Last decade, the internet retail sector saw a massive shift, and it continues to develop. For investors, internet commerce has become a lucrative and popular way to make money. It is difficult to envision a world without online purchasing or eCommerce. Therefore, organizations need to be upgraded with the latest technologies, tools, and accordingly set their marketing strategies by analyzing SWOT. Today’s topic- Flipkart SWOT Analysis.
These critical decisions may be made by any organization, as long as it is conscious of its strengths and limits. It helps discover a brand’s latent potential and future possibilities. In addition, it provides an explanation of the “Why” underlying their actions. Hence the abbreviation SWOT, analyses the company’s Strengths, Weaknesses, Opportunities, and Threats. These demonstrations would help an organization to conduct a rational and informed decision and help it to prepare for future circumstances. Through SWOT analysis, one can properly learn all the external and internal factors that affect a company’s success and failures.
A major E-commerce firm in India, Flipkart has delighted Indian consumers for decades. From a modest online bookshop, it has grown into a billion-dollar company. It was founded by two IIT graduates in the year 2007 who started it as a book-selling portal. In response to an increase in daily orders, they began to scale up, adding new product offerings and smart acquisitions. Flipkart now generates more than 6.1 billion as revenue. The company has been able to acquire major acquisitions like Myntra, Walmart, Jabong, Ekart, etc. The brand is well-known and trusted by millions of customers who use Flipkart for a variety of purposes.
SWOT Analysis
Strengths of Flipkart
Numerous internal reasons have contributed to Flipkart’s continued supremacy in online retail. In this section, we will go through Flipkart’s strengths in more detail.
Outstanding Brand Recall
Online branding, social media, and funny TV ads have helped Flipkart establish strong brand recognition. These youngsters in those TV advertisements acting like grownups, or the excitement over ‘Big Billion Day’ are all examples of this. Throughout the years, Flipkart has managed to connect with its user groups by enlisting the help of celebrities such as Virat Kohli, Ranbir Kapoor, Alia Bhat, and many more. It uses trendy and attractive taglines to catch the user’s attention.
Experience Foundation
Sachin and Binny Bansal, the founders of Flipkart, were former employees of Amazon. As a result of their past expertise in E-commerce, the founders were able to strategize and differentiate their company in a highly competitive market.
Acquisition
In 2014, Myntra was purchased, which allowed the firm to develop in the E-commerce market and leverage the expertise and existing resources of acquired companies.
Reputable e-commerce firm
Through TV commercials, internet branding, and social media presence, Flipkart has become a household name across the world. Brand initiatives such as the “Big Billion Day” have helped to boost the company’s brand awareness and recall rates significantly.
Weaknesses of Flipkart
Distribution channels with a limited reach
Flipkart’s logistics unit has kept costs low, but its reach has been hampered, which is a problem for the company’s business. Big companies like Amazon and eBay can deliver merchandise anywhere in the globe because of the usage of outsourcing. Flipkart, on the other hand, is still suffering in this area.
Acquiring Costs
This is because Flipkart attracts a large number of consumers through online advertising, which is expensive due to the intense competition in the industry and the poor customer retention rate. A new customer costs Flipkart Rs 400 on average, according to the company’s data.
Buyers have the power
There are numerous participants in this business, which means that purchasers have a lot of alternatives. Consumers also save money by switching from one online retailer to another. Products would be presented on a variety of online shopping platforms. As a result of the lack of product distinction, the price war begins.
Opportunities of Flipkart
Growth of Business
In addition to boosting their income streams, companies that pursue other growing markets can get efficiencies of scale.
Expansion in Product Categories
In addition to increasing their client base, this will also lower the cost of customer acquisition and customer switch-overs.
Supply Chain
By streamlining their supply chain, companies can compete with the other competitors and control the lost sales as a result of not being able to make the product accessible owing to delivery issues.
Expanding in other developing economies
Flipkart, like Amazon, may progressively start growing outside of India and develop operations in other nations, which would help increase income.
Threats of Flipkart
Competition
A fierce battle for market dominance is being waged by global companies like Amazon and eBay in addition to local firms like Snapdeal, and Tolexo.
Government Regulation
The E-commerce industry’s development has been hampered by concerns around foreign direct investment (FDI) in multi-brand retail.
Competitors of Flipkart
Because of the digitalization of various businesses, customers may now buy and make transactions online with relative ease. In recent years, a large number of businesses have developed online platforms that allow consumers to purchase a variety of goods. Customers may also choose from a variety of alternatives, making it easier to choose the right product. Flipkart is one of the biggest online retail stores and consequently has a lot of competitors operating within the same market. Some of its biggest competitors are:
- Amazon
- Snapdeal
- Alibaba
- Myntra
- Jabong
- Shopclues
Conclusion
It’s no secret that Flipkart is gaining a lot of clout in the world of online retailing. Flipkart’s numerous goods, as well as its strengths and weaknesses, have been the subject of analysis here. As a starting point, Flipkart’s fundamental strengths and flaws have been discussed that impede its growth. This was accompanied by a discussion of prospects for the firm as well as potential dangers. Flipkart’s SWOT analysis has been discussed in length.
Frequently Asked Questions
1. Why is SWOT analysis important for businesses?
As a result of the SWOT analysis, businesses can assess their external and internal environments by identifying their strengths and weaknesses as well as potential opportunities and threats.
2. Who are the competitors of Flipkart?
The top competitors of Flipkart include Myntra, Snapdeal, Amazon, eBay, etc.
3. What are few disadvantages of using Flipkart?
- Lack of presence in cities and towns
- Low quality of products
- Late delivery
- Few images shown are fake
