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Amazon Vs Flipkart First Case Study

1270 Words6 Pages

Paid Membership Programme: Amazon Prime vs Flipkart First

Amazon Prime, the paid membership of the company services is still not available in India. This is a field where Flipkart got a head start and launched its premium version of membership. Presently it is only offering benefits for products only from WS retail, it is primarily aimed to stand up against the “Fulfilled by Amazon” service providing free shipping for majority of the products. Flipkart First is presently limited to delivery benefits for a limited section of products along with early access to prime products. Flipkart need to understand that it need to provide more benefits to the users as compared to the Amazon premium service. Amazon is providing host of benefits like package …show more content…

Value based Differentiation
Both Amazon and Flipkart are trying to compete on the basis of value differentiation. At present there is limited differentiation left in term of pricing. The company need to exhibit strengths in technology, supply chain and branding. In terms of customisation and personalisation Amazon is technologically advanced to provide suggestions as per the search history of the consumer. Whereas Flipkart is still developing systems and trying to provide better customised service to the users based on their behaviour. Flipkart also acquired analytics firms to get an edge but the results are yet to be seen.
Customer Review & vendor Service
The biggest differentiator for the Amazon is its robust consumer reviews. The reviews help the prospective buyer to decide and make their purchase. Flipkart is also trying to build a strong review database and has been successful in creating a comprehensive review section of the Indian …show more content…

Online channel which include Kindle, MP3 and Cloud player and Amazon Cloud drive provides a significant cost benefit over traditional distribution channel. Physical channels include 34 fulfilment centres with over 61 million cubic feet of storage. Amazon has also formed strategic alliance with firms like P&G which allows them to use their warehouses for faster and economical distribution. It also have alliances with Future Group and SBI to facilitate needs of the vendors and small business for online sales. Amazon used its in house delivery strength to fulfil orders under “fulfilled by Amazon”

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