Flipkart, amazon, snapdeal SWOT analysis

What is Analysis?
 A technique that enables a group or individual to
move from everyday problems and traditional
strategies to a fresh prospective.
 SWOT analysis looks at your strengths and
weaknesses, and the opportunities and threats your
business faces.
 The SWOT Analysis framework is a very important
and useful tool to use in marketing Management and
other business applications.

 TYPE OF SITE - E-COMMERCE
 AVAILABLE IN - ENGLISH
 FOUNDED - 2007, 11 YEARS AGO
 AREA SERVED - INDIA
 FOUNDERS - SACHIN BANSAL & BINNY BANSAL
 CEO - KALYAN KRISHNAMURTHY
 SERVICES - ONLINE SHOPPING
 EMPLOYEES - 30,000
 SUBSIDIARIES - MYNTRA, EKART, JABONG.COM, JEEVES
 WEBSITE - WWW.FLIPKART.COM
 COMMERCIAL - YES
 HEADQUARTER - BENGALURU, INDIA

 If there was a list of top Indian online companies,
then Flipkart will surely be on top.
 There are very few Indian companies worth more
than 2 billion dollars and Flipkart as on date is
worth more than 11 billion dollars.
 The company was started in 2007 by the brothers
Sachin and Binny Bansal who took it to staggering
heights.

Flipkart is the largest e-commerce company in INDIA.
The founders of Flipkart are Ex-Amazon employees.
Having prior experience in the E-commerce industry helped the
founders to work strategically and differentiate their business in a
highly competitive market.
With its series of aquisitions like Letsbuy.co,
chakapk.com, weread.com, Mine360 and the recent one Myntra in
2014 has helped the company to expand in the E-commerce space
and used the capabilities and existing resources of acquired
companies.

Flipkart has established itself as a renowned E-
commerce company in India through TV ads, online
branding and through its presence on social media.
Having its own logistics arm E-kart & payment gateway
Payzippy has helped the company to control its expenses.
Thereby passing benefits to the end customers.
From having exclusive rights to launch some products
like MotoG MotoX , Xiaomi Mi3 as well as personal
designers segments in garments category, has helped the
company to differentiate and localize its offerings.

Although its logistics arm has kept cost low, the reach has been
affected which is a weakness for Flipkart. Due to use outsourcing,
amazon can deliver the product anywhere. However, flipkart is still
struggling in this field.
Due to stiff competition in the market and low customer retention,
the cost of acquisition is high because flipkart acquires a lot of
customers through online advertising. As per flipkart data, the company
spends Rs. 400/- on acquiring a new customer on an average.
Since this industry is flooded with many players, buyers have a lot of
options to choose. Switching costs are also less for customers since they
can easily switch a service from one online retail company to another.

By targeting other emerging markets company can increase
their revenues as well as it can have economies of scale.
This will increase their customer base and at the same time
will reduce the cost of acquisition and customer switch.
With increasing numbers of customers getting comfortable
with online shopping and increase in numbers of internet users
in India, there is huge potential in this industry.

By optimizing their supply chain they can
compete with the other players and can manage
the loosing sales on account of not making the
product available due to delivery restraints.
Like Amazon, Flipkart can slowly start
expanding out of India and establish operations in
other countries as well which will help improve
revenues.

Stiff competition from the global players like
Amazon, eBay as well as local player like Snapdeal,
Tolexo and Shopclues who are continuously trying
to grab each other’s market share.
Regulations on the issues related to FDI in
multi-branding retail has been a big hurdle in the
success of the E-commerce industry in India.

Type of business Private
Type of site E-commerce
Available in English
Founded 2010; 8 years ago
[1]
Headquarters New Delhi, India
Area served India
Founder(s) Kunal Bahl
Rohit Bansal
Industry Internet
Services Online shopping
Website www.snapdeal.com

SNAPDEAL is a e-commerce company based in India.
The company was started by Kunal Bahl, a Wharton graduate as part of the
dual degree M&T Engineering and Business program at Penn, and Rohit
Bansal, an alumnus of IIT Delhi in February 2010.
The company is based in New Delhi,India
Snapdeal has grown to become one of the largest online marketplace in
India.
The company offer’s an assortment of 10 million products across diverse
categories from over 100,000 sellers, shipping to more than 5,000.
OVERVIEW OF THE COMPANY

 Visionary Leadership under Kunal Behl.
 Constant innovations and good branding.
 Vast network of retailers across nation.
 Excellent service through convenient processes.
 Wide range of deals and transactions to
choose from.
 Lots of awards and recognition as best startups,
e-commerce etc.

 Services not available in all cities
 Dependence on internet only
 Technology led model might collapse if the logistics
network is not trained constantly
 Small time entrants entering into market share end up as
competition.
 Cut throat competition from big rivals might end up
changing company’s policies and work models.
 Customers are already finding Flipkart faster by a day or
2 due to its inventory based model.

The markets devoid of internet.
Customers reluctant in shopping online can be
persuaded.
Partnerships with bigger corporate houses for bulk
selling.
Rural Indian untapped market.
Tier 2 & 3 Cities focus.
MOBILE revolution hitting new figures every year.

Can be subjected to frauds
Risk of being involved into selling of illegal
entities
Newly emerging competitive online shopping
portals
Big market players like AMAZON and FLIPKART
Threat of Walmart making an entry in India

BRIEF INTRODUCTION :
 Founded in 1994
- Seattle , WA
- Jeff Bezos , Chief Executive
 Expanded to Music & Video Segments in 1998
 Strategic partnerships and acquisitions to expand
product breadth , absorb competition, and enhance
distribution efficiencies .
 Released kindle (1st Generation) in 2007
 International Growth

1. Online Security
2. Strategic Alliances
3. Legislation against Tax avoidance
4. Low consumer interest
5. Competition

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