Flipkart Business Model Report/Plan

This report discusses the business model and expansion plan of Flipkart, a popular e-commerce organization in India, to enter the Australian market. It covers topics such as market analysis, value proposition, customer relationships, and revenue streams.

Assessment Task 2
Business Model Report/Plan
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Executive Summary
The growing impact of e-commerce and e-marketing is making a trend in the expansion of
the online business. In this context, an organization that is running a business in one country
is adopting the policy for the expansion of the business to another country. In this context, the
mention of the Flipkart can be done. It has been seen that Flipkart is a popular e-commerce
organization in India. However, this e-commerce organization is planning to expand the
business in Australia.
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Table of Contents
Table of Contents.....................................................................................................................3
1. Introduction............................................................................................................................4
1.1 Overview of the organization...........................................................................................4
1.2 Selling technique of Flipkart in India:.............................................................................4
2. Business Model Plan:.............................................................................................................5
3. Business Model Canvas (BMC):............................................................................................6
3.1 Observation:.....................................................................................................................9
4. Value proposition canvas:......................................................................................................9
4.1 Analysis of outcome:......................................................................................................11
5.Blue Ocean Strategy:.............................................................................................................11
5.1 Outcome of the analysis.................................................................................................11
6. Test Card..............................................................................................................................11
6.1 Application of the Test card in the business environment:............................................12
7. Porter’s Generic Strategy:....................................................................................................12
7.1 Analysis of the outcome:................................................................................................13
8. Conclusion............................................................................................................................14
Reference List..........................................................................................................................15
Appendix..................................................................................................................................17
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1. Introduction
The growing impact of e-commerce and e-marketing is making a trend in the expansion of
the online business. In this context, an organization that is running a business in one country
is adopting the policy for the expansion of the business to another country. In this context, the
mention of the Flipkart can be done. It has been seen that Flipkart is a popular e-commerce
organization in India. However, this e-commerce organization is planning to expand the
business in Australia. In order to do this, a different strategy is needed to be maintained in a
proper way. In order to do this, specific business policies along with the value, proposition
model are needed to be followed. The main objective of this paper is to evaluate the different
aspects of the business of Flipkart and its opportunities in the Australian market. Apart from
that, the ways for maintaining the value is needed to be done for the Flipkart so that it can
serve standard services to the consumers in the Australian market. The conclusion is drawn
from the factors mentioned in the paper.
1.1 Overview of the organization
Flipkart is a favourite e-commerce organization in India. The company was founded in 2007
and had its base in Bengaluru. At the initial stage, the organization was focused on selling of
the books. However, after the expansion of the business, this e-commerce organization
started to sell different consumer goods. At recent time Flipkart is one of the largest e-
commerce sites in India selling electronics gadgets along with the household goods (Dixena
and Sahu 2018).
At the initial stage, the service of the Flipkart competes with the subsidiary of Amazon,
Sanpdeal. At present, this e-commerce organization has acquired 39.5% of the Indian e-
commerce market. Flipkart is dominant in the selling of the apparels and is in the neck to
neck competition with Myntra and Jabong. In 2018, Walmart acquired 77% of the share of
the Flipkart valuing $22 billion (Pandey and Parmar 2019).
1.2 Selling technique of Flipkart in India:
At the initial stage, Flipkart started selling books online. After getting popular in the business,
the organization began to sell different electronics gadgets. After this successful
modifications, the business of this e-commerce organization has grown high. In this situation,
this e-commerce organization started to sell different household products and apparels
(Jhunjhunwala et al., 2018).
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The selling technique of the Flipkart in India is unique. The website of the Flipkart can be
described as the online market place where the different items from the different retailers can
be found out. Apart from that, there is a chance for the comparison of the prices of the
different items (Dutta,2017).
Different companies and the small shops have tie-ups with Flipkart. In this context, it can be
said that Flipkart invites different small and large scale organizations to tie up with this
organization and sell the goods through them online. In this business situation, the
organizations and the companies selling goods online in Flipkart can get a percentage of
commission. Apart from that, the business of the Flipkart is also dependent on various online
activities and the traffic on the website (Vyas and Gupta, 2017).
