Strategic Decisions for Flipkart in India

813 WordsFeb 23, 20183 Pages
Challenges & Bottlenecks Flipkart have been instrumental in creating excitement for online shopping in India. With its appealing television commercials, easy-to-use services and popular product range, Flipkart has invariably set the ground on fire. The company recently managed to raise $160 million from a new set of investors such as Dragoneer Investment Group, Morgan Stanley Investment Management, Vulcan and Sofina Capital. According to estimates, the company has been able to secure a total investment of about $550 million over the last 3-4 years. In a way, this cements Flipkart’s leadership position in the Indian e-commerce market. Despite its spectacular success, the road ahead is fraught with several challenges as detailed below: Consumer bias – Consumers will display a bias for brands that they know well and have a good experience in the past. Thus products of brands with a favourable bias will score over the products of less popular brands. For example a few would risk buying expensive jewellery online. Lack of touch, feel & try experience – The lack of ability to try a product before buying acts as a barrier for some customers. In addition, often the product or the service delivered differs from the standards displayed in the website. The customers are not sure of the quality of the product unless it is delivered to him and post-delivery of the product, it is often a lengthy process to get a faulty or the unsuitable product changed. Thus unless the purchased products
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