strategic management a case study on virtual organisation

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MCOM PART 1ROLL NO 58SEMESTER PART 1

CHAPTER 1 INTRODUCTION

A virtual organization can be defined as ‘a group of individuals or organizations

with specialized core competencies,who work spontaneously together with the help of ICT

to develop and deliver a product or service in the market to gain competitive edge’ . Virtual

organizations do not represent a firm’s attribute but can be considered as a different

organizational form.

Unfortunately, it is quite hard to find a precise and fixed definition of fundamental notions

such as virtual organization or virtual company. The term virtual organization ensued from

the phrase virtual reality!, "hose purpose is to loo# li#e reality by using electronic sounds

and images. The term virtual organization implies the novel and innovative relationships

bet"een organizations and individuals. Technology and globalisation both support this

particular type of organization.

Virtual can be defined as $not physically existing as such but made by soft"are to appear to

do so$,in other "ords unreal but loo#ing real!. This definition precisely outlines the leading

principle of this unconventional organization, "hich holds the form of a real %conventional&

corporation from the outside but does not actually exist physically and implicates an entirelydigital process relying on independents "eb associates. Thus, virtual organizations are

centred on technology and position physical presence in the bac#ground. Virtual

organizations possess limited physical resources as value is added through %mobile&

#no"ledge rather than %immovable& equipment.

Virtual organizations necessitate associations, federations, relations, agreements and alliance

relationships as they essentially are partnership "ebs of disseminated organizational entities

or self'governing corporations.

1.2 SEGMENTATION OF VIRTUAL COMPANIES

Today e'commerce is a by"ord in (ndian society and it has become an integral part of our

daily life. There are "ebsites providing any number of goods and services. Then there are

those, "hich provide a specific product along "ith its allied services.

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Multi Product E-Co!rc! )ome internet portals provide almost all categories of goods

and services in a single site* hence, they are targeting buyers of every possible

product+service.

2




The most popular examples are """.flip#art.com, """.shopclues.com, ebay.in,

""".snapdeals.com, """.indiaplaza.com, """.thebestofindia.com,

""".homeshop-.com, shopping.rediff.com, shopping.indiatimes.com and so on.

These (ndian e'commerce portals provide goods and services in a variety of categories li#e

/ Apparel and Accessories for men and

"omen/ 0ealth and beauty products / 1oo#s and magazines/ 2omputers and peripherals/ Vehicles/ )oft"are

/ 2onsumer electronics

/ 0ousehold appliances

/ 3e"ellery / Audio+Video entertainment goods / 4ift articles / 5eal estate and services/ 1usiness opportunities / 6mployment / Travel tic#ets / 7atrimony

/ 8ets9and more.

1. Si"#l! Product E-Co!rc! )ome (ndian portals+"ebsites deal in a specialized field, for

example

Autoo$il!% 6xamples are http++""".indiacar.com+ and http++""".automartindia.com+.

:n these sites "e can buy and sell four'"heelers and t"o'"heelers, ne" as "ell as used

Vehicles, online. )ome of the services they provide are / 2ar research and revie"s / :nlineevaluation / Technical specifications / Vehicle (nsurance / Vehicle ;inance / <ealer =ocator /

5egional Transport :ffice regulations / 6xpert spea# / 7essage board9and more.

Stoc&% '"d %('r!% '"d !-co!rc!

(n (ndia today, "e can even deal in stoc#s and shares through e'commerce. )ome of the sites

are http++""".equitymaster.com* http++""".>paisa.com. )ome of the services offered to

registered members are / :nline buying+dealing of stoc#s and shares* / 7ar#et analysis andresearch / 2ompany information / 2omparison of companies / 5esearch on 6quity and

7utual ;unds / Trac#ing 7ar#et Trends / 0otline for advice on 5is# 7anagement / ?@'0our

helpdes#9.and more.

R!'l !%t't! '"d E-co!rc! 8ortals li#e http++""".indiaproperties.com+,

""".acres.com facilitate online dealing in real estate. They offer either outright purchase

or lease of a property through their portal. They provide information on ne" properties as

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"ell as properties for resale. :ne can deal directly "ith developers or builders or through

consultants and bro#ers.

Allied services / 0ousing ;inance / (nsurance companies / Architects B (nterior <esigners /

C5( services / 8roperty 7anagement 2onsultants / 8ac#ers B 7overs / )ecurity B

7aintenance )ervices / Vaastu or ;eng )hui 2onsultants9and more.

Tr')!l * Touri% '"d E-co!rc! (ndia has a rich history "ith cultural heritage and e'

commerce is instrumental, to a large extent, in selling (ndia as a product, encouraging (ndians

as "ell as foreigners to see its multifaceted culture and beauty. A maDor 4overnment of (ndia

portal, http++""".tourisminindia.com+, has a vast variety of information for a potential

tourist. The tourist destination sites are categorized according to themes li#e

/ Adventure ' tre##ing, mountain

climbing etc

/ 6co'Themes pertains to Dungles,

flora and fauna

/ 1eaches of (ndia

/ Architectural attractions

/ ;orts and 8alaces

/ 1uddhist attractions

/ 0ill resorts

/ <esert tre#s

/ 8ilgrimage sites

Gi+t% '"d E-co!rc! (n the bygone days, one had to plan "hat to gift a loved one, trudge

across to your favourite shop, and bro"se for hours before purchasing a gift. Today there are

specific (ndian "ebsites ma#ing the act of gifting quic# and easy to suit ones lifestyle. :ne

such site is (tt,///.i"di'"#i+t%,ort'l.co.

Ho$$i!% '"d E-Co!rc!

The most popular hobbies from time immemorial are reading, music and films. :n the

(ndian "ebsite http++""".firstandsecond.com+ one can buy more than EFF,FFF titles of

boo#s, cassettes, V2<s and <V<s. The boo#s cover a "ide range of topics li#e 1usiness,

Art, 2oo#ery, 6ngineering, 2hildren’s )tories, 0ealth, 7edicine, 1iographies, 0orror, 0ome

B 4arden, etc. As for music and videos, they are available in 6nglish as "ell as in (ndian

languages to cater to the varied tastes and the topics range from devotional songs, old'time

favourites and retro and Dazz to the latest pop, rap, etc.

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M'trio"0 '"d E-co!rc! (t is said that marriages are made in heaven, but in the "orld

of 6'commerce they are made on marriage portals li#e http++""".Deevansathi.com+ %meaning

lifepartner.com in 0indi& and http++""".shaadi.com+ %meaning marriage.com in 0indi&. :ne

can search for a suitable match on their "ebsites by region of residence %(ndia or abroad&,

religion or caste. :nce registered "ith them, they have email facility and chat rooms too, so

that the couple gets to #no" more about each other before ma#ing the biggest decision of

their lives.

E,lo0!"t '"d !-co!rc! T"o maDor portals li#e """.monsterindia.com and

""".nau#ri.com are instrumental in providing Dob see#ers "ith suitable employment at the

clic# of a mouse. They have directories categorized under the headings 6mployers and 3ob

)ee#ers. The service for Dob see#ers is free and for 6mployers they charge a nominal fee.

3obs are available online in fields ranging from secretarial to soft"are development, and from

real estate to education. The opportunities offered are unlimited.

1.2.1VIRTUAL ENTITIES USINESS MODELS

Although ecommerce! tends to be thought of as a homogeneous business model based on

the success of such titans as Amazon.com, there are actually many different "ays that an

ecommerce "ebsite can ma#e money online.1ased on "ho is selling to "hom, "hat they’re

selling, "here they got it, and ho" they’re completing the transaction%s&, an ecommerce

business can build a completely unique model that gives them special leverage "ithin a given

mar#et. The type of business model you choose also has significant operational and cash flo"

implications, as "ell as determining ho" you’ll position your sales and mar#eting. 0ere are

four of those common models

1 u%i"!%%-to-Co"%u!r

6commerce is commonly thought of as a business selling something through an online

interface to a consumer '' also #no"n as business'to'consumer %1?2&. The most "idely

#no"n ecommerce businesses, such as Amazon <irect %"hich differs from Amazon as a

"hole '' "hich "e’ll touch on later&, 1uy.com, Gal'7art.com, Target.com, etc., are ones

"here a retailer sells directly to a consumer.

5




;or example, you might buy an 0<TV directly from 1est1uy.com, or buy lamps and

furniture directly from Target.com, and then use them in your o"n home.

2 u%i"!%%-to-u%i"!%%

1usiness'to'business %1?1& refers to a business %the ecommerce retailer& selling directly to

another business the goods or services that are used by the recipient to po"er their business.