2. Business Model Plan:
The proper business model plan is needed to be developed for the implementation of the
business strategy for Flipkart in Australia. It has been seen there are different areas and the
sectors that are needed to be modified for the existing model of the Flipkart for entering the
market of Australia. Some of the areas for the modifications and the justifications for the
modifications are-
1. Selection of the goods: The items of the goods and the services selling in the Flipkart are
relevant to the Indian market and those goods have a higher demand in the Indian market.
This is the reason for the popularity of the Flipkart. However, it can be assumed that there
is a difference between the Indian market and the Australian market. In this case, Flipkart
has to choose the selling of the right product that will help this e-commerce organization
to gain popularity in the Australian market (Joyce and Paquin2016).
2. Understanding the market condition: In order to enter the Australian market, Flipkart
needs to understand the e-commerce market condition. In order to do this, the external
analysis of the organization at the initial stage can be done. Through this, the
understanding of the rival companies and the possible risks for the business can be
identified in a proper way for the Flipkart (Joyce and Paquin 2016).
3. Understanding the business laws and regulations: The business laws in Australia is
different from the Indian. Apart from that, cyber law in Australia is more defined. In this
situation, the management of the Flipkart is needed to be more aware of the development
of the business, along with maintaining the laws and regulations of the organization.
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Along with the business of the organization should maintain the ACS code of ethics that
is mandatory in Australia.
4. Ways for entering into the market: There are different options for the Flipkart in order to
enter into the market and the organization. At the initial stage, the organization can enter
into the market alone. On the other hand, there is an option for Flipkart to enter the
Australian market through the joint venture. In this case, the third party organization can
be an Australian company (Vyas and Gupta, 2017). There are two ways for doing the
joint venture. The Flipkart can enter into the market along with the joint venture with
some new Australian startup; in that case, the startup will get help to develop the
business. On the other hand, Flipkart will get proper support for the development of the
business in Australia. Another option left for Flipkart is to enter the Australian market
through the joint venture with the big e-commerce companies in Australia. In that case,
Flipkart will enjoy the fair share of the Australian market.
5. Maintaining the value driven business: The value is maintained by the Flipkart for selling
of the goods, and the vendors are getting treated in a proper way through this e-commerce
organization. In this context, it can be said this value-driven business is needed to be
maintained for the Australian market and in order to do this Flipkart has to take necessary
steps (Vyas and Gupta, 2017).
3. Business Model Canvas (BMC):
Business model canvas can be used of the making and managing the strategy for the lean
startup or modification of the existing business on certain conditions. There are several things
that are needed to be identified for the development of the business model canvas for the
organization. In this context, it can be said that the business model canvas is essential for the
development or the expansion of the e-commerce organization in Australia (Dudin et al.,
2015).
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Key Partners
Main
stakeholder
Walmart as
other
Australian
companies
whose
products
Flipkart
would sell
online in
Australia
Key Activities
To create the market
presence felt to the
consumers.
The advertisements and
the interesting offers can
be made to the
consumers so that they
can become interested in
buying from this e-
commerce organization.
For the marketing
Value Proposition
Providing proper
services to the
consumers, delivery
of the goods in time
and making the profit
with maintaining the
quality in a proper
way.
Customer
Relationships
Proper marketing.
Communication on
the social media
platform and getting
their feedback can
improve the overall
service of the
Flipkart.
Maintaining proper
customer care through
customer care portals.
Customer
Segments
Consumers
from the age
group 18 to
50 years.
Key Resources
Capital for making an
investment in the
business.
Feedback from the
consumers
Channels
The promotions can
be done through both
traditional and digital
marketing. Apart
from that, the selling
of goods can be done
online.
Cost Structure
Capital cost-based.
Extra capital can be collected from the advertisements
and promotions.
Revenue Streams
Promotion of the products and the selling of the
products online
Table: BMC for Flipkart in Australia
Source: (Joyce and Paquin, 2016)
Key Partners: The key partners are the main stakeholders for the Flipkart in this situation.
Initially, the main key partner, in this case, is the Walmart as the business decisions are made
jointly by the Walmart and Flipkart. Apart from that if Flipkart is planning to enter into the
market through the joint venture, the key partner will be the other company through which
the Flipkart will enter into the Australian market. Apart from that, the internet and media can
be considered as the key partners for the organization as these will be used for the promotion
for the business of Flipkart (Dixena and Sahu 2018).
