Strategy Implementation and Control Submitted to:
Dr. Debendra Prasad Kar Group -10
Pooja Surana Pragya Kumari Sanjay Kumar Shivam Singh
FLIPKART
Table of Contents OVERVIEW OF THE COMPANY ...................................................................................................................... 2 JOURNEY OF FLIPKART .......................................................................................................................... 5 VISION AND MISSION .................................................................................................................................... 6 STRUCTURE – FLIPKART ................................................................................................................................ 7 STRATEGY AT FLIPKART ................................................................................................................................. 9 DIFFERENT TYPES OF LEADERSHIP STYLE .................................................................................................... 14 ANALYZE HOW THE LEADERSHIP STYLE AFFECTS THE PERFORMANCE OF THE COMPANY. ...................... 15
FLIPKART
OVERVIEW OF THE COMPANY Flipkart Online Services Pvt. Ltd. owns and operates an online shopping Website in India. It started as an Online Bookstore by Sachin Bansal and Binny Bansal. Yes, their surname is same but there are not brothers. When the company started back in 2007, they found difficult in delivering goods to consumers. The first customer has orders a book which is rare one, Binny and Sachin roamed in the city of Bangalore and found the book and sent it to customer.
Thus was born Flipkart in Oct 2007 with an initial investment of 4 lac (co-founders savings).It was never going to be easy since India had a bad past experiences with e-commerce trading. It was not an easy segment to break into, people were very particular in paying money for something which they had not seen and received. The trust was missing in the Indian customers. So what Flipkart had to do was to instill trust and faith in their customers. And they did exactly the same later. They used word of mouth marketing to popularize their company. Flipkart began with selling books, since books are easy to procure, target market which reads books is in abundance, books provide more margin, are easy to pack and deliver, do not get damaged in transit and most importantly books are not very expensive, so the amount of money a customer has to spend to try out one's service for one time
is
very
minimal.
Flipkart
sold
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only books for the first two years. A few months later, the company sold its first bo ok onFlipkart.com — John Woods' Leaving Microsoft to Change the World
It provides books, movies, music, games, consoles, gaming accessories, mobiles, mobile accessories, cameras, camera accessories, computers, computer accessories, network components, software, peripherals, home and kitchen appliances, TV and video products, and personal and health care products.
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It is 6th biggest start-up in the world.
It is valued at USD 15 million.
It is no.1 online retail platform with 45% market share.
It has 75 million registered users.
It has 30 million products.
It has 10 million daily visits.
It has 8 million shipments per month.
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JOURNEY OF FLIPKART
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VISION AND MISSION Mission:
―Providing delightful customer experience‖
It reads out that it wants to provide customers with online memorable experience and one of its values is customer obsession. Vision:
―To become Amazon of India ‖
Flipkart can achieve this VISION statement of the company by looking into their MISSION statement
Core values of Flipkart:
1. Customer Obsession 2. Ownership 3. Impact 4. Honesty 5. Selflessness 6. Communication 7. Innovation
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STRUCTURE – FLIPKART
1. Organizational Hierarchy This is very important for a Billion Dollar company, as it started with 2 Employees and turned to almost 70,000 Employees, which is not easy without a good hierarchy down the lane. There are various entities under the Flipkart which work under their own rules, regulation and guidelines. Hence there are different organisational structures for all of their entities. Given below is the organisational structure of how the group is structured as per the entities of the parent company:
CFO VP Marketing O E C n i h c a S
O O C y n n i B
President Engineering VP Categiories President Operations VP Operations VP Digital Business
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2. Business Hierarchy The Business Hierarchy of Flipkart has grown with Venture Capitalists coming in all the way from Singapore and FDI been used. They are several companies Such as WS Retail that has been bought by Flipkart to resolve issue with the FDI in India, Flipkart have also have a fleet of companies like Digi Flip which produces electronic goods such as Tablets.
Flipkart EKart
DigiFlip
WS Retail
Myntra Jabong
Other than the Above Direct Companies, Since Flipkart has sister companies in Singapore the following image will give more understanding on what the Business structure was like.
3. Acquisitions: Well, this is nothing new. From Nokia to Microsoft, WhatsApp to Facebook. Acquisition is the latest trend in the Business. Well the below is the list of the acquisitions that is made by Flipkart until today.
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1. WeRead is a Social Book Discovery Tool 2. Mime360 is a Digital Content Management tool 3. Chakpak is a Bollywood review rating site 4. Letsbuy is a e-commerce website 5. Myntra – a fashion e-commerce store 6. Appiterate a Mobile Marketing company 7. Jabong – a Fashion website acquired by Myntra 8. PhonePe – a Payment startup
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STRATEGY AT FLIPKART When is come to the Strategy Flipkart has overruled all its Competitions with Several Ideas which has revolutionized the E-commerce retail market in India.
