Amazon.com vs flipkart.com
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This presentation gives to an insight of E-retailing in India. Also it focuses on the Competition that prevail between Amazon and flipkart. Also it provide information about the future of E-retail market india.
Transcript of Amazon.com vs flipkart.com
- WE ALL LIKE SHOPPING
- & WE ALL LIKE THE INTERNET
- PUTTING THE GETHER (SHOPPING+INTERNET)=?
- ONLINE SHOPPING=AMAZON FLIPKART
- FOUNDER Jeffrey Preston "Jeff" Bezos
- INTRODUCTION Amazon.com, Inc. is an American international electronic commerce company with headquarters in Seattle, Washington, United States. Amazon.com started as an online bookstore, but soon diversified, selling DVDs, VHSs, CDs, video and MP3downloads/streaming, software, video games, electronics, apparel, furniture, food, toys, and jewellery. The company also produces consumer electronicsnotably the Amazon Kindle e-book reader and the Kindle Fire tablet computer. Amazon is considered the fourth most successful startup company of all time by market capitalization, revenue, growth and cultural impact
- BUSINESS MODEL MISSION: TO BE WORLDS LARGEST CUSTOMER CENTRIC COMPANY. TWO FACTOR: GROWTH DIVERSITY IN SELECTION PLATFORMS FOR MERCHANTS AND ASSOCIATES.
- INNOVATION COMPANY DONT BELIEVE IN INNOVATING NEW THINGS. BUT RATHER INNOVATING IN THINGS THAT DONT CHANGE. E BOOK READER AND AMAZON KINDLE ALL ENERGY IS USED IN IT.
- Acquisitions 1998: PlanetAll, a reminder service based in Cambridge, Massachusetts; Junglee, an XML-based data mining startup based in Sunnyvale;[Bookpages.co.uk,a UK online book retailer, which became Amazon UK on October 15, 1998. 1999: Internet Movie Database (IMDb);Alexa Internet, Accept.com, and Exchange.com 2003: Online music retailer CDNow. By 2011, the website cdnow.com was defunct and in use by a different company. 2004: Joyo.com, a Chinese e-commerce website.[ 2005: BookSurge, a print on demand company, and Mobipocket.com, an e-Book software company.[CreateSpace.com (formerly CustomFlix), a distributor of on-demand DVDs, based in Scotts Valley, California. CreateSpace has since expanded to include print on- demand books (POD), CDs, and video. 2006: Shopbop, a retailer of designer clothing and accessories for women, based in Madison, Wisconsin. 2007: dpreview.com, a digital photography review website based in London; Brilliance Audio, the largest independent publisher of audiobooks in the United States. 2008: Audible.com; Fabric.com; Box Office Mojo;AbeBooks; Shelfari; (including a 40% stake in LibraryThing and whole ownership of BookFinder.com, Gojaba.com, and FillZ);Reflexive Entertainment,a casual video game development company. 2009: Zappos,an online shoe and apparel retailer Lexcycle, SnapTell, an image matching startup, Stanza, a rival e-book reader to Amazon's Kindle. 2010: Touchco., Woot,Quidsi, BuyVIP, Amie Street. 2010: Toby Press[ 2011: LoveFilm, The Book Depository, PushbuttonYap, 2012: Kiva Systems,Teachstreet Evi 2013: IVONA Software, GoodReadsLiquavista
- FOUNDERS SACHIN BANSAL & BINNY BANSAL
- INTRODUCTION Flipkart is an Indian e-commerce company headquartered in Bangalore, Karnataka. It was founded by Sachin Bansal and Binny Bansal in 2007. In its initial years, Flipkart focused on online sales of books, but later it expanded to electronic goods and a variety of other products. Flipkart offers multiple payment methods like credit card, debit card, net banking, e-gift voucher, Cash on Delivery and Card Swipe on Delivery
- THEN & NOW Flipkart was founded in 2007 by Sachin Bansal and Binny Bansal, both alumni of the Indian Institute of Technology Delhi. They worked for Amazon.com before quitting and founding their own company. Initially funded by the Bansals themselves with Rs. 4,00,000. In its initial years, Flipkart focused on online sales of books. Today , Flipkart is amongst the top 20 Indian Web sites and has been credited with being India's largest online bookseller with over 11 million titles on offer. In 2012, Flipkart added A.C, air coolers, stationery supplies & life style products to its product portfolio. As of today, Flipkart employs more than 4,500 people.