(t may be as fundamental to their business as selling iron to a construction company, or as

supplemental as selling coffee to be consumed by employees.

Gholesalers, such as parts of Ali1aba’s model or manufacturers of original products, "ill

typically sell 1?1.

3 Co"%u!r-to-u%i"!%%

(n a consumer'to'business %2?1& model, consumers sell products and services to businesses,

instead of the other "ay around. ;or example, the consumers could list Dobs'to'be'done or

products they "ant and businesses compete for and complete the transaction through the 2?1

"ebsite. :r, a business could have a site "here consumers can sell them things that they

need.

6xamples can include freelancer sites such as vGor#er.com or Tas#5abbit, "here the end'

user lists Dobs that businesses %either individual businesses or larger businesses& can fulfill.

1?2 can also include sites such as 7onster.com and 2areer1uilder.com "here the end'user!

%the prospective employee& lists their product! %resume and s#ills& to attract a business.

5everse auction "ebsites, "here an end'user lists a product they "ant and businesses bid to

see "ho can ma#e the least money selling it to them, are another example of 2?1 ecommerce businesses.

All of those annoying $cash for gold$ commercials could also be thought of as 2?1, since

consumers are selling a product directly to a business "hich is, in turn, using the product to

ma#e money.

4 Co"%u!r-to-Co"%u!r

6




(n a consumer'to'consumer %2?2& model, the ecommerce "ebsite serves to facilitate the

transaction bet"een t"o consumers. Auction sites such as e1ay or :=H%specifically "hen

items are sold by individuals, rather than businesses listing products for auction '' a semantic

distinction "hich nonetheless fundamentally changes the relationship bet"een the seller and

buyer& are the classic examples of 2?2 ecommerce sites.

Co$i"i"# Mod!l%

Amazon.com '' arguably the most successful ecommerce business of all time '' uses all four

of these models in a combination "here theyIre independent of one another to varying

degrees. Amazon <irect sells products that they "arehouse and ship %1?2&, Amazon

7ar#etplace allo"s individuals or businesses to sell directly to consumers %2?2, dependingon "ho’s selling&, Amazon’s 7echanical Tur# program can connect consumers directly "ith

freelancers to do "or# %"hich, again, can be 2?1 or 1?1 or 2?2 depending on "ho’s buying

and "ho’s selling&, and Amazon )upply sells 1?1.

1.3 CORPORATE STRATEGIES

:rganization frame strategies in all the functional areas.the functional areas include the

follo"ing

1.HUMAN RESOURCES

The survival and success of a firm depends upon quality of its people.therefore ,a firm must

frame personnel or employees related policies in order to motivate employees "hich in turn

"ould lead to its success.

The various personnel strategies are

• 5ecruitment and selection strategy

• Training strategy

• 8erformance appraisal strategy

• 8romotion strategy

• Transfer strategy

• 2ompensation strategy

•

2.MAR5ETING STRATEGIES

•

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• 7ar#eting is the important aspect of an organization.the success of the organization

is largely attributed to the performance of the mar#eting.therefore there must be

suitable mar#eting strategies in respect of the follo"ing

•

8roduct strategy• 8ricing strategy

• <istribution strategy

•

8romotion strategy• 7ar#eting research strategy

•

3.FINANCIAL STRATEGIES

•

• ;inancial management deals "ith planning,raising,utilizing and controlling of firms

financial resources to achieve organizational goals

• <epreciation strategy

• <ividend strategy

• 2redit strategy

• 5etained earnings strategy

•

4.OPERATIONAL STRATEGIES

•

•

The production department aims at improving quality,increasing quantity andreducing cost of production.to achieve production obDectives there is a needto frame

production strategies

• 8roduction capacity

• )ize and location of plants

• Technology

• Juality of product

• 5esearch and development

• modernisation

8



•

1.4 EMERGENCE OF M-COMMERCE IN INDIA

• (ndia is the second largest cellular mar#et in the "orld after 2hina, "ith a massive

subscriber base of -KL.-F million, as of 7arch ?FE. 7aDority of smartphone usersare still on ?4 net"or#. 1udget @4 smartphones coupled "ith affordable plans, can

very "ell drive @4 gro"th in (ndia. The most obvious mobile commerce trend is

further development. Mearly m'commerce sales are forecasted to increase fourfold

billion in the next fe" years. 1usinesses are beginning to realize that m'commerce is

#ey to enhance their brand, boost sales, and #eep up "ith competitors.(ndia’s retail

mar#et is expected to cross .E trillion U)< by ?F?F from the current mar#et size of

>FF billion U)<. 7odern retail "ith a penetration of only >N is expected to gro"

about six times from the current ?L billion U)< to ??F billion U)<, across all

categories and segments.(ndia is set to "itness proliferation of the fourth'generation

"ireless data services, or @4 services shortly "ith slashed data plans. 1eing the

second largest mobile mar#et in the "orld, (ndia needs to ta#e its place in the

forefront of providing innovative services and applications to its citizens. 5ecent

e7ar#eter study, by the year ?FL more than ?>N of all online retail transactions "ill

happen in the mobile paradigm. Ad"ee# explains that statistic "ith information that

-'E@ year olds are very li#ely to use their mobile devices as a shopping tool. Their

process is to visit their favorite retail stores not to shop but to vie" a product and

compare prices, and then to compare prices at various online locations using their

phones. They then buy the product using their mobile device. The future loo#s very

bright for mobile commerce, although businesses are still experimenting "ith ho" to

use the mobile commerce concept to their best advantage

• 1.6 FLIP5ART-THE AMA7ON OF INDIA

• :nline shopping has to do "ith the Gestern nations for quite some time and (ndians

are very restrained to online shopping. The quality of goods, credibility of shopper,

payment options, delivery time etc are the most important things that stand in the

minds of people "anting to do any online shopping. Gith users of internet increasing

multiple folds every year, people "ant to do miracles by sitting before their laptops or

home 82. Though Amazon is one of the earlier players in the industry, it is



;=(8OA5T "hich is one of the (ndian players in this industry "hich really brought

about the great change in the mindset of (ndian population.

• ;lip#art is an (ndian e'commerce company headquartered in 1angalore,

Oarnata#a. (t "as )achin 1ansal and 1inny 1ansal, alumni of ((T,<elhi "ho started it

in ?FFL. (n its initial years, ;lip#art focused on online sales of boo#s but it later

expanded to electronic goods and a variety of other products.

T8PE • 8rivate

INDUSTR8 • (nternet

FOUNDED • ?FFL

FOUNDER • )achin 1ansal

• 1inny 1ansal

HEAD 9UARTERS • 1angalore, Oarnata#a, (ndia

AREA SERVED • (ndia

5E8 PEOPLE • )achin 1ansal

• 1inny 1ansal

SERVICES • 6'commerce

• %online shopping&

REVENUE • 2,846 crore FY2014,(US$ 1 billion in gross₹

merchandise value 201314

NO. OF EMPLO8EES • 33,000 (201!"

SUSIDIARIES • 7yntra

SLOGAN • #b ar %ish ogi &oori

'ver %ish )e*s Ful+illed no-

:ESITE • """.flip#art.com

•



1. N!/ ,roduct i"troductio"

• (n ?FFL, ;lip#art started "ith selling boo#s. The first boo# sold at flip#art.com "as

-John oods! "eaving #icrosoft to Change the orld Today$ (n ?FF, they added to

their catalogue, media %including music, movies and games& and mobile phones and

accessories

• The cash'on'delivery model adopted by ;lip#art has proven to be of great significance

since the credit card and net ban#ing penetration is very lo" in (ndia.

• (nitially word of mouth marketing "as used to popularize their company

• (n ?F, product launches included cameras, computers, pens B office supplies,

computer accessories, home and #itchen appliances, personal care, health care,

gaming consoles, audio players and televisions. ;lip#art is currently the only

authorized online reseller of i8ods in (ndia.

• (n :ctober and Covember ?F, ;lip#art acquired the "ebsites 7imeEKF.com and

2ha#pa#.com =ater, in ;ebruary ?F?, the company revealed its ne" ;lyte <igital

7usic )tore. ;lyte, a legal music do"nload service in the vein of iTunes and

Amazon.com, "ill offer <57'free 78E do"nloads. ;lyte offers bro"se by languageoptions "here users can do"nload international as "ell as regional songs. ;lip#art has

listed the music based on its genre on the ne" music store and has given a lot of

variety. Users can shop for trac#s from various albums starting at K on the store. A

purchased song can only be do"nloaded maximum @ times on an internet enabled

device. ;lyte garners KFFO do"nloads in > months

• (n ?F?, product launches includes health B beauty products, =ife style products

"hich includes "atches, belts, bags B luggage.

