BUSINESS OPERATION ANALYSIS OF

Business Analysisof Presented to: Presented by:Prof. J.B. Shetty Chanchal Verma

flipkart- Indias largest Online Store!!! Leading Indian E Commerce company headquartered in Bangalore Started by two IIT graduates (earlier employed with Amazon) in year 2007 by Sachin Bansal and Binny Bansal with the objective of making books easily available Indias largest online bookseller with over 11.5 million titles in offer. Added other products like media, electronics, personal and health care. Funded by owners Bansals, VCs Accel India and Tiger global.

Cont. Sells nearly 20 products per minute. First company to introduce Cash On Delivery payment system. First Mover in the Indian online retail Industry. Registered User base of two million customers.

flipkart- Indias largest Online bookstore!!!

Market players: Selling New Books

Current Position Of Flipkart.comFlipkart started with selling books. In 2010, they added to their catalogue media (including music, movies andgames) and mobile phones and accessories. In 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 2012, product launches includes health & beauty products, Life style products which includes watches, belts, bags & luggage. In November 2011, Flipkart launched a new Electronic Wallet feature that allows shoppers to purchase credit to their Flipkart account using credit or debit cards, and can subsequently be utilised to make purchases on the site, as and when required. From June 2012, Flipkart allowed people to buy toys, posters and from October 2012, Flipkart entered into apparel retailing.

Acquisition made By Flipkart.comWE READ, social book discovery toolMIME260, a digital content platform company.Chakpak.com is a Bollywood news site that offers updates, news, photos and videosLetsbuy.com is India's second largest e-retailer in electronics. Flipkart has bought the company foran estimated US$25 million.

Business Result of flipkartFlipkart's reported sales as follows:-IN FY 20082009- > IN FY 20092010- >IN FY 20102011- > IN FY 20112012- >

Business, Information &TechnologyFlipkart Manages the Business:

They maintain effective relationship with the suppliers. Flipkart established a network of more than 500 distributors. They manage their supply chain very effectively: When customer making purchase from Flipkart they provide various options for payment like Cash on delivery, Demand Draft, cheque and also from Money order. When customers enter the phone number and address at the same time they packed the goods and sent it for the shipment. The delivery time varies between less than 24 hours and 3 weeks depending upon the location.

How Flipkart Manages INFORMATION SYSTEM:

The company use sales to predict the inventory levels. The warehouses are split into multiple areas- inventory, packing, shipping, and so on. The stocks are replenished every 24-28 hours.

They have an understanding with their associates for order tracking, reconciliation and MIS reports. The customer is also updated about the status of his shipment via message, email or through the website.

When there is recall of any product than also they manage that efficiently. Flipkart also takes care of the after sales needs of its customers with regard to delivery of an item or addressing grievances including delayed delivery by the logistic partner.

Flipkart Using Technology & Bring InnovationMr. Amod Malviya, VP Engineering, Flipkart come up with the framework has Two components.One measures the performance of the website through various defined metrics.

Second one is used to test the success of web marketing campaigns, allow multiple versions of the site to be live simultaneously.

If the transaction rate falls bellows a certain limit, system are immediately alerted. Second framework is helpful to engineers to change the design of the homepage. They can also evaluate the impact of the change with the metrics collection tools.

Plain vanilla approaches to scaling web-sites do not work when traffic is in the order of millions per day and growing.The recommendation engine - used to generate recommendations for users. The Supply Chain backend system(s) and the technology platform that were built ground up to accommodate scale without compromising correctness.The Fraud detection systemThe entire Digital Platform - buying apps, data formats, player/reader apps.The automated codes build & deployment, server deployment tools that helps to push features at better velocity.

SUPPLY CHAIN MANAGEMENT

CUSTOMER RELATIONSHIP MANAGEMENTFlipkart has built itself on the core foundations of reliability, quickness, credibility, variety and quality. It uses Customer Relationship Management as its differentiating factor.

Providing good customer service enables Flipkart to enjoy high levels of customer satisfaction, generate repeat business and ensure positive word-of-mouth.The customer is informed at every step through e-mail/text when the order has been confirmed order summary & shipment details + tracker informing customer if order has been delayed.

Easy to reach out to the customer service team through their social media channels as well as a customer care number. Customer complaints are quickly addressed and there are transparent return and exchange policies.

Inventory ManagementFlipkart doesnt believe in getting the product once the order is placed. The products are all there in the inventory itself. When one place the order online, the CRM system sends the request to the inventory store and the team ships it within 2hours of receiving the request.

Never promise something that you do not have.

Cont..ANS SYSTEM

ANS (Alerts and Notification) system of their inventory system management software keeps a close eyes on fast moving, slow moving, and dead to notify about the stock.

Strategies used by Flipkart:

Warehouses near airportLocal warehouses across 8 citiesA part of customer support team based out of warehouse

Fraud Detection SystemPayZippyis a fresh new payment solution for merchants and buyers. Start accepting credit and debit card payments on your website and mobile store.

Customer Knowledge Discovery

Flipkart has an amazing recommendation system at place to make product discovery faster and seamless. The recommendation system used by Flip Kart predicts users intent and helps connect them withproducts they need or perhaps be interested in an automated manner. They help users in following ways :

Help find: similarproducts. Ex: recommendations to buy a apple phone when surfing Nokia phones.

Help decide . Ex: people who viewed this ended up buying.

Complete the purchase experience Ex: cases for phones, laptop bags etc.Excite or wow

Customer Demographic Analysis And Customer Behavior ModelingFlip kart's customers fall in to the categories of youth, avid book readers, technology enthusiasts and online shoppers. Therefore, it has carefully demarcated and segmented each of the demographic categories and modeled the customer behavior to understand their needs and preferences. It creates data models from the following sources:

Bought historyBrowse historyCompare historyBought itemsWish list itemsRated productsCart additions

Straightforward Return And Exchange PoliciesFlip kart allow its users to return products if unsatisfied within 30 day period with full refund of money or exchange for another product.

This allows customers to shop online without worrying about therisks involved.

It uses the Wallet feature to debit the refund money that can be used to make a purchase from the website.

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