Cash on Delivery: Until 2010 there were no COD options and adding this
option has bought in so many changes since this was a barrier before. Because not many people had Credit/Debit Card and some people even having are not comfortable using them because of their trust towards a online business. E- Payment was done till 2010, but wanting to reach more customers, Flipkart took a risk and launched Cash on Delivery (COD) and it paid off, the growth was phenomenal. So this helped Flipkart to reach the customers of rural areas and within 2 months, sales 30% sales increased. The reason to start with COD was customers fond difficult to share their card details on the internet. Flipkart's cash-on-delivery model has been copied by almost every other ecommerce company in the country and now accounts for a majority of transactions across all online retail sites
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Flash Sale: The Idea of the Flash Sale has first started from the MI company
mobiles which has created the Hype of wanting, and then getting that into success. And then carried over to other products
Big Billion Day: With a target of having more than a crore in a single day
with giving lots of offers to the customer and also giving the competitors a tough fight. Flipkart’s big billion days was a big success.
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Digital Marketing Strategy:
The Digital Marketing Strategy of Flipkart includes the following, 1. Online Blog Post. 2. News Magazines 3. TV Advertisements 4. Affiliate Marketing a. Promo Codes b. Corporate Gifting c. Gift Cards 5. Social Media Campaign a. Facebook b. Twitter c. LinkedIn d. Pinterest e. Instagram 6. Online Advertising a. SEO b. PPC c. Google Adwords d. Customer Reviews on Tech Blogs 7. Event/Partner Marketing
Exclusive Product sales where the products are not available in other website but just in Flipkart,
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Evaluation Strategy:
In Terms of the Evaluation of the Company the company has almost 1.5 Billion in Dollars, 10,524 Crore in Rupees. With several series of Fundraising programs Flipkart have achieved funds from 400 Million to almost $ 1.1. Billion in 2015.
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DIFFERENT TYPES OF LEADERSHIP STYLE Leadership style: It refers to the leader’s behavior and a kind of art or process of
influencing people so that they contribute willingly towards group goal. ―Management is doing things right, leadership is doing the right things‖
Autocra tic Laissezfaire
Transac tional
Bureauc ratic Leaders hip Style
Transfor mation al
Charism atic
Democr atic
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ANALYZE HOW THE LEADERSHIP STYLE AFFECTS THE PERFORMANCE OF THE COMPANY. Chairperson – Sachin Bansal CEO- Binny Bansal
They were not related to each other, but both had worked for Amazon India before they launched Flipkart. It started with mere investment of Rs. 4, 00,000 to develop the website. The Risk and Motivation:
In the beginning while these Amazon Employee has left their job and risk the capital of 4 Lakhs is quite a daring step and they weren’t able to get a single order
for the first few months of the start but hasn’t lost the motivation.
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Experiment and Find:
To make sure that Customer is having the right experience they used to change the User Interface of the Website in very smaller duration sometimes even few hours. Vision and Strategy:
Well, it’s no surprise that all the startups have seen rejection in the beginning. But the Bansal’s and reached out to people who believe in their vision and started
doing iteration of Ideas and Strategy to enter into other business like electronics and fashion. In the year 2010, they branched out selling CD’s, DVD’ s, mobile phones, accessories, cameras, computers and peripherals. Preceding year they came up with stationary and home appliances, kitchen appliances, personal care, etc.
They had best supply chain efficiency; this was the game changer and differentiator in the market. Flipkart has developed its own logistics arm EKart, which was initially used for in-house deliveries.
To make sure that their leaderships is affecting everyone in the organization, the Bansal’s have used the following tactics.
a. Rational Persuasion b. Inspirational Appeal c. Consultation d. Personal Appeal e. Legitimating
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Usage of Leadership Styles:
a. Democratic Leadership
Involves the leader taking into considerations and suggestion from his employees before making a decision b. Transformational Leadership
They inspire and motivate their teams constantly by sharing the vision of the company in the future and give constant update to let them know what’s happening and why it’s happening.
c. People-Oriented Leadership
They collaborate will the individuals in a regular basis by supporting and organizing people in creative team management. d. Task – Oriented Leadership
They are more focused on the task and personal/team appeal on the task for the instance Usage of Best Organizational Culture
They have used Hersey- Blanchard Situational Leadership model in the organization. This model has helped the Bansal’s to depend both on relationship
and task in that particular situation.
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The Personal Growth and Employee Satisfaction:
There is a quote saying ―To make your Cust omers happy, Just make your Employee Happy and they will make your Customer happy‖- Maybe this was the
their favorite quote. The Employee satisfaction level at Flipkart is more than the average, and the following might be the reasons for the same a. Career Growth Opportunities b. Work/Life Balance c. Great Culture d. The Town Hall Meetings a. Career Growth Opportunities:
The Career growth opportunities at Flipkart are very good with appreciations and great perks for the employees who are contributing. It also provide employee to use time to improve their skills to reach their personal goals b. Work/Life Balance:
The Work Life balance at Flipkart is very comforting with all the pressures been put at the table. Managers have contributed to other personal problems which had helped to develop a trust between the employees and gain their loyalty. c. Great Culture: ―With Great Culture comes Great responsibility‖ - That’s not a quote but can
be, On a individual survey it was found that more than 67% of the Employee
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in any company had found that their efficiency is dependent on the culture of the Company. Flipkart provide a work-play environment where people can relax in their leisure / tensed situations and come back to work when they are okay. d. The Town Hall Meetings:
How did I even miss this part? The Town Hall meetings are monthly meetings that happenings in Flipkart where the Employees can post questions anonymously and the most voted questions will be answered by the Top-Level management.
Well, we can say that this has contributed a lot in bringing the transparency across the company’s and had gained the employees trust and loyalty to the Management