• As far as future is concerned, ;lip#art "ill be loo#ing at bigger investments in our

supply chain and technology. (n terms of sales they "ere earlier loo#ing at a figure of

Pbn by ?F>. 1ut this can be achieved in the next one to t"o years. ;lip#art "ill also

be loo#ing at entering ne" categories. Additionally, ;lip#art )elf'<elivery, "hich

currently operates in ?L cities, "ill be further scaled up.



• (n a landmar# move, C0L.in, a platform to discover independent music and leading'

edge culture created by :nly 7uch =ouder %:7=&, has partnered "ith ;lip#art.com

to create an exclusive section dedicated to independent music on the ;lip#art digital

music store, ;lyte. The store "ill enable independent artists across the country to sell

their music digitally to their fans.

• The C0L.in store on ;lip#art "ill be a game changer. Up until no", independent

artists had limited avenues to retail their music to the ever'gro"ing fan base for indie

music. The C0L.in community represents the largest group of indie music lovers in

the nation. Co", along "ith promoting independent music, C0L.in creates an avenue

for artists to sell music directly to their fans, "hich is the crucial next step for

independent arts to gro". (n addition to this, four million monthly users of ;lip#art

"ill have access to a "ide selection of independent music from (ndia and around the

"orld at their fingertips.

• (n 3uly ?F? ;lip#art announced the launch of its in'house brand <igiflip. <igiflip is a

brand of digital accessories "ith products li#e laptop bags, laptop sleeves and camera

bags among others

2. Acquisitions

• The follo"ing are the acquisitions by ;lip#art

•

M6

• A2JU()(T(

:C

• <()25(8T(:C

•

?F

• :! R!'d • We Re!" soci# $oo% !isco&e'( too#)

• The stated goal "as to give ;lip#art a social

recommendation platform for buyers to ma#einformed decisions based on recommendations from

people "ithin their social net"or#.

•

•

?F

• Mi!3;< • Mi*e36+" !i,it# content -#t.o'*

co*-n()



•

•

2<

• C('&,'&.c

o

• 2hapa#.com is a 1olly"ood ne"s site that offers

updates, ne"s, photos and videos. ;lip#art acquiredthe rights to 2ha#pa#Is digital catalogue "hich

includes @F,FFF filmographies, F,FFF movies andclose to >F,FFF ratings. ;lip#art has categorically saidthat it "ill not be involved "ith the original site and"ill not use the brand name.

•

2<

L!t%$u0.co

• =etsbuy.com is (ndiaIs second largest e'retailer in

electronics. ;lip#art has bought the company for an

estimated U)P ?> million.=etsbuy.com had beenclosed do"n and all the traffic of =etsbuy is divertedto ;lip#art.

•

2<

M0"tr'.co

• Acquired 7yntra.com in an estimated ₹ ?F billion

%?,FFF crore, about U)PE million& deal

2<

Adi9uit0 • ;lip#art acquires a 1angalore'based global mobilenet"or# AdiJuity for an undisclosed amount

2<

A,,it!r't! • ;lip#art acquires a mobile mar#eting start'up

Appiterate as to strengthen its mobile platform

•

3. Acc#i*s n! cco*-#is/*ents

• ;lip#art is among the top EF (ndian Geb sites and has been credited "ith being (ndiaIs

largest online boo#seller "ith over million titles on offer. ;lip#art bro#e even in

7arch ?FF and claims to have had at least FFN gro"th every quarter since its

founding. As of today, ;lip#art employs over @>FF people. ;lip#art is the third largest

online shopping store after 61ay and Amazon.

https://en.wikipedia.org/wiki/Myntra.com


https://en.wikipedia.org/wiki/Crore


https://en.wikipedia.org/wiki/Crore



real'time, through ;aceboo# and T"itter. 0onesty is the best policy for this e'

commerce trailblazer.

• ;lip#art is rapidly expanding its net"or# of "arehouses, distribution centers,

procurement operations and ?@+L customer support teams. The company has its o"n

delivery net"or# in EL cities and is set to expand this in the current financial year.

Gith a team of around @,-FF members, the company operates from offices and

"arehouses in seven (ndian cities.

5. O-e'tion# st'te,(

• ;lip#art began operations on the consignment model ' goods "ere procured from

suppliers on demand, based on the orders received through the "ebsite. 0o"ever,

eventually, the boo#s'to'electronics e'shop adopted the "arehouse model. The

company has its o"n "arehouses, and maintains its o"n inventory. )ales proDection

determines the inventory, and the available inventory accounts for the sales made* itIs

a self'feeding cycle of sorts. Cearly KF to LF per cent of deliveries ta#e place through

their o"n net"or# as this model provides for better control over the entire logistics

management piece.

• :n the operational front, issues faced by the company pertain to delay in deliveries, or

faulty products. As a customer'centric, none of these issues can remain unresolved for

long. They faced significant challenges in reverse logistics. (tIs a big tas# to trac#

unsuccessful orders, "hich are quite costly to manage. 0ence, ;lip#art stresses on

customer service ' it aligns "ith the firmIs philosophy of ma#ing better our service

promiseI. Their bigger obDective is to redefine the "ay (ndia shops.

•

;lip#art "ill continue to expand its categories in order to meet the gro"ing consumer interest in the e'commerce mar#et. They have recently added computer peripherals,

#itchen appliances, televisions and home theatre systems and selected stationery items

to their product range. They "ill continue to add more products + selection to their

existing categories as "ell.

6. 0'n!in,



• ;lip#art "ent for a maDor brand ma#eover, ma#ing it loo# more Iup mar#etI. There

have been large ne"spaper ads, TV2s and a lot of "eb ads. 1ut unli#e other

ecommerce companies the inorganic mar#eting #ic#ed in only "hen the product "as

strong. ;lip#art already had a proven model execution "ith boo#s and extending to

other verticals did not need infrastructural changes. ;lip#artIs real achievement has

been in solving the pain points in (ndian ecommerce that most "ell funded players are

still complaining about.

• "No Kidding, No Worries"

• Co Oidding, Co Gorries, the recent advertising and branding campaign of ;lip#art is

a unique example of $Trap Them Moung$. An in'depth analysis of recent

advertisement campaign of ;lip#art strongly conveys (ndian youthIs sentiments andtheir desire. The story board of adverts, features #ids in adult situations, li#e a beauty

parlor, a cafe, and an office. The 0inglish language B the happening places is the

heart of Co Oidding, Co Gorries advertisement series. The creative director succeeds

to #eep O::=C6)) of 1rand ;lip#art.

flipkart attacks the online fears

• ;lip#art carefully chooses their "ay for"ard. ;or no", ;lip#art seems to be playing

their cards right. ;lip#art.com has aired three TV2s. 6ach of the ads attac#s a distinct

fear in the consumerIs mind to"ards online shopping, and ho" ;lip#art solves that

problem.

• ;ear of "rong product ' EF day replacement guarantee

•

;ear of giving credit card details online ' 2ash on <elivery feature

• ;ear of not getting the original product ' :riginal products "ith original "arrantee

• The creatives using #ids to brea# through the clutter, and the consumer "orry and the

solution offered by ;lip#art is clearly communicated. The brand I;lip#art.comI at the

end is also very clear to be missed, "hich gives the branded brea#through.

3< d'0 R!,l'c!!"t #u'r'"t!!



• ;lip#art.com offers you 568=A2676CT G(T0(C EF <AM) ;5:7 T06 <AT6 :;

<6=(V65M :C T06 product+s ordered on ;lip#art.com i.e. if at the time of delivery

and+or "ithin EF days from the date of delivery of the product+s, if any defect is

found, then the buyer of the product+s can as# for replacement of the product+s subDect

to some terms and conditions

Ord!r c'"c!ll'tio"

• 2ancellation of orders of products is permitted before the product gets shipped and

the entire payment amount is refundable. 1ut products such e'4ift Vouchers, Gallet

Top'Ups, etc are non'refundable.

•

;ree shipping

• ;lip#art provides free delivery on all items if your total order amount is 5s. EFF+' or

more. :ther"ise 5s. EF+' is charged as delivery charges.

• 7) #i-%'ts st'te,( in so#&in, -'o$#e*s in Eco**e'ce

• 1) isco&e'$i#it(

• (t is the case "ith any venture on the "eb, $0o" does the customer find usQ$ Ans"er

:rganicallyR ;lip#art has been the $baap$ of )6:. This has been the most important

contributor to their success. :nly "hen you see people coming to you, you get

encouraged to deliver more and #eep adding. There is no fun %motivation& in adding

features to a product that no one is using.

• )6: did not come the straight"ay. There "ere particularly ? things that are "orth

mentioning.

