SWOT ANALYSIS OF MYNTRA

SUBMITTED TO,

Dr. SUMIT KUMAR

SUBMITTED BY,

AKHIL K SANTY
PGDM - 4 (2018-2020)
REG NO :- 1810103
INTRODUCTION

Myntra is an Indian E-Commerce fashion company which was established in the year 2007.
The company has its headquarters in Bengaluru, Karnataka. The company was established by
Mr. Mukesh Bansal, Mr. Ashutosh Lawania and by Mr. Vineet Saxena. During the initial stage
of the company, they mainly operated in B2B model (2007-2010) and at that time the company
allowed its customers to personalize products such as T-shirts, Mugs, etc.. But in the year 2011
Myntra started selling fashion and lifestyle products and thereby they moved away from
personalization. The growth of the company was very fast and by 2012 the company was
offering around 350 products of both domestic and international brands. The company got the
opportunity to launch the brands like Fastrack watches and Being Human. In the year 2014
Myntra was acquired by Flipkart for Rs. 2000 Cr. by seeing the potential and the growth of the
company. But Myntra functions and operates as independently, they continues to do business
as a standalone brand under the ownership of Flipkart.

The primary target of the company is those customers who are fashion conscious. By 2014 the
company was dealing with more than 150000 products of over 1000 brands ( both domestic as
well as international ) and also the company was delivering the products over 9000 pin codes
in India. On 10th May 2015 Myntra made an announcement which was really a shock to some
of its customers. The announcement was that they are going to shutdown their website and they
are going to serve their customers only through their mobile application ( which is available in
almost all popular OS like :- For Android in playstore, for IOS in Apple store and for windows
in windows store) beginning from 15th of may 2015. Myntra was having a clear justification
for this decision that 95% of the traffic in their website came from mobile phones and about
70% of its purchase were from smartphones only. But the shutdown of the website got only
mixed response from the customers and it resulted in 10% decline in sales. But later in February
2016 they realized the failure of the app based model only and they revived their website.

The company serves and satisfy the fashion and lifestyle needs of different categories of people
such as they have different category for kids, Men, Women and a separate virtual are for
lifestyle section also.The company includes the products of the famous brands like Adidas,
Nike, Puma, UCB, Catwalk, Inc 5 etc.. and also includes some recently introduced labels like
Rodster, Sher Singh, Dressberry etc.. Some of the additional benefits that the company is giving
to the customers are, 100% original guarantee for all products, free return of all products for
30 days after receiving the order, free delivery for all the orders above Rs. 1199 etc.. The
company has an annual turnover Rs. 2000 Cr. according to the annual report of the financial
year 2016-2017. The main competitors of the company are, YEPME, SHOPECLUES.COM,
LimeRoad etc.. Some of the major achievements of the company are as follows,

 In 2016, the company was awarded with “India’s Most Admired & Valuable Power
Brand Award 2016”.
  In 2016, Myntra positioned in top 4 startups in India’s Startup Ranking.

 In 2011-2012, it was awarded by Puma India as a “Best E-Commerce Partner of the

Year”.

VISION AND MISSION OF THE COMPANY

VISION

To make the world a more stylish, colourful and happier place

MISSION

Use technology to democratize fashion & lifestyle and help people look good.

USP OF MYNTRA

The of Myntra is that “ High fashion appeal at affordable rates”

TAGLINE / SLOGAN OF THE COMPANY

The tagline / slogan of the company is “India’s largest online fashion store”

SUPPLY CHAIN OF MYNTRA

SWOT ANALYSIS OF THE COMPANY

SWOT analysis is a method used to evaluate the Strengths, Weakness, Opportunities, and
Threats involved in a business or in a venture. It involves specifying the objective of the
business venture or project and identifying the internal and external factors that are favourable
and unfavourable to achieve that objective. SWOT analysis is a simple but a very useful tool
or framework for analysing any organisation’s strengths and weakness, and the opportunities
and threats that are faced by them. It helps the businesses to focus on their strengths, minimize
threats, and take the greatest possible advantage of the opportunities available to them.

The SWOT analysis of Myntra is;

STRENGTHS

The strengths of the Myntra is as follows;

 Merger with Flipkart has increased the company’s strength and capacity :-

The two companies have been in talks to merge their businesses in the light of Amazon's
expansion of its services in the country. Secondly, there is pressure on existing players
as Wal-Mart's entry into the Indian e-commerce market is imminent. Predatory and
unrealistic pricing has also created a dent in margins with profits hard to come by.
Almost all e-commerce companies have a high capital expenditure and logistics
continues to be a perennial problem. The combine entity of Flipkart and Myntra is
expected to overcome many of the issues.

