Flipkart, which has redefined shopping in india, works on a b2c business to consumer model. Jul 11, 2016 the online retail store, flipkart, is a singaporebased company that has conceived a complex network of much interconnected and few allegedly independent companies accumulating a huge amount of money to develop an interspersed ecommerce business. The flipkartsnapdeal merger saga with reports of a possible acquisition of one of indias oldest ecommerce companies, snapdeal, by one of its biggest competitors, flipkart. Dec 02, 2015 flipkart believes that indian market resembles closely to that of china instead of the us and also due to the success of alibabas ipo they changed the strategy to advertisingdriven revenue model. The flipkart snapdeal merger saga with reports of a possible acquisition of one of indias oldest ecommerce companies, snapdeal, by one of its biggest competitors, flipkart. History of flipkart flipkart was founded in 2007 by sachin bansal and binny bansal, both alumni of the indian institute of technology delhi. Why walmart bought flipkart ecommerce business model. Flipkarts likely acquisition of ebays india arm has more to do with its.
It is the second most preferred websites by the people who look for shopping online in india. Flipkart is an ecommerce portal, b2c shopping portal, for indian customers or atthemoment. Mekin maheshwari since sept 2009, president engineering at, is responsible for leading the engineering team, scaling up flipkarts 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 etailer build its team across multiple. Revenue model of flipkart is quite straight forward. The research framework is adapted from osterwalders business model framework. Pdf merger and acquisition are strategic tools used time to time by companies to get the cutting. Has the flipkartwalmart deal made smaller ecommerce players.
Flipkart is an online shopping destination for india founded in 2007 by sachin bansal and binny bansal. Its not how walmart wanted to start off this first year. Ecommerce major flipkart on tuesday said it has completed its merger with ebay indias operations. Why amazon india is the reason behind flipkartsnapdeal merger. Flipkart is one of the top 3 unicorns from india in the online selling space. In exchange for an equity stake in flipkart, ebay made a cash investment and sold its india business to the ecommerce firm. Business model analysis for online social shopping companies. To study the business model and acquisition strategies of walmart and flipkart.
Business model of flipkart how does flipkart make money. Flipkart strategic business management retail e commerce. Mekin maheshwari since sept 2009,president engineeringat, is responsible for leading the engineering team, scaling up flipkarts business at a rapid speed ankit nagoriin flipkart since 2010,vp categories,is an iitguwahati alumnus who heads multiple categories and helps the etailer build its team across multiple offices. Japanese giant softbank is orchestrating a possible merger between the struggling snapdeal and its bigger rival, flipkart, according to people close t. May 11, 2018 furthermore, ebay may be restructuring its focus to take advantage of indias crossborder trade opportunity india, but the company had sold its india business to flipkart last year before selling that stake this week. Apr 19, 2020 marketing mix of flipkart analyses the brandcompany which covers 4ps product, price, place, promotion. Mar 24, 2017 while the move will end ebays existence as a business in india, the decision to merge its india arm with flipkart is a great business call given the current state of the ecommerce market and ebays standing. Flipkart, often referred to as the amazon of india, was started by two examazon employees, sachin bansal sachin and binny bansal binny, not related in october 2007 with an investment of rs.
Ecommerce major flipkart on tuesday said it has completed the merger with ebay indias operations with this, will now be a flipkart group company. It will no longer have an inventory of its own, rather whereas the shipping and delivery of the products will be done by flipkart. In this video, i have explained how ecommerce companies make money and walmart flipkart deal business model of ecommerce 1. In recent past, the deal of walmart and flipkart was. This makes ebay india a fipkart group company, along with names such as myntra, jabong, phonepe, and. May 24, 2014 flipkart, myntra merge in rs 2,000 crore deal their combined might also places them in a better position to take on the likes of amazon, which has become increasingly aggressive in indias booming etailing market. Business model and ownership structure of flipkart what attracted. Business model of flipkart website how does flipkart work.