• . Yahoo News:

• Until last year ;lip#art had a feed of Mahoo Ce"s on its product pages. ;rom "hat

)6: means, this is to increase the #ey"ord density and introduce IoriginalI content on

the page, as the product description across all boo#s sites is same.

• $) We Do Not Sell Used Books:



• Ge <: C:T sell old boo#s or used boo#s. All the boo#s listed at ;lip#art.com are

ne" boo#s.

• The boo#s listed at ;lip#art.com are C:T available for free do"nload in eboo# or

8<; format.

• The magic of this text is that if searched for $Sboo# name free e1oo#$or $Sboo#

name pdf do"nload$ you "ould al"ays get ;lip#art among the top results. These are

very popular search queries and ;lip#art had nothing to do "ith it but still they cashed

in. This "as also the time "hen ;lip#art had Ad'sense embedded. 8eople "ould come

to the site, see nothing li#e a $8<; do"nload$ button, and then see an ad for 8<;

do"nload and clic#. This meant more revenue for ;lip#art. 4iven that the margin on

boo#s are very small after the discount, ;lip#art "as probably earning more by saying"hat they did not do than by doing "hat they actually "ere suppose to do.

• 2) P(*ents

• Co credit card+net ban#ing, fear to transact online, repeat transaction failures, no

access to "eb ' these are the common problems "ith online payments. Ghat ;lip#art

is doing to overcome theseQ

• ;lip#art had at least @ different 8ayment 4ate"ays integrated. They introduced 2ash'

on'<elivery. Then they are also doing order on phone. 8ayment via <<+2heque is

also accepted.

• ? basic things that they are currently doing that ta#e little technical effort but quite

some product management I"illI

• a. Auto redirection to ban#ing site Unli#e most other ecommerce sites, ;lip#art never

lands you on 22avenue page, you are auto redirected to the ban#s page "here the info

is required to be filled. ;lip#art by'passes unnecessary page by passing the required

parameters directly to 22avenue and not through a user interface.

• b. 1an#s )tatus ;lip#art maintains its o"n real time status if the ban#Is net ban#ing is

"or#ing or not. )o there are no surprises after you have chosen the ban# and then go

to the net ban#ing page.



• 3) n&ento'(

• (n the "orld of e2ommerce, the players #eep a standard list of products and then go

out procuring it only "hen there is an order placed. There is no inventory on

their end and there is no live status of inventory from their supplier. 5emember The

Alchemist, $Cever 8romise something that you donIt have$.

• After placing an order, they "ould #eep loo#ing for the product at multiple places.

After a "ee# you might get a call saying that either the product is not available and

"e "ill do a IfavorI by refunding your money or if the product is there, it is not the

color+size that you as#ed for.

•

;lip#art "as no different in ?FF, many customers used to get similar calls after daysof ordering. 1ut for the last year at least ;lip#art maintains its o"n inventory %or at

least it seems so&. They are selling "hat they have. ;rom pure hearsay, ;lip#art is

ta#ing up a big "arehouse in 1angalore and is in tal#s for one in C25 as "ell. :ne of

the fe" companies that is using the funding to build a business and not spend it li#e a

;724 company on ads

• 4) e#i&e'(

• ;lip#art is exploiting the delivery problem as a cashable need gap and building its

o"n delivery bac#end. ;lip#art is seen delivering through their o"n delivery boys in

1angalore and at times "ithin ?hrs from order.

• ;lip#art has started putting fliers in ne"spapers in 1angalore "ith a product listing,

call'to'order phone number and a promise of delivering Itomorro"I. This means more

discoverability, no payment problem and no delivery delay.

• ;lip#art is loo#ing to build its o"n courier company. The recent P?F7n funding from

Tiger 4lobal "as only part of a larger sum they are #no"n to be raising. ;lip#art is

loo#ing to raise PFF7n at a valuation of P?FF7n.

=. M'r&!ti"#

• (t is very difficult to sell a product "hich has been offered intentionally high to amiddle customer in (ndia. 1ut then the customer is getting that offer at the comfort of



their home. Any customer "ill li#e this and "ill pay the amount tagged by retailer.

1ut ho" can this idea are promoted. ;lip#art used Gord of 7outh as their best

mar#eting tool to sell their product. A satisfied customer tells others also about a good

experience, and this ho" the business of ;lip#art depends. ;lip#art has been using

different )ocial Cet"or#ing 6ngines to promote their product. 8romotions

on ;aceboo#, t"itter and other social sites helps in gaining some attention, but to

some extent, the rest has been done by )ervices offered by 2ustomer.

• 2ustomer satisfaction has been their best mar#eting medium. ;lip#art very "isely

used )6: %)earch 6ngine :ptimization& and 4oogle Ad'"ords as the mar#eting tools

to have a far reach in the online "orld. ;lip#art.com official ;ace boo# page has close

to lac Ili#esI. ;lip#art recently launched a series of E ads "ith the tag line ' $Co

Oidding Co "orries$. Oids "ere used to create the adverts to send out the message ' if

a #id can do it, you can also do it.

• The message is very clear to ma#e people more comfortable "ith ;lip#art, to generate

a great customer relationship and loyalty on the basis of great product prices and

excellent customer service. All in all to create a great customer experience.

• ) P'icin, st'te,ies

• Githout going into the theoretical and the management theories, pricing can be set on

the follo"ing points

• . :perating 7argins ' 6ssentially determining "hat the company earns to sustain

business and turn a profit

• ?. )trategic pricing ' 1asically overall pricing strategy "here some products are given

at a higher discount in order to capture mar#et share or consumer mindshare.

• )o individual product pricing can be higher or lo"er "hile the overall picture is #ept

in mind so that the company as a "hole can sustain itself on an overall profits or deep

enough poc#ets to "or# on losses for sometimes.



• 8rice is optimized best "hen the overall cost to the company per product is optimized.

)o that means here the contributing factors have to be loo#ed at and the costing there

has to be optimized.

• )o loo#ing at the maDor cost factors that affect the 6'2ommerce that are ta#en care of

;lip#art

• . )upply 2hain %procurement and shipping&

• ;lip #artIs core competency lies in their )upply chain and logistics "hich has been

perfectly monitored and managed by professionals. This involves a deep

understanding of "here the suppliers are and "here the end consumers are so that

"hen a customer orders a product, it can reach him by the shortest route in theshortest time and minimum manpo"er time being spent.

• This also means that customer demand is anticipated and pre'emptive steps are ta#en

so that products are ready to be shipped from the point closest to the consumer before

he even places the order.

• This helps in reducing the overall cost of moving the product to consumerIs place. The

overall cost of ;lip#art has been reduced to great extent, all than#s to 1lue <art, the

logistics partner of ;lip#art. (t is so because the transportation cost has been

reduced and therefore ;lip#art is able to earn a reasonable margin on the sale of

product, belongs to the actual producer

• ?. 7anpo"er and time spent on each order

• Ge must understand that all operations have to be made sustainable and more

importantly scalable for ultimate long term gro"th. )o all process from "hat route a

person ta#es to pic# up material to ho" much time it ta#es to pac# a product have to

be loo#ed at and it is "hen a company "or#s to"ard optimizing all these processes

that a company really starts to ta#e the lead.

1<. Co,!titio"

• 2ompetition is increasing day by day and by the end of ?F>, there "ill be hugenumber of players in 6'commerce in (ndia. Gith the rise in (nternet users, the



numbers of e'commerce companies are also increasing. )o ;lip#art "ill definitely

face tough fights in future and they should be ready for it. )napdeal is currently the

biggest competitor of ;lip#art. :ther close competitor includes 4roupon, best deals

etc.

• 11) Tc%#in, co*-etition

• Great website:

• ;lip#artIs "ebsite is great, easy to use, easy to bro"se through the products, add

products to "ishlist or to a cart, get product revie"s and opinions, pre'order products,

ma#e payments using different methods, in short hassle' free and convenient.

• Great Delivery system

• Ghen user places an order, the postal address has been trac#ed. And the order goes to

nearest "arehouse. And it is being pac#ed, pic#ed up and delivered by local courier

company. The advantage of cash on delivery is no fraudulent activities or anything.

Ghen the item is delivered ma#es sure the item is there and then pays. And also user

can trac# the routine of item through email. And the company informs about the status

of item.

• Great books and hot deals

• ;lip#art offers excellent collection of boo#s, <V<Is, movies, electronics items, home

appliances, and life style and health care products. ;lip#art promo coupons and

discount coupons are also available. :ne another feature of ;lip#art is best deals and

offers. Ghen you place an order greater than EFF (C5, youIll get free shipping.

• Exellent o!!niation s#ste!

