Final Project report on

flipkart.com

Table of Contents
1. Introduction
1.1 Why flipkart?
1.2 Company Profile
1.3 Products
2. Literature Review
3. Research Methodology
4. Data transformation
5. Recommendations
6. Conclusion

1. INTRODUCTION
1.1 Why FlipKart?
 Flipkart defies the standard e-commerce model by adopting COD. Eight out of 10

transactions square measure supported COD in Asian country. it's the primary e-

commerce company in Asian country to implement COD(cash-on-delivery),a revenue

generation model that has received abundant scrutiny from consultants and media for not

sustaining operational prices and generating paltry profits as money flows square

measure controlled by traveller companies(it locks up capital and will increase risk

exposure.).
Flip Kart launched with the goal of providing client delight and aspires to be the amazon

of India. it's just about achieved its goal and is scaling quick to so become the amazon of

Asian country.
In a span of simply five years, the corporate has reached a revenue milestone of RS. 5

billion.
The core of its business depends on its acquisition and CRM implementation.
Has created many acquisitions during a short span of your time comparable to We Read,

Mime360, chakpak.com and specially, Letsbuy.com, a rival of flipkart in operation within

the shopper physical science phase, consequentially creating flip kart the dominant share

within the house.

Shared by General Atlantic partners, the worlds twelfth largest non-public equity firm

with over twelve million USD in investments that lends flipkart all the credibleness.
Need of automation in processes together with CRM for it to scale geographically further

as venture in alternative product areas.

1.2 Company Profile

Flipkart is Associate in Nursing Indian e-commerce Company that is based by Sachin Bansal and

Binny Bansal in 2007. Its headquartered in city, Karnataka. The Bansals management thirty
seventh of Flipkart equity, Accel Partners and Tiger international along management forty eighth

and also the management hold the remaining V-day.

Flipkart came in to lightweight as a result of its cash-on-delivery model that has verified to be of

nice significance since the master card and web banking penetration is extremely low in Asian

country.

Flipkart has generated revenue of $350 million and till recently created negative gross margins. It

has simply started creating 2-3% profit margins when increasing its product catalogue. Flipkart

intends to spice up its operational margins to 8-10% within the coming back year.

Flipkart, has heavily invested with in infrastructure, significantly, backend supplying as a

business somebody. As a live to chop down prices, it has started dominant runaway prices and

belongings go some workers as it's over five thousand delivery men pairing forty five thousand

orders daily.

1.3 Products
Flipkart started its journey in 2007 with just one class i.e. Books. It bit by bit rapt to different

classes akin to media (2010), electronics, stationery, white merchandise, personal care (2011),
toys, poster and apparel (2012), Flipkart revolutionized the manner Indian e-commerce worked

by delivery in in selection, new payment strategies and convenience in its operation processes.

Variety

Flipkart provides a excessiveness of choices, titles and classes for shoppers to look, compare and

Purchase.

Payment Models

Sanjay and Binny Bansal caught the heartbeat of Indian net consumers and accomplished that

believability, responsibility and trust square measure necessities to make a loyal client base. to

emphasise identical, they introduced payment models such as:

Cash-on-delivery: Payment methodology that enables shoppers to get merchandise and create

payment once delivery.

EMI: straightforward monthly instalments to assist shoppers purchase high-priced merchandise

adjoin an amount.

Electronic wallet: Allows users to avoid wasting cash as post-paid balance and later appraise for

getting merchandise.

Strategic Partnerships

Flip kart has entered strategic partnerships with many vendors and suppliers to own advantage

over its competitors akin to publication homes, individual authors, firms in numerous classes.

let's say, Flipkart is that the solely authorised on-line reseller of iPods within the country.

Price
Flipkart optimizes its prices as a result of the inventory model it's adopted and therefore will

afford to offer best costs and discounts on purchases to its customers in contrast to its

competitors.

Return Policy

Flip kart permits its users to come merchandise if unhappy among thirty day amount with full

refund of cash or exchange for an additional product. This allows customers to buy on-line

without concern concerning the risks concerned.

Customer service

Highly responsive 24/7 client service team is one amongst the core strengths of flipkart. They

tackles all types of queries and method all request among 5 business days.

Downside of the giving

No advanced looking out option:

Flipkart gives solely basic search facilities to its users to look merchandise in contrast to several

of its competitors that provide advanced choices with book ISBN range, author name etc. to look

entries with same title.

