SWOT Analysis of Flipkart | Flipkart Strengths, Weaknesses, Opportunities and Weakness
1. What is Flipkart?
Flipkart is an e-commerce platform founded in October 2007 by Sachin Bansal and Binny Bansal.
They started Flipkart with two other entrepreneurs after searching for books on e-commerce models.
It grew very quickly and eventually had a team of over 30,000 employees in 2016. It improved the online shopping experience for millions of consumers
The headquarters is in Bengaluru, Karnataka, India, India, with regional offices in Hyderabad, Chennai and New Delhi.
2. How is the Business Model of Flipkart?
Flipkart has raised a total of $37.6 billion in over 25 rounds of investment.
On July 12, 2021, they received $3.6 billion in a Corporate Round sponsored by Grey Communications International Canada Pension Plan Investment Board, Softbank Vision Fund, Walmart, and other investors.
According to the company’s announcement, the platform also saw a 35 percent increase of onboard dealers in 2020, compared to the previous year.
This is due to e-commerce surges in the nation and the majority of transactions are still done offline.
Flipkart caters to anybody who spends time on the internet but does not have time to purchase.
However, its target audience is scattered throughout a number of market sectors, since customers from many walks of life may find items, and Flipkart has a target audience of 75% of its audience between the ages of 16 and 55.
Individuals are searching for internet shopping that they can do from the comfort of their own homes without having to leave the house.
3. How does Flipkart Makes Money?
- a) Sales: Flipkart makes money from many different sales channels. The website’s products are offered in four categories: books, movies and music, mobiles and accessories, and other electronics. These products are offered by a wide range of popular brands. These products come from both national and international vendors all across the world.
- b) Advertising: Within the website, Flipkart publishes a number of advertisements for products related to its industry segment. This includes advertisements for both national and international vendors, as well as advertisements for popular brands. These advertisements are placed throughout the website in order to reach the maximum number of potential customers. Customers who see these ads may choose to make purchases based on what they see in these advertisement.
- c) Shipping: Flipkart offers free shipping for any purchase that is made within India. If an individual makes a purchase outside of India, then there is a charge of Rs. 250 for delivery.
- d) Affiliate Marketing: Affiliate marketing is a form of marketing in which an affiliate participates in a revenue share with a company. The aim is to generate income from advertising and sales revenue generated by the affiliate’s own website. In the case of Flipkart, affiliate marketers make a commission whenever a sale made by its customer is linked to their website.
- e) Data: Every time that an individual makes a purchase on Flipkart, the website collects information about the products that they are purchasing. This includes information about their shopping history, specific brands that they like to buy, items that they are looking for, etc. Collecting this information allows Flipkart to make more targeted advertisements in order to reach potential customers who are most likely to purchase products based on what they see in these advertisement.
4. Flipkart Revenue and Financials
The Flipkart Revenue in 2019 was Revenue: 436.2 billion INR (US$6.1 billion). Increase of 28% from 2018. Compared to financial year 2016, this was a decrease of -27%.
Flipkart is one of India largest companies with its headquarters in Bengaluru, Karnataka. The Flipkart Revenue increased by 28% to $6.1 billion USD in 2019.
The Flipkart had raised 25 rounds of investment to amass this capital, with its most recent round on July 12, 2021.
In the fiscal year 2020, Flipkart Private Limited generated revenue of roughly 346 billion Indian rupees.
In addition, as compared to the previous year, the e-commerce company’s sales increased by 12%. In comparison to the previous year’s income, this represented a 12 percent increase.
Flipkart had a market capitalization of $11 billion in December 2014, after receiving $700 million in a new round of investment.
Flipkart filed an application to become a public company with Singapore-based corporate regulator on December 20, 2014.
The business acquired $700 million in long-term strategic investments from more than 50 Indian investors, according to the release.
