SWOT Analysis: Amazon Vs. Flipkart

With a SWOT analysis, we may achieve the most fundamental kind of study of a firm, and my goal here is to walk you through Flipkart's SWOT analysis. Don't you want to know how Flipkart has been so successful? How has it remained among the top two E-commerce enterprises in India over the previous decade? You could also consider obtaining a SWOT analysis of online shopping in India as an industry, and we could compare the SWOT analyses of Flipkart and Amazon. These two enormously successful businesses have continued to produce. They have also been striving for supremacy in internet retail. Flipkart's SWOT analysis can help you understand its strategic decisions and actions. To begin, let us examine the notion of SWOT Analysis.  

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Table of Content:
1) What Exactly Is a SWOT Analysis?
2) What exactly is Amazon?
3) What exactly is Flipkart?
4) Strength
5) Weakness
6) Opportunities
7) Threat

What Exactly Is a SWOT Analysis?

SWOT analysis refers to strengths, weaknesses, opportunities, and threats as an outline for evaluating the organization's competitive situation and formulating its long-term objectives. SWOT analysis considers external and internal variables, as well as current and potential future prospects.
 
What exactly is Amazon?

Amazon is the world's largest online retailer and a significant cloud service provider. Amazon originated as a web-based bookselling business and has now grown into a multinational corporation web-based business largely focused on digital streaming, e-commerce, cloud computing, and artificial intelligence (AI). The firm provides a large product selection and inventory, allowing users to buy practically anything, using an Amazon-to-buyer sales strategy such as splendor supplies, clothing, accessories, movies, books, gourmet food, electronics, furniture, animal-related items, household goods, garden supplies, and toys. Amazon, based in Seattle, has data centers, developing software centers, customer service centers, and shipping facilities, and runs a global network of websites.
 
What exactly is Flipkart?

Flipkart is one of India's most prominent online marketplaces. Binny Bansal and Sachin founded the e-commerce company as an online bookstore. However, as the company's reputation grew, it expanded and enlarged its variety of services to satisfy the demands of its growing client base. The company's headquarters were chosen in Bengaluru for the first month of operation, in October 2007. Because e-commerce is bringing about an evolution in the world of retail and is currently gaining momentum in India, Flipkart has evolved at a rapid rate and continuously added multiple new item groupings to its collection, in addition to selling books.

At the moment, the company sells over 80 million products in more than 80 different categories, including PCs, gadgets, books and e-books notebook computers, mobile phones, clothing, electrical things, home appliances and other goods, sports and fitness, baby care, games, and toys, jewelry, and footwear, among others. According to Walmart data, Flipkart established a new high in November 2020 for the number of individuals actively purchasing on the platform. To ensure that its client base receives their goods on time, the firm currently sublets more than one million square feet of space in cities across India, including Mumbai, Hyderabad, Bengaluru, Lucknow, and Ahmedabad.
 
Strength:

• Flipkart has strong brand equity and brand awareness. It works in the local market with some of the most well-known brands. According to Rainy Shuyan Xie and Vijay Sethi, brand recognition is important in recruiting new clients searching for solutions in the Competitive and Economic industries.
• High Margins: In comparison to its competitors, Flipkart charges a premium. According to Rainy Shuyan Xie and Vijay Sethi of the Flipkart vs. Amazon: Winner-Take-All Battle in India case study, this has allowed Flipkart with resources to not just withstand competition challenges but also to invest in R&D.
• Proven Go-To-Market Track Record: Flipkart has a proven track record of not only releasing new items in the home market but also catering to various markets based on inputs from local customers. Flipkart according to Rainy Shuyan Xie and Vijay Sethi, has tested many concepts in different areas and come up with effective Strategies & Executing solutions.
• Managing rules and the Business atmosphere: Flipkart works in an atmosphere fraught with rules and government directives. In the domains of competition and economics, the company must manage the environment by developing strong relationships with lobbying groups and political networks.

Weakness:

• Lack of diversity in the staff: I feel Flipkart's workforce is not diversified enough, considering that the majority of its growth has occurred in its home market. According to Rainy Shuyan Xie and Vijay Sethi, this may limit Flipkart's worldwide market success.
• Inventory Management: Based on the information presented in the Flipkart vs. Amazon: Winner-Take-All Battle in India case study, we can infer that Flipkart is not managing its inventory and cash cycle properly. Inventory management, according to Rainy Shuyan Xie and Vijay Sethi, has a lot of room for improvement.
• Organization Culture: It appears that the Flipkart organization culture is still controlled by turf fights within various departments, resulting in managers holding information close to their chests. According to Rainy Shuyan Xie and Vijay Sethi of the Flipkart vs. Amazon: Winner-Take-All Battle in India case study, this might provide severe roadblocks in future growth since information in silos can lead to lost market possibilities.
• Customer Dissatisfaction: While product demand has not decreased, there is a simmering feeling of dissatisfaction among Flipkart buyers. The reviews on numerous online sites reflect this. Flipkart should concentrate on areas where it can improve the purchasing and post-purchase experiences of its customers.

Opportunities:

• Changing Technology Environment: The explosion of machine learning and artificial intelligence is altering the technical landscape in which Flipkart works. Flipkart according to Rainy Shuyan Xie and Vijay Sethi, may exploit these innovations to improve efficiency, cut costs, and revolutionize processes.
• Artificial Intelligence Advances: Flipkart can employ artificial intelligence advancements to better estimate customer demand, cater to specific groups, and create stronger recommendation engines.
• Increase in Consumer Disposable Income: Flipkart may leverage rising disposable income to create a new business model in which users pay gradually for utilizing the company's products. According to Rainy Shuyan Xie and Vijay Sethi of the Flipkart vs. Amazon: Winner-Take-All Battle in India case study, Flipkart may capitalize on this trend to develop into adjacent fields such as Competition and Economics.
• Reducing the Cost of Market Entry and International Marketing: Globalization, together with the explosion in digital marketing and social media, has significantly decreased the risks of market entrance and marketing in foreign markets, according to Rainy Shuyan Xie and Vijay Sethi.

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Threat:

• Factors of International Geopolitics: Since Trump's election, geopolitical circumstances have shifted towards more protectionism. Brexit, Russian sanctions, Venezuela's foreign exchange crisis, inflation, decreased oil prices, and other developments are having an influence on the worldwide economic climate. Flipkart should pay special attention to these occurrences and use them in its plan.
• Rising Protectionism: Flipkart can mitigate the risk of rising protectionism by doing everything from keeping data in foreign markets to diversifying risk by operating in countries with various economic cycles.
• New Entrants as a Result of Lowering Costs and Increasing Efficiencies - As Flipkart can exploit Competitors, both local and international, can achieve low-cost customer acquisition through networking sites and online commerce.
• Government rules and Bureaucracy: Flipkart should keep a careful eye on the rapidly changing government rules as protest groups and non-governmental organizations increase their pressure, particularly on environmental and labour safety issues.

SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats, is a framework for assessing an organization's competitive status and developing long-term goals. SWOT analysis takes into account external and internal elements, as well as present and possible future opportunities.