• ;lip#art is reno"ned by their relationship "ith the customer. (f you are facing any

difficulties getting the product you can contact them via telephone %li#e everyone

?@+L&, email or through "ebsite.

•

(ndia is a hard place for delivering any item but ;lip#art is managing to deliver theitem in ?'E business days. (f the order you placed is not available donIt "orry. The



enquiry goes to nearest supplier and the item becomes available (t "ill delivered

"ithin ?@ hour. ;lip#art is aiming to bring do"n the delivery time of regular orders to

?@ hour. An excellent mar#eting strategy by ;lip#art mar#eting team to increase the

sales

• Great sto!er retention rate

• ;lip#artIs reason of success is that it has a great customer retention rate, it has around

> lac individual customers and more than LFN customers are repeat customers i.e.

they shop various times each year. The company targets to have a customer base of

crore by ?F>.

• C'e!i$#e n! Es( P(*ent s(ste*

• ;lip#art offers many modes of payment such as

• 2redit+debit card

• Cet ban#ing

•

2ash on delivery.

• FN 67(

• :nline Gallet

• Also ;lip#art offers FN 67( on transactions made on credit card payment "here the

"hole amount can be paid in E monthly installments "ithout any extra charge. ;or

installment greater than E months, a minimal charge is levied.

%lipkart &dds 'nline allet to (ase )ayment oes

• ;lip#art has added a ne" IGalletIfeature to enable customers store money in their

;lip#art account and redeem it on future purchases. ;lip#art Gallet "or#s on a

prepaid credit system you can top up your "allet "ith any desirable amount up to 5s

F,FFF by using any one of its regular payment modes li#e credit card, debit card, and

net'ban#ing. This amount "ill then be reflected as prepaid credit on your account and



can be used as a payment mode for all forthcoming purchases on the portal.

6xpectedly, this amount "ill be deducted from the balance in your accountIs "allet.

;lip#art allo"s you to ma#e a partial payment using your Gallet and pay the

remaining amount using other payment modes li#e credit card, debit card, and net'

ban#ing. ;lip#art does point out that cash'on'delivery payment mode cannot be

combined "ith a Gallet payment. This is ;lip#artIs "ay of bypassing payment

gate"ay problems and also facilitates frequent shoppers

• 12) P'os n! Cons o. Cs/ on e#i&e'( *o!e#

• 6'commerce "or#s on the principle of negative "or#ing capital. (n other "ords the

vendor does not use his capital in procuring the goods rather uses your payments

made in advance to procure the goods and deliver it. =et me ta#e an example, Dustimagine you bought an i8ad on line, and you paid for it using your credit card. Co"

the money from the credit card is debited immediately "hile the delivery of the i8ad

ta#es about a "ee# or > days. Co" most firms can procure faster and deliver but

they ta#e that extra fe" days as they retain the payment and can put it to other use or

simply generate interest for those fe" days. This model "as pioneered by <ell "hen

they sold their laptops extensively through <ell <irect and it had "or#ed very "ell for

them earlier.

• Co" this model is under threat as consumers in (ndia "or# on the cash on delivery

model. Co" in the global scenario 2ash on delivery accounts for almost >N of

transactions according to a Cielson report. 1ut in (ndia it is almost -FN.

• Apart from loc#ing up "or#ing capital, cash on delivery also adds to the complexity

of the supply chain. 8lus there is an added threat as collection is done by the delivery

agents and often there is an element of hazard "hile using external collection agents.

*espite these challenges +Cash on *elivery+ has led to the oom in the e-

commerce in India and does not look like the model is going away soon$ o what

can e-retailers do to sustain themselves in this environment.

• . 0ave cash on delivery %2:<& only for select categories. :ften using 2:< for all

categories may not ma#e logistical sense. )ome of the categories li#e boo#s etc may



not need 2:< model. Ghile electronics is something that 2:< model "ould "or#

better.

• ?. Oeep a minimum purchase limit for availing 2:<. Co" ( have had many

experiences on setting limits and not too many people in (ndia have been very happy

"ith it. 1ut in the U) and Gestern 6urope there have often been limits on setting :<

facilities.

• E. )tart a small charge for 2:<, maybe a tiny amount to begin "ith but sooner or

later the charge could potentially off set the "or#ing capital deficit.

• 13) utu'e st'te,( .o' #i-%'t

• :vernight successes usually last Dust that one night. )trategy has got to lay out a more

for"ard'loo#ing roadmap for a company that spans multiple years. To ma#e things

simple, lay the future out into three phases - uild> Pull A/'0 '"d Tr'"%+or. These

do not need to ' and indeed should not be ' distinct phases but rather overlap each

other to benefit from positive momentum that each phase builds and hands over to the

next.

• 0ui#! A so#i! .oun!tion is /#. t/e ,oo! o'%

• (n its first phase of transformation ;lip#art must build deeper engagement "ith its

customers. (t needs to both build a deeper relationship "ith its buyers and provide

those touch points that are more omnipresent than the "eb'based (nternet.

• Lo0'lt0 (t is strange that for a service that is not vividly distinguished from me'too,

;lip#art chose not be build loyalty programs. =oyalty need not have Dust the old

school implementation of co'branded shopping appliances li#e credit cards. =oyalty

programs need to be deeper, "here someone "ho has greater "allet spends at ;lip#art

feels re"arded both monetarily and ' more importantly ' other"ise. ;lip#art 2oupons

is another loyalty device conspicuous by its absence. As gifting increasingly strives to

put last'mile choices bac# in the hand of the recipient, a loyalty program based on

redeemable coupons "ill deepen association "ith the customer. 2orporations spend a

lot of money in fine tuning their 5e"ards B 5ecognition programs to ma#e them

suitable for the young demography ' a space that ;lip#art can immediately capture



%and since corporations buy coupons in bul#, a part of "or#ing capital management

can also be ta#en off in the process&.

• Touc( ,oi"t% 6commerce is shifting from the bro"ser to applications that sit on

devices. ;lip#art can regain its first mover advantage by introducing i:) and Android

apps that ma#e shopping much easier than on native bro"sers.

• 5ing fencing customers and pampering those "ho return for more is crucial in the

build'out phase. ;or years, ;lip#art has focused on internal effectiveness and not so

much on the customer and it is about time to change that. There is also an important

mindset change that needs to happen at this phase ' increasing value for not only

buyers but also sellers "ho "ould benefit the most in having access to the ;lip#art

platform. The outcome of such thin#ing "ill play an important part in the late'secondand third stage of this transformation

• Pu## A( no',nic ,'ot/ n! $ui#!in, t/e ecos(ste*

• 6xploit adDacencies 0aving built a solid foundation "here the customer has been

placed at the focus of future planning %in addition to internal effectiveness, "hich

;lip#art has al"ays excelled in&, opportunities in adDacencies need to exploited.

2ategory expansion, "hich ;lip#art has been at, is one "ay to provide buyers "ith all

their needs on a single platform and leverage scale. There are adDacent categories

ho"ever that have already matured into full'fledged businesses "ith similar ' not

exact ' contours. Ta#e travel for example. The basic fabric of the business is similar

' acquire inventories from suppliers, build a technology platform for delivery, squeeze

out a bit of margin and deliver the product by careful customer segmentation minus

the added headache of physical deliveries. )tanding "here "e are, categories such as

these are too difficult to build grounds up for ;lip#art. 0ence an acquisition is the best

route to increase momentum on the ecommerce fly"heel ;lip#art has already built

and set in motion.

• 1uild the ecosystem Ghen a business model has successful equivalents in developed

mar#ets, the role of a local strategist becomes easy ' import ideas. 0o" successful

"ill a ;lip#art handheld device or ;lip#art Geb )ervices becomeQ Ghat is interesting

ho"ever is building a supply ecosystem "here original creators are encouraged to participate on the platform "ithout losing value to intermediaries. Authors are a very



obvious target audience in this category, "hich itself has a very "ide range

encompassing text boo#s, animated boo#s, restored %and retold& classics, fiction, non'

fiction, graphic novels ' the list can go on. 1esides the content, form has diversified

significantly, than#s to bloggers and Dournalists. <eveloping relationships "ith

producers directly %building the relationship is not entirely easy& and co'creating

products increases the value of the ;lip#art platform for those "ho "ere perhaps dis'

intermediated or losing too much to ma#e authoring a successful profession %IauthorsI

has been used metaphorically some"hat. This strategy holds good for any original

producer of content+merchandise. ;or example, this can "or# as "ell for art and

handicrafts as it "ill for boo#s&.

• (norganic expansion and building ecosystems should herald a different thin#ing

process for ;lip#art ' a line of thin#ing that transforms the business from being a

service providing ecommerce to becoming an electronic mar#etplace and platform.