5. Flipkart Partners
Some of the strategic investors in Flipkart include;
a) eBay, Tencent and Microsoft: Flipkart announced that they have reached a global strategic partnership with eBay, Tencent and Microsoft and they invest $1.4 billion. Under the enterprise agreement, the three companies will jointly develop a set of solutions in classifieds, short-term rentals and hotel bookings in select cities across China.
b) Tiger Global: In October 2013, Flipkart finalized the $10 million round of funding from Tiger Global Management, Accel Partners and other investors.
c) Morgan Stanley: In April 2014, Flipkart raised $9.4 billion in a funding round led by Morgan Stanley.
d) Baillie Gifford: In October 2015, the UK-based investment management firm Baillie Gifford invested $3 billion in Flipkart.
e) Accel Partners: In April 2014, Flipkart raised $16 billion in a funding round led by Morgan Stanley.
f) Steadview Capital Management: In July 2015, Flipkart agreed to raise $1.2 billion from Steadview Capital Management, which is the second highest investor in the company after Tiger Global Management.
g) Softbank: In June 2015, Flipkart raised $2.6 billion in a series D fundraising led by Japanese telecommunications giant Softbank.
6. Flipkart Competitors
Flipkart is the largest Indian e-commerce company and competes with;
a) Amazon: Amazon is the second search engine for selling products online. It is well known for selling books, music, video games, electronics and much more. This company has invested heavily into the online platform and has created a business that is well known in South Asia.
b) Snapdeal: Snapdeal is an e-commerce company that operates in the same industry as Flipkart. The company started as an online marketplace for books starting with five cities before expanding its services to include all of India.
c) PayTM: PayTM is a company that started as a mobile payment company and has expanded into an e-commerce platform that allows customers to purchase items using PayTM. The company has continued to expand and now provides various other services including financial services and online shopping.
d) Alibaba: Alibaba is a Chinese-based company that operates a similar website to Flipkart. The company operates in several countries and has been one of the largest e-commerce sites in China.
7. SWOT Analysis of Flipkart
· Strengths of Flipkart
a) Excellence Brand Recall: Flipkart is a well-known e-commerce site in India and the name is synonymous with online shopping in the country.
b) Great Company Culture: The Company is run by a team of individuals who have created a great environment for employees. The teams are all motivated to create an excellent working environment.
c) Track Record of Success: The Company has had great success selling books and other products on its website, which leads to customers seeing the site as trustworthy for online transactions.
f) High Volume and Range of Products: The Company has a large inventory of products available for purchase, which is a big draw for customers.
g) Mobile App: The Company has a mobile app that allows customers to make purchases from their phone or tablet.
h) Good Website: The site is easy for customers to browse and the organization of the site makes it easy to navigate and find information.
i) Reputation: The Company is reputable and operates with honesty and integrity, which is an important factor when potential customers are deciding where to shop online.
j) Strategic Acquisition and Partnership: The Company has a history of strategic acquisitions and good partnerships.
k) Good Management: The management of the company is focused on keeping operations smooth and keeping customer service at a high level.
l) High Customer Satisfaction: The Company is looked upon as an industry leader, based on their ability to provide excellent customer service and respond to issues in a timely manner.
i) Experience Foundation: The Company has a large customer base that they have worked with in the past and gained their trust.
· Weaknesses of Flipkart
a) Overcoming Picking Competitors Online: Many smaller e-commerce sites have created an online store, but have not been able to gain much traction. The company has struggled to overcome the competition in the Indian e-commerce market when compared to Amazon.
b) Competitive Landscape: The Company is faced with strong competition when it comes to selling books online in the Indian market.
c) Excessive Advertisement Expenses: The Company has a tendency to spend a lot of money on advertising, which leads to higher expenses.
d) High Employee Turnover: The Company has a high employee turnover rate, which leads to the company having to work hard to replace those who leave.
e) Lack of Technology Innovation: The Company has not been very innovative in the technology that it uses and it is often behind some of its competitors when it comes to technology.
f) Disadvantage of Being an Indian Company: The Company does not have a big international presence and is focused on its home market.
g) No Single Point of Contact: The Company offers many different products and services, which can lead to confusion among customers.
