個案資料

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.

<ul><li>To demonstrate how Flipkart has managed its rivals and maintained a leadership position in a hypercompetitive e-retail industry.</li><li>To discuss the role of and justification for Flipkart’s profitless growth strategy, which required giving priority to expanding its business and making huge capital investments rather than realizing profits.</li><li>To illustrate the likelihood of Flipkart’s acquisition by Amazon and possible synergies that could arise out of this acquisition.</li></ul>

• E-retailing
• hypercompetition
• profitless growth
• acquisition
• India