PROJECT 1

A Comparative study between Flipkart and Amazon

with respect to nature, size, products, services offered
and functioning
 ACKNOWLEDGEMENT

I hereby take this opportunity to express my sincere gratitude to the following

eminent personalities who supported me to complete this project work successfully
without anydifficulty.I am indebted to
Mr. KOUSTAV MUKHERJEE,
,
Assistant Teacher of Commerce, VIDYASAGAR SHISHU NIKETAN,
Midnapore,
for his expertise guidance and valuable suggestions which enable me to submit this
project report. I would like to express my deep regard to our respected principal,
for providing us better support in my academic endeavours.
Finally, I would like to thank one and all who have helped me directly or indirectly
in preparing this report.
TABLE OF CONTENTS
 ABSTRACT

Internet became more powerful and basic tool for every person’s need and the way people
work. By integrating various online information management tools using Internet, various
innovative companies have set up systems for taking customer orders, facilitate making of
payments, customer service, collection of marketing data, and online feedback respectively.
These activities have collectively known as e-commerce or Internet commerce. Online shopping
made so easy for everyone with their product variations and simple way to buy things. An
attempt has been made to critically examine various corporate and business level strategies of
two big e-tailers and those are Flipkart and Amazon. Comparison have been done considering
e-commerce challenges, their business model, funding, revenue generation, growth, survival
strategies, Shoppers’ online shopping experience, value added differentiation, and product
offerings. Both these big players made their own mark in India, but who is going to be ultimate
winner or be the top one is going to be. A comparative study of Flipkart.com with one of the
close competitorAmazon.com delivers the information about the different strategies to succeed
in e-commerce market and different opportunities available in India.
 COMPANY PROFILE
Type of site E-commerce

Available in English

Founded 2007; 11 years ago

Headquarters Bengaluru, India

Area served India

Founder(s) Sachin Bansal

Binny Bansal

Key people Kalyan Krishnamurthy (CEO)[1]

Services Online shopping

Revenue ₹199 billion(US$2.8 billion) (2017)[2]

Employees 30,000 (2016)[3]

Subsidiaries Myntra, Jabong.com, PhonePe, Ekart, Jeeves, 2GUD

Revenue ₹199 billion(US$2.8 billion) (2017)[2]

Employees 30,000 (2016)[3]

Subsidiaries Myntra, Jabong.com, PhonePe, Ekart, Jeeves, 2GUD

Website www.flipkart.com

Alexa rank 156 (Global, (June 2018)[4]

9 (India, June 2018)[4]

Commercial Yes

Registration Required

Current status Online

ABOUT FLIPKART
Flipkart Pvt Ltd. is an Indian electronic commerce company based in Bengaluru, India.
Founded by Sachin Bansal and Binny Bansal (senior-junior at Indian Institute of Technology
Delhi & colleagues at Amazon)[5] in 2007, the company initially focused on book sales, before
expanding into other product categories such as consumer electronics, fashion, and lifestyle
products.
The service competes primarily with Amazon's Indian subsidiary, and the domestic
rival Snapdeal. As of 2017, Flipkart held a 39.5% market share of India's e-commerce
industry.[8] Flipkart is significantly dominant in the sale of apparel (a position that was bolstered
by its acquisitions of Myntra and Jabong.com), and was described as being "neck and neck"
with Amazon in the sale of electronics and mobile phones.[9] Flipkart also owns PhonePe,
a mobile payments service based on the Unified Payments Interface (UPI).
In May 2018, U.S.-based retail chain Walmart announced its intent to acquire a 77% controlling
stake in Flipkart for $16 billion USD, subject to regulatory approval. Completion of the deal
was announced on August 18, 2018.