· Opportunities of Flipkart
a) Online Shopping in India: Online shopping is the fastest growing segment in the Indian market. The company has an opportunity to gain market share by focusing on fresh products and staying current with trends.
b) International Expansion: Many of the smaller online stores in India are based in India and do not offer their products internationally. Flipkart has an opportunity to gain market share by focusing on international sales for its goods.
c) New Product Launches: The Company has launched many new products that are unique to the Indian market, which makes them stand out from their competitors.
d) Acquisitions: The Company has acquired other companies in the past and continues to do so today. This gives the company an opportunity to expand its product offerings.
e) Strategic Partnerships: The company has partnered with many different companies in India and internationally. These partnerships have allowed the company to gain access to new products and it helps them stay current with trends.
f) New Payment Options: The Company recently introduced virtual cards to be used with its website. This is another innovative payment option that will gain the company more customers.
g) Loyalty Programs: The Company has several loyalty programs that its employees can participate in. This shows the high level of customer satisfaction that the company provides.
h) Market Share in E-commerce: The Company has the most market share in the e-commerce industry in India, which gives them an opportunity to continue expanding.
i) Improved Website: The Company has made improvements to its website, which makes it easier for customers to find products they are looking for. This will lead to more sales.
j) Product Quality: The Company prides itself on providing excellent customer service and good quality products. The company has an opportunity to improve its product quality by choosing better practices when it comes to packing.
k) Expansion into Integrated Services: The Company recently acquired PayTM, which allows the company to expand into more integrated services with the Indian market.
l) Competitive Pricing: The Company strives to provide competitive pricing on its website. This allows it to gain market share in the industry and increase customer satisfaction.
· Threats of Flipkart
a) Foreign Market Competitors: The Company faces foreign market competitors when it comes to online sales, which is a threat.
b) Pricing Wars: Many of the smaller e-commerce sites in India have had a hard time competing with Flipkart’s low prices for its goods. The company has an opportunity to continue to keep its prices low and become a leader in the industry.
c) Lower Purchases from Mobile Devices: A higher percentage of purchases are made on mobile devices when compared to desktops or laptops. The company has had a hard time getting customers to use its app on mobile devices and stay loyal to the site.
d) Failure to Develop Loyalty Programs: The Company has not invested in loyalty programs for its employees, which are an important factor in increasing employee satisfaction. The company has an opportunity to invest in employee loyalty programs.
e) Understaffed Customer Service: The Company has had issues with customer service when it comes to getting tickets for tickets for events, etc. It has struggled when it comes to filling open positions in its customer service department.
f) Failure to Innovate: The Company has not been very innovative when it comes to managing its technology or making improvements to its website. This leads to the company struggling to keep up with some of its competitors.
g) Lack of Innovation in Payment Options: The Company has not innovated when it comes to payment options for its customers. As other companies increase their payment options, it can lead to customers choosing these other companies over Flipkart.
h) Technology Slow in Implementation: The Company is slow when it comes to implementing new technology on their website. This allows other companies to get ahead of them when it comes to technology.
i) Loss of Market Share: The Company has seen a decline in its market share for the last couple of years. This is a threat as the company does not have much time to regain that lost market share.
j) Growth Rate in India: As the e-commerce market grows in India, the overall growth rate of Flipkart also slows down. This means that there are more competitors in the market share, which is a threat for the company.
How is Flipkart different than other e-commerce sites?
The company has a bigger selection of goods that are unique to India. It also offers better customer service than its competitors.
Should Flipkart purchase Snapdeal?
There are upsides and downsides to purchasing Snapdeal. The company’s site is more popular with customers, but the overall market share for Snapdeal may be more valuable to Flipkart.
What is Flipkart’s value?
The value of the company has traditionally been around $37.6 billion by the company. The company has an opportunity to increase its brand awareness by investing into advertising.
What are some of Flipkart’s strengths?
