Flipkart.com is one of India's best known online retailers. Founded in 2007, with the ambitious dream of becoming India's Amazon.com, Flipkart.com started out selling books and quickly expanded its product portfolio to include laptops, computer peripherals, consumer durables, consumer electronics, fashion accessories, media and games. Flipkart's products were competitively priced, its customer service was exemplary and it offered innovative solutions to enhance the customer experience such as its cash on delivery service. These factors, coupled with a smart marketing mix and catchy advertisements that sensitized the Indian consumer to the online shopping experience, contributed to its rapid growth. While the customer viewed the company with rose-tinted glasses, all was not well within Flipkart. It was plagued by a multitude of issues, including a business model that swallowed cash faster than it was generated, increasing constraints on its operational and supply chain capabilities and deteriorating investor confidence. Indeed, Flipkart found itself in trouble in late 2012. With competitors hot on its heels and the imminent entry of Amazon.com into the Indian market, Flipkart had to evaluate its options carefully and make some smart moves if it was to survive and regain investor confidence.
Swot Analysis of "Flipkart.com" written by Tripti Ghosh Sharma, Rohith Desikan, Lakshmi Narasimhan, Shalabh Jain includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Flipkart.com Flipkart facing as an external strategic factors. Some of the topics covered in Flipkart.com case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Flipkart.com casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic , technology disruption, increasing inequality as vast percentage of new income is going to the top 1%,
talent flight as more people leaving formal jobs, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Flipkart.com case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Flipkart.com Flipkart, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Flipkart.com Flipkart operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Flipkart.com can be done for the following purposes –
1. Strategic planning using facts provided in Flipkart.com case study
2. Improving business portfolio management of Flipkart.com Flipkart
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Flipkart.com Flipkart
Strengths Flipkart.com | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Flipkart.com Flipkart in Flipkart.com Harvard Business Review case study are -
High switching costs
– The high switching costs that Flipkart.com Flipkart has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Learning organization
- Flipkart.com Flipkart is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Flipkart.com Flipkart is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Flipkart.com Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Flipkart.com Flipkart is one of the leading recruiters in the industry. Managers in the Flipkart.com are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the Flipkart.com Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Analytics focus
– Flipkart.com Flipkart is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Tripti Ghosh Sharma, Rohith Desikan, Lakshmi Narasimhan, Shalabh Jain can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Innovation driven organization
– Flipkart.com Flipkart is one of the most innovative firm in sector. Manager in Flipkart.com Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Flipkart.com Flipkart digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Flipkart.com Flipkart has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Sustainable margins compare to other players in Strategy & Execution industry
– Flipkart.com firm has clearly differentiated products in the market place. This has enabled Flipkart.com Flipkart to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Flipkart.com Flipkart to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Flipkart.com Flipkart is present in almost all the verticals within the industry. This has provided firm in Flipkart.com case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Cross disciplinary teams
– Horizontal connected teams at the Flipkart.com Flipkart are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Ability to lead change in Strategy & Execution field
– Flipkart.com Flipkart is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Flipkart.com Flipkart in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Flipkart.com Flipkart has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Flipkart.com Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Weaknesses Flipkart.com | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Flipkart.com are -
Increasing silos among functional specialists
– The organizational structure of Flipkart.com Flipkart is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Flipkart.com Flipkart needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Flipkart.com Flipkart to focus more on services rather than just following the product oriented approach.
Need for greater diversity
– Flipkart.com Flipkart has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Flipkart.com, it seems that the employees of Flipkart.com Flipkart don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow decision making process
– As mentioned earlier in the report, Flipkart.com Flipkart has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Flipkart.com Flipkart even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Low market penetration in new markets
– Outside its home market of Flipkart.com Flipkart, firm in the HBR case study Flipkart.com needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Flipkart.com, in the dynamic environment Flipkart.com Flipkart has struggled to respond to the nimble upstart competition. Flipkart.com Flipkart has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Flipkart.com has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Flipkart.com Flipkart 's lucrative customers.
Lack of clear differentiation of Flipkart.com Flipkart products
– To increase the profitability and margins on the products, Flipkart.com Flipkart needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Flipkart.com Flipkart has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Skills based hiring
– The stress on hiring functional specialists at Flipkart.com Flipkart has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Slow to strategic competitive environment developments
– As Flipkart.com HBR case study mentions - Flipkart.com Flipkart takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Opportunities Flipkart.com | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Flipkart.com are -
Low interest rates
– Even though inflation is raising its head in most developed economies, Flipkart.com Flipkart can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Flipkart.com Flipkart can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Flipkart.com Flipkart can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Manufacturing automation
– Flipkart.com Flipkart can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Flipkart.com Flipkart to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Flipkart.com Flipkart is facing challenges because of the dominance of functional experts in the organization. Flipkart.com case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Flipkart.com Flipkart to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Flipkart.com Flipkart to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Flipkart.com Flipkart can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Creating value in data economy
– The success of analytics program of Flipkart.com Flipkart has opened avenues for new revenue streams for the organization in the industry. This can help Flipkart.com Flipkart to build a more holistic ecosystem as suggested in the Flipkart.com case study. Flipkart.com Flipkart can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Flipkart.com Flipkart can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Flipkart.com Flipkart can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Learning at scale
– Online learning technologies has now opened space for Flipkart.com Flipkart to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Flipkart.com Flipkart can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Flipkart.com Flipkart in the consumer business. Now Flipkart.com Flipkart can target international markets with far fewer capital restrictions requirements than the existing system.
Threats Flipkart.com External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Flipkart.com are -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Flipkart.com Flipkart needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Flipkart.com Flipkart can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Flipkart.com .
Consumer confidence and its impact on Flipkart.com Flipkart demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Stagnating economy with rate increase
– Flipkart.com Flipkart can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Flipkart.com, Flipkart.com Flipkart may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Flipkart.com Flipkart business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Flipkart.com Flipkart
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Flipkart.com Flipkart.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
High dependence on third party suppliers
– Flipkart.com Flipkart high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Shortening product life cycle
– it is one of the major threat that Flipkart.com Flipkart is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Flipkart.com Flipkart needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Flipkart.com Flipkart.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Flipkart.com Flipkart in the Strategy & Execution sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Flipkart.com Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Flipkart.com needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Flipkart.com is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Flipkart.com is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Flipkart.com is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Flipkart.com Flipkart needs to make to build a sustainable competitive advantage.
