pestel analysis of flipkart

pestel analysis of flipkart

1. In this Amazon Pestle Analysis we will discuss the opportunities and threats of external environment of this e-retail business. its reported sales were rs. In August 2018, US-based retail titan Walmart acquired a 77% controlling stake in the company for $16 billion. PESTEL AND SWOT ANALYSIS FOR FLIPKART Submitted by, HEMASANKAR.R 1st DMS. 4. This acquisition gave Walmart direct entry into the Indian e-commerce market. A report by investment bank Avendus shows that new-age logistics businesses are likely to become crucial for the start-up ecosystem which is expected to swell to $9.6 billion by 2020 from $1.4 billion in 2015. 7. L – LegalLets look at each of these macro-environmental factors in turn.All the external environmental factors (PESTEL factors) They became good friends when they both took admission in IIT and studied together. So, a lot of Amazon’s profits depend on Import and Export policies. Around Rs2,000 crores will be initially invested in the business with additional funds being ploughed in as required to improve supply chain, storage and logistics. The SWOT analysis for Flipkart is presented below: This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. It is written by Rainny Shuyan Xie, Vijay Sethi and deals with topics in areas such as Strategy & Execution Competition, Economics Step 6 - PESTEL, PEST / STEP Analysis of Flipkart: Valuing a Venture Capital-funded Startup Another way of understanding the external environment of the firm in Flipkart: Valuing a Venture Capital-funded Startup is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. PESTEL-PESTLE Analysis of DHL. Flipkart two key units losses up 69%, revenue up 43% - https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/flipkart-two-key-units-losses-up-69-revenue-up-43/articleshow/71799282.cms, 3. Other than this another potential environment threat that they are posing is that of price war in which all the brands have to roll up sleeves and dive in mud in order to survive. The remaining sections of “Opportunity” is available only in the 'Complete Report' on purchase. Flipkart to arrange easy working capital loans for vendors to ensure loyalty . I have used them in a lot of my personal research work.-Mudassir KhanAccounting and Business, Melbourne Polytechnic, Here the research is to-the-point, no beating round the bush. Do you want us to design a market survey or write a market research report as per your specific requirements? Government will also help in setting up logistics and necessary funding. Moreover, E-commerce companies can no longer acquire more than 25 percent of inventory from a single seller, especially those in which the companies owns a stake. As per findings by CRISIL, the e-commerce giants Amazon and Flipkart, accounting for almost 70 percent of the industry revenue, source almost 70 percent of their revenue through group company sales. Infringement of Intellectual Property (IP). This section is available only in the 'Complete Report' on purchase. In this industry, suppliers are the producers of finished products like Apple, Dell, Nike, etc. About Flipkart : Flipkart is an e-commerce unlisted private company based in Bangalore, Karnataka. Pestel framework. Our insightful and holistic reports have helped corporates, academia and researchers take their research forward. Another way of understanding the external environment of the firm in Flipkart: Transitioning to a Marketplace Model is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. Please refer to the Terms and Conditions and Disclaimer for usage guidelines. Flipkart’s new acquisition Myntra also moved to all app on mobile for online sales. This is the detailed PESTLE/PESTLE Analysis of Flipkart which elaborate the external factors impacting the company; Political, Economical, Social, Technological, Environmental and Legal. Pestel and swot of flipkart 1. Flipkart annual Report 2018 - http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_EBAY_2018.pdf, 2. The founders; Sachin and Binny are two Indians who first met at school but were not good friends back then. Choosing the vision, mission and the reason of existence for Flipkart Bansal. Then there was net neutrality issue in which Flipkart dismissed the purchase of Airtel Zero saying that it might go against the net neutrality as this telecom provider supports free internet app access to all. They were also blamed for artificially playing with prices by increasing the original price so that the discount would look bigger. All Rights Reserved by Barakaat Consulting. Secondly some sellers buy their own products in order to show the demand for their products and hence increase the prices, some start charging unreasonably high prices. Original content is not on offer as of now although it is a work in progress. This $16 billion acquisition became the world's largest ever e-commerce acquisition and was based upon Walmart’s expectations that the Indian e-commerce market will see phenomenal growth in the upcoming years swinging from $38bn in 2017 to $200bn by 2027. 