1 HR Development And Utilization In The Public Sector

2 Effect of Trust on Customer Loyalty among Mobile Phone Service Subscribers: the Mediating Power of Brand Image

3 The influence of Conflict Resolution, Acculturation, Gender Role on Marital Satisfaction among Iranian Married Students

4 Awareness and Usage of Contemporary Performance Measures for Measuring Performance of Indian Banking Sector

5 Integration of Indian Stock Markets With its trading partners from select Asian Markets: An Empirical Study

6 Challenges of Day to Day Operations at Modern Retail Stores across the Pune City Metro Region

7 An Empirical Study of E-Banking Adoption by Retail Customers in Selected Banks of Rajasthan

8 Corporate Leverage and Shareholder Value Creation- A Study on Indian Manufacturing Sector

9 Corporate Social Responsibility: An Inclusive Growth Model for Developed Indian Economy

10 An Empirical Analysis on Subscription Pattern of Retail and Institutional Investors in Indian Capital Market

11 A study on effectiveness of FM radio advertising: An importance and performance mapping of Chennai FM radio stations

12 Response of Bangladesh Stock Market to Global Financial Crisis: An Analysis

13 Family Level Problems of Single Parents and Role of Human and Material Resources

14 Utilitarian and Hedonic Shopping Values: A Study on Impact of Rational and Emotional Behavior on Individual’s Perceived Benefits.

15 Sustainable Financial Planning: A Comparative Study on Odisha Young Employees with Financial and Non Financial Sectors

16 Motivation Level of Employees and its Effect on Overall Performance in Insurance Sector

17 Entrepreneurship in Health Care with Special Reference to Kerala State

18 A Study of HRD and its Impact on Organizational Performance with Special Reference to Indian IT Industry

19 The Impact of Mergers on Profitability: An Empirical Study on Indian Banking Sector

20 Decision Making Determinants in Purchase of Clothing of Elderly Consumers

21 Indian Corporate Governance: Growth & Challenges

22 Impact of Advocacy Advertisement on Brand Image

23 Water and Sanitation: A Gender Perspective

24 Shakespeare’s Selected Plays: A Feminist Perspective

25 Capturing Synergies and Competitive Advantage to Take on Amazon though Acquisition of Myntra by Flipkart (CASE STUDY)

26 Evolution & Prevailing Condition of Primary Education in India

27 Environment, Business and Accounting

28 Anti-Money Laundering Programme- An Insight Overview

Mussie T. Tessema, Diane May, Mengsteab Tesfayohannes-Beraki, Sebhatleab Tewold, Kifleyesus Andemariam

Adewale. Adekiya, A.

Katayoon Ahangar, Rumaya Juhari, Siti Nor Yaacob, Mansor Abu Talib

Prof. Sanjiv Mittal, Dr. Sanjeev, Dr. Sunil Kumar

Nupur Gupta-Bhattacharya, Rahul Gogawat, Ankit Chaturvedi, Dipal Modi

Dr. Ranjeet H. Chitale

Meera Mathur, Zakiya Khan

D.Vijayalakshmi, Dr.Padmaja Manoharan

Shailja Dixit

Souvik Banerjee

Sivasundaram Anushan.S.C, Preethi.R

Niti Goyal

Namita Bhatnagar

Uma Gulati

Santanu Kumar Das, Suman Kalyan Chaudhary

Ujjwal M. Mishra , Irfan Siddiqui

Shyni .MC

Kanchan Bhatia, Divya Tiwari

Suresh Patidar, Gaurav Sunil

Suman Pant, Nidhi Vashisth

Priyanka Vijay

Sunita Dwivedi

Sangeeta Poswal, Thushara Roy

Surbhi Vijay

Amit Kumar Sinha, Sayed Zainul Haque

Ritesh Dwivedi, Arunima Naithani

S.T. Gadade, Minaxi Rachchh

Mitali Palit

IJRSMS

ISSN (E) : 2320-8236 Vol: 3, Issue: 2 April-June, 2015

ISSN (P):2395 - 4833

E- ISSN: 2320-8236 , P-ISSN: 2395-4833 VOLUME: 3, ISSUE:2 APRIL-JUNE 2015 www.ircjournals.org www.ircjournals.org

i

Editor-In-Chief

Dr. Pratyush Tripathi Professor

Faculty of Management VNS Group of Institutions

Bhopal (M.P.)

