Strategic Management Analysis Report for Flipkart: India

This report provides a strategic analysis of Flipkart, an online shopping site in India. It examines the company's past strategic direction, including its focus on raising capital and expanding its online market presence. The report reviews Flipkart's external environment using the PESTEL model, considering political, economic, social, technological, legal, and environmental factors. It critically discusses Flipkart's competitive advantages, such as its early entry into the market and cash-on-delivery system, and analyzes probable industry scenarios. The analysis also addresses strategic drift, aligns the company's mission and vision with market demands, and identifies Flipkart's strategic capabilities, including e-commerce activities and supply chain management. The report concludes with recommendations to sustain Flipkart's competitive position and achieve its goals. Desklib provides this report as a resource for students seeking insights into strategic management and business development.

Strategic Management

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
Critical discussion of the company to take competitive advantages among its direct
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, managerial staff, upper level of management those are working together to
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).
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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).
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 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
international investors in Flipkart to continue contribute in economic growth.
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
and protect customer data. It also increases concerns with ability with business
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
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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
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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 additional spare parts where people stand by restore any loss in
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
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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.
Targeting strategy: Targeting strategy also considers focusing on the area where
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.
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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
focus on the business development and ascertained significant advantages at workplace.
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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
customers are attracted towards the Flipkart. Customers are not easily attracted towards
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:
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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.
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