Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 Strategic direction that the company has followed in the past and way in which strategic thinking developed within the past 5 years..................................................................................1 TASK 2............................................................................................................................................2 Review model for external environment of the company...........................................................2 Criticaldiscussionofthecompanytotakecompetitiveadvantagesamongitsdirect competitors..................................................................................................................................3 Probable industry scenarios facing the company within the existing market domain.................4 TASK 3............................................................................................................................................4 Extent to which company is facing strategic drift.......................................................................4 Mission and vision statement that are aligned to demand of the marketplace............................5 Company strategic capabilities....................................................................................................5 Business Canvass Model that portray and describe rationale core logic of how company creates, delivers and captures value within the industry..............................................................6 TASK 4............................................................................................................................................7 Strategic choice of models to sustain competitive position in the company...............................7 TASK 5............................................................................................................................................8 Recommendations to the company..............................................................................................8 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................10
INTRODUCTION Strategic management and planning consider effective direction to move in different areas of the environment. With this regard, there are several elements included such as employees,managerialstaff,upperlevelofmanagementthoseareworkingtogetherto accomplish desired goals and objectives. In this way, company can ensure that operations are efficiently and effectively promoted in different areas of the world(Hill, Jones and Schilling, 2014). Present study based on the Flipkart which is online shopping site in India. In this way, customers buying different products and services with online channel to develop more significant advantages in the country. For gaining insight information of the present report, it covers strategic direction that company followed in the past to develop their performances from last five years. Furthermore, appropriate model of external environment analysis also successfully develop to review the process. Moreover, mission and vision of the business also aligned as per demand of the market. At last, it discusses about possible strategies which need to be followed by the enterprise to defend its core enterprise. TASK 1 Strategic direction that the company has followed in the past and way in which strategic thinking developed within the past 5 years In early time, Flipkart has spent years to raise money in form of million dollars and tapped to expand online market in India through targetting and obtain more investment. Company strategy is to raise 1 billion of US dollars to take position in the country to leading as the E-commerce website in the marketplace for buyers and sellers as well(Wheelen, Hunger and Bamford, 2017). Among three unicorns in the nation, Flipkart is most important and top number of online website which is the most successful start-up in the country. This is because, E- commerce is the platform in which customers can buy and sellers get multiple customers at one place. Strategic direction of the chosen company continuously followed as online platform where B2C model provides ample shopping opportunities to Indian customers in creative manner. As a popular online marketplace, the chosen enterprise also allows different sellers in different areas of the country to sell their products under different nations(Hanson, Hitt and Hoskisson, 2016). 1
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Moreover, it also assists to Flipkart and encourage sellers to provide attractive discount to buyers or consumers to sold products and services. Therefore, they are able to earn substantial profitability to get certain amount from the chosen company after deduction of commission by Flipkart. From last 5 years, there are several options has been taken by the chosen company to formulate their business model in following manner: Increasing overall website in Flipkart. Introduce new web app to the users to develop more creative results. Furthermore, introduction of new mobile app towards customers and optimisation of the same easily(Fynn, Augustine and de Garine‐Wichatitsky, 2016). Promotion of the products and services with different social websites such as Facebook, YouTube, Instagram, etc. Proper offline advertisement and promotions that based on banners and television advertisement. In this consideration, affiliate network line coupons websites, reviews websites, etc. must be taken to focus on the services that provided by the sellers. As per the progressive business model, it can be stated that Flipkart offered percentage of the commission which is charged from various sellers on their online portal which is varied from type of products and type of sales(Popovich and Filippi, 2015). There are around 5 to 20% based on type of services that availed by sellers. In this consideration, the chosen organisation introduced different forms of income like the marketplace, charging listing, etc. TASK 2 Review model for external environment of the company In order to assess external environment of the company in the India, following elements can be included in the model:Political factors:Government of India trying to boost economy in rural market so that they can easily encourage promotion of the business in these areas. Therefore, Flipkart working with new regulations in e-commerce industry that influence operations of the company. Therefore, leaders of the enterprise every five year consider uncertainty to create interaction to develop friendly environment(Grant, Butler and Murray, 2014). 2