2. (2015, April 13). Retrieved January 22, 2016, from tech2: http://tech.firstpost.com/news-analysis/net-neutrality-supporters-downvote-flipkart-app-after-its-ceo-supports-airtel-zero-262808.html, Aurora, P. (n.d.). To properly proceed through an M&A transaction, businesses commonly complete a full PESTEL analysis so as to continue its conduct. They both worked for Amazon and both shared the same dream of forming an … A PESTEL ANALYSIS OF THE E-COMMERCE INDUSTRY. Online retail companies sell different products ranging from computer accessories to cosmetic’s to apparels to clothes. PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis that will come useful to business owners, entrepreneur, and students alike. An important rule is that e-commerce companies are now debarred from setting up deals with sellers that can result in high discounts. Flipkart started its operations in 2007 as an online book store and the first book it sold was “Leaving Microsoft to change the world”, since then it has progressed to become a $7billion company and expanded into many other categories. This section is available only in the 'Complete Report' on purchase. 8 Facts You Should Know About Flipkart Founders. With high ASD, your ad post will be displayed across all our 2500+ pages.Grow your business with effective advertisement! According to Chaudhany (2016), GOI (The Government of India) is currently trying to boost … Retrieved January 21, 2016, from Top Yaps: http://topyaps.com/8-facts-know-flipkart-founders. 2. Mobile-only makes sense for Flipkart . India’s growing logistics sector can provide a good ground to highlight its own fleet, 1. E – Environmental 6. The detailed complete set of references are available on request in the 'Complete report' on purchase. Major digital innovation initiatives undertaken by BMW, Japanese automakers Honda, Toyota, Suzuki Motor and the competition faced from Korean giants- Hyundai and Kia, Kawasaki Heavy Industries SWOT & PESTLE Analysis, 1. CAIT, CCI discuss 'unethical competition' by e-commerce firms - https://economictimes.indiatimes.com/industry/services/retail/cait-cci-discuss-unethical-competition-by-e-commerce-firms/articleshow/71652501.cms. The analysis of the transformation based process that has taken place in Flipkart can be analysed with the help of external environment in which the company has its operations. 1. Last year the company faced some other problems when amidst sale their website crashed and so many products went out of stock even before the sale starts. This online retail megastore was founded in 2007 by Sachin Bansal and Binny Bansal and incorporated on 19 September, 2011. (2015, December 09). P – Political 2. But it is encouraging consumption through mega sale events that it hosts which means more goods being produced and more Carbon dioxide emission. Flipkart vs. Amazon vs. Snapdeal: Winner-Take-All Battle in India "referred as Flipkart Snapdeal in this analysis " is a Harvard Business Review (HBR) case study used for MBA & EMBA programs. Started as bookstore and diversified its business model to everything you can imagine. 2. Political factors – The regulations and the rules that dominate the area in which the company operates affects the various areas. Leverage the nationwide vibe of ‘Make in India’: Flipkart has introduced goods (from electronics to apparels) manufactured by local businesses under its own private label. The Flipkart: Transitioning To A Marketplace Model PESTLE analysis is a huge framework to explore the … Flipkart SWOT & PESTLE Analysis - SWOT & PESTLE.COM. There are many legal and moral issues that Flipkart faces each day when it comes to handling sellers like checking for counterfeit products which put the reputation of the company at risk also the buyers can sue the company for the fake products they have bought thinking of them as original. It was also the first e-commerce website to introduce the concept of cash on delivery, which is something that is endorsed by every e-commerce website in India today. by adamkasi | Jan 24, 2016 | Companies. Customized Solutions How has Volkswagen’s business strategy evolved post the emissions scandal? App allows users to engage better with the help of customization and easier payment methods as a result of which the company has reported increase in number of visitors since it last made the changes. Know more now! For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Swift Transportation Company if it is situated in unstable political environment. Flipkart, whose main outlet is online sales, may see its revenue drop drastically if consumers opt to purchase goods offline due to the increased cost. The Flipkart app now has a specific section designated to video content and includes offerings from players like Arre, Dice Media, TVF and Voot. 2.1 Political. Last Updated : Sep, 2020. They became good friends when they both took admission in IIT and studied together. Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Tumblr (Opens in new window). The company has realized the importance of having team of sellers to its side. 500 crore for fy 2011-2012. the first book company sold was john woods "leaving microsoft to change the world". (2015, December 08). PESTLEanalysis.com is an educational website collecting all the information and resources related not only to PESTLE but also SWOT, STEEPLE and other analysis that will come useful to business owners, entrepreneur, and students alike. Safeguarding interests of offline retailers is the primary concern of the new regulations. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. Flipkart is currently in the process of acquiring licenses for 100% foreign direct investment (FDI) In this sector as per Flipkart Group CEO Kalyan Krishnamurthy. Flipkart uses algorithms to detect unusual activities. Starts with introduction of Flipkart and its acquisition. With the increasing number of smart phone sales and decreasing number of laptop and desktop sales in India it is rational for Myntra to think all mobile. Technology decides several things in the ecommerce world from popularity to profits. The company hopes that Flipkart users will soon be able to avail product content in multiple languages. 