...Introduction: The E-commerce market 2 Market Scenario: India 2 Drivers of Growth 3 Competition & Emerging Market Trends 3 Key Drivers of Industry 5 PESTEL Analysis 6 Government regulations 7 Business model 7 Barriers to entry 8 Lifestyle as a segment 8 The acquisition of Myntra 9 Conclusion: The road ahead 10 Which category to pursue? - A Game Theory Model 10 References: 12 Introduction: The E-commerce market Electronic commerce has emerged as an indispensable ingredient of India’s trade facilitation policy. Since 1991, The economic reforms explicitly took place in India around 1991 which resulted in the integration of the economy with the global economy. This combined with globalization and the advent of Internet has facilitated the growth of e-commerce market all over the world. India first came into interaction with the online E-Commerce via the IRCTC in 2002. The government of India experimented this online strategy to make it convenient for its public to book the train tickets. Since then the market was taken over by airlines and other travel companies which made the mode of ticket booking online. This was taken forward by Flipkart, Snapdeal, Amazon and other companies and today, they rule this industry. The E-commerce business transactions are categorized into business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), consumer-to-business (C2B) and the recently evolved business-to-business-to-consumer (B2B2C). E-Travel is the most...
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...Introduction Flipkart is an Indian e-commerce company headquartered in Bangalore, Karnataka. It was founded by Sachin Bansal and Binny Bansal in 2007. In its initial years, Flipkart focused on online sales of books, but it later expanded to electronic goods and a variety of other products. Flipkart offers multiple payment methods like credit card, debit card, net banking, e-gift voucher, and the major of all Cash on Delivery.[3] The cash-on-delivery model adopted by Flipkart has proven to be of great significance since credit card and net banking penetration is very low in India. History 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 they used word of mouth marketing to popularise their company. A few months later, the company sold its first book on flipkart.com—John Woods' Leaving Microsoft to Change the World. Today, as per Alexa traffic rankings, Flipkart is among the top 20 Indian Web sites and has been credited with being India's largest online bookseller with over 11 million titles on offer. Flipkart claims to have had at least 100% growth every quarter since its founding. The store started with selling books and in 2010 branched out to selling CDs, DVDs, mobile phones and accessories, cameras, computers, computer accessories and peripherals, and in 2011, pens & stationery, other electronic items such as home...
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...Draft Report On Financial Evaluation of Flipkart response to Amazon’s challenge Submitted To: Dr. Anupam Rastogi Submitted By: Group 4 MBA Capital Markets Nikhil A001 Nikita Agarwal A002 Niket Jithra A029 Nitish Khator A034 Pankaj Shah A046 Nilabh Shekhar A047 1|Page Introduction The e-Commerce industry was in its infancy for the larger part of the previous decade. However, in last three years, the industry has witnessed an incredible growth of 150%, increasing from USD 3.8 billion (INR 19,249 crores) in 2009 to USD 10 billion (INR 47,349 crores) in 2013. A number of business models for e-Commerce have evolved and are in varying stages of maturity. The resultant industry has come to be dominated by Flipkart, Amazon and Snapdeal in the non-travel related ecommerce market. e-Commerce is a capital intensive business and with problems abounding in technology infrastructure, low profit margins and poor physical infrastructure (logistics and distribution). In spite of this Flipkart has managed to raise $1.2 B this year which was followed by Amazon declaring an investment of $2B. In order to meet this challenge head – on Flipkart has planned to spend significant amount of capital in back-end infrastructure, logistics and warehouse, technological upgrade, scouting for new acquisitions, customer acquisition and talent. Paucity of significant larger players has resulted in money chasing few firms which have resulted in distorted valuations of companies. The companies have been...
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...Marketing Management- I Project Report Group- 8 Table&of&Contents& E$COMMERCE!INDUSTRY!.....................................................................................................!3! PESTLE!ANALYSIS!.......................................................................................................................!4! POLITICAL&ASPECT& ........................................................................................................................&4& . ECONOMIC&ASPECTS& ....................................................................................................................&4& . SOCIAL&ASPECTS& ...........................................................................................................................&4& . TECHNOLOGICAL&ASPECTS&...........................................................................................................&5& LEGAL&ASPECTS&.............................................................................................................................&5& ENVIRONEMNET&ASPECTS&............................................................................................................&6& Flipkart!Introduction!...............................................................................................................!7! CURRENT&HEALTH&.........................................................................................................................&7& TARGETS&....................