The company has many strengths that are listed above in the article. One notable strength is that it have the most market share when compared to other e-commerce sites in India.
What is Snapdeal worth?
Snapdeal is worth around $2.5 billion. The company may not be worth as much if it were to be purchased by Flipkart.
It also depends on how profitable it is for Flipkart to purchase the company.
How many customers are on Flipkart?
The company has over 100 million customers. This number continues to grow as the company adds more products.
The company also provides excellent customer service, which leads to customer loyalty.
What is the size of Flipkart?
The company is valued at $37.6 billion and it has over 100 million customers who shop with the site each year.
The investors put around $1 billion worth of additional capital into the site this year so that it can expand its market share in India’s e-commerce industry.
Who is bigger Amazon or Flipkart?
Amazon is worth about $161 billion, which is more than twice the value of Flipkart. The company has the most market share in India’s e-commerce industry.
What are some of Amazon’s strengths?
Amazon has many strengths that are listed above in the article. One notable strength is that it has created a customer loyalty program.
How many people shop on Amazon?
More than 172 million people shop with Amazon each year, which is an impressive number when compared to other companies in the industry.
What is the market share of ecommerce in India?
Unorganized general trade (almost 80% market share), contemporary trade (16%), and e-commerce (4% market share) dominate this category.
Unorganized general trade is expected to account for around 57% of total trade by 2030, with contemporary trade accounting for 24% and e-commerce accounting for 19%.
What is the ecommerce industry worth?
E-commerce revenue in the United States reached 431.6 billion dollars in 2020. According to Statista‘s Digital Market Outlook, sales will reach 563.4 billion dollars by 2025.
How much money does Flipkart earn?
Flipkart earns around $3.8 billion each year. The company also has strong capital raising abilities which allows it to expand its operations within India to compete with other companies in the industry.
What is the purpose?
To make electronics more accessible to the masses. To give more power to shoppers and sellers through online shopping platform where you can buy products at more affordable prices as compared to physical store.
To give a wider range of products, features, and services including those that are not currently available in India at affordable prices.
Is Flipkart delivery a good job?
The company is in the middle of its expansion in India and this increase in operations is leading to more employees in the country.
The company does not allow for any part time work or contractors. This can lead to some people staying at job for too long without stopping, which can be a negative for them when they want to pursue other opportunities.
What is shopping on Flipkart like?
The process of shopping on Flipkart is very easy. They can find the products that they want and place the order. The only part that may be difficult is finding the right product.
Are there multiple prices for different products?
No, there are not multiple prices for different products. The prices are exactly the same for all products.
What is the size of the staff?
Flipkart has more than 30,000 employees in its operations and is expanding operations into different categories in India. This will lead to more job opportunities for the country.
What is the profit margin of Flipkart?
The profit margin of Flipkart in 2020 was around 18%. This means that there is a high percentage of gross profit per product sold with no expenses associated with it.
This is an excellent profit margin when compared to its industry competitors.
How do you take care of your online business?
To stay in the game, they need to make sure than are able to respond when customers have questions about their orders.
They also need to make sure that their staff is able to handle multiple operations in a timely manner.
They also need to make sure that their shipping services are prompt and efficient. If these things are not managed well, then they can lose out on orders and customers will not buy their products.
What is the probability of success?
For e-commerce to succeed, they must have excellent customer service and fast shipping times. They also need to have a product that the consumer wants to buy from them.
If they do not have these things, it can be harder for their company to succeed over a company that has these things in place.
This means that if two people start an e-commerce site at the exact same time, then one person’s business may end up succeeding while the other will not be able to compete with them.
Is Flipkart good for sellers?
It can be very good for sellers because they provide them with a platform to sell their products.
They also provide them with an excellent customer service so that customers do not have any issues when buying their products.
What is Flipkart’s compensation plan?
There is no salary for the employees at Flipkart. They work on commission sales, which means that they get a percentage of the sales of the products that they sell through the website.