 Retention of its independence even after the merger with Flipkart :-

Even after the merger with such a huge online retailer like flipkart, mytra has an
advantage of making independent decisions which helps them in making their own
strategy as well as it also help myntra to be a differentiated retailer who deals with
fashion and lifestyle products only. Generally when a merger happens, the two
companies will come together and they will only have one website and they will only
have one combined business but in this case it is entirely different because of the
retention independence by myntra even after its merger.

 Offering of more than 1.5 lakhs products with over 1000 brands, which includes
both domestic and international brands :-
 Generally the customers who have a particular interest towards branded products,
especially when it comes to the clothing and lifestyle products, so that myntra have
clear advantage that it have a wide variety of brands which includes both international
as well as domestic brands.

 Efficient supply chain and delivery capability helps them to cater over 9000+ pin
codes in India :-

Supply chain and delivery capability has a strong hand behind the success of every
online retailer, the company will only get customers if their delivery and supply chain
is good and fast when compared to the other competitors. In this case the myntra has a
clear advantage that their supply chain is so effective and big which helps them to
deliver products over 9000 pin codes in India. And also they are adding more pin codes
to their supply chain by day by day.

 Good advertising and marketing campaigns on TV, internet and print :-

Myntra is such a company who always try to bring new and effective ideas into their
advertising campaigns. And also they are providing frequent offers and deals to their
potentials customers with the help of analytics programs.

WEAKNESSES

The weakness of Myntra are as follows;

 Intense competition means limited market share growth :-

The online retailer field where mytra is doing business is having a huge competition
which will affect the company’s market share growth. But by the merger with the
flipkart , who is one of the leader in the case of market share growth, myntra is trying
to overcome this problem.

 Consumer Mindset :-

As we all know the Indian customers generally have a typical mind set that fashion and
lifestyle products are good only if they bought from physical store only. Because they
have a doubt in the colour, quality, size of the products, which is actually a weakness
for myntra as they are dealing with lifestyle and fashion products.
OPPERTUNITIES

The opportunities of Myntra are as follows;

 Selling private labels can increase their profit margin :-

The company have a huge opportunity to maximize their profit through selling the
private label brands. Because there is a lot of private label brands in the country with
superb quality, so if they can introduce these brand through their sites then they can
earn more profit.

 Partnership with celebrity designers, Bollywood movies can increase its fashion
appeal :-

Myntra has an opportunity to grow, that is by collaborating with famous movie stars
and famous movies to promote their fashion appels, which will definitely have a good
impact in the sales because the customers generally likes to follow the trends introduced
by movies and movie stars.

 Bridal collection to tap the big wedding market in India :-

India is such a country which has a huge market for wedding collections, the customers
generally spend a lot of money for purchasing bridal collections, so if myntra can tap
to that particular market then they can earn a good profit.

 Expansion into global markets can boost business :-

There are so many opportunities for myntra in the foreign market, so if they can
establish their business in foreign countries as well it will boost their business also. But
it is not that much easy as there are so many well established brands in foreign countries.

THREATS

The threats that are faced by Myntra are mentioned below;

 Global competitors like Amazon slowly making its foray :-

A major threat for mynta is the growth of the global competitor Amazon, they are also
dealing with lifestyle and fashion products which is actually a threat for the company
because Amazone has a huge customer background.

 Fashion segment is becoming popular leading to increased competition :-

 As fashion segment is become a popular and leading segment in the Indian and Foreign
countries, there is a lot of competition in this field which will actually affect the market
share growth of the company.

 Economic fluctuations and unfavourable government policies :-

Another threat for myntra is the economic fluctuations and the unfavourable government
policies like the taxation policy etc..

RECOMENDATIONS AND SUGGESTIONS

After studying about the online e-tail business organisation “Myntra”, I have some
recommendations and suggestions for them. They are as follows;

 Myntra should try to make the delivery of their products more faster like its competitor
company Amazon.

 Myntra should try to reach the remote areas of India also,

 In my opinion Myntra should try to bring back the customization/ personalization

option at least to some of the products like T-shirts, Coffee mugs etc.