Myntra (reducing sales by 10%), and its main website was reinstated in February 2016. The
experiment with Myntra led to suggestions that Flipkart itself would perform a similar move,
but this did not occur. In November 2015, Flipkart launched a new mobile website branded as
"Flipkart Lite", which provides an experience inspired by Flipkart's app that runs within
smartphone web browsers.
COMPANY PROFILE
ABOUT AMAZON
Amazon.com, Inc., doing business as Amazon , is an American electronic
commerce and cloud computing company based in Seattle, Washington, that was founded
by Jeff Bezos on July 5, 1994. The tech giant is the largest Internet retailer in the world as
measured by revenue and market capitalization, and second largest after Alibaba Group in terms
of total sales.[5] The Amazon.com website started as an online bookstoreand later diversified to
sell video downloads/streaming, MP3 downloads/streaming, audiobook downloads/streaming, s
oftware, video games, electronics, apparel, furniture, food, toys, and jewelry. The company also
owns a publishing arm, Amazon Publishing, a film and television studio, Amazon Studios,
produces consumer electronics lines including Kindle e-readers, Fire tablets, Fire TV,
and Echo devices, and is the world's largest provider of cloud infrastructure services
(IaaS and PaaS) through its AWS subsidiary.[6] Amazon also sells certain low-end products
under its in-house brand Amazon Basics.
Amazon has separate retail websites for the United States, the United Kingdom and Ireland,
France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil, Japan, China, India,
Mexico, Singapore, and Turkey. In 2016, Dutch, Polish, and Turkish language versions of the
German Amazon website were also launched. Amazon also offers international shipping of
some of its products to certain other countries. [10]
In 2015, Amazon surpassed Walmart as the most valuable retailer in the United States
by market capitalization.[11] Amazon is the third most valuable public company in the United
States (behind Apple and Microsoft),[12] the largest Internet company by revenue in the world,
and after Walmart, the second largest employer in the United States. In 2017, Amazon
acquired Whole Foods Market for $13.4 billion, which vastly increased Amazon's presence as a
brick-and-mortar retailer.[14] The acquisition was interpreted by some as a direct attempt to
challenge Walmart's traditional retail stores. [15]
In 2018, for the first time, Jeff Bezos released in Amazon's shareholder letter the number
of Amazon Prime subscribers, which is 100 million worldwide.[16][17] In 2018, Amazon.com
contributed US$1 million to the Wikimedia 200
Comparative Analysis between Flipkart and Amazon

A. Nature:
Flipkart Pvt Ltd. is an Indian electronic commerce company based in Bengaluru, India.
Founded by Sachin Bansal and Binny Bansal(no relation) in 2007, the company initially
focused on book sales, before expanding into other product categories such as consumer
electronics, fashion, and lifestyle products.

Amazon.com, Inc., doing business as Amazon , is an American electronic

commerce and cloud computing company based in Seattle, Washington, that was founded
by Jeff Bezos on July 5, 1994. The tech giant is the largest Internet retailer in the world as
measured by revenue and market capitalization, and second largest after Alibaba Group in terms
of total sales.[5] The Amazon.com website started as an online book store and later diversified to
sell video downloads/streaming, MP3 downloads/streaming, audiobook downloads/streaming, s
oftware, video games, electronics, apparel, furniture, food, toys, and jewelry.

B. BUSINESS MODEL
Flipkart is not having any unique business model, same business model which is their in market
since ages. Allow Merchnats to open shop on its Premises(Website), Promote our own website
people will buy from flipkart website. In return Flipkart will charge commission (Money) from
Merchants.
Amazon's Business Model. Often touted as the largest online retailer in the
world, Amazon operates under a business model with many moving parts. First and foremost, the
company sells goods directly. ... In addition to direct sales, Amazon provides a platform for other
retailers to sell products to buyers.
C. Product
Flipkart
Flipkart has launched its own product range under the name “digiflip”. Flipkart also recently
launched its own range of personal healthcare and home appliances under the brand “citron”.
During its initial years, Flipkart focused only on books, and soon as it expanded, it started
offering other products like electronic goods, air conditioners, air coolers, stationery supplies
and life style products and e-books. 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.

AMAZON
Amazon.com's product lines available at its website include several media (books, DVDs,
music CDs, videotapes and software), apparel, baby products, consumer electronics, beauty
products, gourmet food, groceries, health and personal-care items, industrial & scientific
supplies, kitchen items, jewelry, watches, lawn and garden items, musical instruments, sporting
goods, tools, automotive items and toys & games. Amazon is now gearing up in India to play a
role in the grocery retail sector aimed at delivering customer needs. [88]
Amazon.com has a number of products and services available, including:

 AmazonFresh
 Amazon Prime
 Amazon Web Services
 Alexa
 Appstore
 Amazon Drive
 Echo
 Kindle
 Fire tablets
 Fire TV
 Video
 Kindle Store
 Music
 Music Unlimited
 Amazon Digital Game Store
 Amazon Studios
 AmazonWireless
EXCLUSIVE PRODUCTS

The Amazon kindle is a series of e-readers designed and marketed by Amazon.com. Amazon
kindle devices enable users to browse, buy, download and read e-
books, newspapers, magazines and other digital media via wireless networking to the kindle
store.
Flipkart now employs more than 15000 people. Flipkart allows payment methods such as cash
on delivery, credit or debit card transactions, net banking, e-gift voucher and card swipe on
delivery.

D. FAILURE

Flipkart

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 ofitunesandAmazon.com, offereddrm-free
mp3downloads. But it was shut down on 17 june 2013 as paid song downloads did not get
popular inIndia due to the advent of free music streaming sites.