Jan 23, 2014 well, let me talk about the homegrown, indian, ecommerce site flipkart, also considered as the amazon of india. Flipkart believes that indian market resembles closely to that of china instead of the us and also due to the success of alibabas ipo they changed the strategy to advertisingdriven revenue model. Flipkart business model how does flipkart make money. Gradually, it added more categories on its website.
They charge commission from seller who sell their product on flipkart 10% of the product price. Aug 24, 2014 mekin maheshwari since sept 2009, president engineering at, is responsible for leading the engineering team, scaling up flipkarts 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 etailer build its team across multiple. May 22, 2014 flipkart is a leader in selling multiple product categories online and myntra is indias leading fashion retailer with strong brand recall. As part of the deal, myntra will continue to operate as. The company in the later half of last decade got funded and ventured into full fledged online retail selling almost everything. But selling product is not the only stream of income for flipkart. Flipkart has announced big billion day deal in the year 2014. It created surprise for few and depressed many customers. They charge commission from seller who sell their product on flipkart10% of the product price. It is the robust logistics at flipkart that sets it apart from other wannabe ecommerce sites.
Apr 23, 2017 sucess story of flipkart strategy of flipkart flipkart stories from 2007 to 2016 challenge faced business model of flipkart order life cycle of flipkart logist slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The strategy of flipkart is to invest around 600 crore in its fashion business in coming years to combat with global rivals like. Despite the many policy pricks, walmart cant just walk. Because of cut throughout competition flipkart faces losses many times. The single biggest moment in indias young startup ecosystem might soon be upon us. Now, ebay has sold its india business and the merger of and flipkart has been successfully completed. Flipkart, myntra merge in rs 2,000 crore deal latest. Marketing mix of flipkart analyses the brandcompany which covers 4ps product, price, place, promotion. According to comscore and amazon claims, flipkart lost its number one position to amazon. Flipkart was initially an online book selling website just like the way amazon started in usa.
Flipkart is a longterm bet on the future of india, indian business and the indian consumer market, fishman told quartz over email. Jul 19, 2016 bloomberg gadflys tim culpan discusses the merging of flipkart and snapdeal in india to take on amazon. Flipkart s technology has enabled them to deliver 5 million shipments per month. The ecommerce player recently announced the launch of flipkart marketplace, wherein it will provide a platform for buyers and sellers to deal. Flipkart is weighing option to renewing discussions of investment in multiple firms such as pepperfry, swiggy, bookmyshow and a host of smaller companies among others, according to a report in the business standard.
Flipkart, myntra merge in rs 2,000 crore deal latest news. Binny bansal, cofounder and ceo, flipkart said, at flipkart, we have come a long way in our eight year journey. An insight into business model of flipkart indias e. Due to international competitor such as, flipkart has to change its strategy according to the competition. Flipkart envisioned to become indias number one online book store before launching its. These reports also suggest that after this investment ebay could. Well, let me talk about the homegrown, indian, ecommerce site flipkart, also considered as the amazon of india. Furthermore, ebay may be restructuring its focus to take advantage of indias crossborder trade opportunity india, but the company had sold its india business to flipkart last year before selling that stake this week. Flipkart, started by a team of 2 is currently 20000 people strong and has 26 million registered users clocking over 8 million daily visits. We take a closer look at talent implications of the such an acquisition in todays day and age. Merger and acquisition are strategic tools used time to time by companies to get the cutting edge over competitors and capturing the market. Flipkart and snapdeal currently the two highest valued startups in the country are rumoured to be looking to join forces.
In this research paper the author is studying the reasons and other future possibilities of indian ecom market. Nov 04, 2015 revenue model of flipkart is quite straight forward. Flipkart business model free download as powerpoint presentation. The procurement model is at the heart of flipkarts success, as most delays or troubles occur in this part of business. Myntra has about 100 sellers on board and plans to increase this number to 1,000 by fiscal end. The merger transaction between homebred ecommerce giant flipkart and ebay has been formalised.
