Since foreign e-commerce companies were not allowed to allowed to hold their own inventory and sell directly to consumers in India, Amazon launched its marketplace model which enabled third party sellers to trade their products. Since it was launched in India Amazon has built up one of the biggest online product ranges in the country. The case discusses the strategies Amazon India adopted to win over the Indian market. However, some analysis felt that amazon had made a big strategic mistake in trying to crack yet another emerging market after its fiasco in China and Brazil. The case is structured to achieve the following teaching objectives Understand the e-commerce market of an emerging country.
The Rat Race to become etailer giant in India A month ago two news items captured the front page headlines. The first was on July 29 by Flipkart that it has raised fresh capital of $ 1 billion. And not even a day had gone by before global biggie Amazon Inc. announced that it would invest $2 billion into its India business. These events raised many interesting questions, one of them obviously being that of ‘The rat race’. The ecommerce industry is currently a regulatory quicksand and customer loyalty is a tough game.
The ambitious strategy promises to turn FedEx and UPS into Amazon rivals, but also will pit counterpart Alibaba. Both companies want dominance of the rapidly growing crossborder ecommerce market, which by 2020 is expected to swell into a $1 trillion industry serving 900 million shoppers. Amazon will partner with thirdparty carriers to build the global enterprise and then gradually squeeze them out once the business reaches sufficient volume and Amazon learns enough to run it on its own. If the logistics business takes hold, financial services could follow, with Amazon giving loans to merchants, processing international payments and consulting its network of sellers on customs and tax matters. Operating activities increased from Quarter 1 of 2016 to Quarter 2 of 2016 and from Quarter 2 of 2016 to Quarter 3 of 2016.
Mission/Vision: Flipkart’s current vision is ‘To become Amazon of India’ and their mission revolves round ‘Providing delightful customer experience’. Considering Flipkart is one of the most looked forward technology company of next decade and Amazon has already entered Indian market there is a huge need for them to review their long term goal and vision and develop a new Brand idea for coming future. They want to tap the large indian market with 65% of its population below 35 years. The hugh indian population is a great opportunity for flipkart to make the big buck and their current strategy revolves around that. The store started with selling books and in 2010 branched out to selling CDs, DVDs, mobile phones and its accessories, cameras, computers,
“Flipkart’s Big Billion Day Marketing Strategy.” How successful was it? This essay will introduce what Flipkart is and what the Big Billion Day sale is all about. It will then go through all the discounts that were offered on different items, followed by the business strategy behind running such a massive sale and making huge amounts of money in less than a day. This essay will also address the different problems that both the shoppers as well as Flipkart faced during the course of the sale, which led to unhappy customers, and what Flipkart did to resolve all issues. Steps taken by rival competitors in the market will be visualized next.
Over the next several years he won a few major contracts globally, including one to computerize the giant Mumbai phonebook. The License Raj was a major hurdle for Kohli in his international expansion strategies. Red Tapism, expensive computer equipment, rising unemployment rates among other factors thwarted growth. However Kohli was still optimistic of India being a global IT Powerhouse. He drew a cross between the technology adopted in the US and potential customers for TCS services.
The margins in the business books are high (40-50%) and Indian laws allow books to be imported and cross state lines without taxes, and to promote customer trials as a low-ticket items. They also came with the unique feature of the customer an option payment by cash, which they helped to gain confidence customers and made her a household name. In June 2013 Flipkart raised USD 160 million of private equity investors, with the total to $ 360 million in its recent donation drive to build and strengthen technology and strengthen its supply chain. The company has a total amount of $ 360 million in the fifth round of funding, the largest investment rose by an Internet company in India. The company is valued at approx .. 9900 crore (US $ 1.6 billion) and plans to be raised in order to use to improve its technology and supply chain capabilities capital, improve their end users and for the setting.
But Coke and pepsi kept rejuvenating the market throught product modification and pricing etc. The only way to gain competition advantages is to fight it out in the marketplace. This modus operandi was followed in the indian markets as well with Coke and Pepsi resorting to more innovative tactics to generate consumer interest He companies were trying to increase the whole market pie, as the market shares war seemed to get nowhere. Boths of the companies came out with contradictory market share figures as per surveys conducted by their respective agencies. August 2010, Pepsi claimed to have increased its market share for the first five month 2010 to 53% from 50.3% and Coke increased its share in the market to 60% in the same period, from 58%.
Since the demand for online videos only grows every year, and because Google bought the shares of YouTube, they have a great opportunity to expand the online video market. Furthermore, The market for smartphones is expected to grow at a robust pace in the medium term. According to industry estimates, global smartphone shipments are expected to grow from 1,429.8 million shipments in 2015 to 1,862.3 million shipments in 2019. on the other hand, One big threat Google facing is antitrust charges in the European Union (EU) for allegedly abusing its dominance of internet search. As a result, the company is expected to face an antitrust fine of over $3.4 billion. The second threat is that The company’s business could be impacted by Ad blockers.
UNDERSTANDING SOCIETY, CULTURE AND IDENTITY BOOK REVIEW Book: Breaking Through India’s Stories of Beating the Odds on Poverty Author: Meera Mitra Publishing house: Rupa, 2015 Submitted by: Anjali Singla, APCP In the last decade, while India has witnessed tremendous economic growth, poverty and economic disparity have also increased manifold, attracting social scientists to further decipher the phenomenon. ‘Breaking Through’ is one such narrative account of poverty and its facets in India. The author, Meera Mitra, is a PhD from Delhi School of Economics, with an expertise in fields of gender, education, health and governance. This book highlights the complexity of poverty in India while maintaining optimism, suggesting solutions, and recognising major issues. The intent behind this book was to acknowledge some distinctive and phenomenal efforts by the poor to break through the poverty trap.