8latform companies %6ric )chmidt named ;aceboo#, Amazon, Apple and 4oogle as

the I4ang of ;ourI 8latform 2ompanies& are ones that come "ith a core and then

combine complements from a variety of other providers to add disproportionate value

to the service. 8latform companies are difficult to build but once done %and there are

important technology and business considerations& are in the long'term more

successful than pure'play product or service players.

• This phase of pulling a"ay is the most important phase in ;lip#artIs strategy, in both

design and execution.

• T'ns.o'*tion On'!s to #i-%'t 2)+

• The vision for a transformed ;lip#art is "here ;lip#art is a platform inviting multiple

entities to participate not only as part of the supply chain, catalogues and consumption

but most importantly in innovation. Thin# of it this "ay "here in a fast'for"arded

"orld ;lip#art is a platform for providing online education content to a vast maDority

of institutions in (ndia. 2reators of content "ill al"ays strive to innovate and ;lip#art

being a platform "ill reap the benefits of that innovation "ithout having to explicitly

participate in it. :n the same platform innovators "ill bring ne"er "ays to present the

content and perhaps another participant "ill ma#e learning more social.



• =everaging scale becomes easier for a platform company. 2ontinuing "ith the earlier

example, investments in building incremental ecosystems can present

disproportionate re"ards to business outcomes for ;lip#art. The same %or very closely

related& content for education could be as applicable in )outhern Africa as is it is

(ndia, opening up immediately vast business potential. The true unloc#ing of scale can

easily happen in a "orld "here ;lip#art is a platform rather than an ecommerce

service.

A large'scale program that ta#es a product or service company and transforms it into a

platform play is not simple. ;or some it could be a lifeIs dream. 1ut it certainly is a

dream "orth living. ;or a company li#e ;lip#art that has already transformed the

ecommerce mar#et in (ndia, this could be the second calling for a chance of inclusion

in historyIs "all of fame.

• Conc#usion

• ;lip#art is a story that comes from smart "or# and an Iit is possibleI attitude. There is

a need to for a couple of more stories li#e these and there "ould be no cribbing about

(ndian 6'2ommerce not "or#ing.

• Their aim is to ma#e ;lip#art synonymous "ith the shopping experience in (ndia.

• 6'commerce in (ndia has a huge potential going for"ard and this is Dust the start. They

have a lot of "or# ahead of us if they are to fully realize this potential ' they feel it

"ill be some time before they actually loo# overseas

• The U)8 of ;lip#art is to provide the consumers "ith the best online shopping

experience. The company aims to provide its customers "ith good value and "ants to be regarded as one of the most friendly service providers in the domain.

• (t is also loo#ing to become the biggest e'commerce organization of (ndia "hile

retaining its focus on serving the customers to the best of their abilities. (t "ill also

loo# to innovate in this domain and try to expand its offerings so that customers have

more to choose from.



• These are the reasons "hy many love ;lip#art. )ome people calling it as Amazon of

(ndia "hich fits to ;lip#art.

•

1.; O$?!cti)! o+ %tud0

To %tud0 t(! co"c!,t o+ )irtu'l or#'"i@'tio"%.

To d!t!ri"! t(! %tr't!#i!% o+ )irtu'l co,'"i!%.

To '&! %u##!%tio"% o" t(! %tr't!#i!% u"d!rt'&!" $0 )irtu'l or#'"i@'tio"% i"

I"di'.

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CHAPTER 2 REVIE: OF LITERATURE

2.1 R!)i!/ o+ lit!r'tur!- M!'"i"#

• 5evie" of =iterature helps to identify the concepts relating to the research topic B

potential relationships bet"een them. (t also helps to identify appropriate

methodology, research design B techniques used for analysis of data. (n addition to

this, it helps to identify data sources used for research. (t also finds out some gap in



earlier literature and provides ne" insight for conducting ne" enquiry. (n this chapter,

an attempt has been made to revie" the literature relating to the gro"th of retail cafe

business in (ndia and ho" our sample subDect virtual organization has fared since

inception.

•

2.2 Lit!r'tur! R!)i!/!d

• ( have revie"ed the academic literature to gain insight into 6'2ommerce in (ndia!.

)o, various articles, Dournals, boo#s, "ebsites etc. have been used to study the evolution,

conceptual frame"or#, definitions, #ey players, present trends %relating to internet

penetration, gro"th prospects, modes of payments preferred etc.&, future prospects and

barriers of 6'commerce. All the data included is secondary base and proper references have

been given "herever necessary.

• 6'2ommerce+e'business research articles done in (ndian context R')!" !t 'l.

compared (ndia and 2hina’s approaches in adoption of e'business. 1ased on the

literature survey and secondary data, the study analysed various factors influencing

the gro"th of e'businesses in the t"o countries. The factors examined include

government policy and focus, existing technology infrastructure regulatory

environment, experience and understanding of business operations, and culture,

among others. The study concludes that 2hina appears to be ahead of (ndia in theinfrastructure, but (ndia is ahead in e'readiness. ;urther, it states that both countries

are poised for rapidly increasing e'business, ho"ever, problems of poverty and

inequality bet"een urban and rural connectivity must be resolved to really ta#e

advantage of e'business in both the countries.

• M'l(otr' '"d Si"#( studied the determinants of (nternet ban#ing adoption by ban#s

in (ndia. 8anel data of -- ban#s in (ndia covering the financial years L - to

?FF@?FF> "as collected through 27(6 %2entre for 7onitoring (ndian 6conomy&database. =ogistic regression analysis "as used, the dependent variable is categorical

"ith a value of if a ban# adopted (nternet ban#ing during the study period and F

other"ise. (ndependent variables included in the study are firm size, firm age, ban#

deposits ratio, average "ages, expenses %fixed assets B premises&, 5:A %ratio of

average net profits to average assets&, mar#et share, average number of branches,

percentage of ban#s adopted (nternet ban#ing. The results of the study prove that

1an# type %8rivate&, firm size, ban# deposits ratio, firm age, mar#et share, averagenumber of branches, percentage of ban#s adopted (nternet ban#ing and expenses, are



found to be significant in adoption decision. Gage and 5:A are found to be

insignificant. This study contributes to the empirical literature on diffusion of

financial innovations, particularly (nternet ban#ing in (ndian context. 7ost of the

study on adoption of technology "as related to developed mar#ets li#e U) and

6urope, this study is an important contribution to evolving literature as it dealt the

problem of technology adoption in developing country context.

• )tudy by T'r'+d'r '"d V'id0' examined the factors that determine the

organizational inclination to adopt 6'2ommerce %62&. The study proposes a

frame"or# based on the qualitative data on four financial firms in (ndia collected

through multiple case study design. ;ace to face intervie" "as used to collect primary

data and existing database, company documents, press reports and "ebsites are used

to collect secondary data. The frame"or# describes t"o broad factorsWleadership

characteristics and organizational characteristicsWto explain the influence of

organizational factors on the propensity to employ 62 technologies. The study found

that both leadership and organizational characteristic influence 62 adoption. (t

establishes that leadership characteristics influence adoption of 62 technologies in

centralized organization organizational characteristics influence 62 adoption in de'

centralized organization. The study also found that characteristics of (nformation

)ystems professional and organization structure influence 62 adoption.

• Another study by T'r'+d'r '"d V'id0', analyses organizational and strategic

imperatives that influence (nformation )ystem %()& assimilation in (ndian

organizations. () assimilation here refers to the extent to "hich a system or

technology becomes diffused in organizational processes. The study is based on

multiple case study method. <ata on nine firms "hich have deployed () "as collected

through face to face structured intervie" involving middle managers, senior managers

of () and other departments. The study examines the nature of the system presentW

data processing+transaction oriented, operational, strategicWand ho" these systems

affected #ey operational processes. )trategic imperatives are examined by analysing

the environmental factorsWpresence or absence of government regulation, pressure

from customers, suppliers and competitors, and strategic stanceW"hether product and

process changes, and the consequent () deployment "ere proactive or reactive

:rganizational imperatives "ere investigated by qualitatively assessing six factorsW

top management support* () department #no"ledge of business, technology and

involvement in () deployment, (T literacy of managers, management style* presence



of (T champions and availability of (T resources. <ata "as analyzed across'case and

"ithin'case. The study identifies three categories of organizationsWinnovative ()

users, enlightened () users and reluctant () usersW"ith respect to () assimilation, and

describes strategic and organizational factors characteristics of each group. The study

also traces the evolution of the () application portfolio in each of the studied firms

and analyses accompanying changes in strategic and organization factors. (n short, the

paper presents an integrated and first level analysis of strategic and organizational

imperatives that have influenced the assimilation and evolution of () in (ndian

organizations.