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...ripublication.com Flipkart-Myntra; From a Merger to an Acquisition Farhat Fatima Periyar Management and Computer College, Jasola, New Delhi Abstract The Indian e-commerce market was worth 75,000 crore, in 2013, according to a joint report by KPMG and Internet and Mobile Association of India. India has the potential to double its economic contribution via Internet, from 1.6 percent GDP at present to 2.8 and 3.3 percent by 2015 [MCkensy’2012]. Indian E-commerce is most likely to generate employment for 1.45 million people in coming two years. Emergence of the new government and its innovative policies are developing hope to bring FDI in e-commerce for local market players. Marking the biggest consolidation in the e-commerce space in India, this report puts light on India’s own Amazon; Flipkart and fashion e-tailer Myntra which jointly exposes their vision to capture more than 50% e-market share by strategic alliance. As Flipkart’s annualized sales crossed over 6,100 crore a year ahead of target. It had estimated to reach the billion dollar mark for gross merchandise value by 2015; on the other hand Myntra’s revenue was about 1,000 crore in the previous financial year. It aims to double its revenue in this financial year as it expands its seller base and adds products following China’s biggest e-retail model Alibaba.com. Myntra has about 100 sellers on board and plans to increase this number to 1,000 by fiscal end. The strategy of Flipkart is to invest around ...
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...Question 1) Trace the evolution of e--‐commerce business models, alongside Flipkart’s from outset to current state. E-Commerce began in India in 1991. Initially, the business was restricted to services offered by banks and other financial institutions for performing online transactions and buying certain financial products online. Post that, sites such as Rediff, Indiatimes and Indiaplaza began offering online shopping services, but these were more focused towards the business rather than towards consumers. They started with services such as flowers, sweets and chocolates delivery but there were many problems in these models because of in-efficient logistics and payment collection networks and lack of internet penetration at that time. Also, these were more focused towards the NRI Audience who wanted to send back gifts home and were more comfortable doing online transactions. Then Ebay entered the marketplace with the acquisition of Baazee and offered a platform for sellers to get in touch with interested buyers and sell their goods online. This model was further followed by OLX/Quikr which have introduced similar services. IRCTC also introduced online ticket booking in the mean time, The marketplace was completely revolutionized by the entry of players such as Flipkart,Snapdeal and Amazon about 6-7 years back. These sites started with the marketplace model and covered only a few product categories in the beginning,For ex, Flipkart and Amazon to a large extent sold...
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...as of June 2014.[1][2] Thepenetration of e-commerce is low compared to markets like the United States and the United Kingdom but is growing[3] at a much faster rate with a large number of new entrants.[4] The industry consensus is that growth is at an inflection point.[5] Unique to India (and potentially to other developing countries), cash on delivery is a preferred payment method. India has a vibrant cash economy as a result of which 80% of Indian e-commerce tends to be Cash on Delivery. However, COD may harm e-commerce business in India in the long run [6] and there is a need to make a shift towards online payment mechanisms. Similarly, direct imports constitute a large component of online sales. Demand for international consumer products (including long-tail items) is growing much faster than in-country supply from authorised distributors and e-commerce offerings. Market size and growth[edit] India's e-commerce market was worth about $2.5 billion in 2009, it went up to $6.3 billion in 2011 and to $14 billion in 2012.[1] About 75% of this is travel related (airline tickets, railway tickets, hotel bookings, online mobile recharge etc.). Online Retailing comprises about 12.5% ($300 Million[7] as of 2009). India has close to 10 million online shoppers and is growing at an estimated 30%[8] CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the biggest categories in terms of sales. Key drivers in Indian e-commerce are: * Increasing broadband Internet (growing...
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...SUBMITTED TO: Dr. PURNAPRABHAKAR NANDAMURI DATE: 31-8-2014 Background Flipkart is an e-commerce business founded by Sachin and Binny Bansal in 2007 both are not related to each other and alumni of IIT Delhi. It is a Singapore holding based company and the most of investors are from foreigners, the business was incorporated as a company in October 2008 headquarters Bangalore, Karnataka .During its initial years Flipkart focused only on books and soon as it expanded, Today they are present across categories including movies, music, games, mobiles, cameras, computers, healthcare and personal products, home appliances and electronics, stationeries, perfumes, toys, apparels, shoes and eBooks. They both pooled in Rs 2 lakh each and with two computers launched the site from their two-bedroom apartment in Koramangala, a primarily residential locality in Bangalore where the company now has multiple offices. For 10 days, the site did not see a single sale and then a customer VVK Chandra from Andhra Pradesh placed the first order for the book 'Leaving Microsoft to Change the World’. Now the Flipkart has more than 10000 employees. Flipkart initially had spent 4lakhs to set up the business but it has later raised funding from Venture Capital funds Accel India, Tiger global, Nasper group and Iconiq Capital. In 2011 Flipkart acquired Mime360 and Chakpak.com Websites and later in 2012 flipkart revealed its new Flyte Digital Musical Store, but it was shut down in June 2013 as...