Amazon
Amazon starts using India post and screws up its delivery system in India. At the time when
thecompetition among online shopping portals in India is at its highest level possible and each
player is pooling in millions from funding’s and trying to beat each other with
never-beforediscounts and amazing services, Amazon has taken the worst step ever possible.
Amazon Indiahas chosen India post as its primary delivery partner and all “Amazon fulfilled”
orders are now
being shipped through India post. Anyone who lives in India or has some experience with the p
ostal system in India needs no introduction about India post.
E. Payment mechanism:
Flipkart: The following payment mechanisms are used for payment in Flipkart:

(i) Flipkart Pay Later;

(ii) Credit/Debit/ATM Card;

(iii) PhonePe/BHIM UPI;

(iv) Net banking;

(v) Cash on delivery.

(vi) EMI with Debit and Credit cards. But there are certain restrictions on Debit cards

Amazon: The following payment mechanisms are used for making payment in Amazon.

(i) Credit Card;

(ii) Debit Card;

(iii) NetBanking;

(iv) BHIM UPI;

(V) EMI(on selected bank debit and credit cards, Bazaj Finserv cards. But there are certain
restrictions on debit cards;

(vi) pay on delivery.

F. Logistic Services
Flipkart
E-kart provides logistic solutions for Indian e-commerce giant Flipkart. Flipkart today is
3companies: ws retail, which is the primary retailer onFlipkart.com, ekart logistics, the
shippingpartner for ws retail and others, and Flipkart itself, which builds, maintains and runs the
marketplace. Flipkart tied up with partner stores that act as alternative delivery channels (such
as ecom express, blue dart, gatti etc, so that customers can pick up their shipments at their
convenience. “by bringing together core capabilities of iot, devices, data and automation, we

have started implementing the automation technology to pick and move packages to
designated picking station, among several other applications that make warehouse processes qui
cker and smoother.

Amazon

Amazon Transportation Services, Blue Dart, FedEx, Gati, Indian Postal Services. Aramex, Ecom
Express, Delhivery.

Flipkart's business model is much deeper and much expansive that could possibly elaborate
here.However, a few key points -
G. Marketing Strategy

Flipkart

Flipkart's business model is much deeper and much expansive that could possibly elaborate
here. However few are explained below.

Rationalized supply chain - inbound logistics

Strategic warehousing and distribution capability - operations

Well aligned fulfillment process - outbound logistics.

All the three processes are extremely well integrated - first by a sound strategy, around which
theorganizational structure is built. So they have a strategy, and a complementing structure
tosupport their strategy. The third critical success factor for Flipkart is the technology as
anenabler. A strong information systems is at the core of the organization, which drives
visibilityand end-to-end integration across their supply chain processes (inbound - operations -
outbound)resulting in a well lubricated efficient machine.

Amazon
In order to differentiate itself, company acquired many it & e-commerce start-ups
like pets.com,audible.com, junglee.com, imbd.com, zappos.com, woot etc. Which helped them
in providing high value to their customers using existing technology of the acquired partners at
low cost?Amazon has also achieved economies of scale through extensive product offerings
which include electronics, toys and games appreals, diy and many more. These offerings help
Amazon to keep its prices low thereon passing on the benefits to the consumers.
H. SWOT Analysis

Flipkart

Strengths:

(i) India’s largest E-Commerce Retailers;

(ii) Experienced founders;
(iii) Acquisitions with other popular e-commerce companies;
(iv) High brand recall;
(v) Own payment gateway and logistic arm;
(vi) Exclusive and broad range of products;
Weakness:

(i) Limited distribution reach;

(ii) Cost of acquisition;
(iii) Power in the hands of buyers;
Opportunities

(i) Expansion of business;

(ii) Expanding their product categories;

(iii) Changing mentality of Indian customers;

(iv) Supply chain;

(v) Establishing in other developing economies;

Threats

(i) Competition;

(ii) Government regulations

Amzon

Strength

(i) Strong background and deep pockets;

(ii) Customer centric;

(iii) Cost leadership;

(iv) Efficient delivery network;

(v) Glocal strategy;

(vi) Acquisitions;

Weakness

(i) Shrinking margins:

(ii) Tax avoidance issue:

(iii) High debt:

(iv) Product flops

Opportunities:

1. Backward integration:

2. Global expansion:

3. Acquisitions:

4. Opening physical stores outside u.s:

Threats
1. Low entry barriers of the industry:

2.Government regulations:

3.Local competition
 CONCLUSION
The study consisted with all the work flows of major e-commerce players in India, Flipkart and
Amazon. How they are performing and how they are running perfectly in the competitive world
has been explained. The innovative thinking of them to reach more and more consumers is
appreciable. They increased their network as much as possible with ultimate aim of reaching
more and more customers. They made consumers work more easy and comfortable. In this
competitive market one has to be lead and rest will follow. Based upon consumer’s survey we
got our clear winner and it is Amazon. Even though it is an international company it understood
Indians very well and made its roots stronger in India. Flipkart is also giving very tough
competition to Amazon even though it is new company when compared to Amazon. May be it
takes some time to overcome, but definitely they are doing very well in Indian e-commerce
market.