Pdf indian online retail ecosystem a study on flipkart deal. Its pureplay marketplace model based on consumertoconsumer transactions has clearly cut no ice with the pricesensitive indian. Flipkart is a leader in selling multiple product categories online and myntra is indias leading fashion retailer with strong brand recall. Flipkart shifts to the amazons marketplace model inc42. The strategy of flipkart is to invest around 600 crore in its fashion business in coming years to combat with global rivals like amazon and ebay inc. If flipkart and snapdeal do merge, theyll create an entity. Flipkart is a 10yearold company and is yet to make profit. With a marketplace model, flipkart will no longer have an inventory of its own, rather buyers can deal with sellers directly and. Here flipkart business model and revenue model is discussed in detail. While the companies are currently coy about their plans, the rumblings around their merger have grown stronger in recent weeks. Improved market reach and industry visibility companies buy companies to reach new markets and grow revenues and earnings. Agency theory suggests that better corporate governance reduces expropriation costs, which, in turn, enhances.
Today, we are in a very strong leadership position with over 60% market share of the mcommerce market, 50 million customers and clear leadership in smartphones and fashion. The announcement means a change in the way flipkart does business. There are debates among the investors regarding what, why and what next on this merger. The case is set around the acquisition of majority shares of flipkart by walmart. Flipkart completes ebay india merger the economic times. Apr 06, 2017 the single biggest moment in indias young startup ecosystem might soon be upon us. Aug 01, 2017 with this, will now be a flipkart group company. By buying a smaller company with unique technologies, a large company can maintain or develop a competitive edge. At the time, the startup had reportedly entered into a strategic. The report further mentioned that the bengaluruheadquartered online retail titan was in serious negotiations with these companies. Researcher can identify different factors on which the sustainability and growth of the business is dependent on. Flipkart ebay india merger completed technology news. Founder jeff bezoss initial business model was fairly simple. Beleaguered ecommerce player snapdeal may be scripting a comeback this year, but this is nine months after merger talks with then independent flipkart fell apart.
While the move will end ebays existence as a business in india, the decision to merge its india arm with flipkart is a great business call given the current state of the ecommerce market and ebays standing. Bloomberg gadflys tim culpan discusses the merging of flipkart and snapdeal in india to take on amazon. Source a single product type from wholesalers and publishers and sell it directly to consumers on the then fledgling internet. Can ebay india benefit from a merger with flipkart. The sec report says, during the third quarter of 2017, we received a 5. If flipkart and snapdeal do merge, theyll create an. A case study on supply chain management by flipkart by neetu. Softbank pushes for snapdeal sale to flipkart the times of.
Furthermore, ebay may be restructuring its focus to take advantage of indias crossborder trade opportunity india, but the company had sold its india business to flipkart last year. Under this model flipkart plans to operate as a marketplace and aims to earn its revenue from advertising and various other services such as. Flipkart business plan latest news, articles on flipkart. Mar 11, 2016 flipkart was initially an online book selling website just like the way amazon started in usa. How a flipkartebay india merger could impact amazon. The analysis of the business model of flipkart or how does flipkart make money is of the authors himself, neither the company flipkart or its affiliates have confirmed the same to the author and the descriptions, stats, facts and figures are either obtained through secondary web research or interrogation of the users sellers. Flipkart completes merger with the financial express. The company started as an online book seller with 50,000 book titles and got its first order about four months after its launch. Flipkart business plan 11 major companies that have returned millions of dollars acquired through a government relief program meant for small businesses 28 apr 2020, 03. The company started with an inventory based model, but it was in 20 that it moved to a market place model, which is how even operates.
While investing in startups is a high risk business, flipkart is a unicorn and has a stabilised market share in the online retail market. Their combined might also places them in a better position to take on the likes of amazon, which has. This case study is based on the customer reactions towards the promotional. The business model is very different and in offline you are competing with. This paper investigates the influence of firmlevel corporate governance on financial performance of the listed firms in bangladesh. Ecommerce major flipkart on tuesday said it has completed the merger with ebay indias operations.
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