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Lookup NU author(s): Dr Saurabh BhattacharyaORCiD
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Flipkart faced many challenges since its inception due to the hypercompetitive nature of its industry. The company preferred the route of profitless growth in the emerging e-retail industry in India — sacrificing profits for size and growth. Venture capitalists also supported this strategy by providing five rounds of funding. Nevertheless, Flipkart encountered intense competition from local players, who were quickly imitating its competitive and growth strategies. It responded to competition and enhanced its efficiency by rationalizing its product mix, opting for acquisitions and refurbishing its supply chain. Soon, however, Amazon announced its entry into the Indian e-retailing market. Amazon’s entry posed a major threat to Flipkart, mainly because of its financial strength. Flipkart responded by using a three-pronged strategy of technology, human resource management and supply chain investment. However, venture capitalists were still left wondering whether Flipkart would be able to report a profit or would be acquired by Amazon.
Author(s): Agnihotri A, Bhattacharya S
Publication type: Online Publication
Publication status: Published
Series Title:
Year: 2014
Description: Case Study
Acceptance date: 25/09/2014
Publisher: Ivey Publishing
Place Published: Canada
Type of Medium: Case (Library)
URL: https://www.iveycases.com/ProductView.aspx?id=66085