Categorizing structure

Flipkarts product categorization is visible solely at the macro level; however, the structure lacks

effectiveness within the depth wherever sub classes ought to structure. For instance, Books class
could catalogue preparation books below same structure however at deeper level sub classes of

baking; salad dressing books aren't properly catalogued.

2. Literature Review
The inorganic successes of Flipchart are often majorly contributed to the inventory model it\\\'s

adopted. The economical backend model it's used has diode to its major success.
Backend model of e-commerce firms area unit usually of 2 types: Warehouse Model and

Consignment Model.

Flipkart adopts the consignment model wherever in procurance is finished supported demand and

depends little or no on different means that. Quite eightieth of the deliveries area unit directly

done from the warehouse, The model has been borrowed from China that has with success

handled issues adore extraordinarily massive population, poor transportation facilities and

network, low penetration of retail, unreliable third party provision and MasterCard transactions

that area unit outstanding in Asian nation too.

China worked its approach round the drawback by e-commerce vendors making infrastructure

around every drawback and not hoping on unsure mediums to interact.

Flipkart could be a quick growing company with many workers, partners, suppliers and

distributors. the data coming into the system is just too immense to assemble structure and add

up of while not correct technology integration admire ERP and CRM. CRM helps manage

customers, employees, suppliers and different operation processes within the following ways:

Enables economical gathering and pooling of client orders, sales data, delivery and

shipping details, internet traffic and analytics in real time through internal and external channels.

Helps management scaling of the corporate by permitting addition and tweaking of

necessities and resources as demand grows and shrinks.

Automates processes by permitting repetitive processes to ingeminate on its own rather

than manual handling of knowledge.

 Decreases labour value of process the order by an enormous quantity thanks to

integration of system.

Reduces the necessity for added man power and resources to complete transactions.

With automation, helpful data will be derived and charted admire client churn rate, repeat

customers, frequency of purchase etc,

Flipkart reaches resolute its customers through many channels admire email, client care,

chat support etc. and CRM allows thorough integration of all the channels at the rear finish to

deliver quality client expertise.

Flip karts customers fall in to the classes of youth,avid book readers,technology enthusiasts and

web shoppers.Therefore,it has fastidiously demarcated and divided every of the demographic

class and modelled the client behaviour to know their wants and preferences.It creates

knowledge models from the subsequent sources:

Bought history

Browse history

Compare history

Bought things

Wish list things

Rated merchandise

Cart additions
Key Partners Key Activities Value Customer Customer
Proposition Relationships Segments
Equity Platform
Partners: manageme Variety word of Youth
Accel and nt Conveni mouth Avid
Tiger Global Platform ence online & book
Advisory promotion Reliabilit interacti readers
and Service y ve Technol
restructurin provisionin Best advertis ogy
g: Indus g Price ing savvys
Law Quality social Online
Distributors custome media shopper
and r s
suppliers Key Resources service. Channels Trend
Authors and Credibili setters
publishers Hardware ty Online
Companies & software sales
Speed
across for
various platform
categories. Manpower
capital

Cost Structure: Revenue Streams

Infrastructure costs Online sales

Manpower costs
Platform maintenance costs.

3. Research Methodology
A good description is a fundamental to the research enterprise and it adds immeasurable of the

shape and nature of the society.

Data Collection will be done in two phases:-

Preliminary Phase - In the initial phase we will try to understand about amazon.com? Below is

the process we would be following:-

Secondary Phase: - Based on the outcome of the preliminary phase; a detailed

questionnaire will be developed to collect information for the study.

The methodology which will be used for carrying out the report is as follows:-

Type of Data Sources: For present research work, secondary data will be used.

Tools for collecting Secondary Data: - Various statistical tools will also be used to analyzing

the secondary data.

1. Document Review: - Obtaining the actual forms and operating documents currently being

used. Reviews blank copies of forms and samples of actual completed forms.

2. Observation: - analyzing annual reports and press releases, verifying the statements made

during the interviews.

3. Web Search: - The information related to outside region (other part of India and Globe)

will be studied from internet to other published papers.

4. Data transformation
As per our discussion with some of friends operating for Flipkart as software package developers

(Names covert on request), we have a tendency to learnt that the Flipkart web site relies on the

LAMP design.

LAMP Architecture:

LAMP stands for UNIX, Apache, MySql and PHP and refers to a typical method of coming up

with modern-day websites supported freely accessible and reliable open supply technologies.

