Comprehensive model of strategic management

Comprehensive model of strategic managementBy Chandresh Dedhia XMBA 54

IndexEstablishing Strategic IntentVision & MissionBusiness Definition & ObjectivesFormulation of strategies Environment Appraisal, Organizational Appraisal, SWOT Analysis , Corporate Level StrategiesBusiness level Strategies , Strategic Choice Strategy Implementation - Project, Procedural, Resource AllocationStructural, Behavioral, Functional and operationalStrategic EvaluationVision & MissionVision - To become Amazon of India

Mission - Providing a delightful customer experience

Business DefinitionFlipkart is an e-commerce company founded in 2007, by Sachin and Binny BansalIt operates exclusively in India, where it is headquartered in Bangalore, Karnataka.It is registered in Singapore, and owned by a Singapore-based holding company.According to Alexa Internet, Flipkart's website is one of the 10 most visited websites in India.Flipkart has launched its own product range under the name "DigiFlip", offering camera bags, pen-drives, headphones, computer accessories, etc.Legally, Flipkart is not an Indian company since it is registered in Singapore and majority of its shareholders are foreigners. Because foreign companies are not allowed to do multi-brand e-retailing in India, Flipkart sells goods in India through a company called WS Retail. Other third-party sellers or companies can also sell goods through the Flipkart platform.Business ObjectivesFlipkart aims to become the largest retailer of India. Flipkart wants to be present across all categories, except in groceries and automobiles, the CEO said. Our target is not just those who shop online. We want to highlight the convenience of e-commerce to traditional offline shoppers and, thus, help grow the market.

2012 - US $ 100 million, Diversify product revenues2015 - US $ 1 billion India, Aggressive markets, Stronger Supply chains2020 Largest Retailer in India, Enter Global Markets

Environmental appraisalOrganizational AppraisalSWOT Analysis Corporate Level StrategiesStarted Operation in 2007 and break even in August 2010To Grow inorganically through acquisitionsHave their own SCM company names Ekart

Acquisitions2010: WeRead, a social book discovery tool.2011: Mime360, a digital content platform company.2011: Chakpak.com, a Bollywood news site that offers updates, news, photos and videos. Flipkart acquired the rights to Chakpak's digital catalogue which includes 40,000 filmographies, 10,000 movies and close to 50,000 ratings. Flipkart has categorically said that it will not be involved with the original site and will not use the brand name. 2012: Letsbuy.com, an Indian e-retailer in electronics. Flipkart has bought the company for an estimated US$25 million.Letsbuy.com was closed down and all traffic to Letsbuy have been diverted to Flipkart.2014: Acquired Myntra.com in an estimated INR 2,000 crore deal.

Business level StrategiesFlipkart has been mostly marketed by word of mouth advertising.Customer satisfaction has been their best marketing medium.Flipkart very wisely used SEO (Search Engine Optimization) and Google Ad-words as the marketing tools to have a far reach in the onlineworld.Flipkart.com official Face book page has close to 9 lac likes. Flipkart launched a series of 3 ads with the tag line - "No Kidding No worriesKids were used to create the adverts to send out the message - if a kidcan do it, you can also do it.All in all to create a great customer experience.Business Level StrategyIn 2007, Flipkart started with selling books. The first book sold at flipkart.com was John Woods' Leaving Microsoft to Change the World TodayIn 2010, they added to their catalogue, media (including music, movies and games) and mobile phones and accessoriesIn 2011, product launches included cameras, computers, pens & office supplies, computer accessories, home and kitchen appliances, personal care, health care, gaming consoles, audio players and televisions.In October and November 2011, Flipkart acquired the websites Mime360.com and Chakpak.com Later, in February 2012, the company revealed its new Flyte Digital Music Store. Flyte, a legal music download service in the vein of iTunes and Amazon.com, will offer DRM-free MP3 downloads.In 2012, product launches includes health & beauty products, Life style products which includes watches, belts, bags & luggage.In July 2012 Flipkart announced the launch of its in-house brand Digiflip. Digiflip is a brand of digital accessories with products like laptop bags, laptop sleeves and camera bags among others

Strategic ChoiceStarted Selling books : Why Books were the first choice? Lower transaction size Better Shelf size Shipping and handling of books is easy To emerge as a pioneer in book retailing rather than venturing comparison shopping engine

Growth Story:Started with books and went on to add new products 2 employees, 2 suppliers to 4800 employees and more than 600 suppliers Have their own internal courier services called flipkart logistics

Project & ProceduralLaunched No kidding, no WorriesFDI norms since its registration is in Singapore, not considered as indian companyTax Rules and regulations as e-retail and e-commerceResource AllocationStarted with 2 employees and now employs 10,000 people.Has its own SCM company named Ekart to operational efficienciesStructural

Behavioral

Functional and operationalThough Amazon is one of the earlier players in the industry, it is FLIPKART which is one of the Indian players in this industry which really brought about the great change in the mindset of Indian population.

Strategic EvaluationFlipkart's reported sales were40 million in FY 20082009200 million in FY 20092010750 million for FY 201020115 billion (US$100 million) for 2011-2012Flipkart.com, the country's first billion-dollar-valued Internet Company, is surely in a state of perpetual excitement.

Flipkart is a story that comes from smart work and an it is possible attitude.The USP of Flipkart is to provide the consumers with the best online shopping experience.These are the reasons why many love Flipkart. Some people calling it as Amazon of India which fits to Flipkart.

Strategic Evaluation

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