WEEK 10 CASE STUDY

 

 CHALLENGES AND OPPORTUNITIES: FLIPKART

Rafael John (TP072612) - Opening

Flipkart, started in 2007 with an initial investment of less than USA $10,000 by Sachin Bansal and Binny Bansal, is one of India's top online shopping companies (Dutta & Bhat, 2014). It began as a website selling books but quickly grew to offer many types of products, including electronics, clothing, home items, groceries, and more. Flipkart is well-known for its focus on customers, good prices, and wide range of products, serving millions of people across India.

In 2018, Walmart bought Flipkart, giving it strong financial support and new strategies. This helped Flipkart compete better with big rivals like Amazon India and new local businesses like Reliance’s JioMart.

Flipkart is known for its smart use of technology, delivery services, and customer care, setting high standards in India's online shopping market. Its delivery service, Ekart, ensures quick shipping even to far-off places, while its digital payment service, PhonePe, is very popular. By investing in new technology, buying other companies, and reaching new markets, Flipkart continues to lead the growth of online shopping in India. As a company, of course Flipkart has many challenges that it must face, along with numerous opportunities to grow.

Ferdinand Taslim (TP072735) - Challenges

Flipkart deals with strong competition from both local and international companies. Under regular conditions, competition concerns affect both consumers and producers (or service providers) directly (Saraswathy, 2019). Amazon India is its biggest competitor, often matching Flipkart’s moves with low prices, a wide range of products, and better delivery services. New companies are also using their huge resources and big retail networks to win over customers. This tough competition means Flipkart has to keep innovating and spend a lot on marketing and infrastructure, which can put pressure on its resources and profits.

The Indian online shopping industry faces complex and changing rules. Laws about foreign investment, data storage, and how e-commerce works are often updated, causing uncertainty and making operations tricky. For example, the Indian government’s rules on how e-commerce companies can list products from businesses they own have made Flipkart change its business model and its deals with sellers. Keeping up with these changing rules requires flexibility and can lead to higher compliance costs and operational challenges.

Jovan Richaldy Chandra (TP071536) - Challenges

Managing a smooth supply chain and delivery network across India’s large and varied landscape is a big challenge for Flipkart. Flipkart initially operated on a shipment model, where goods were manufactured by suppliers upon receiving orders placed through the website (Tiwari, 2022). Even with a lot of money put into its logistics division, Ekart, the company often faces delivery delays, especially in far-off and rural areas. Issues like bad roads and not enough warehouses make these problems worse. Making sure deliveries are on time and keeping high service standards are very important for customer happiness, but this needs constant investment and new ideas in logistics.

At the same time, like many big online shopping companies, Flipkart has usually focused more on growing than making a profit. Offering big discounts, free shipping, and spending a lot to get new customers have led to big financial losses. Even though Walmart bought Flipkart and gave it financial support, the need to make money still remains. Balancing growth with making money is tough, needing careful cost control and smart use of resources.

Marcello Irawan (TP072752) - Opportunities

A major growth opportunity for Flipkart is expanding into India’s smaller cities and towns, where more people are getting internet access and smartphones. There are still many sectors in India, especially in rural areas, that haven't been reached by the e-commerce industry (Vyas & Gupta, 2017).  By offering products that suit local tastes and improving delivery services, Flipkart can attract a large part of this growing market. Customized marketing and localized products can make it even more appealing in these regions.

Flipkart’s strategy to offer a wide range of products and services also presents significant growth potential. The company has strengthened its portfolio by acquiring Myntra and PhonePe. Expanding into profitable areas like fashion and electronics, and growing its grocery business through Supermart, can increase its earnings. Using PhonePe for digital payments and financial services can create a strong system that keeps customers coming back and buying more.

Investing in technology and innovation is another way Flipkart can enhance its competitive edge. Artificial intelligence (AI) and machine learning (ML) can make supply chains more efficient, improve personalized marketing, and enhance customer service with chatbots and virtual assistants. Augmented reality (AR) can improve the online shopping experience, especially in fashion and home decor, where seeing products virtually helps buyers make decisions.

Stanislaus Raymond Soecoko (TP077043) - Opportunities

Teaming up with others and buying companies can help Flipkart grow and reach more people. An increasing number of companies are aligning their business goals with support for social causes (Berger & Drumwright, 2004). Working with local businesses can make its delivery services better, and partnering with big brands can give it more things to sell. Also, buying small companies with good ideas or a strong presence in the market can give Flipkart an advantage. 

Flipkart can also show that it cares about the environment by doing things like using packaging that’s good for the planet and cutting down on its carbon footprint. This doesn’t just look good to people who care about the environment but can also save money in the long run.

Being part of Walmart means Flipkart can learn from Walmart's knowledge and skills in selling things, managing supply chains, and using data. Walmart has a lot of resources and experience that can help Flipkart. Working together on things like buying stuff, making new technology, and getting into new markets can make Flipkart even stronger and help it grow more.

Daniel Kurniadi Khodyat (TP073665) - Conclusion

Flipkart started small as an online bookstore but has grown into a big e-commerce platform in India. It was always going to be challenging given India's past negative experiences with e-commerce trading (Jeevan, 2015). This shows how strong and smart the company is. It faces big challenges like tough competition, complicated rules, and problems with delivering things. But there are also chances for it to grow and try new things

Flipkart can get more customers by selling things in smaller cities and towns, offering more types of products, and using new technology. It can also team up with other companies, do things that are good for the environment, and learn from Walmart, the big company that owns it.

By dealing with these challenges and taking advantage of these chances, Flipkart can keep getting better and stay ahead in India’s busy online shopping world.

References:

Dutta, N., & Bhat, A. K. (2014). Flipkart: journey of an Indian e-commerce start-up. Emerald Emerging Markets Case Studies, 4(7), 1-14.

Saraswathy, B. (2019). The Flipkart-Walmart Deal in India: a look into competition and other related issues. The Antitrust Bulletin, 64(1), 136-147.

Tiwari, S. (2022). Impact of COVID-19 Era on Supply Chain Management and Logistics of Flipkart Company. VEETHIKA-An International Interdisciplinary Research Journal, 8(4), 25-27.

Vyas, A., & Gupta, S. (2017). Challenges assessment for the e-commerce industry in india: a review (with special reference to flipkart v/s snapdeal). Journal of Global Information Management (JGIM), 25(4), 16-31.

Berger, I. E., Cunningham, P. H., & Drumwright, M. E. (2004). Social alliances: Company/nonprofit collaboration. California management review, 47(1), 58-90.

Jeevan, P. (2015). A Study on Digital Marketing-A Case Study with Special Reference to Flipkart. In National conference on E-Learning, E business and E Governance, SIMS.