Economic factors: Indian economy growing advanced so that it assures investors to continue develop their markets. In addition to this, liberalisation of the country allow internationalinvestorsinFlipkarttocontinuecontributeineconomicgrowth. Government also requires selling specific percentage of goods and resources in the nation with locally sourced(Somsuk and Laosirihongthong, 2014).Social factors: In India, there is less percentage of urban areas people who making online purchase from Flipcart. In this way, trends are successfully developed which demonstrate importance to the organisation. Rural population must be encourage towards the online shopping. In addition to this, interventions also develop in the country that carry and expand operations of the business in positive manner(Meyer and Xin, 2018).Technological factors: In this consideration, Flipkart contribute large part to implement data analytical system in efficient manner. With this consideration, efficient business performances must be develop to integrate desired level of results. Information system of the country also increase opportunities that predict sales in the company and enable to take advantages of technological advancement(Gorlovskaya and Ivanova, 2016).Legal factors: Legal factors also create impact on the Flipkart to given rights of the licensing and trademarks. Conflict demonstrate need for the enterprise to become aware andprotectcustomerdata.Italsoincreasesconcernswithabilitywithbusiness development. Online business continuous grow, government and corporation develop regulations (Flipkart PESTEL Analysis,2018). Environment factors: Flipkart is online retailer so that it is essential to maintain sustainable business and low carbon emission that is major issue. Government also promote sustainable activities of the business practices with rules and regulations. Some of popular rules pertain with carbon emissions(Carroll, Primo and Richter, 2016). Critical discussion of the company to take competitive advantages among its direct competitors In India, Flipkart working as e-commerce based business from 2007. They are began their functions with founders transformed industry to take huge step of introducing concept of the country to reluctant and buy anything online. In today's time e-commerce is considered one of the fastest growing industry in the nation(Gomes, Barnes and Mahmood, 2016). As a result, company working through selling books and expanded their functions with introducing diverse range of activities. After this, the company included several products and services in all over the 3
world with revolutionising market and grown with years. There is one of the reasons to get success in India to compete with several competitors have since then entered in the country. The company is still remains and working as leader. This is because they worked to provide convenience when it was started(Bergh, Sharp and Li, 2017). As critical evaluation, people of the country not trust to provide personal information so that Flipkart facilitate with cash on delivery system. Therefore, personal information not shows and buyers can shop online with no concern to maintain their safety at the time of payment with products and services delivery(Healey and Hodgkinson, 2015). Furthermore, flexible and convenient return and exchange policy successful build which is made to deliver appropriate services to build trust between company and buyers. However, Amazon ans Snapdeal not consider development as Flipkart because chosen business build successful development and deliver products to their customers on time. It also builds trust of the buyers with the enterprise in successful manner(Yorio, Willmer and Moore, 2015). Probable industry scenarios facing the company within the existing market domain In the online industry, the company get success in India because of rise in competition. It is the successful strategy which offering competitive prices. Therefore, they always offered products that cater successfully to all ages and income group. These products are branded and perceive in good quality that assists to attain more desired level of results. With the help of offering discount to buyers on website (Engert, Rauter and Baumgartner, 2016). In festive season, buyers are able to avail more discount in products and services that selling products at lowest prices. Hence, the chosen organisation works with customer focus strategy to determines existing market domain. All strategies also provide convenience to the customer which create reason to get success in all over the functions. It despite level of competitive in today's era so that strategies developed that recognised brand name and with huge base over the years(Yorio, Willmer and Moore, 2015). TASK 3 Extent to which company is facing strategic drift In order to gain competitive advantages, mainly the chosen business facing strategic drift. With this consideration, technical war also successfully develop in the country to focus on the infrastructure development. In festive season, India's largest e-commerce company Flipkart 4