EDITORIAL ADVISORY BOARD Dr. Om Prakash Gupta Professor Prairie View University Texas (USA)

Dr. Kishore Kulkarni Professor College of Business, Metropolitan State University of Denver Denver, Colarado (USA)

Prof.Dr.Patthira Phon-ngam Chairman of Doctoral Degree Program Faculty of Humanities and Social Science Loei Rajabhat University Thailand

Prof. (Dr.). Abhilasha Singh American University in the Emirates (AUE) Dubai International Academic City, Dubai, UAE

Dr. V.K. Gupta Professor IIM-Indore Indore (M.P.)

Dr. S.C. Behari Professor (Finance) Indian School of Business Hyderabad (A.P.).

Dr. R.P. Das Professor & head, Faculty of Management Studies Pt. Ravi Shankar University, Raipur (C.G.). India

Dr. L.P. Pateriya Professor & Head, Faculty of Management Studies GGDU, Bilaspur (C.G.) India.

Dr. Ashish Sadh Associate Professor IIM-Indore Indore (M.P.)

Dr. Shalini Talwar Professor (Finance) KJ Somaya Institute of Management Studies & Research Mumbai (Mah.)

Dr. Karunesh Saxena Professor & Head, Faculty of Management Studies M.L. Sukhadia University Udaipur (Rajasthan) India

Dr. I.P. Tripathi Professor of Commerce, Principal, Govt. P.G. College Rewa (M.P.)

Dr. Sudershan Kuntluru Associate Professor, Indian institute of management Kozhikode, Kerala

Dr. R.P. Goutam Professor & Head, Department of Political Science & Public Administration, Dr, Hari Singh Gour University, Sagar, India

Dr. M.P. Goutam Professor & Head, Deptt. Of Forensic Science GGDU, Bilaspur (C.G.) India

Dr. Rajeev Dubey Professor (Business Economics) & Head, Deptt. Of Business Management A.P. S. University, Rewa

EDITORS Valentina Emilia Balas Assoc.Professor, Aurel Vlaicu University of Arad, Romania

Dr.B.Nimalathasan Senior Lecturer, Department of Accounting, Faculty of Management Studies & Commerce, University of Jaffna, Sri Lanka.

Dr. Parag Dubey Professor, National Institute of Technical Teachers Training & Research Bhopal (M.P) India

Dr. Mukesh Chansoria Professor & Director School of Management, LNCT Bhopal (M.P.) India.

EDITORIAL BOARD

E- ISSN: 2320-8236 , P-ISSN: 2395-4833 VOLUME: 3, ISSUE:2 APRIL-JUNE 2015 www.ircjournals.org www.ircjournals.org

ii

IRC’s International Journal of Multidisciplinary Research

in Social & Management Sciences

Vol 3 Issue 2 (April-June 2015)

Contents S.No. Title & Author Page No.

1 HR Development And Utilization In The Public Sector Mussie T. Tessema, Diane May, Mengsteab Tesfayohannes-Beraki, Sebhatleab Tewold, Kifleyesus Andemariam

1-8

2 Effect of Trust on Customer Loyalty among Mobile Phone Service Subscribers: the Mediating

Power of Brand Image Adewale. Adekiya, A.

9- 17

3 The influence of Conflict Resolution, Acculturation, Gender Role on Marital Satisfaction among

Iranian Married Students Katayoon Ahangar, Rumaya Juhari, , Siti Nor Yaacob, Mansor Abu Talib

18- 24

4 Awareness and Usage of Contemporary Performance Measures for Measuring Performance of

Indian Banking Sector Prof. Sanjiv Mittal, Dr. Sanjeev, Dr. Sunil Kumar

25-32

5 Integration of Indian Stock Markets With its trading partners from select Asian Markets: An

Empirical Study Nupur Gupta-Bhattacharya, Rahul Gogawat, Ankit Chaturvedi, Dipal Modi

33-41

6 Challenges of Day to Day Operations at Modern Retail Stores across the Pune City Metro Region Dr. Ranjeet H. Chitale

42-48

7 An Empirical Study of E-Banking Adoption by Retail Customers in Selected Banks of Rajasthan DR. Meera Mathur, Zakia Khan

49-53

8 Corporate Leverage and Shareholder Value Creation- A Study on Indian Manufacturing Sector Dr.D.Vijayalakshmi, Dr.Padmaja Manoharan