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Key activities: The main objective of Flipkart is to make the market presence felt to the
consumers. In order to do this, the advertisements and the exciting offers can be made to the
consumers so that they can become interested in buying from this e-commerce organization.
For the marketing purpose of the organization, the Flipkart can use the advantage of digital
marketing for the business (Dixena and Sahu 2018).
Key resources: The primary resources for the Flipkart is the capital for making the
investment in the business. Apart from that, the feedback from the consumers can be treated
as the feedback as those will help this e-commerce organization to improvise the business
(Pandey, and Parmar, 2019).
Channels: There are different channels through which the organization can expand the e-
commerce business. The promotions can be done through both traditional and digital
marketing. Apart from that, the selling of goods can be done online (Pandey and Parmar,
2019).
Value proposition: The value proposition of the organization includes providing proper
services to the consumers, delivery of the goods in time and making the profit with
maintaining the quality in a proper way (Dutta,2017).
Customer Relationship: customer relationship can be managed through proper marketing.
Apart from that, by making communication on the social media platform and getting their
feedback can improve the overall service of the Flipkart. Apart from that, the Flipkart has to
maintain proper customer care, so in case of any consumer face problem regarding the
delivery of the goods he or she can contact the representative of the organization (Dutta,
2017).
Customer segment: The targeted consumers for the Flipkart in the Australian market are
mainly the common people living in the city. In this segment, the main focus in on drawing
the attention of the consumers from the age group 18 to 50 years (Vyas and Gupta 2017).
Cost structure: The cost structure of the organization is mainly capital cost based. The
Flipkart will invest the capital for the development of the business. On the other hand, the
extra capital can be collected from the advertisements and promotions (Vyas and Gupta
2017).
Revenue Streams: Revenue stream will be the promotion of the products and the selling of
the products for the Flipkart.
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3.1 Observation:
Flipkart need to focus on the market entry strategy and should have to deal with the
companies that can provide value to them in the Australian market. Walmart is one of the
reputed company in Australia and this will provide benefit to the Flipkart but they need to
make the viable deal with others also to sustain the business growth of the company.
4. Value proposition canvas:
A value proposition can be defined as the position of the company or the organization from
where it can conduct the business maintain the consumer values and the requirements. The
value proposition for the Flipkart is essential as it will help the organization to do the
business with maintaining the value (Pokorná et al., 2015).
Figure: Value Proposition Canvas
Source: (Pokorná et al., 2015)
Customer Profile Aspect How does Flipkart provide the
solution?
Value Proposition
Pains:
 Getting the right
products.
 Price of the products.
 Uncertainty regarding
the quality of the
products.
Solutions:
 Flipkart will check
the quality of the
products before
selling the product. In
this case, the
dedicated quality
control team will be
Pain Relievers:
 Competition in the
market for selling
goods at the lowest
price.
 A competitive market
will help to maintain
the quality of the
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assigned.
 The price of the
products can be
maintained under
control on the basis
of the market
condition.
 In order to ensure
that the consumers
are getting the right
products, Flipkart
will provide a full
description of the
product to the
consumer before
buying.
products.
Customer Jobs:
 Easy payment
methods.
 Getting quality
service.
 Getting proper help
regarding the
purchasing of goods.
Solutions:
 The payment can be
made online through
online transactions.
 The overall customer
service can be
improved through
proper monitoring.
 In order to help the
consumers in a
proper way dedicated
customer care service
centre for the Flipkart
will be there where
the consumers can
get the solution of the
different product
related problems.
Product and Service:
 Online secured
payment gateway.
 The competitive
market will help to
maintain the quality
of the products.
 The customized
sorting system will
help the organization
to get the right
product of their
choice.
Gains:
 Customization of the
service.
 Getting the required
products
 Saving of the time.
Solutions:
 The consumers can
get customized
service as there will a
customized search
option for the
consumers based on
their previous
purchase.
 Through the
customized search,
the required product
can be obtained by
the consumers.
Online shopping will
save the time of the
Gain Creator:
 Low prices
 Customer
engagement
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consumers.
Table: VPC for Flipkart in Australia
Source: (Osterwalder et al., 2015)
4.1 Analysis of outcome:
It has been seen that Flipkart can maintain the value along with the development of the
business through maintaining thee different factors. At the initial stage, it has been seen that
the main advantage or the value that can be created by Flipkart is that online marketing will
save time for shopping for the consumers. Apart from that competitive market will make the
Flipkart maintain the price reasonable so that more people can prefer buying from Flipkart.
