Establishing Strategic Intent Vision & Mission of Flipkart Business Definition & Objectives Formulation of strategies Environment Appraisal, Organizational Appraisal, SWOT Analysis , Corporate Level Strategies Business level Strategies , Strategic Choice Strategy Implementation - Project, Procedural, Resource Allocation Structural, Behavioral, Functional and operational Strategic Evaluation

1. COMPREHENSIVE MODEL OF
STRATEGIC MANAGEMENT
BY CHANDRESH DEDHIA – XMBA 54

2. INDEX
• ESTABLISHING STRATEGIC INTENT
• VISION & MISSION
• BUSINESS DEFINITION & OBJECTIVES
• FORMULATION OF STRATEGIES –
• ENVIRONMENT APPRAISAL, ORGANIZATIONAL APPRAISAL,
• SWOT ANALYSIS , CORPORATE LEVEL STRATEGIES
• BUSINESS LEVEL STRATEGIES , STRATEGIC CHOICE
• STRATEGY IMPLEMENTATION -
• PROJECT, PROCEDURAL, RESOURCE ALLOCATION
• STRUCTURAL, BEHAVIORAL, FUNCTIONAL AND OPERATIONAL
• STRATEGIC EVALUATION

3. VISION & MISSION
• VISION - TO BECOME AMAZON OF INDIA
• MISSION - PROVIDING A DELIGHTFUL CUSTOMER EXPERIENCE

4. BUSINESS DEFINITION
• FLIPKART IS AN E-COMMERCE COMPANY FOUNDED IN 2007, BY SACHIN AND BINNY BANSAL
• IT OPERATES EXCLUSIVELY IN INDIA, WHERE IT IS HEADQUARTERED IN BANGALORE, KARNATAKA.
• IT IS REGISTERED IN SINGAPORE, AND OWNED BY A SINGAPORE-BASED HOLDING COMPANY.
• ACCORDING TO ALEXA INTERNET, FLIPKART'S WEBSITE IS ONE OF THE 10 MOST VISITED WEBSITES IN
INDIA.
• FLIPKART HAS LAUNCHED ITS OWN PRODUCT RANGE UNDER THE NAME "DIGIFLIP", OFFERING CAMERA
BAGS, PEN-DRIVES, HEADPHONES, COMPUTER ACCESSORIES, ETC.
• 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.

5. BUSINESS OBJECTIVES
• FLIPKART” AIMS TO BECOME THE LARGEST RETAILER OF INDIA. FLIPKART WANTS TO BE PRESENT
ACROSS ALL CATEGORIES, EXCEPT IN GROCERIES AND AUTOMOBILES, THE CEO SAID. “OUR TARGET
IS NOT JUST THOSE WHO SHOP ONLINE. WE WANT TO HIGHLIGHT THE CONVENIENCE OF E-
COMMERCE TO TRADITIONAL OFFLINE SHOPPERS AND, THUS, HELP GROW THE MARKET.
• 2012 - US $ 100 MILLION, DIVERSIFY PRODUCT REVENUES
• 2015 - US $ 1 BILLION INDIA, AGGRESSIVE MARKETS, STRONGER SUPPLY CHAINS
• 2020 – LARGEST RETAILER IN INDIA, ENTER GLOBAL MARKETS

6. ENVIRONMENTAL APPRAISAL
• Technological• Social:
• Economical• Political
Government support for
increasing penetration in
India, Tax benefits to
corporates, Increase in
stock holding % for
foreign investors in
companies (2012)
Resistance against foreign
retailers
Booming Indian
Economy, Increasing
spending power,
Skyroketing fuel
prices, Base of
internet users
multiplied by 10
times in 6 years
Advent of mobile
shopping, Increasing
penetration rate of
broadband and wireless
internet, Better managed
E-Commerce site for ease,
privacy and advancements
in net banking
Better comfort level and
trust in online shopping,
High priority on time
and convenience ,
Improving usage of
broadband and high
computer literacy.

7. ORGANIZATIONAL APPRAISAL
Competitors: (High)
Low entry barriers
Huge Market.
New Entrants: (Moderate)
Low Capital Investment.
High Technological
Players
Buyer:(Low)
Presence of Multiple
Players and traditional
retail stores.
Cheap old or used
book vendors.
Substitutes: (Low)
Traditional Book stores.
Advent of Ebook readers
like Ipad and Kindle
Supplier : (High)
Large supplier base.
Decreasing
popularity of printer
books.