54- 62

9 Corporate Social Responsibility: An Inclusive Growth Model for Developed Indian Economy Dr Shailja Dixit

63-71

10 An Empirical Analysis on Subscription Pattern of Retail and Institutional Investors in Indian

Capital Market Souvik Banerjee

72-78

11 A study on Effectiveness of FM radio Advertising: An importance and Performance mapping of

Chennai FM Radio Stations Dr. Sivasundaram Anushan.S.C, Preethi.R

79-85

12 Response of Bangladesh Stock Market to Global Financial Crisis: An Analysis Dr. Niti Goyal

86-89

13 Family Level Problems of Single Parents and Role of Human and Material Resources Dr. Namita Bhatnagar

90-95

14 Utilitarian and Hedonic Shopping Values: A Study on Impact of Rational and Emotional Behavior

on Individual’s Perceived Benefits Dr.Uma Gulati

96-101

15 Sustainable Financial Planning: A Comparative Study on Odisha Young Employees with Financial

and Non Financial Sectors Mr. Santanu Kumar Das, Dr. Suman Kalyan Chaudhary

102-110

16 Motivation Level of Employees and its Effect on Overall Performance in Insurance Sector Dr. Ujjwal M. Mishra, Dr. Irfan Siddiqui

111-114

17 Entrepreneurship in Health Care with Special Reference to Kerala State SHYNI.MC

115-120

18 Predictors of Employee Wellbeing’s among Private & Public Sector: An Empirical Study in Odisha Dr. Kalpana Sahoo

121-130

E- ISSN: 2320-8236 , P-ISSN: 2395-4833 VOLUME: 3, ISSUE:2 APRIL-JUNE 2015 www.ircjournals.org www.ircjournals.org

iii

19 A Study of HRD and its Impact on Organizational Performance with Special Reference to Indian

IT Industry Dr. Kanchan Bhatia, Divya Tiwari

131-135

20 Equity Investors Perception about Environment Related to M&A in India P. Praveen Kumar, DR. R. Kasilingam

136-140

21 The Impact of Mergers on Profitability: An Empirical Study on Indian Banking Sector Dr. Suresh Patidar, Gaurav Sunil

141-154

22 Decision Making Determinants in Purchase of Clothing among Elderly Consumers Suman Pant, Nidhi Vashisth

155-163

23 Indian Corporate Governance: Growth and Challenges Priyanka Vijay

164-166

24 Impact of Advocacy Advertisement on Brand Image Dr. Sunita Dwivedi

167-174

25 Water and Sanitation: A Gender Perspective Dr. Sangeeta Poswal, Thushara Roy

175-179

26 Shakespeare’s Selected Plays: A Feminist Perspective Surbhi Vijayvargeeya

180-182

27 Capturing Synergies and Competitive Advantage to Take on Amazon though Acquisition of Myntra

by Flipkart (CASE STUDY) Dr. Amit Kumar Sinha, Sayed Zainul Haque

183-188

28 Evolution & Prevailing Condition of Primary Education in India Dr. Ritesh Dwivedi, Arunima Naithani

189-198

29 Environment, Business and Accounting Dr. S.T. Gadade, Dr. (CA) Minaxi Rachchh

199-202

30 Anti-Money Laundering Programme- An Insight Overview Dr. Mitali Palit

203-207

31 Text as Reflective Index of Human Behavior Priti Sharma, Madhu Chauhan

208-211

32 Brain Tumor Segmentation Using Shannon and Non-Shannon Entropy Measures Anushikha Jain, Ranu Lal Chouhan

212-217

33 Computational Model for Fuzzy Cryptography Bhanu Sahu, Deepti Maheshwari, Neeraj Sahu

218-221

E- ISSN: 2320-8236 , P-ISSN: 2395-4833 VOLUME: 3, ISSUE:2 APRIL-JUNE 2015 www.ircjournals.org www.ircjournals.org

iv

Editor’s Message

IRC’s International Journal of Multidisciplinary Research in Social and Management Sciences

(IJRSMS) is a peer reviewed Quarterly journal, available in both online and print form. Its major

objective is to disseminate concepts of professional management and contribute to a better

understanding of the context, resources, structures, systems, processes and performance of

organizations. It focuses on applied research and reflections that are relevant to practicing managers

and social scientists. It has an emphasis on social and Management issues that are relevant to the

society and business world.

As IRC’s International Journal of Multidisciplinary Research in Social and Management Sciences

(IJRSMS) its Tenth issue, we look forward to the momentous growth of our Journal, increasing in their

appeal, readership and relevance to the fast-changing world of Business Management.

During these two and half years journey our journal has been critically evaluated by various institutions

with similar line of interest and faculty fraternity. We have been consistently seeking advice from

experts to continuously improve the quality of the journal.

Our journal has been got Impact Factor from Index Copernicus value 4.13.

On behalf of the Management, Editorial Board and Editorial Team, I express my profound gratitude to

all our authors, reviewers, readers and patrons for offering their overwhelming support and I anticipate

a continued and lively partnership for years to come. All of us recognize the necessity for change,

which results in progress. It gives way to new ideas and perspectives reflecting the current and

emerging environment, which builds on the solid foundations of the past. Last but not least valuable

would be your response and suggestions on this issue. Kindly send us your views so that we can keep

on upgrading our journal.