• Vi%/'"'t('" '"d Pic& examined the issue of e'commerce in (ndia and 7exico from

the frame"or# of developing countries as suggested by Tallon and Oraemer. The

frame"or# included critical factors that might impact the diffusion of ecommerce.

The factors are government policy, legal frame"or#, technology infrastructure,

relationship "ith developed economies and extent of e'commerce usage by

individual, corporate and government. The study’s primary focus is on (ndia. 7exico

is analyzed more briefly, and compared "ith (ndia based on common international

datasets. The analysis and the data presented in this paper represent a synthesis of data

from secondary research and data from intervie"s conducted "ith senior executives

in the (T industry in (ndia and 7exico. The study suggests that substantial efforts

have to be made to invest in telecommunications infrastructure, and to create a culture

of electronic payments and e'commerce usage that "ill support economic gro"th.

• D'%#u,t' '"d S!"#u,t' paper on e'commerce in (ndian insurance industry discusses

the features of e'insurance in comparison "ith the traditional offline insurance

service. The authors put forth that e'insurance offers benefits such as reduction in

search cost and hidden cost, price comparison for customers, and benefits such as

opportunity to have niche mar#et, first mover advantage and product bundling for

insurance companies going online. ;urther, it discusses that status of e'insurance in

(ndia is still formative stage, but stands to gain particularly from the rural mar#ets

since the availability of insurance agent is very less compared to urban mar#ets. The

study is conceptual in nature and offers insights based on mar#et reports and data

from secondary sources.

• Vi%(/'%r'o '"d o%%('rdt used a theoretical frame"or# developed by Oatz and

)hapiro %-L& to examine the ongoing technology adoption behavior of

foreigno"ned and domestic firms. ;irm level data on @FF medium to large (ndian



firms from - to E "as used to test the model. 8robit and 8oisson estimation

"as used to analyze the data and model.

• Apart from the studies mentioned above, there are quite handful of research

reports and survey based studies done by (nternet and 7obile Association of (ndia,

(751 (nternational, <ata monitor, and (nternet and :nline Association "hich

presents "ith quantitative figures, the status of e'commerce existing in the country.

•

2.3 CONCLUSION

)everal important phenomena are associated "ith e'commerce. 6'2ommerce has

unleashed yet another revolution, "hich is changing the "ay businesses buy and sell products

and services. Ce" methodologies have evolved. The role of geographic distances in forming

business relationships is reduced. 6'2ommerce is the future of shopping. Gith the

deployment of E4 and @4 "ireless communication technologies, the internet economy "illcontinue to gro" robustly. (n the next E to > years, (ndia "ill have EFF to @FF million internet

users "hich "ill equal, if not surpass, many of the developed countries. (nternet economy

"ill then become more meaningful in (ndia. Gith the rapid expansion of internet, 6'

commerce is set to play a very important role in the ?st century, the ne" opportunities that

"ill be thro"n open, "ill be accessible to both large corporations and small companies. The

role of government is to provide a legal frame"or# for 6'2ommerce so that "hile domestic

and international trade are allo"ed to expand their horizons, basic rights such as privacy,intellectual property, prevention of fraud, consumer protection etc. are all ta#en care of.•

•

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•



CH.3 RESEARCH METHODOLOG8

3.1 U"i)!r%!

• The universe under this proDect report is all the virtual entities founded by (ndians or

registered under (ndian corporate la"

• 3.1.1 USTIFICATION OF THE UNIVERSE

• The universe for the purpose of this research is focussed on companies + organizations

"hich have virtual existence and carrying on business in (ndia.A maDor research has

been conducted on the strategies adopted by flip#art.its financial strategies are broadly

studied as "ell as stated in this report.challenges faced by the company is stated

•

3.2 S',l!

<ue to time and cost constraints, the research "ould be limited to one company +

organization. 0ere, "e have considered ;lip#art, for the purpose of our study.

•

3.2.1u%ti+ic'tio" o+ %',l!

• The sample selected for the purpose of the research is Dustified on the follo"ing

grounds

. The sample size is large and adequate.

?. The sample size fairly represents the population under study.

E. 2onsidering the sample size the various statistical techniques such as mean, median,

mode, etc can be applied.

@. The sample considers all the outlets, in various formats, existing across (ndia.

•



3.3M!t(od o+ coll!ctio"

• D't' coll!ctio" is the process of gathering and measuring information.data is broadly

classified as primary data and secondary data.meaning

• 3.3.1M!'"i"# '"d %i#"i+ic'"c! o+ ,ri'r0 d't' Pri'r0 d't' consists of acollection of original + primary data directly collected by the researcher himself +

herself, from the source. (t can be accomplished through various methods, including

questionnaires and telephone intervie"s in mar#et research, or experiments and direct

observations. 8rimary research + data are used in academic research, mar#et research

and competitive intelligence. There are advantages and disadvantages to primary data.

• ADVANTAGES OF PRIMAR8 DATA

• 5esearcher can focus on both qualitative and quantitative issues.

• Addresses specific research issues as the researcher controls the search design to fit

their needs

• 4reater control over the relevance, focus, quality and collection method of data

• DISADVANTAGES OF PRIMAR8 DATA

• 8rimary data may be very expensive and time'consuming in preparing and carrying

out the research.

• =o" response rate has to be expected.

•

• 3.3.2. MEANING AND SIGNIFICANCE OF SECONDAR8 DATA

• S!co"d'r0 d't' involves the summary, collation and+or synthesis of existing research

rather than primary research. )ometimes secondary research is required in the

preliminary stages of research to determine "hat is #no"n already and "hat ne" data

are required, or to inform research design. At other times, it may be the only research

technique used.

https://en.wikipedia.org/wiki/Measuring


https://en.wikipedia.org/wiki/Questionnaires


https://en.wikipedia.org/wiki/Market_research

https://en.wikipedia.org/wiki/Experiment

https://en.wikipedia.org/wiki/Observations

https://en.wikipedia.org/wiki/Primary_research



https://en.wikipedia.org/wiki/Market_research

https://en.wikipedia.org/wiki/Experiment

https://en.wikipedia.org/wiki/Observations

https://en.wikipedia.org/wiki/Primary_research



• )econdary sources could include previous research reports, ne"spaper, magazine and

Dournal content, and government and C4: statistics.

• ADVANTAGES OF SECONDAR8 DATA

• (t is economical and time saving. (t saves efforts and expenses.

• (t helps to ma#e primary data collection more specific since secondary data helps

identify the gaps and deficiencies and "hat additional information needs to be collected.

• (mproves the understanding of the problem and provides a basis for comparison for

the data that is collected by the researcher.

• DISADVANTAGES OF SECONDAR8 DATA

• )econdary data is something that seldom fits in the frame"or# of the mar#eting

research factors.

• Accuracy of secondary data is not #no"n.

• <ata may be outdated.

•

• 3.3.3. COLLECTION OF DATA

• <ue to the time and resource constraint, secondary data has been considered for the

purpose of this study. The data "as sourced from various textboo#s, as "ell articles

hosted online as "ell as those found in print in various business ne"spapers, business

magazines and their "ebsites. A detailed list of citations can be found in the

bibliography section to"ards the end of this report.

•

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•

CH.4 ANAL8SIS AND INTERPRETATION•

4.1 CHALLENGES FACED 8 VIRTUAL ORGANISATIONS IN INDIA

• Ghile the gro"th in this sector excites entrepreneurs and financial investors ali#e,

some serious challenges are beginning to "eigh do"n on the sector. e2ommerce

players in (ndia need to address eight #ey aspects of their business, both internal and

external.

• EBt!r"'l c('ll!"#!% 6xternal forces impact ho" e2ommerce companies plan their

gro"th strategy and provide seamless customer experience onsite and posttransaction.

• / Product '"d 'r&!t %tr't!#0 e2ommerce companies have to address issues

pertaining to rapidly evolving customer segments and product portfolios* access

information on mar#et intelligence on gro"th, size and share* manage multiple

customer engagement platforms* focus on expansion into ne" geographies, brands

and products* and simultaneously tac#le a hypercompetitive pricing environment.

• Cu%to!r '"d di#it'l !B,!ri!"c! 2ompanies have to provide a rich, fresh and

simple customer experience, not geared to"ards discovery* manage inconsistent brand

experience across platforms* manage proliferation of technologies* and handle time'

to'mar#et pressure for ne" applications. (n the recent past, social media has become

more influential than paid mar#eting.

