Competitive Strategies Analysis: eBay vs. Flipkart in E-commerce

This report provides a comparative analysis of the competitive strategies employed by eBay and Flipkart, two prominent e-commerce platforms. It examines eBay's strategies, including its powerful online platform, ease of use, diverse product portfolio, focus on small sellers, and innovative approaches, along with its CAGE framework. The report then delves into Flipkart's strategies, such as its pricing strategies, personalized shopping experiences, and innovative initiatives, also including its CAGE framework. The analysis highlights how both companies have achieved market excellence and customer retention through unique strategies. The report concludes by summarizing the effectiveness of these strategies, offering valuable insights into the competitive dynamics of the e-commerce industry and the factors that contribute to the success of these two major players.

RUNNING HEAD: Competitive Strategies 1
Competitive strategies
{eBay and Flipkart}

Competitive Strategies 2
Table of Contents
Introduction................................................................................................................................3
eBay Competitive strategies.......................................................................................................3
Powerful online platform........................................................................................................3
Ease of use..............................................................................................................................4
Largest portfolio of products and services:............................................................................4
Focus on small sellers.............................................................................................................4
Innovative strategy.................................................................................................................4
CAGE Framework..................................................................................................................4
Flipkart Competitive strategies..................................................................................................5
Price is a deterrent..................................................................................................................5
Personalizing the Shopping Experience.................................................................................5
Innovative Strategy.................................................................................................................5
CAGE Framework:.................................................................................................................6
Conclusion..................................................................................................................................6
References..................................................................................................................................6

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Introduction
A strategy refers to a plan or action that is designed to achieve the long-term objective of
business. Nowadays, e-commerce plays the vital role for the government, private sector
organizations as well as the consumers which address the convenient and effective
process. The study explains the competitive strategy of eBay and Flipkart which is a
multinational e-commerce company and facilitating the online services to the customers.
The study describes the competitive strategies which are adopted by both the companies
in order to achieve excellence in the market and increase its customer base by offering
the unique and innovative products and service to the customers. The objectives of this
report are to identify the sources of both the organization which enables the business to
get their potential customers worldwide and how it sells its goods and services to the
customers.
eBay Competitive strategies
According to Bowonder et al. (2010), eBay is a multinational e-commerce company
which provides the online consumer with consumer services and business to consumer
sales. It involved in the activities of investment and acquisitions to help the buyers and
sellers on the online platform. eBay also offers the marketing services which includes
advertizing. The company was founded by Pierre M. Omidyar in September 1995.The
reason for choosing eBay as to define their competitive strategy is to describe its
worldwide popularity amongst the people and the strategies used by eBay to remain
superior in the market. It perceived excellence in the field due to continuous innovation
and adaptability according to customer needs. Below are the key factors which show how
eBay perceived excellence in the field due to continuous innovation and adaptability
according to customer needs.
Powerful online platform: eBay created a strong platform for the sale of goods and
services by an adoring community of individuals and businesses (De Kluyver, 2010).
There are a large number of things across finished a considerable number of groupings
accessible to be acquired on eBay on any given day. Around 147 million people now use
the online association eBay. eBay enables on a local, national and worldwide introduce
with changed districts in business areas around the world.

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Ease of use: eBay give the simple online stage to use offering, posting and stock
gadgets make it easy to offer your things on the site and do it in a faster way.
Largest portfolio of products and services: According to Gupta (2015), eBay is the
online stage where the world goes shopping, offer and give. The mission of eBay is to be the
world's most loved goal for enhancing the considerable esteem and extraordinary
determination.
Strategies are made in order to determine the company’s success. eBay makes the
competitive strategies in order to achieve the excellence in the market and make the
competitive advantage for the business innovation by providing the goods and services to
their customers are as follows:
Focus on small sellers: In order for developing and sound commercial center, eBay had
constantly considered that little and easygoing dealers are the highest ground. These shippers
made the gathering and pass on a human touch to the business focus to make eBay a
predominant shopping knowledge (Jayakumar & Jayakumar, 2016). In January, eBay
diminished addition charges for every one of the merchants keeping in mind the end goal to
diminish the danger of offering on eBay and expedite more general stock eBay.
Innovative strategy: Today, eBay is significantly more than a bartering deal. The
business has developed into an overall exchange and portions arrange which engaging $205
billion in business volume in 2013. The association has three specific claim to fame units that
is eBay is one of the world's greatest online business focuses which empowers customers to
buy and offer in about every country on earth. PayPal enables individuals and associations to
securely, easily and quickly send and get propelled portions. The fundamental thought
process of eBay was to help the retail business so as to meet client rising desires for a decent
shopping knowledge. In this manner, all these are the aggressive methodologies that apparent
eBay to accomplish perfection in the market.
CAGE Framework: eBay has first entered the Chinese market in 2002 by getting a 33
percent stake in its local partner. The worldwide market evaluates the volume of universal
exchange and the volume of outside direct interest in an industry. eBay is one of the biggest
brands of web based business on the planet and TOM Online which is one of the biggest
remote specialist co-ops of astounding administrations to Chinese shoppers. TOM online has
added a solid political resource by being bolstered by Li Ka Shing which is the greatest