Thanking you

With Regards

Dr. Pratyush Tripathi

Editor

E- ISSN: 2320-8236 , P-ISSN: 2395-4833 VOLUME: 3, ISSUE:2 APRIL-JUNE 2015 www.ircjournals.org www.ircjournals.org

183

Capturing Synergies and Competitive Advantage to Take on Amazon though

Acquisition of Myntra by Flipkart (CASE STUDY) Dr. Amit Kumar Sinha

1, Sayed Zainul Haque

2

1Associate Professor, Amity Business School, Amity University, Mallhaur, Gomti Nagar Extn. Lucknow

dramitksinha@gmail.com, aksinha1@lko.amity.edu 2MBA, B.Tech. Student, Amity Business School, Szainul13@gmail.com

Abstract: An invention of WWW has revolutionized every domain of the world and taught us to do business in a unique way. Today with

3.19 billion Internet Users across the world of which 2.5 million in India (ranked 3rd

among number of users) itself it has

become a hotspot for investors. As we see the developed countries like USA,UK are seeing a industrial life cycle to be in

saturation stage whereas in developing countries like China and India they are still in infant stage.

Today India has become a prime market for giants like Amazon ,eBay. India’s household name Flipkart is in with a mission. Its

recent moves like “Billion Day Sale” and acquisition of Myntra has been subjects to ponder upon. The acquisition of Myntra

(India’s largest fashion e-tailer) by Flipkart (India’s biggest e-tail company) brought together two of the biggest e-tailers in

India. This acquisition made possible by common investors, the acquisition would enable Myntra to leverage on Flipkart’s

infrastructure, while allowing Flipkart to strengthen its portfolio of product offering and outbound distribution logistic. The

acquisition is being looked upon as a step towards, forward as well as horizontal integration and exploiting the operational

synergy generated thereby. This consolidation is seen as a response to taking on Amazon which has made big plans for Indian

market, to get a competitive advantage. In this case authors have made an attempt to analyze this philosophy and analyze its

effects on the Indian e commerce market and economy on a whole.

Keywords: Acquisition, Amazon, Competitive Advantage, Forward integration, Flipkart, , Myntra, Operational Synergy

_________________________________________________________________________________________________

1. Introduction 22

nd May 2014 would be remembered as one of historic days in the e-commerce industry of India. In the Myntra

Headquarters at Bangalore the company’s co founders and chief executive Mukesh Bansal revealed the buy out of his firm by

Flipkart. He briefed the media for the announcement with the introduction of his two new colleagues – Sachin and Binny

Bansal, the founders of Flipkart. The three briefed about Myntra becoming a part of Flipkart but would continue to maintain

its identity. They added that the deal was finalized in Singapore in Flipkarts quarterly board meeting held from 15th

May

2014 to 20th

May 2014. Sachin Bansal (Flipkart’s Founder Member) said ” "Myntra is the leader in fashion today and we

would love to work with and learn from Mukesh and Myntra."

Apprehensions started coming forward when reports came out of Mukesh Bansal joining the Flipkart and heading the fashion

segment of both the entities. In several reports which come forward Economic Times quoted “A holding company has been

formed in which the founders of the two companies and their investors will hold stakes, according to multiple people who

have direct knowledge of the deal. The employees who have stock options will also get a stake in the holding company.

Myntra's policy of universal employee stock options will continue.”

Arvind Singhal, Chairman of Technopak Advisors Pvt. Ltd., said, “The Flipkart and Myntra merger will create the first

Indian e-tailing powerhouse, and provide a big fillip to India's still nascent but very promising e-commerce industry.”

However, not all experts were of the same view. Mahesh Murthy, co-founder of Seedfund , said, “While this (deal between

Flipkart and Myntra) may be good for investors, it might not be so good for the entrepreneurs and staff of these companies.”

Swati Bhargava, cofounder of Cashkaro.com , said “…Consolidation of top two out of five players is probably not great from

a customer perspective. It reduces competition and perhaps incentive for continual improvement.