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...Binny (left) and Sachin. ON A RETAIL HIGH: The Bansals, Binny (left) and Sachin. TOPICS consumer goods electronic commerce retail economy, business and finance company information From a start-up with an investment of just four lakhs rupees, Flipkart has grown into a $100 million-revenue online retail giant in just five years. Ushamrita Choudhury tracks the fairytale. “It came to me as a Christmas gift from my Secret Santa, and it was all about choice, convenience and a new relationship,” is how Naveed Ansari, a 26-year-old Project Executive from Mumbai, recounts his first experience with Flipkart. A typical professional from a metro, he's short on time, and he's invariably seeking convenience. So, an e-voucher from Flipkart seemed an ideal fit. This gift marked his initiation into the sphere of e-commerce, and the journey for him has “just begun”. Many Indians today are embracing e-retailing with enthusiasm. Popular portals such as Flipkart are spearheading the conversion of offline shoppers into online bargain hunters. Adds Naveed, as an afterthought, “I felt Flipkart was the best option as the transaction was easy, and the variety of products was a bonus.” For Flipkart, this means the unlocking of a vast audience waiting to experience the joys and comfort of shopping online. Sachin Bansal, CEO and one of the co-founders of Flipkart (the other being Binny Bansal), is an ardent believer in the merits of customer service. “A simple desire to create a tailor-made...
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...Study on E- Commerce companies to understand Oligopoly markets Study on E- Commerce companies to understand Oligopoly markets BOE PROJECT Submitted by: Ratika Gupta PGDM20160050 INTRODUCTION The study of electronic commerce can be viewed from various perspectives. From a communication perspective, e-commerce is the delivery of information, products, and services and the payment for these over telephone lines, computer networks, or any other electronic means. From a business process perspective, e-commerce is the application of technology toward the automation of business transactions and workflow. From a service perspective, e-commerce is a tool to cut service costs while improving the quality of goods and increasing the speed of service delivery. From an online perspective, e-commerce provides the capability of buying and selling products and information on the Internet and other online services. This project considers electronic commerce as the process of buying, selling, or exchanging of products, service, and information by various agents via computer networks including Internet. As such one can study the structure and mechanism of electronic commerce from an economic perspective. In electronic commerce setting, a new market order has...
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...International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056 Volume: 02 Issue: 08 | Nov-2015 p-ISSN: 2395-0072 www.irjet.net Comparative study of Flipkart.com, Snapdeal, E-bay: India’s Leading E-business Portals Sheeba Praveen Prof.(Dr.) Devendra Agarwal Sumaiya faizyab Dept. CSE,Integral University Babu Banarasi Das Engineering College Dept. CSE, Integral University Lucknow ,U.P. Lucknow, U.P. Lucknow,U.P. ------------------------------------------------------------------------------------------------------------------------------------------ Abstract— Ecommerce portals are now trending in India. It is growing in every place and customers are showing interest in using these portals effectively. There are so many portals which are unique in their features and the design of website. After analyzing the whole model of E-commerce I found basically three business Models have evolved over a period of time in this space and each has its own Pros & cons. Rest all business models are mix and match of any of following 3 models. Keywords—Snapdeal model, E-bay model, Flipkart model modes like Cash & Card on delivery, which invariably helps the masses to avoid the hassle of making online payments, as the credit card penetration in India is very low, & people are reluctant to make online payments more to do with the Indians psyche .Since portals are giving a customized offering to the masses i.e. rite from the...
