1. STUDY OF BUSINESS MODEL AND BUSINESS STRATEGY OF E-COMMERCE GIANT FLIPKART  
MIM 3rd year-Group2
Arpita Bhadra (05)
Harshil Shah (50)
Asmita Punjabi (42)
Harshal Parikh (35)
Vishal Raymangia (62)
Sahil Sachdeva (45)

2. WHAT THEY DO E-commerce company founded in 2007
Lists 30 million products
Ships 8 million packages a month
Has 45 million registered users.
Delivers in over 1000 Indian cities and towns. 
Offer path breaking services like:
Cash on Delivery
30-day replacement policy
Easy Monthly Installment options (EMI)
Free shipping
Discounted prices, cash back & deals          
Flipkart mobile app

3. Company growth and expansion

4. Rounds of funding and valuation

5. Acquisitions over the years

6. Inventory-led Business model
Complete control of the entire system, from purchasing products to delivering them
Pros:
Scale of Operation gives high bargaining power to Flipkart therefore cost is low.
High Margin Business: Margins in this business model are between 20-25%.
Probability of repeat business is high because end objective of Flipkart by managing complete value chain is to increase customer satisfaction and reduce costs.

7. Inventory-led Business model
Cons
Requirement of huge revenue: Essential to maintain the product catalogue, logistics and smooth functioning of this model.
Restricted range of products: Purchasing of products and maintaining them in their own warehouse can be a tough job in itself. This scenario leads to very lean product portfolio from selected brands. Unsold product inventory can also contribute to the financial loss of the company.
Retaining the logistics: Customer satisfaction comes from smooth flow of logistics. If the Flipkart strategies in future are not able to maintain the quality in logistics, it can prove to be fatal for the company.

8. Marketplace business model
Provide a platform for buyers and sellers to deal.
No longer have an inventory of its own.
Shipping and delivery of the products will be done by Flipkart.
Operational efficiencies improve.
Margins improve.

9. Revenues & Losses

10. Changes in Strategy Scaling up the size of its business.
Taking complete advantage of advertising and branding power.
It has launched 20 stores in 10 cities to let its customers collect the items they ordered online at their convenience.
to address issues such as unavailability of customers during delivery.
offer value-added services like instant returns, spot trials, open box deliveries and exclusive product demos.
Add more features to its mobile shopping app to increase customers’ satisfaction & loyalty
Considering having their own logistics so as to reduce dependability on the third party companies
Launched its own Digital Accessories brand Digiflip, & its apparel brand Flippd

11. Future Prospects, ROI
The industry is rightly positioned to see a vast growth, led by favorable demographics, multi-fold rise in internet penetration and scarce organized retail.
E-tailers have replicated the role of the distributor/wholesaler and the retailer in the traditional brick-and-mortar supply chain
The online retailing market will grow 10 times by 2020, based on internet penetration, per capita GDP, and total retail market size in the country
Online retailers will turn profitable by 2020 as operating costs are likely to decline by 400 basis points.
Discounts will come down by an estimated 700 basis points as growth moderates from current supernormal phase (to attract more consumers) to moderate growth phase (more users buying online for convenience, choice, etc.)

12. Opportunities
Should look for International/ Overseas markets or Neighboring Countries
Strategic alliance with International brands & suppliers i.e. sourcing & routing the international products in the domestic market & vice versa, this can help them get cost advantage & benefits
Target more & more cities
Invest into E-CRM & online reputation management
Logistics & Supply Chain: should continuously aim to reduce delivery time cycle
Portal should continuously aim to improve user experience
invest in data analytics to gain real-time insights into customer buying behavior
check their social media footprint with the number of likes and tweets about the brand and products

13. Thank You