2. Indian Online Retail(E-Tail)Industry In 2009, e-business in India had the value of $2.5 billion with 75% included in travel related business (airline tickets, railway

tickets, hotel bookings, online mobile recharge etc.). India e-business is expected to touch $9 Billion by 2016 and $70 billion

by 2020 with assessed CAGR (compound annual growth rate) of 61%. Online shopping ritual in India has had a slow journey

and the reason is internet penetration is very slow and not considered to be very dependable. The things off late have been

encouraging due to the changes made by the service providers and the well approached customer satisfaction at the click of a

button and in the place, time he wants. Although there grass root problems exist, yet Online Shopping in India is

evolving rapidly and has the potential to grow substantially in the times to come, as the internet penetration is reaching far

and wide across the rural areas as well. Further, the Indian purchaser attitude is changing at a quick rate. The cash on delivery

has helped a great deal for conventional purchasers to shop on the web. Today consumers are looking for value for money

and online portals are able to cater their desires in terms of quality, on time delivery, quality post sale service and above all

reasonable deals. These were the opportunity seen by founders of Flipkart. Thus the growth’s evident. We expect the revenue

generated by e-commerce to be $15 million by 2017( refer to exhibit-3). Thus a lot of room for growth is left

Capturing Synergies and Competitive Advantage to Take on Amazon though Acquisition of Myntra by Flipkart

(CASE STUDY) Dr. Amit Kumar Sinha, Sayed Zainul Haque

© INTERNATIONAL RESEARCH COMMUNION

ISSN(E): 2320-8236, ISSN(P): 2395-4833 VOLUME: 2, ISSUE:4 OCTOBER - DECEMBER 2014 www.ircjournals.org www.ircjournals.org

184

Thus we see that Indian market is growing with a rapid speed in the e-commerce field. To have a better understanding if we look at that

the commodity wise distribution of the products we see that apparels and accessories accounts for 30% (refer to exhibit-04) which

makes Myntra acquistion for Flipkart to continue to be the overall leader in the growing competition of e-commerce market in

India.Indian e-tail industry players mostly followed an inventory-based model or a non-inventory-based model also known as the

marketplace model. In August 2014, the players which followed the inventory-based model were Jabong.com , Myntra.com,

Firstcry.com , zovi.com (all were online retailers) and players that followed the non-inventory-based model were Flipkart.com,

Snapdeal.com , ebay.in , and Amazon.in (all were marketplaces). Industry experts felt the Flipkart and Myntra deal could start a phase of

consolidation in the Indian online retail space which was worth about Rs. 139 billion (about US$2.32 billion) in 2012-13.

III. Emergence of Flipkart Flipkart is an electronic business organization established in 2007, by Sachin Bansal and Binny Bansal. It works solely in India, where it

is headquartered in Bangalore, Karnataka. It is enrolled in Singapore, and possessed by a Singapore-based holding organization. As per

Alexa Internet, Flipkart's site is one of the 10 most visited to sites in India. Flipkart is not an Indian organization since it is enrolled in

Singapore and dominant part of its shareholders are outsiders. Since remote organizations are not permitted to do multi-brand e-retailing

in India, Flipkart offers merchandise in India through an organization called WS Retail later developing into a market place.

Flipkarts founders are, engineering graduates of 2005 from Indian Institute of Technology Delhi, who worked for Amazon. From a start-

up with a venture of simply $8,000 Flipkart has developed into a $100 Million income online retail monster in only five years. They

came in the E-commerce Industry with an idea to sell books including novels online however they started as a price comparison platform

since there weren't enough e-commerce sites to compare So, both the Bansals, who were colleagues at IIT Delhi, and then at

Amazon.com, thought, “why not start an e-commerce site?”. When they thought for a name which did not just speak of books alone, but

one that could suit any category of Products that they may add in future , a name which was easy to remember and catchy so they came

up wth Flipkart which means ‘Flipping things into your Kart’.

On 5th

September 2007 Bansals launched the company’s URL i.e. Flipkart.com for the first time in just an apartment room. Experts feel

the cash-on-delivery model adopted by Flipkart has proven to be of great significance since credit card and net banking penetration is

very low in India. The founders had used $8,000 just for making site to set up the business. However they have had various rounds of

funding being the highest in India of about $1.8 Billion in various rounds till July 2014 (refer to Exhibits 01-02). However in the

December it declared to complete the 11th

rounding and taking the investments to $ 2.5 billion.

When we look at there sales figures it was follows Financial

Year

Sales Figures(in

INR)

2008-

2009

40 million

2009-

2010

200 million

2010-

2011

750 million

2011-

2012

5 billion

Experts have projects its sales to reach 10 billion by year 2014 and 50 billion by 2015.On an average, Flipkart sells nearly 10

products per minute.

On 6 October 2014, they created history in e-commerce history by selling products worth INR 650Crore in 10 hours in a special one-day

event - "The Big Billion Day".On the other hand their hard-won reputation for good customer service got a hit because of technical

problems, and angry reactions on social media from buyers disappointed with the pricing and availability of products. Their founders

wrote an apology email which was a rare feet in Indian culture.

Flipkarts has always being a firm who could have been its competitor or can contribute to its growth. Thus ,they have worked on

acquiring the start ups and the list can be drawn as:

2010: WeRead, a social book discovery tool

2011: Mime360, a digital content platform company

2011: Chakpak.com,a Bollywood news site thatupdates news, photos and videos.