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which is set to spark shopping frenzy with five day annual flagships. In the chosen company, there are multiple levels of redundancy and backups taken that assists to develop more automatist failover mechanisms which provide seamless experience for end customers. All the partners provide great support to make sure those systems also fully ready so that they are proactive maintenance and keep additionalspare partswhere people stand by restore any lossin redundancy quickly(Stead and Stead, 2014). Mission and vision statement that are aligned to demand of the marketplace Flipkart deals in different kinds of functions and operations in e-commerce and online shopping. It is the one of the famous online website that assists to focus on the desired level of goals and objectives in the business. In order to deal with creative and innovative functions, it can be stated that the company provide products and services as per customer demand and requirements(Ethiraj, Gambardella and Helfat, 2017). Therefore, mission and vision of the chosen business can understand in the following perspective: Mission of the enterprise “Providing a delightful and memorable customer experience.” In order to gain positive customer experience, the chosen business can deliver more targets and ascertained significant advantages at workplace. In this manner, it can be stated that Flipkart is the famous online website that increase positive customer experience with online shopping. Vision of the enterprise “Completely hassle free shopping experience with best prices in India”. With this regard, effective results can be gain in the business to deal with customer demand and requirements to increase free shopping experience with best prices in India. As a result, the chosen business will easily promote more products and services in different areas of the world(Fynn, Augustine and de Garine‐Wichatitsky, 2016). Company strategic capabilities In the business, there are different kinds of strategic capabilities exists that can be used by the organisation to focus on the desired level results at workplace. In this regard, following strategic capabilities must be involved in Flipkart: E-commerce activities: In order to gain more profits and revenue, it is essential to focus on the e-commerce activities. In this regard, the chosen business need to concentrate on the online shopping which helps to attract several customers in desired manner at workplace. On the 5
basis of effectiveness, it can be stated that revenue will be generated through consider different activities in business. Performance indicator: Furthermore, in the chosen business performance indicators results will be accomplish to focus on the desired level results at workplace. With the help of creative results and performance indicator to develop more effective results. Targetingstrategy:Targetingstrategyalsoconsidersfocusingontheareawhere customers can be develop in effective consideration. With the help of targeting strategy,Flipkart need to focus on positive and effective performance. Positioning: In positioning strategy, the chosen business needs to focus and maintaining effective results. With this regard, systematic work performances, it can be stated that the chosen business need to develop their creativity(Fynn, Augustine and de Garine‐Wichatitsky, 2016). Business Canvass Model that portray and describe rationale core logic of how company creates, delivers and captures value within the industry In order to create business canvas model of the chosen business, following steps can be taken into structure that assists to accomplish desired level of results: Customer segment: Online buyers are customers of Flipkart who looking for qualitative products at low cost. In addition to this, they are also feeling safe to buy products from the chosen organisation. Value proposition: Customers are buying from Flipkart because of trust and valuable resources so that it contains innovative results and outcomes in the business. With this regard, it can be stated that they are also using creative products and services to beat with systematic work performances in the business. On the basis of value proposition, effective results can be generate easily. Channel: There are several online medium through the chosen organisation promote their products and services in different areas of the world. For instance, Facebook, Twitter, Instagram, etc.(Ethiraj, Gambardella and Helfat, 2017) Customer relationship:With the help of online channels and medium, Flipkart deal with their customers and attain more creative results at workplace. In this regard, they can also regulate different functions and operations in several areas so that customers can be attracted easily. 6
Revenue stream:In order to create positive value proposition, it can be stated that revenue can be generated in appropriate manner. With this consideration, business will earn maximum profitability to lead with the innovative functions and operations. As a result, they can easily lead with different kinds of customers in positive consideration. Key activities:Flipkart also perform several functions and operations as unique strategy that assists to deliver proposition in the business. In this way, it can be stated that the chosen business need to concentrate on the desired level of results to carry different activities in the organisation. Key resources:In order to perform several functions and operations, it can be stated that there are several unique strategic assets must be ascertained in Flipkart to increase their profitability and effectiveness. On the basis of resources targets will be accomplish in desired manner. Key partners:There are several other businesses also working in this field so that they are known as key partners. With the help of their participation, it can be stated that aims and objectives will be accomplish in positive manner(Fynn, Augustine and de Garine‐Wichatitsky, 2016). Cost structure:In the business, there are different kinds of cost drivers that can be linked with revenue. As a result, it can be stated that desired level of results. With the help of cost structure, Flipkart set their pricing which would be helpful to attain more effective and creative results in the business. TASK 4 Strategic choice of models to sustain competitive position in the company In order to deliver more profits and revenue, it can be stated that Flipkart need to attain competitive advantages. It assists to focus on the position that makes effective and creative results in the business. There are several goals also implemented to attain more significant advantages at workplace(Grant, Butler and Murray, 2014). Following porter five strategies has been adopted that assists to meet with innovative results in the business: Supplier bargaining power (Moderate): In India, there are several suppliers exist through the chosen business will easily get maximum number of raw material easily. It assists to focusonthebusinessdevelopmentandascertainedsignificantadvantagesatworkplace. 7