LAMP design provides a value effective and reliable method of building websites. Usage of

LAMP elements conjointly helps within the backend scaling of the web site and integration with

ERP (and CRM) capabilities. Flipkart is one in all the simplest samples of corporations that have

used the LAMP design to create and scale a extremely profitable e-commerce system. A Typical

LAMP design is shown within the figure:

There square measure basically four technology groups at intervals Flipkart as associate degree

organization:

1. Web site development and maintenance

2. information Analytics/Business Analytics (Data mining and warehousing)

3. ERP (CRM comes here)

4. Platform Management (integrating sales department automation and managing

forward/backward integration with alternative technologies)

Ref: Linkdin profiles of staff and list of gap on naukri.com and on Flipkarts site:

http://www.flipkart.com/s/careers

Excerpt from Flipcharts career site:

This enlargement has diode USA to rent proficient professionals across departments like web

site, Business coming up with and Analytics, ERP, Business Development, Product Management

and selling, Supply-Chain Management and client Support.

Website:

Flipkart defines its web site management and development roles with the intention of achieving:

Scalability: Development should be ascendable to accommodate additional traffic and additional

orders

Availability/downtime: zero period of time, one hundred convenience for increased user

expertise.

Social Experience: Flipkart continues to style its web site with the intention of providing

opportunities for purchasers to act during a cluster and to faucet this cluster behavior for

additional targeted results.

Analytics:

The analytics team isn\\\'t solely involved with data processing and understanding shopper

shopping for preferences, however the analytics team engages in understanding trafficker

management, offer chain management and managing the supply. The team is concerned in

managing totally different info systems and analyzing the information flowing through of these

systems to tweak and contour the operations of the corporate. a number of the achievements of

this team embrace 2-day delivery process, money back guarantee, hassle free simply In

Time shipping and route optimization for delivery boys. The team indulges in data

processing, information analytics, information storage and prophetic analysis.

ERP:

The core ERP system at Flipkart will be lessened into:

1. Procurement

2. Inventory coming up with and prediction

3. Logistics: Self Delivery, accounting, invoicing and client management

4. CRM (Discussed intimately within the report)

5. Storage Management

Typically, Flipkart follows the classic CRM design as settled by Goodhue et. al., MIS quarterly

government, 2002, the diagram is for figural functions and also the actual implementation could

vary slightly:
 5. Recommendations
o Flipkart has to minimize its dependency on key suppliers, distributors and

alternative partners whose services aren't up to the mark and is impacting

flipkarts performance.
o Further strengthen its backend-warehouses, logistics, delivery network etc. to

chop down prices so as to reap profits within the cut throat competitive state of

affairs.
o Improve personalization options on its web site to have interaction customers and

keep them from drifting away to alternative ecommerce sites.

o Improve search choices by introducing advanced search choices by book ISBN

no, author name etc.

o It should resolve unhappy client problems that has led to negative social

disapproval on networking sites and may hamper the terribly objective of flipkart

of providing quality client service.

o It should offer made-to-order delivery dates wherever the user has the liberty to

pick out the date he desires the nice to be delivered on.

o Same day shipping is another exclusive feature that it will introduce to draw in a

lot of customers; however, at now of your time it will incur Brobdingnag

expenditures to deliver an equivalent.

6. Conclusion
Flipkart, the primary billion dollar net company from India (going by 2015 estimates) is out and

away the leading on-line store within the nation.

Currently that Amazon is reportedly coming into Asian nation in early 2012, this news becomes

even a lot of vital, considering that Amazon has antecedent, and unsuccessfully, tried getting the

corporate, with Flipkart hard to please a really high acquisition value.

With on-line retail business in Asian nation pegged to succeed in $1.5 billion (2015), sources

counsel that e-commerce is simply hotting up in Asian nation and that we could presently see

more net firms achieving similar success.

References

http://www.businessinsider.com/2012-digital-100?op=1
http://en.wikipedia.org/wiki/File:LAMPP_Architecture.png
 http://timesofindia.indiatimes.com/city/lucknow/E-commerce-gets-a-push-

with-Diwali-deals/articleshow/17202278.cms
http://www.coolavenues.com/mba-journal/strategy/indian-e-retailing-market-

will-flipkart-triumph
http://www.moneycontrol.com/smementor/mentorade/starting-up/can-flipkart-

deliver-726770.html
http://www.ciol.com/ciol/news/42650/flipkart-jump-amazon-shopping-mkt
http://timesofindia.indiatimes.com/business/india-business/Flipkart-needs-big-

money-to-keep-delivering/articleshow/14966970.cms
http://www.businessinsider.com/2012-digital-100?op=1
http://opepiimraipur.blogspot.in/2011/12/best-practices-at-flipkart.html