2012: Letsbuy.com,Indian e-retailer in electronics estimated US$25 million deal.

2014: Myntra.com in an estimated INR 2,000 crore deal.

Thus we see that Myntra is a recent adding to this series so we lets see what has been the road for Myntra as of now. IV. Myntra- The fashion leader Myntra was established by three IIT graduates Mukesh Bansal, Vineet Saxena and Asutosh Lawania in February 2007 . The vision

while establishing was to make India's biggest on- request personalization portal. . It started as a website catering to B2B (business to

business) segment with personalization of gifts like T-shirts, mugs and caps, calendars, chains and many more. When enquired about the

Capturing Synergies and Competitive Advantage to Take on Amazon though Acquisition of Myntra by Flipkart

(CASE STUDY) Dr. Amit Kumar Sinha, Sayed Zainul Haque

© INTERNATIONAL RESEARCH COMMUNION

ISSN(E): 2320-8236, ISSN(P): 2395-4833 VOLUME: 2, ISSUE:4 OCTOBER - DECEMBER 2014 www.ircjournals.org www.ircjournals.org

185

idea of the name “Myntra” its Co founder Ashutosh Lawania says. "We shortlisted 10 names, some more inclined to Hindi and the

others to English. We finally picked this one as it played on the word Mantra and still had a modern feel to it,"

However, in 2010, the company shifted its strategy by becoming a B2C (business to customer) oriented firm. In initial three years it

became India’s largest on demand personalization platform with over a 50% market share. The turn around came in December 2013,

when it ventured into fashion and today has become the market leader of online space. They have received funding from initial days and

till today has generated capital worth $158. Myntra also adapted the expansion strategy through acquisition and have acquired the

following firms.

2012-Sher Singh a private label fashion wear

2013 – Fitiquette , a virtual fitting room technology company

V. A Glimpse of Flipkart and Myntra Deal It is a 100% acquisition of Myntra by Flipkart

Myntra has been valued at INR 2,000 crore

Myntra will continue to operate its website

Identities of both portals will continue to exist as it was before the deal.

Myntra CEO, Mr.Mukesh Bansal will join the Flipkart board and oversee Flipkarts fashion business.

Myntra inventory maintenance procedure will be followed by Flipkart The deal details were given by CEO’s in a press conference.

“It is a 100% acquisition and going forward, we have big plans in this segment. Flipkart and Myntra are getting together to create one of

the largest e-commerce stories and together we will dominate the market”. Flipkart co-founder and CEO Sachin Bansal .

Mukesh Bansal , CEO , Myntra “ I am satisfied with the evaluation of Myntra at INR2,000 crore . I feel it is fairly evaluated.” VI. Why this great Bansal Wedding? In order to understand, the motive behind this acquisition, we look into two aspects

1. Strategic- to take on Amazon

2. Synergy- Operational & Financial Synergy

To begin with, if we look into the strategic relevance of this acquisition. We feel that the entry of the Amazon into Indian market was a

threat call for Indian players and on the domestic front increase in the numbers of competitors like Snapdeal was having an adverse

effect on Flipkart. Soon the management realized that in such competition from domestic as well as international players sustaining the

competitive advantage is big challenge. Then Flipkart management started looking for strategic move for sustainability. After making

competitor analysis, they thought about expansion strategy. And they went forward with acquisition of Myntra which gave them the

desired competitive advantage with both vertical and horizontal integration.

Vertical Integration as we know is an expansion plan in which company focuses on the point on the same path business. Through this

acquisition it will help Flipkart in improving its logistics network as it can utilize and learn from Myntra’s self owned logistic network.

As Flipkart has faced issues with its logistics network “E-Kart” so it can utilize the Myntra’s logistic network to enhance its delivery.

On the other hand if we see the horizontal integration which focuses on the acquisition or merger of similar nature of firms, here

Myntra’s addition to Flipakrt’s army would help it compete in the area of fashion in which it was lacking behind. Myntra which is the

country biggest fashion store will help catering to the customers which Flipkart lost due to lack of collection or varieties which is a

major requirement in this sector.

Here Myntra too can benefit as it can utilize the database of Flipkart and therby generate better traffic along with focusing on increasing

the profit margins by bargaining with the vendors as it has two warehouses to manage now thus greater quantity to procure.

Well lets look onto the Synergy accept as well. In simple words synergy is the creation of a whole that is greater than the simple sum of

its parts. When we look at this acquisition at this point we look into corporate synergy when corporations interact congruently. A

corporate synergy refers to a financial benefit that a corporation expects to realize when it merges with or acquires another corporation.