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Furthermore, online retail companies getting different suppliers those provide cash on delivery facility. As a result, it assists to maintain high growth of the organisation. Customer bargaining power (Low): In India, there are several number of customers exists so that Flipkart has opportunity to attract different customers to focus on business development. With this regard, it can be stated that several players helps to gain desired level of results in effective manner. It will assist to focus on the online purchasing system in the business which would be beneficial to focus on the displayed in several online retail companies. Product differentiation is the important strategy which would be beneficial to attain overall growth in the business. Competitive rivalry (High): In India, there are several industries work in this sector so that different players such as Myntra, Jabong, etc. Online business work to compete with the chosen enterprise. In addition to this, they are also dealing in high quality and quantity so that it is essential to focus on the different players that exist in the country(Ethiraj, Gambardella and Helfat, 2017). New entrants (High):In India, there are several kinds of online business work to beat with Flipkart. Therefore, threat of new entrants in the country is very high. Furthermore, there are several reasons due to which new entrants also getting high impact. Indian government is also allowing 51% FDI in single brand of online retail sector. Therefore, foreign companies can easily enter in the market to compete with Flipkart. Industry also going to grow at rapid rate so that it is going to touch 76 billion by 2021. Substitute of the products (Low):Threat of substitute product is very low so that customersareattractedtowardstheFlipkart.Customersarenoteasilyattractedtowards substitute products because they are generally believe to save cost and increase their satisfaction level in the country. Therefore, it can be stated that in the chosen business there is low threat of substitute products in the country(Grant, Butler and Murray, 2014). TASK 5 Recommendations to the company In order to develop effective results, following recommendations can be given to the chosen business: 8
Assess market demand and requirements: The chosen business need to deal with the latest trends and requirement. With the help of innovative and creativity, Flipkart need to conduct research to find market demand and requirements. Therefore, it can be stated that the company can easily develop their operations in effective manner(Hanson, Hitt and Hoskisson, 2016). Provide training and development to employees: In order to increase profitability and productivity, employees of the chosen business need to focus on the training and development program to increase systematic results. In addition to this, Flipkart need to focus on the business development with increase productivity(Yorio, Willmer and Moore, 2015). Maintain transparency: Flipkart also need to look for transparency that would be beneficial to create significant advantages at workplace. In this way, it can be stated that innovation in the business can be successfully develop at workplace. Among several employees it increases more fluctuation in the company to focus on the creative results. Flexibility: Furthermore, Flipkart need to look upon flexibility working that increases more effective results and outcomes at workplace. In this way, team will accomplish vision in desired manner. With the help of flexibility, employees get benefit to work according to their feasibility. As a result, it increases positive work performances to develop more effective outcomes(Hanson, Hitt and Hoskisson, 2016). CONCLUSION From the above report, it can be stated that strategic management is important aspect to develop effective results. In this context, present report based on the Flipkart which is successful online business in India. They attract several customers to focus on the maintaining effective relationship at workplace. In this regard, creativity also develops with strategic options that are available in front of the chosen business. According to business canvas model, it can be stated that vision and mission of the business will be accomplish in positive consideration. Hence, it increases more effective results at workplace. Furthermore, it summarised about strategic choice to accomplish goals and objectives in positive consideration at workplace. As per business goals and objectives, it can be stated that at last recommendations also explained at workplace. 9
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Popovich, A.M. and Filippi, E.S., 2015. The Use of her meta-competences in the cycle of strategic management.Journal of Management.3(6). pp.543-554. Somsuk, N. and Laosirihongthong, T., 2014. A fuzzy AHP to prioritize enabling factors for strategicmanagementofuniversitybusinessincubators:Resource-based view.Technological Forecasting and Social Change,85, pp.198-210. Stead, J.G. and Stead, W.E., 2014.Sustainable strategic management. Routledge. Wheelen, T.L., Hunger, J.D. and Bamford, C.E., 2017.Strategic management and business policy. Pearson. Yorio, P.L., Willmer, D.R. and Moore, S.M., 2015. Health and safety management systems through a multilevel and strategic management perspective: Theoretical and empirical considerations.Safety science.72. pp.221-228. Online FlipkartPESTELAnalysis.2018.[Online]Availablethrough: <https://businessteacher.org.uk/pestel/flipkart.php>. 11