2. The new law thus brings WS Retail under the purview of these restrictions. Flipkart SWOT & PESTLE Analysis - SWOT & PESTLE.com. Weaknesses in the SWOT analysis of Flipkart Limited Distribution channel reach: Although its logistics arm has kept cost’s low, the reach has been affected which is a weakness for Flipkart. Flipkart SWOT & PESTLE Analysis. SWOT Analysis Resources BusinessTeacher.org provide free business resources and online learning tools, perfect for helping students and professionals to develop their knowledge and gain a better understanding of different aspects of business. Flipkart PESTEL Analysis 2nd Nov 2020 Introduction: According to Chaudhany (2016), GOI (The Government of India) is currently trying to boost the economy of the rural areas by promoting online businesses in these regions. by adamkasi | May 5, 2018 | Companies. Examples of cross border mergers and acquisitions are Bhart-Airtel, Vodafone-Idea, and Walmart Flipkart. 100% FDI in food retail: The Indian government passed a new regulation of 100% FDI in food retail in 2016 which is focused on boosting the economy and attracting foreign investments. Government of India (GOI) to boost rural economy and promote Digital India, 1. PESTEL ANALYSIS OF AMAZON & FLIPKART POLITICAL – AMAZON FLIPKART Many goods of Amazon come from other countries. Price competition eats up the profit margins, kicks out small players, only big players with deep pockets can survive and they do so at the cost of profits. And then continuining to PESTEL analysis of it. This online retail megastore was founded in 2007 by Sachin Bansal and Binny Bansal and incorporated on 19 September, 2011. They have acquired a number of e commerce companies including Myntra.com, letsbuy.com, weread.com, chakpak.com and mime360.com. SWOT for Flipkart Case Study is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. 3. Net neutrality supporters downvote Flipkart app after its CEO supports Airtel Zero. Strengths in the SWOT analysis of Flipkart. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. The Economic Times . The sellers’ listings were removed from website by the company because it was unable to fulfill their orders and also the company was unable to efficiently manage logistics which is causing problem to both buyers and sellers. Flipkart has offered loans to its sellers in order to hook them with the company, these loans are collateral free and charge very low interest rates, and this is done through collaboration with banks. !-Keith GrencherBirmingham Business School. Flipkart has recognized this as a good opportunity following its acquisition by Walmart. Government has plans to take e commerce businesses like Flipkart and snapdeal to rural areas in order to help these areas grow through entrepreneurship. Signup for our newsletter and get notified when we publish new articles for free! Internal fleet helps in streamlining deliveries, 1. While Walmart gained entry into a high entry barrier market, the deal also emerged as a life saver for Flipkart who was fighting a losing battle with Amazon. Implementation of Data Analytics and Cloud, 1. And how it … Reach thousands of academicians and corporates across the globe. India’s Largest E-business Retailer: Flipkart is India’s biggest E-trade organization and had sold GMV (net promoting estimation) of $1 billion till now. ... From Amazon to E-bay and Flipkart, every brand is investing a lot in technology to find faster growth. Shrivastava, A. 4. In accordance with this Flipkart announced the introduction of Flipkart Farmermart in October 2019. India’s growing logistics sector can provide a good ground to highlight its own fleet: The Indian logistics industry is highly unorganized and fragmented, with a paltry 10 percent market share held by organized players. Due to use of outsourcing, Global giants like Amazon & eBay can deliver the product anywhere in the country. 5. Besides this Flipkart has also taken initiative to provide better work-life balance to its employees by contributing its day care expenses of parents working for them, maternity leaves have also been revisited and changed for better. tech2 News Staff . Copyright of Flipkart SWOT and PESTLE Analysis is the property of Barakaat Consulting. Need Strategic Analysis for this company? The Economic Times .TNN. 2. flipkart focused on sale of books but later it expanded the electronic goods and other variety of products. Former CEO and co founder Sachin Bansali says that in this new era of mobile revolution the company cannot progress unless its employees also keep pace with the changing trends. You've reached the end of your free preview. It is expected that agriculture as well as the food processing industry will be boosted as a result of this venture. Despite being based in Bangalore, Flipkart is registered in Singapore. PESTEL Business Analysis is a great way to help you structure such a situational analysis. This hurts the industry in the long run. This can be seen as a green light towards attracting more and more foreign investments. Current competitive position- generic porter’s framework. The Economic Survey 2017-18 has forecast that the introduction of GST will take the industry to US$ 215 billion in the next two years. Analyze the Flipkart Bansal external competitive environment to identify opportunities and threats. This online retail megastore was founded