Thus synergy is of various forms:

Financial: By combining it would help negotiate their debt capacity as Flipkart was estimated with loss of 400 crores INR for 2013-14

(estimated by techcircle.in).This would help them over come this mutually benefitting each other.

Marketing: Both the firms can will mutually benefit in utilizing the huge database of customers for campaigns and promotion.

They both can now addresses a huge section of people at one go.

Capturing Synergies and Competitive Advantage to Take on Amazon though Acquisition of Myntra by Flipkart

(CASE STUDY) Dr. Amit Kumar Sinha, Sayed Zainul Haque

© INTERNATIONAL RESEARCH COMMUNION

ISSN(E): 2320-8236, ISSN(P): 2395-4833 VOLUME: 2, ISSUE:4 OCTOBER - DECEMBER 2014 www.ircjournals.org www.ircjournals.org

186

Source :Industry Estimates

Operational: In the field of e-commerce the foremost challenge faced by the service provider is enhanced delivery service. With the

expected launch of drone services by its competitors they can maintain the competitive advantage with the help of self owned logistics

network.

Myntra has launched its own logistics firm named “Myntra style delivery “which has been as successful as delivering the product in 58

minutes in Delhi and Bangalore. Flipkart too has its own logistics named “e-Kart “which has faced various hurdles recently which has

disappointed lot of customers recently. After this acquisition they want to stand out in logistics as they want to have their own providing

the best customer experience.

Myntra’s operation head Ganesh Subramaniam said “One of the biggest advantages is obviously customer experience. For instance, is a

customer wants the order to delivered at the office instead of his or her home, a third party wouldn’t do it. When you have your own

logistics, this becomes possible. The other thing is that when you’ve hit a certain scale, delivering via your own logistics is cheaper” Management: Myntra CEO, Mr.Mukesh Bansal who joined Flipkart board after the deal and was expected to oversee Flipkarts

fashion business. Recently he has been set to play a bigger role as he now is the Marketing Chief of Flipkart along with looking after the

computer and electronics segment too. Cost: As they both the parties to continue to hold their individual existence and as part of the deal that both start maintaining inventory.

Now they will be in a better position to negotiate with the vendors and thereby reducing the cost.

Revenue: By joining hands they are expected to get 50% of the organized lifestyle market as a combination of Flipakart and Myntras

present share of the market. In future they want it to increase to 70% of the share and increasing their revenue..

Source :Industry Estimates

VI. CONCLUSION Today the world has become a global village and no sector remains untouched. With the entry of a global player like Amazon in the

Indian e tail market becomes competitive and Indian players like Flipkart , Myntra , Snapdeal are supposed to face stiff competition. In

such scenario Indian players like Myntra and Flipkart have taken the right step towards by consolidation.

As this deal is in native phase so lot consequences are yet to occur but in the current work an effort has been made to work out the

expected synergy which may arise over the long period of time in future. On the basis of available information it may be concluded that

the acquisition of Myntra with generation of synergy especially operational synergy which is quite observable in terms of enhanced

supply chain logistics and extended market shares.

Right now we are not in the condition to make any comments in terms of financial synergy as these two companies are not public

limited companies. Hence the financial information is not available in public domain. However Flipkart who has raised $700 million (Rs

4,300 crore), less than six months. This Bengaluru-based company saw participation from new investors, including Greenoaks Capital,

Steadview Capital and Qatar Investment Authority, along with existing investors such as DST Global, ICONIQ Capital and Tiger

Global. For the year, 2014 Flipkart has raised a total of $1.9 billion and close to $2.7 billion since its inception. With this it is now

valued at about $11 billion (Rs 69,000 crore), more than some of the country's largest consumer companies.

VII. Teaching Notes

Flipkart+Myntra65%

Other's35%

Market Share

Capturing Synergies and Competitive Advantage to Take on Amazon though Acquisition of Myntra by Flipkart

(CASE STUDY) Dr. Amit Kumar Sinha, Sayed Zainul Haque

© INTERNATIONAL RESEARCH COMMUNION

ISSN(E): 2320-8236, ISSN(P): 2395-4833 VOLUME: 2, ISSUE:4 OCTOBER - DECEMBER 2014 www.ircjournals.org www.ircjournals.org

187

Synopsis In the current era of information technology, e-retail industry across the globe has become one of the most emerging industries. Indian

market where brand awareness is quite high but availability of brand is relatively low, the opportunity for e-retail industry is huge. In

last few years Indian e-retail industry has witnessed a lot of domestic players like Flipkart, Myntra, and Snapdeal etc. But with the entry

of a global player like Amazon in the Indian e-retail industry becomes competitive and Indian players like Flipkart, Myntra, Snapdeal

are supposed to face stiff competition. In such scenario two Indian biggies, Myntra and Flipkart have taken the strategic move of

consolidation to take on Amazon.

