools to have a far reach in the online world. Flipkart.com official Face book page has close to 9 lakh likes. Flipkart recently launched a series of 3 ads with the tag line No Kidding No worries Kids were used to create the adverts to send out the message if a kid can do it, you can also do it. All in all to create a great customer experience.EXPANSION PLANSThey aim at 10 times growth and eyes at $ 1Billion sales by 2015. They will look at bigger investments in their supply chain and technology. Investment will be made in large warehouses and increased automation of their process, so that the product is not delayed. They intend to enter in to various new categories and expand their current categories as well. Everything except for groceries and automobiles will be available on Flipkart in future. To go further in the value chain, Flipkart is look ing at associations with a larger number of suppliers and partners, both nationally and internationally.PERSONEL ANALYSIS neat customer serviceEasy to use website, hassle free payment systemCash on delivery/Card on delivery mode of paymentFocused on user experienceADVANTAGESAttract users to the siteProvide selectionMake it easy to Find Discover productsProvide expatiate to evaluate a productDescription, Specifications, UGC.Price wellHave to be competitive to the most obvious optionsProvide convenient payment optionsOnline, COD fix paymentCONCLUSIONThey started off in 2007 by setting up three centres across India without funding. Six months ago, they reached number one status. They are also foursome times bigger than their nearest competitor. The company started off small today they have grown ten times over the last one year and aim to touch the Rs 400 crore mark by March 2013.