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...MODULE - 1 BUSINESS MODEL IDENTIFIED BUSINESS TO CUSTOMER The B2C model focuses on direct selling and marketing between a business and a consumer via an e-commerce website. A lower purchase volume of higher priced products typically characterizes B2C companies. Since the model depends on individual transactions and eliminates the wholesale purchaser, the company can make a higher profit while the consumer spends the same amount of money or sometimes less. B2C is effective for smaller companies since individual consumers are not as concerned with company recognition as they are with getting the product for the best price. TYPES B2C companies divide into five major categories: direct sellers, online intermediaries, advertising-based models, community-based models and fee-based models. Each type is so different from the others that they are not directly comparable. In fact, some B2C businesses utilize more than one type to reach different audiences. DIRECT SELLERS Direct sellers, such as online retailers, sell a product or service directly to the customer via a website. You can further divide direct sellers into e-tailers and manufacturers. E-tailers are electronic retailers that either ship products from their own warehouses or trigger deliveries from other companies stocks. Product manufacturers use the Internet as a catalog and sales channel to eliminate intermediaries. ONLINE INTERMEDIARIES Online intermediaries perform the same function as any other broker. The business...
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...------------------------------------------------- Can Flipkart Deliver? From a start-up with an investment of just four lakhs rupees, Flipkart has grown into a $100 million-revenue online retail giant in just five years. “It came to me as a Christmas gift from my Secret Santa, and it was all about choice, convenience and a new relationship,” is how Naveed Ansari, a 26-year-old Project Executive from Mumbai, recounts his first experience with Flipkart. A typical professional from a metro, he's short on time, and he's invariably seeking convenience. So, an e-voucher from Flipkart seemed an ideal fit. This gift marked his initiation into the sphere of e-commerce, and the journey for him has “just begun”. Many Indians today are embracing e-retailing with enthusiasm. Popular portals such as Flipkart are spearheading the conversion of offline shoppers into online bargain hunters. Adds Naveed, as an afterthought, “I felt Flipkart was the best option as the transaction was easy, and the variety of products was a bonus.” For Flipkart, this means the unlocking of a vast audience waiting to experience the joys and comfort of shopping online. Sachin Bansal, CEO and one of the co-founders of Flipkart (the other being Binny Bansal), is an ardent believer in the merits of customer service. “A simple desire to create a tailor-made product for the Indian consumer has grown into something beyond what we imagined,” Sachin muses. A quick glance at Flipkart's timeline shows it was to start as...
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...Flipkart-The Online Megastore Company was co-founded in 2007 by Sachin Bansal and Binny Bansal who are alumni of IIT-Delhi after they left amazon.com which was then the largest online retail hub. Legally, Flipkart is not an Indian company since it is registered in Singapore and majority of its shareholders are foreigners. Because foreign companies are not allowed to do multi-brand e-retailing in India, Flipkart sells goods in India through a company called WS Retail. Other third-party sellers or companies can also sell goods through the Flipkart platform. Initially started with online price comparison only to become bigger and bigger and moved to online selling of books (e-book) but later expanded it to other electronic goods and daily household appliances and equipments. Its initial investment was ₹4 lakhs out which ₹2 lakhs was just to buy computers and furnitures for their offices and all funds were acquired through venture capitalists like Accel India,Tiger Global,etc. This online retail venture currently employs over 4500 employees and has 7 warehouses throughout the country where on an average,20 products are sold per minute. The logistics firm of the company are valued around ₹10,000 Crores And had a massive revenue of around 1200 Crores (FY 2012-13) and plans to reach 2500 Crores this year. Flipkart's reported sales were ₹40 million in Financial Year 2008–2009 and ever since then the company's sales turnover has increased infinitely to the extent that the sales projection...
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...7 | 3. | Brief on Flipkart | 9 | 4. | Porter’s Five forces | 12 | 5. | Critical Success factors | 15 | 6. | Challenges Ahead | 18 | 7. | References | 21 | 1. INTRODUCTION 1.1 About E-Commerce As a result of globalization and revolutionized technology and in many ways its feature, the term e-commerce represents the edge of success in this modern age computers and technology. E-commerce stands for electronic commerce. It means dealing in goods and services through the electronic media and internet. On the Internet, it relates to a website of the vendor, who sell products or services directly to the customer from the portal using a digital shopping cart or digital shopping basket system and allows payment through credit card, debit card or EFT payments. E-commerce involves carrying on a business with the help of the internet and by using the information technology like Electronic Data Interchange. In general words, Electronic commerce is the activity of buying and selling of the goods and services across the world through the World Wide Web. The Customers having interest in the products and services of particular website and vendor can get information about products and can purchase anything ranging from household product like sofa set to computer and so on, comfortably by sitting one's in room and just by one click of the mouse. Although business-to-business transactions play an important part in e-commerce market, a share of e-commerce revenues in developed...
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