Flipkart has become the most widely used e-Commerce company throughout India. This company was first established in Bangalore (Karnataka), operational in Singapore in the year 2007. It was founded by Sachin Bansal and Binny Bansal. It was formed with the concept of selling books, but now it has become a giant company selling most of the products varying from mobile phone to apparels, foot wares and beauty products. IT is a one stop delivery service for a variety of products. People prefer buying products from Flipkart as it offers huge discounts on all its products. Like on Diwali, Holi, Navratri, and many other festivals it offers huge discounts to its customers. The turnover of this company in the year 2003 was 560 Indian billion rupees. In the years to come, Flipkart is going to expand internationally and try to widen its range of products. The advantage of this company is it accepts all kinds of modes of payment like cash on delivery, net -banking, debit, and credit cards. The customers can also order their products by using their user -friendly app. On this app one can also see the variety of products and order according to their needs.
Flipkart Company Profile
| Legal Name | Flipkart Pvt Ltd |
| Founder | Sachin Bansal and Binny Bansal |
| Founded | Oct 2007 |
| Funding | $12.6B |
| Sector | E-commerce |
| Headquarter | Bengaluru, India |
| Parent Organization | Walmart |
| Website | flipkart.com |
Swot Analysis of Flipkart
One needs to know every company needs to do swot analysis before taking any major decision or planning anything about the company.
The word Swot is made of four words
- S- Strength
- W- Weakness
- O- Opportunity
- T- Threat
Thus, we can say it is a framework to analyze a company’s strength, weakness, opportunity and threat.
Strength:
- Wide selection of product range -One of the main strengths of Flipkart is that it has a very wide range of product selection varying from footwear to electronics. Thus, the customers do not have to go anywhere, thus they purchase the product from there only.
- Goodwill- The company enjoys the strong goodwill in the market. Thus, even the weaker section of society knows about Flipkart.
- Delivery of product on time– Flipkart ensures that their products, ordered by the customers are delivered on time. They have a very strong supply chain management.
- Launch of new marketing strategy– Flipkart, many times opens heavy discounts on their products, thus leading to the increase in their sales. It has also introduced a cash on delivery option to the customers.
- Customer service– Their customer service representatives are highly trained and polite. They try to solve every query of the customers with great patience.
- Looks after the needs of customers– Flipkart, instead of keeping interest in earning only profit, also looks after the customer satisfaction. They offer easy returns of the products.
- Flipkart app is user Friendly– The App launched by Flipkart is very easy to use. It can be easily installed in mobile phones.
Weakness
- High operational cost– As the customers return their products after purchasing them, this expense is borne by the company thus cutting its profit margin. To attract the customers, the company also offers huge discounts to its customers thus reducing their profit. Sometimes their products also get damaged while in transport.
- Technical issues– The company also faces technical issues sometimes, like their server is down, their website not working and sometimes it takes longer to pay for a product through internet banking, leading to dissatisfaction and losing interest of the customers while purchasing their product.
- Legal issues– Flipkart is also facing legal issues relating to tax.
- Dependance on external suppliers- Flipkart is highly dependent on mobile phone sellers.
Opportunity
- Digitally grow- With the innovations of new technology and internet facility, Flipkart can easily increase their sales. They can do so with the help of advertisements on various social platforms.
- Expansion in business– Flipkart can expand its business internationally, specially by implementing the innovative strategies.
- Wide range of Product– Flipkart can also expand their product variety like selling grocery items, thus increasing their profit.
- Expanded its network in Rural areas and villages- Flipkart has been able to enter the remote areas of our country.
Threats
- Competitors- Flipkart has major threats from its competitors like Amazon. Paytm, Snapdeal, Myntra and Alibaba.
- Change in government policies- The frequent changes in the government policy can have a great impact on the profit of Flipkart.
- Dependence on external vendors– Flipkart has to face severe issues with external vendors. It has to fully depend on them.
- Switch in customers mindset– sometimes due to negative publicity and reviews the customers change their mindset about the company.
In spite of some weakness, Flipkart is still holding number one position in the Indian Economy. The swot analysis of Flipkart helps the company to prepare its marketing strategy. Flipkart does not only sell products, but has also built trust and loyalty in the mind of its customers. Thus, in the years to come it will become the number one company internationally.
