Flipkart acquires Myntra : SAPLAP analysis

Presented by:

Swati Singla

Himanshu Sabharwal

Vision

Mission

Objective

Flipkart

To become ‘Amazon’ of India

To provide its customers a delightful online shopping experience

To redefine the way India shops

INTRODUCTION

SAPLAP Analysis (Sushil 2001)• S – Situation (Explains the problem to be dealt)

• A – Actors (Includes important people who are decision makers)

• P – Process (Approach by which issues or inputs are converted into outputs)

• L – Learning (Depicts key learning from SAP)

• A – Action (Measures taken to solve the issue)

• P –Performance (Actual outcome expected)

SITUATION

• E-Commerce industry has grown from 192.49 billion to about 815.25 billion INR in 2014 and expected to be 1000 billion INR in 2015.

• Indian retail industry is worth 35719.68 billion INR and etail is about 3%.

• Seeing the great potential in etail Flipkart acquired Myntra for Rs2000 Cr to compete with Amazon and capture 50% market share in 2014

SWOT Analysis of Flipkart

Strengths

1.Strong brand value

2.Own Logistics (ekart)

3.Own online payment gateway(payzippy)

Opportunities

Providing logistics services to its competitors

Weaknesses

1.Investor driven organization

2.Excessive focus on expanding cstomer base rather than pulling profits

Threats

Competition from Amazon, Snapdeal

etc.

ACTORS• Market• Top management• Competitors• Government (If FDI is permitted in

e-commerce)

PROCESS

• The Flipkart works on Hybrid Model that is a combination of both market place tie ups and self owned inventory.

LEARNINGS

• E-Commerce market of India has great potential opportunity as internet penetration of India is very low (25%) as compared to USA (87%) & China (41%).

• The situation is improving with the growing acess to internet and availablity of broadband.

• Rapid adoption of smartphones & tablets which are promoting online shopping.

ACTION

• Flipkart acquired Myntra to capture 50% of e-commerce market share.

• As the smartphone users are increasing Myntra launched its application for smartphones.

• Rolled out next day delivery option to compete against Amazon, Snapdeal etc.

PERFORMANCE

• Fllipkart tops the market share with 44%.• $1.5 billion sales along with Myntra in FY

2014 and $3 billion sales expected by the end of FY 2015.

• 30 million products being sold with over 70 categories.

• 3000 sellers all over India.• 50% of sales through m-commerce.• Revenue for FY 2014 is INR 2,846 Cr.

THANK YOU !