5.Blue Ocean Strategy:
Blue ocean strategy is essential for the development of the business. This strategy indicates
the competent or rivals those have the same value and the business ideas. In other words,
when the commodities and value offered by one organisation cannot be matched by any other
in a market, the market is comparable to a blue ocean sans any obstructions/barriers (Mi,
2015).
5.1 Outcome of the analysis
It has been seen that the application of the blue market strategy will help the Flipkart to
maintain the business in a proper way (Mi, 2015). There are specific opportunities for the
organization in the market. Apart from that, Flipkart will face the competitors during the
conduction of the business. In this case, the comparison is needed to be done with rivals.
6. Test Card
Test card can be used for business validation and the development of the strategic ideas for
the organization. A business card will indicate the four-step processes for the Flipkart that
will establish the business environment for the organization. The four business innovation
ideas regarding this are- the establishment of hypothesis, establishing the process, testing of
the hypothesis and the evaluation of the process in the business (Johnson et al., 2019).
6.1 Application of the Test card in the business environment:
Step Element Flipchart
1 Hypothesis It can be said that the Flipkart to develop the business in the
Australian market.
2 Testing Hypothesis The online survey of the market can be done in this case. Apart from
the development of the business will be done within 2020.
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 Identification of the unique business idea that will
help to develop the business plan for the Flipkart.
 Analysis of the business idea for the development
of Flipkart in the Australian market.
3 Measuring The effectiveness of the result can be done by measuring the
performance of the business in the organization.
4 Criteria for being right More than 60% (120 responses or more) of the total responses
selecting either “interested” or “looking forward to learning more
about it” categories.
Table: Test card Application for Flipkart
Source: (Johnson et al., 2019)
7. Porter’s Generic Strategy:
This is the final tool that can be used for the assessment of the business innovation for the
Flipkart. There are different parameters that are included in Porter’s generic strategy. The key
elements, in this case, are the customer segment, cost perception, uniqueness of the proposed
business model (Ouma and Oloko, 2017).
Figure: Porter’s Generic Forces
Source: (Ouma and Oloko, 2017)
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7.1 Analysis of the outcome:
There is a particular analysis that can be derived from Porter’s engagement. These are-
 Application in the industry: The application of the industry can be done from the e-
commerce perspective in case of Flipkart. The main objective of the Flipkart is to
deliver the service in a proper way to the common people of Australia. In this case,
the application of the Flipkart can be done in broad aspects for the industry (Salavou,
2015).
 Cost: The lowering of the cost can be achieved through the application of the Flipkart
in the industry. In this case, it has been seen that the operating cost can be lowered
through the use of the e-commerce site in the industry. Apart from that, the flexibility
of the overall system can be achieved through the proper implementation of the
business (Salavou, 2015).
 High perception: From the delivery of the overall service, the higher business value
can be achieved. In this case, Flipkart has to maintain proper business value and the
quality of the service. Apart from that, maintain the proper communication and
getting feedback from the consumer is also essential in this case. This will help the
organization to achieve a high perception regarding the business value (Salavou,
2015).
8. Conclusion
The discussion is regarding the chances of doing business in the for Flipkart in the Australian
market. It has been seen that there are lots of opportunities regarding doing the business for
Flipkart. Apart from that, it has been seen that the organization can enter the market through
the joint venture. There are two ways for doing the joint venture. The Flipkart can enter into
the market along with the joint venture with some new Australian startup; in that case, the
startup will get help to develop the business. On the other hand, Flipkart will get proper
support for the development of the business in Australia. Another option left for Flipkart is to
enter the Australian market through the joint venture with the big e-commerce companies in
Australia. In that case, Flipkart will enjoy the fair share of the Australian market. Apart from
that, the effective use of the business tools will help the organization to gain the opportunities
and mitigate the threats for the Flipkart.
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Reference List
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Flipkart: With Special Reference to Raipur City. International Journal of Research in
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Pandey, A. and Parmar, J., 2019. Consumer’s Online Shopping Behavior with Reference to
The Flipkart. Available at SSRN 3323837.
Pokorná, J., Pilař, L., Balcarová, T. and Sergeeva, I., 2015. Value Proposition Canvas:
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Appendix
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