This acquisition is very significant from strategic point as well as synergy generation point. If we look into the strategic perspective of

acquisition, definitely it has given Flipkart an upper hand over Amazon. In terms of competitive advantage, the market share and

penetration of Flipkart has been increased. With this acquisition Flipkart now gets an edge over its competitors in the fashion apparel

segment. We analyzed the synergies generated from this acquisition, and saw that there is both financial & operation synergies been

generated for Flipkart.

Teaching Objectives a) Evaluate the Acquisition of Myntra and its potential synergies

b) Study the benefits of the deal to Flipkart and Myntra

c) To analyse the competitive advantage through consolidation

d) Analyze the future challenges which Indian ecommerce players could face with the global majors focusing on India.

e) This case is meant for MBA students as a part of the Merger and Acquisition/ Business Strategy curriculum. Learning Outcomes

a) Understanding about the competition in Indian e-retail industry

b) Expansion strategy to gain competitive advantage

c) Forward and horizontal integration for market penetration

d) Synergies through consolidation

Discussion Question Q.1 What are the major motives you analyzed behind acquisition of Myntra by Flipkart?

Q.2 What kind of synergies you see in this acquisition?

Q.3 Do you think after acquisition Flipkart will get competitive advantage?

Q.4 What do you think, after acquisition of Myntra, Flipkart would be able to take on Amazon?

Q.5 What kind of future challenges you see in Indian e-retail industry?

Q.6 Will Flipkart get benefited by Myntra’s distribution network?

EXHIBITS

EXHIBITS 01-

Source: yourstory.com EXHIBITS 02

Capturing Synergies and Competitive Advantage to Take on Amazon though Acquisition of Myntra by Flipkart

(CASE STUDY) Dr. Amit Kumar Sinha, Sayed Zainul Haque

© INTERNATIONAL RESEARCH COMMUNION

ISSN(E): 2320-8236, ISSN(P): 2395-4833 VOLUME: 2, ISSUE:4 OCTOBER - DECEMBER 2014 www.ircjournals.org www.ircjournals.org

188

Source: yourstory.com

EXHIBITS 03

Source: Crsil, IAMAI, PwC analysis and Industry experts

EXHIBITS 04-

REFRENCES

WEB REFERNCES: 1. TaslimaKhan ,Flipkart buys Myntra: A deal which is win-win for both , Business Today ,May 2014

http://businesstoday.intoday.in/story/flipkart-buys-myntra-impact-on-fashion-e-retail-sector/1/206484.html (accessed on 5th September 2014 at 7 :00 pm)

2. AlokSoni, Everything you wanted to know about the Flipkart-Myntradeal ,Youstory.com May 2014 http://yourstory.com/2014/05/flipkart-myntra-acquisition/ (accessed on 6th September 2014 at 8:00 PM)

3. AlokSoni, Quick fact file of Myntra-Flipkart dealYoustory.com May 2014 http://yourstory.com/2014/05/myntra-fipkart-merger/ (accessed on 6th September 2014 at

8:10PM) 4. Why Flipkart and Myntra Should Explore Synergies. Next Big What http://www.nextbigwhat.com/flipkart-myntra-explore-synergies-297/ (accessed on 11th September

2014 at 8:10PM)

5. ShradhaSharma,Did you read between the lines of Flipkart and Myntra deal? Entrepreneurs don’t miss this, May 2014 http://yourstory.com/2014/05/flipkart-myntra-deal/ (accessed on 6th September 2014 at 8:20PM)

6. Flipkart&Myntra Merger Is a Done Deal; FlipkartTo Raise Another Round of Funding, nextbigwhat.com http://www.nextbigwhat.com/flipkart-acquires-myntra-funding-

297/ (accessed on 10th September 2014 at 8:30PM) 7. Amazon's Perfect Timing for India , Forbes India Jul 2, 2013 http://forbesindia.com/article/big-bet/amazons-perfect-timing-for-india/35517/1 (accessed on 10th February

2014 at 8:30PM)

Research Paper 1. Flipkart-Myntra; From a Merger to an Acquisition (http://www.ripublication.com/ijmibs-spl/ijbmisv4n1spl_10.pdf) International Journal of Management and

International Business Studies. ISSN 2277-3177 Volume 4, Number 1 (2014), pp. 71-84 © Research India Publications http://www.ripublication.com

$-

$10.00

$20.00

2009 2010 2011 2012 2013 2014 2017

E-commercein Billion USD