Case Study Flipkart (A): Transitioning to a Marketplace Model

Abstract

Conducted case study was attempted towards examining the misperception circulating current e-tailing marketplace concerning misinformation of the platform’s existing product. Reviewing of surfaced product quality challenge further uncovered related issues from the aspect of unhealthy price competition within the Indian marketplace, discrepancy in socioeconomic factors towards proliferation of current e-commerce practice and organizational ability in balancing sales growth to profit gain. Earlier academic studies and theoretical groundworks were reviewed and revisited to analyze, further uncover potential alternatives targeting resolutions of surfaced issues. Fabricated knowledge was then compared against viability of the current case in achieving compromised decisions that benefit the forthcoming organizational practice. Flipkart is an Indian-based e-tailing organization which emphasized a revolutionary transformation to a comprehensive marketplace model company. From its humble beginning as an online book selling site, the virtual platform has grown into a dominating player within India’s domestic e-commerce market. The company has prided itself for offering of multiple product categories from a huge pool of domestic and international sellers at affordable prices and admirable service quality. Such aggregated performance, alongside continuous acquisition of promising brands, administrating of reliable sellers and acceptance of external advertising further secured the company with an extensive amount of foreign investment and local clientele. Its established logistic network subsequently factored proficient accessibility and reachability of the online consumeristic environment. Conducted inspection revealed over-emphasizing of price-based competition as Flipkart’s utmost severe shortcoming in ensuring a positive profit margin. The organization’s focus on price-cut and advanced deals has displayed an immense negligence on profound marketing strategy and quality maintenance of retailed products. A prospective outlook centering increase in vendors to cater an expanding marketplace has merely promised constructive revenue at potential deficit in actual return-of-investment (ROI). Direct competition without a sturdy market standing would be highly detrimental to existing players in the Indian e-tailing industry. Recommendations particular recognized a centralized approach to market rivalry by exploitation of core competencies and competitive advantage. A feint to the spiraling price war sees Flipkart’s shifted focus to both superficial product handling, market targeting and customer servicing. Investment towards advanced infrastructure for purposes of inventory management and freight network would ultimately act as necessary foundations to organizational preeminence by segmented market and sole distribution of other internationally renowned brands.