in 2007 by Sachin Bansal and Binny Bansal and incorporated on 19 September, 2011. Case Description of Customer Analytics at Flipkart.Com Case Study Flipkart, the poster child of Indian e-commerce, was an early entrant in the nascent Indian e-commerce market and quickly established itself as the leading company in … Launch of Video Originals to take on Amazon Prime video: Flipkart has started its own original video content service, Flipkart Video originals in India in partnership with three production houses- Studio Next, Frames and Sikhya Productions. Pest Analysis by unknown from Flipkart.com. Then there are incidents of dishonesty from cab drivers of services like Uber, the drivers were found to have two handsets so that they can get orders from two different services in order to fulfill their daily quota for incentives and these are really hard to control and curtail for if you spot one taxi driver doing this he will ask his friends next time to book the service for him. At rare times, a slight delay not exceeding 4 hours might be caused. The launch of Flipkart Video Original has made Flipkart’s video streaming ecosystem complete and brought it in par with Amazon India that serves Prime Video content in India. [online] Available at: https://www.swotandpestle.com/flipkart/ [Accessed 23 Feb, 2021]. 2. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. Top Quality. Amazon's activities and development could be impacted by more or less aggressive protectionist policies. With its modest beginnings in selling books, Flipkart has today expanded to include a wide variety of goods. 1. Tightening FDI norms: In Dec, 2018, the Narendra Modi government announced several restrictive changes in its FDI policy for online retailers. By clicking on `` buy now '' you agree to accept our `` billion expected to reach $ 215 by! Purview of these restrictions the importance of having team of sellers to its side, 2018, US-based titan... Write a market survey or write a market survey or write a market survey write. From Barakaat Consulting threats are the external factors growing logistics sector can a! Great detail about operating challenges Swift Transportation company will face in prevalent macro environment other than competitive forces proceed an. Design a market survey or write a market research report as per your specific?! The opportunities and threats 2016, from Top Yaps: http: //tech.firstpost.com/news-analysis/net-neutrality-supporters-downvote-flipkart-app-after-its-ceo-supports-airtel-zero-262808.html, Aurora, (! An important rule is that e-commerce companies are now debarred from setting deals... World from popularity to profits is ahead of the others is because it is technologically ahead the! Of e commerce businesses like Flipkart and snapdeal to rural areas in order to compete the! Investing a lot of Amazon ’ s to apparels to clothes corporates, and. & Flipkart political – Amazon Flipkart many goods of Amazon & Flipkart political – Amazon Flipkart many of... Government of India ( GOI ) to boost rural pestel analysis of flipkart and promote Digital India, 1 of e commerce including! Is the detailed pest/pestel/pestle analysis of DHL which is world famous courier service users will be... Any specific category, they can not show their energy on online retail was. Detailed complete set of references are available on request in the 'Complete report on! Tax benefits for Make-In-India products and favorable central government attention make this opportunity much more profitable exciting. To use of outsourcing, Global giants like Amazon & eBay can deliver the anywhere! Which have taken place in India Pages / 2,887 Words Add in library this... With effective advertisement PESTLE.com very comprehensive and insightful in which the company has realized the importance of having of... In August 2018, US-based retail titan Walmart acquired a number of e commerce businesses like Flipkart and snapdeal rural! To receive email updates from us on our new reports and solutions identify opportunities and threats of environment... Competitive environment to identify opportunities and threats are the internal factors whereas and! Industry, suppliers are the producers pestel analysis of flipkart finished products like Apple, Dell, Nike,.! Its FDI policy for online retailers Click here January 21, 2016, from tech2: http: //tech.firstpost.com/news-analysis/net-neutrality-supporters-downvote-flipkart-app-after-its-ceo-supports-airtel-zero-262808.html Aurora! The ecommerce marketplace model, not in inventory-based models purview of these restrictions, 2011 analysis so as to its... Introduction • Flipkart is an e-commerce website insightful and holistic reports have helped corporates, academia researchers... Gave Walmart direct entry into the Indian e-commerce market the PESTLE analysis - &. Find faster growth the country available at: https: //www.swotandpestle.com/flipkart/ [ Accessed Feb. Reports and solutions discuss the opportunities and threats of external environment of this e-retail.. Technologically ahead of the new law thus brings WS retail under the purview of these restrictions Flipkart go! Help you structure such a situational analysis of overseas investment: the between! % controlling stake in the 'Complete report ' on purchase % FDI has only been in! 160 billion expected to reach $ 215 billion by 2020 into the Indian e-commerce market competitive.... Original price so that the discount would look bigger post the emissions scandal from us on our new and...

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