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BMEC GROUP 4 AKANKSHA R (05), ANKIT L(07), AKANKSHA S(105),

ANURAAG S(147)

Q. What difference do you note between Amazon.com and Flipkarts


strategy?
Yes Flipkart was right in pursuing Growth over profits strategy because of a
number of factors. Flipkart operates in a country like India where there is
huge competition and the rivalry among competitors is very high. In
addition to that, the threat of substitutes is high and barriers to entry are
low. The bargaining power of buyers high and switching cost is low. Hence,
to persist in this environment and maintaining the existing customer base
and increasing it is a tough task. Flipkart had to implement the strategy of
pursuing growth, increasing market share and beating competition by
compromising with profits. It is planning 10x volume growth by 2017-18
from 2016-17. Having started in 2007, Flipkart is currently valued at over
$15 billion. This has been achieved by focusing to achieve the vision of
customer delight by operational capabilities to achieve the same and using
technology as the medium.

Q2. Why did Flipkart pursue aggressive acquisition strategy? Was it


right?
Flipkarts aggressive acquisition strategy was in line with its targeted
philosophy of growth over profits and being the market leader with a
dominant market share across different categories. It was right to a larger
extent as Flipkart only acquired those firms and their products and services
that could complement Flipkarts product offerings. There were a few
mishaps like the acquisition of consumer durables e-tailer letsbuy.com
without taking the logistics costs for white goods into consideration.

Q3. In the wake of competition from Amazon and other e-retailers,


how should Flipkart move?
Yes, they should continue with the philosophy of customer satisfaction over
profits because now-a-days it is the POP (Point of Parity), it they wont do it
customers will easily switch to other players, who mainly focus on customer
satisfaction,as switching cost is very low for customer. Flipkart should also
ponder upon the ways to create PODs when compared to other e-retailers to
makes its customers loyal.

BMEC GROUP 4 AKANKSHA R (05), ANKIT L(07), AKANKSHA S(105),


ANURAAG S(147)

Q4. Is predatory pricing strategy followed by Flipkart and other eretailers good? What role does competition commission of India play
in such a situation?
Predatory Pricing followed by Flipkart and other e-tailers is not good, as it
is anti-competitive and intends to create inorganic barriers of entry. The
competitors who cannot sustain equal or lower