- RISKING IT ALL ON THE LINE There was huge risk taken by both the Bansal's as both of them got a high profile job in the worlds biggest e-commerce website named Amazon. Leaving Amazon to start their own company with just Rs. 4,00,000 involved a huge risk as there was no guarantee that their idea would succeed or not. It was result of this risk taking only that today Flipkart generates Rs 1.5 Crore a Day. It has a record user base of 1 Million in India only.
- INNOVATION FLIPKART BROUGHT MAY REVOLUTIONARY INNOVATIVE IDEAS TO MAKE ONLINE SHOPPING MUCH EASIER AND FUN THAN IT WAS A FEW YEARS BACK. SOME OF THESE INNOVATIONS ARE :-
- DELIVERY WITHIN 2 DAYS The first few e-commerce web sites broke the trust of many Indian customers by not delivering the order product on time. Flipkart realised this problem and in order to bring the customer back to on line shopping it came up with idea of delivering the product in 2 days & if there is a delay then the customer is paid interest on the value of product.
- 30 DAYS RETURN POLICY In order to satisfy the Indian customer after the product is delivered flipkart came up with idea of providing 30 day return policy. This is done to ensure that the product delivered to the customer is not faulty.
- Card Swipe on Delivery Flipkart realised that most of Indian customers are not comfortable sharing there credit card details online. As there is always a risk of fraud. For solving this problem it came up with the idea of card swipe on delivery i.e- the delivery guy brings the card swipe machine so that all the transaction happens before customer.
- BROWSING- MADE EASY http://www.flipkart.com/
- COMPARISON-MADE EASY http://www.flipkart.com/mobile/compare?ids=MOBDKVGZUEGRAYZD,MOBDHM YXDFYCZCVC,MOBDH2XTNHMHA6BU,MOBDGPDZ5BRABR2W
- PROMOTIONAL TECHNIQUES ADVERTISING
- SALES PROMOTION techniques like --- Rebate Discounts Refunds Quantity deals/gifts Usable benefits Full finance @ 0%
- BUSINESS RESULTS In FY 20112012, Flipkart crossed the INR5 billion (US$100 million) mark as Internet usage in the country increases and people get accustomed to making purchases online. Flipkart projects its sales to reach INR10 billion by year 2014. On average, Flipkart sells nearly 20 products per minute and is aiming at generating a revenue of INR50 billion (US$1 billion) by 2015.
- Acquisitions 2010: WeRead, a social book discovery tool. 2011: Mime360, a digital content platform company. 2011: Chakpak.com is a Bollywood news site that offers updates, news, photos and videos. Flipkart acquired the rights to Chakpaks digital catalogue which includes 40,000 filmographies, 10,000 movies and close to 50,000 ratings. Flipkart has categorically said that it will not be involved with the original site and will not use the brand name. 2012: Letsbuy.com is India's second largest e-retailer in electronics. Flipkart has bought the company for an estimated US$25 million. Letsbuy.com had been closed down and all the traffic of Letsbuy is diverted to Flipkart.
- Glowing reviews: AMAZON 80 percent of Amazons product reviews were positive. people who received free products from publishers, agents, authors, and manufacturers. FLIPKART The lesson: Encourage reviews of your business, especially when youve got a happy customer on your hands.
- Niche Product AMAZON (E-BOOK) People are reading more than ever because of the ease of E- books. E-books from Amazon are also popular among those with iPads because of Amazons expansive selection FLIPKART Lesson: If youve got a niche product that youre known for, keep your focus on it and maintain a wide selection
- Value-added differentiation AMAZON Amazon.com works hard to achieve value-added differentiation through customer- focused information services. Amazon.com's site retains customer preferences and provides automated customization for users FLIPKART Lesson : should focus on the customer preferences and give them advantage of customization of product
- Price Control AMAZON Amazon still manage to get a hold on its price differentiation when compared to other physical or online store FLIPKART But with flip kart , they are still not getting it. Customer still find a wide gap in price b/w flip kart and other online sto