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holder of the organization and who has likewise solid associations with the enormous
positioning authorities both in Chian and Hong Kong. This accomplishment on the Chinese
market demonstrates that the firm had an incredible brand that indicates of this business zone
and decreases the hazard for eBay to commit errors with its technique.
Flipkart Competitive strategies
Flipkart is one of the essential electronic business players in the nation. With more than
11.5 million book titles recorded, 11 charming depictions, more than 2 million selected
customers to offer of 30000 things for consistently. Flipkart was founded by Sachin
Bansal and Binny Bansal in 2007. It has the refinement of being one of the principal
expansive organizations to offer products over the Internet. It additionally has an all-
around created conveyance coordinate with distribution centers spotting the nation. The
reason for selecting Flipkart e-commerce Company is its popularity amongst the world
(Kinyuira, 2014). Its high customer service and amazing ease in purchasing items from
cart make Flipkart made it perceived excellence in E-commerce. The main factors which
show how Flipkart perceived excellence in the market are:
Price is a deterrent: According to Padmanabh (2017), Flipkart has accomplished such
monstrous scale that it gets most perfect expenses from its traders. Flipkart can wear
down razor-thin edges and still advantage on the exchange. Retailers can't do that
because if they drop costs online they danger tearing up their own specific arrangements
and driving edge down while having each of the comparative overhead costs.
Personalizing the Shopping Experience: According to Schaper (2016), Flipkart
understands that the more noteworthy the thing is to the customer the more plausible
clients will purchase. Online retailers can pick up from Flipkart and redo the shopping
background however substantially more could sensibly anticipate. This strategy helps the
customer to pick Flipkart every time for all of its purchases.
Innovative Strategy: Flipkart is coming up with an inventive methodology for picking
up the prevailing position in the market. Flipkart concentrated on guaranteeing greatest
incentive to clients by making the quality items reasonable and open. Flipkart starts the
inventive projects like no cost EMI and item trade programs for the moderateness
sanction keeping in mind the end goal to give the rebates to buyers. Flipkart as of late
propelled Flipkart First which is an apparent membership benefit for its clients. The

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membership approaches are sufficiently straightforward which say that client need to pay
INR 500 for each annum and consequently, get free dispatching of requests for
guaranteeing an ensured conveyance and get 50 percent off on the same day. This
imaginative methodology gives a couple of more components to the clients.
CAGE Framework: With the development of a worldwide commercial center, Flipkart
had since ridden on the rushes of the open doors that accompany globalization. After over a
time of the extension, Flipkart worldwide operations represented around 43 percent of its
income. This demonstrates the hugeness of focusing on the universal markets. Flipkart could
enter in the UK showcase without noteworthy changes to its plan of action to focus on the
UK advertise. The physical separation between the United States and the United Kingdom
despite the fact that was expensive and could without much of a stretch be connected by
Flipkart to create built up strategic system and administrations.
Conclusion
Strategies adopted by eBay and Flipkart are exclusive and attractive. Their customer
retention comparatively high in comparison to others. eBay offers several useful features
to make email experiences as smooth as possible which include spam filtering,
conversation view, built-in chat and video calls which make its products and services
more attractive. On the other side, Flipkart is already creating a superior brand image for
all products it sells to the customer and solves queries for each customer by remaining
available all time.
References
Bowonder, B., Dambal, A., Kumar, S. &Shirodkar, A., 2010.Innovation strategies for
creating competitive advantage. Research-technology management, vol. 53, no. 3, pp.19-32.
De Kluyver, C., 2010. Fundamentals of global strategy: a business model approach.
Business Expert Press, 202-240.
Gupta, M., 2015. Strategy Formulation for Performance Improvement of Indian Corrugated
Industry: An Application of SWOT Analysis and QSPM Matrix. Journal of Applied
Packaging Research, vol. 7, no. 3, p.3.

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Jayakumar, T. & Jayakumar, T., 2016.Behavioral lessons from Flipkart’s Big-Billion Day
sale. Competitiveness Review, vol. 26, no. 4, pp. 453-475.
Kinyuira, D., 2014.Effects of Porter's Generic Competitive Strategies on the Performance of
Savings and Credit Cooperatives (SACCOs) in Murang'a County, Kenya, Journal of Business
and Management, vol. 16, no. 6, pg. 94-110.
Padmanabhan, B., 2017. Flipkart. com's Strategy on Amazon. com's Entry into India: A Case
Study. Ushus-Journal of Business Management, vol. 12, no. 4, pp. 131-143
Pandey, A., 2017. Capital structure and competitive intensity: Considerations for Start-Up
Firms.
Schaper, M. ed., 2016. Making ecopreneurs: developing sustainable entrepreneurship.CRC
Press.