Flipkart’s Operating Strategies

This document provides an analysis of Flipkart’s operating strategies and how they have contributed to its success as a leading e-commerce platform in India. The strategies discussed include analyzing customer behavior, return policy, payment strategies, logistics solutions, attracting finances, creating an agile supply chain, and customer support.

RUNNING HEAD: FLIPKART’S OPERATING STRATEGIES
FLIPKART’S OPERATING STRATEGIES

FLIPKART’S OPERATING STRATEGIES
Introduction
Flipkart is one the leading e-commerce portal of India and is one of the most successful
Indian start-up (Pathak). The e-commerce platform allows customers to sell and buy products
over the online platform, by providing a marketplace for buyers and sellers. The online Flipkart
business B2C model provides an effective shopping opportunity. Through effective utilization of
operating strategies, the Company is able to provide attractive discounts to buyers, which
provides substantial profits to it. Sellers in Flipkart provide commission for the services received.
Flipkart business model undertakes various efforts such as website updates and advertisement for
enhancing the business of its affiliate networks (Vyshnavi & Nair). The scope of the current
discussion undertakes a detailed analysis of Flipkart’s operating strategies which have allowed
enhancement of its business.
Operating Strategy
Flipkart makes use of an operating strategy that is best suited for the markets of India,
this allowed the Company overtakes Amazon in India to become the leading retailer. The current
discussion analyses the supply strategy of the Company that has allowed the Company
improvises on its capacity planning as well as product developmental strategy (Johansson &
Winroth, 2010). The varied supply strategy used by the Company is as below;
1. Analyzing Customer Behaviour: Flipkart analyses customer reviews for each and
every product. It updates its website frequently and designs products based on
customer reviews. It undertakes extensive data analytics of products and customer
reviews, then either continues or improvises on a product or discontinues the product.
It gives seller's ratings based upon their details provided with the Company and
customer reviews. It offers a various discount on occasions to Indian customers to
attract them. Flipkart provides ratings to its resellers, such that consumers can select
product accordingly.
2. Return Policy: The supply chain policy of Flipkart is designed in a manner that
allows easy return of goods (Langa, 2018). Flipkart offers its customers immediate
return policy or returns within a specified time period for each product. Customers
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FLIPKART’S OPERATING STRATEGIES
purchasing product from the portal could easily return them to the nearby office of
Flipkart or directly return it to the reseller and get a refund.
3. Payment Strategies: Flipkart offers varied payment modes for its customers, such as
cash on delivery, credit card payment, debit card payment, PayTM and so on. Flipkart
offers easy monthly payment opportunities for various products that are pricey, such
that customers can easily purchase them. Indian retail customers are easily attracted
to make a purchase on the various EMI (equated monthly installments).
4. Establishing Logistics Solutions: The business operating model of Flipkart earlier
made use of outsourced logistics companies. In order to enhance effectiveness and
reduce costs, Flipkart has developed a logistics solutions Company e-Kart. E-Kart
delivers products of Flipkart only and takes returns of various products as well. This
has allowed Flipkart to reduce costs, reduce product wastages costs, safe handling of
products and mitigate business risks in an effective manner. It ensures quality
management within Flipkart.
5. Attracting Finances: The owners of the Company spent years in order to raise money.
Flipkart visualized the unexplored potentiality in the Indian online retail market,
hence it raised successfully US$1 billion for exploring business opportunities in India
(Padmanabh, 2013). A steady flow of finances guarantees the Company can design
newer product and service strategies.
6. Creating Agile Supply Chain: Flipkart has adopted an agile supply chain strategy
owing to the increasing competition in the Indian market. The agile supply chain
allows responsiveness, flexibility, competency, and quickness to management. This
type of supply chain leverages real-time data and current operations accommodating
in demand forecast. It has allowed Flipkart in eliminating stocked inventory by
adopting efficient and effectiveness of the inventory. With growing customization of
goods, changes in consumer demands and changes in the economic market, there has
been an increase in inventory costs.
7. Customer Support: Flipkart’s website is regularly maintained and the management of
the business is conducted by ERP systems. The business framework is designed to
coordinate sales management, vendor management, and pricing strategy so as to
support the business expansion with product development and growth. The operations
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FLIPKART’S OPERATING STRATEGIES
strategy of the Company is based upon the business framework and ERP systems that
allow management of procurement, logistics and customer support. The coordinated
business functionality allows operational efficiency for the business.
Conclusion
Flipkart is aimed at efficient supply chain management in order to enhance the overall
effectiveness of the business. It is focused on adopting a highly effective operating strategy in
order to derive the profitability from the business. The leading position and revenue earning are
based on the effectiveness of its operating strategy that is aligned with the business objectives.
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FLIPKART’S OPERATING STRATEGIES
References
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https://www.emeraldinsight.com/doi/abs/10.1108/01409171011070305
Langa, B. (2018). Create a Winning Digital Strategy: Learn to create Successful Digital
Strategies to boost Growth. Accessed from https://dl.acm.org/citation.cfm?id=3294536
Padmanabh, B. (2013). flipkart. com’s Strategy on Amazon. com’s Entry into India: A Case
Study. Ushus-Journal of Business Management, 12(4), 131-143. Accessed from
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