8. SWOT ANALYSIS
Strengths
Supply chain
Quick turnaround
Advertisement & Promotion
Strategic acquisition
Huge reach
Weakness
Delivery
Internet penetration
Payment gateways
Higher costs
Opportunities
Growth in E-tail
Growth in e-Book
Mobile Apps
Broadband Penetration
Threats
New players

9. CORPORATE LEVEL STRATEGIES
STARTED OPERATION IN 2007 AND BREAK EVEN IN AUGUST 2010
TO GROW INORGANICALLY THROUGH ACQUISITIONS
HAVE THEIR OWN SCM COMPANY NAMES EKART
ACQUISITIONS
2010: WEREAD, A SOCIAL BOOK DISCOVERY TOOL.
2011: MIME360, A DIGITAL CONTENT PLATFORM COMPANY.
2011: CHAKPAK.COM, 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, AN INDIAN E-RETAILER IN ELECTRONICS. FLIPKART HAS BOUGHT THE COMPANY FOR AN
ESTIMATED US$25 MILLION.
LETSBUY.COM WAS CLOSED DOWN AND ALL TRAFFIC TO LETSBUY HAVE BEEN DIVERTED TO FLIPKART.
2014: ACQUIRED MYNTRA.COM IN AN ESTIMATED INR 2,000 CRORE DEAL.

10. BUSINESS LEVEL STRATEGIES
• FLIPKART HAS BEEN MOSTLY MARKETED BY WORD 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 ONLINEWORLD.
• FLIPKART.COM OFFICIAL FACE BOOK PAGE HAS CLOSE TO 9 LAC LIKES.
• FLIPKART 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 KIDCAN DO IT, YOU
CAN ALSO DO IT.
• ALL IN ALL TO CREATE A GREAT CUSTOMER EXPERIENCE.

11. BUSINESS LEVEL STRATEGY
• IN 2007, FLIPKART STARTED WITH SELLING BOOKS. THE FIRST BOOK SOLD AT FLIPKART.COM
WAS —JOHN WOODS' LEAVING MICROSOFT TO CHANGE THE WORLD TODAY
• 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 SUPPLIES,
COMPUTER ACCESSORIES, HOME AND KITCHEN APPLIANCES, PERSONAL CARE, HEALTH CARE,
GAMING CONSOLES, AUDIO PLAYERS AND TELEVISIONS.
• IN OCTOBER AND NOVEMBER 2011, FLIPKART ACQUIRED THE WEBSITES MIME360.COM
AND CHAKPAK.COM LATER, IN FEBRUARY 2012, THE COMPANY REVEALED ITS NEW FLYTE
DIGITAL MUSIC STORE. FLYTE, A LEGAL MUSIC DOWNLOAD SERVICE IN THE VEIN OF ITUNES
AND AMAZON.COM, WILL OFFER DRM-FREE MP3 DOWNLOADS.
• IN 2012, PRODUCT LAUNCHES INCLUDES HEALTH & BEAUTY PRODUCTS, LIFE STYLE
PRODUCTS WHICH INCLUDES WATCHES, BELTS, BAGS & LUGGAGE.
• IN JULY 2012 FLIPKART ANNOUNCED THE LAUNCH OF ITS IN-HOUSE BRAND DIGIFLIP.
DIGIFLIP IS A BRAND OF DIGITAL ACCESSORIES WITH PRODUCTS LIKE LAPTOP BAGS, LAPTOP
SLEEVES AND CAMERA BAGS AMONG OTHERS
Cost
Heavy discounts on books Free
shipping for purchases above Rs.
300 Consumer
Consumer
Availability of products across 14
categories Books can be ordered
before they are launched Pan
India presence
Communication
Advertisements via Search
Engine Optimization Transparent
Communication
Once the customer places an
order, progress can be tracked
Convenience
Ease of finding the product and
related information Purchase at
the click of a button Cash/ Card
on Delivery

12. STRATEGIC CHOICE
• STARTED SELLING BOOKS : WHY BOOKS WERE THE FIRST CHOICE?
• LOWER TRANSACTION SIZE
• BETTER SHELF SIZE
• SHIPPING AND HANDLING OF BOOKS IS EASY
• TO EMERGE AS A PIONEER IN BOOK RETAILING RATHER THAN VENTURING COMPARISON SHOPPING
ENGINE
• GROWTH STORY:
• STARTED WITH BOOKS AND WENT ON TO ADD NEW PRODUCTS
• 2 EMPLOYEES, 2 SUPPLIERS TO 4800 EMPLOYEES AND MORE THAN 600 SUPPLIERS
• HAVE THEIR OWN INTERNAL COURIER SERVICES CALLED FLIPKART LOGISTICS

13. PROJECT & PROCEDURAL
• LAUNCHED NO KIDDING, NO WORRIES
• FDI NORMS SINCE ITS REGISTRATION IS IN
SINGAPORE, NOT CONSIDERED AS INDIAN
COMPANY
• TAX RULES AND REGULATIONS AS E-RETAIL
AND E-COMMERCE
Evaluation of
Alternatives
• Customer Value
Perceived
• Wider range across
all categories
Purchase Decisions
• Faster Turnaround
Time
• Cash/Card on
delivery
• Easy return
procedure
Post-Purchase
Behavior
• Feedback on
Flipkart websites
and other blogs
• Word of mouth
affiliate

14. RESOURCE ALLOCATION
• STARTED WITH 2 EMPLOYEES AND NOW EMPLOYS 10,000 PEOPLE.
• HAS ITS OWN SCM COMPANY NAMED EKART TO OPERATIONAL EFFICIENCIES

15. STRUCTURAL
Sachin Bansal
Binny Bansal
Karandeep Singh (joined
the company in January
2012), Flipkart CFO, is the
one who handles
all aspects of finance and
corporate governance.
Ravi Vora (joined in March
2011), VP (marketing), seems
to be the right hand man of
the Bansals.
Mekin Maheshwari (since Sept
2009), president
(engineering) at Flipkart.com, is
responsible for leading the
engineering team, scaling up
Flipkart’s business at a rapid
speed
Ankit Nagori (in Flipkart since
2010), VP (categories), is an IIT-
Guwahati alumnus who heads
multiple categories and helps
the e-tailer build its team across
multiple offices.
Sameer Nigam (joined in
October 2011), VP (digital
business), was the founder of
Mime360.com, a digital
distribution platform solution
which hosts music streaming
for labels like Saregama,
Universal Music and Inreco,
which was acquired by Flipkart
last October.
Maneesh Mittal (been with Flipkart
since September 2009), VP
(operations), is a B.Tech from IIT-
Delhi. Although he joined the e-
commerce company as a general
manager, he went on to become
AVP (warehousing) and was finally
elevated to VP last year
Sujeet Kumar (joined in
December 2008), president
(operations) at Flipkart, is a
B.Tech in Civil Engineering
from IIT Delhi. He has been
there for quite some time and
has been responsible for
building the company, along
with the Bansals

16. BEHAVIORAL

17. FUNCTIONAL AND OPERATIONAL
• THOUGH AMAZON IS ONE OF THE EARLIER PLAYERS IN THE INDUSTRY, IT IS FLIPKART WHICH IS
ONE OF THE INDIAN PLAYERS IN THIS INDUSTRY WHICH REALLY BROUGHT ABOUT THE GREAT
CHANGE IN THE MINDSET OF INDIAN POPULATION.

18. STRATEGIC EVALUATION
• FLIPKART'S REPORTED SALES WERE
• 40 MILLION IN FY 2008–2009
• 200 MILLION IN FY 2009–2010
• 750 MILLION FOR FY 2010–2011
• 5 BILLION (US$100 MILLION) FOR 2011-2012
• FLIPKART.COM, THE COUNTRY'S FIRST BILLION-DOLLAR-VALUED INTERNET COMPANY, IS SURELY IN A STATE OF
PERPETUAL EXCITEMENT.
• FLIPKART IS A STORY THAT COMES FROM SMART WORK AND AN ‘IT IS POSSIBLE’ ATTITUDE.
• THE USP OF FLIPKART IS TO PROVIDE THE CONSUMERS WITH THE BEST ONLINE SHOPPING EXPERIENCE.
• THESE ARE THE REASONS WHY MANY LOVE FLIPKART. SOME PEOPLE CALLING IT AS AMAZON OF INDIA WHICH FITS
TO FLIPKART.

19. STRATEGIC EVALUATION

20. THANK YOU
• OPEN TO QUESTIONS