• / P'0!"t% '"d tr'"%'ctio"% e2ommerce companies may face issues around

security and privacy breach and controlling fictitious transactions. ;urther, 51(

restrictions for prepaid instruments or eGallets act as impediments. ;rom a



transactions perspective, cross'border tax and regulatory issues, and bac#end service

tax and "ithholding tax can have serious implications.

• / Ful+il!"t 2ompanies "ill need to chec# if the physical infrastructure gets affected

by the internet speed. Also, the lac# of an integrated end'to'end logistics platform and

innovation'focused fulfilment option could cause delivery issues. 2hallenges around

reverse logistics management and third party logistics interactions could also act as

barriers to gro"th.

•

• I"t!r"'l c('ll!"#!% (nternal forces impact ho" e2ommerce companies can organise

to drive and sustain gro"th.

• / Or#'"i%'tio" %c'li"# e2ommerce companies "ill have to ma#e sure organisation

design #eeps pace "ith the rapidly evolving business strategy, along "ith fluid

governance, strong leadership and management development. ;rom a gro"th

perspective, identifying acquisition opportunities, fund raising and (8: readiness

becomes necessary. ;rom a technology perspective, it is important to transform (T as

an innovation hub and address the lac# of synergy bet"een business, technology and

operations functions of the enterprise.

• / T'B '"d r!#ul'tor0 %tructuri"# 2ompanies "ill need to address issues around

sub'optimal "arehouse tax planning* imbalance bet"een ;<( norms vis'X'vis

adequate entity controls* inefficient holding, (85 or entity structures* and international

tax inefficiencies. ;uture challenges include the ne" 2ompanies Act, policy on

related'party transaction pricing, and the uncertainty around 4)T roadmap.

• / Ri%&> +r'ud '"d c0$!r %!curit0 ;rom a ris# perspective, e2ommerce companies

could face issues around brand ris#, insider threats and "ebsite uptime. (ssues around

employee'vendor nexus, bribery and corruption ma#e companies vulnerable to fines.

2yber security also raises some concerns around "ebsite exploitation by external

entities.

• / Co,li'"c! +r'!/or& e2ommerce companies have to comply "ith several la"s,

many of "hich are still evolving. 8otential issues around cyber la" compliance,

inefficient anti'corruption frame"or#, legal exposure in agreements or arrangements,indirect and direct tax compliance frame"or# and ;67A contraventions and



regularisation could pose problems. Also, uncertainty around VAT implications in

different states due to peculiar business models could cause issues.

• ANAL8SIS

•

An analysis of the demographic profile of internet users further testifies thate2ommerce "ill rise rapidly in (ndia in coming years. Around L>N of (ndian internet users

are in the age group of > to E@ years. This category shops more than the remaining

population. 8eer pressure, rising aspirations "ith career gro"th, fashion and trends encourage

this segment to shop more than any other category and (ndia, therefore, clearly enDoys a

demographic dividend that favours the gro"th of e2ommerce. (n coming years, as internet

presence increases in rural areas, rural (ndia "ill yield more e2ommerce business.

D!o#r',(ic ,ro+il! o+ I"di' o"li"! u%!r% '% o" S!,t!$!r 2<13

1524 (e' o#!s

2534 (e' o#!

3544 (e' o#!s

Ot/e'

+ 5 1+ 15 2+ 25 3+ 35 4+

37

38

16

• )ource )tatista "ebsite accessed on <ec ?F@

•

• /eographical distriution of internet users in India 0million1



41+61 41426 4171 42156

38 6+ 2 138

13+ 165 216

u'$n 'u'#

• )ource (A7A('(751

•

• 1y ?F?F, eTail in (ndia is expected to account for EN of total retail. ;urther, orders

per million are expected to more than double from five million in ?FE to ? million

by ?FK, "hich "ill mean more opportunities for both consumers and eTail

companies. Ghile the share of online shopping in total retail has increased at a fast

pace in the last fe" years, it is still miniscule compared to the figure in 2hina, "here

the share is -'FN.

2+14 2+2++9

1+9

2+9

3+9

4+9

5+9

6+9

7+9

8+9

+9

1++9

1)683

814

+)4 3

in!e-en!ent 'eti# $'ic% n! *o't' 'eti# e ti#



• :rders per month %in million&

2+12

2+13

2+16 :est;

4

5

12

)ource Technopa#* Accel 8artners

•

INTERPRETATION

• The e'commerce is one of the biggest things that have ta#en the (ndian business by

storm. (t is creating an entire ne" economy, "hich has a huge potential and is

fundamentally changing the "ay businesses are done. (t has advantages for both

buyers as "ell as sellers and this "in'"in situation is at the core of its phenomenal

rise.

5ising incomes and a greater variety of goods and services that can be bought over

the internet is ma#ing buying online more attractive and convenient for consumers all

over the country.



Trends in the (ndustry

' ;eminization of the (ndustry

' 7ounting )ocial 7edia

' 7'commerce A ne" "aveR

' :nline 4roup 1uying 6xplosive gro"thR

' After V2’s, Co" 2elebrities

' 2hange in the 1usiness 7odel

' 0iring the best

The (ndustry is expected to gro" at a 2A45 of @FN, from U) P >. billion in ?FF to

U) P E@.? billion in ?F>6. As (ndian e'commerce mar#et is in nascent stage but it

"ill surely amplify in years to come. Though there are some "ea# lin#s, "ith

improvements in technology, they "ill be ironed out, ma#ing the e'commerce easy,

convenient and secure. The ecommerce is certainly here to stay.

•

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CH. 6

FINDINGS>SUGGESTIONS>CONCLUSION OF

THE STUD8

6.1 FINDINGS OF THE STUD8

• The last year has seen several developments that have given a fillip to the e2ommerce

industry Mo$il! to $! t(! o%t i"+lu!"ti'l '%,!ct o+ !Co!rc!

• Gith mobile apps being developed by most e2ommerce "ebsites, smartphones are

increasingly replacing 82s for online shopping. (n ?FE, only FN of the mobile users used

smartphones, and only >N of the e2ommerce transactions "ere made through a mobile

device. This figure has more than doubled, and more than EN of all e2ommerce transactions

today happen via mobileE . According to some industry players, over >FN of the orders are

being placed through mobile apps, "hich is not only leading to substantial customer

acquisition but also building customer loyalty for various brands. 0o"ever, most mobile

transactions so far are for entertainment, such as boo#ing movie tic#ets and music

do"nloads. This trend "ill change soon "ith more and more merchandise being ordered

online. Mor! $u%i"!%% coi"# +ro %'ll!r to/"%

• e2ommerce is increasingly attracting customers from Tier ? and E cities, "here

people have limited access to brands but have high aspirations. According to e2ommerce

companies, these cities have seen a EFN to >FN rise in transactions. E"('"c!d %(o,,i"# !B,!ri!"c!

• 1esides general online shopping, customers are also shopping online for "eddings

and festivals, than#s to "ider range of products being offered and aggressive advertisements.

The free and quic# shipment and "ider choice of products, along "ith the ease of shoppingonline as compared to in'store shopping, is also helping e2ommerce gather momentum.@

;urther, e2ommerce companies are doing rapid business due to sales. Ce" concepts such

sales on "ee#ends, holidays and festivals are attracting a lot of ne" customers and building

customer loyalty among existing customers. Television and social media, particularly

;aceboo#, are playing a proactive role in promoting eTailing through aggressive

advertisements. This has helped several e2ommerce companies build substantial brand

image. EBclu%i)! ,'rt"!r%(i,% /it( l!'di"# $r'"d%



• :ver the year or so, there has been a trend of exclusive tie'ups bet"een eTailers and

established boutiques, designers, and high'end lifestyle and fashion brands. ;or instance, in

?F@, 3abong added international fashion brands such as <orothy 8er#ins, 5iver (sland, 1lue

saint and 7iss )elfridge, along "ith local fashion brands through 3abong 1outiques.

)imilarly, 7yntra benefited from exclusive tie'ups "ith brands such as 0arvard =ifestyle,

<esigual and G5:4C from Virat Oohli. EB,'"di"# t(! ,roduct $'%&!t

There is a recent trend of relatively ne"er products such as grocery, hygiene, and

healthcare products being purchased online. )imilarly, lingerie and (ndian De"ellery has also

been in great demand among customers outside (ndia. 6xport comprises >N of cross'border

e2ommerce, "ith the U), UO, Australia, 2anada and 4ermany being the maDor mar#ets.>•

6.2 SUGGESTIONS OF STUD8

(n ?F>, e2ommerce players see mobile commerce as the most preferred route "ith

mobile "allet as the preferred "ay of payment. Gith @4 services expected to be

launched in ?F>, internet penetration is li#ely to ta#e a significant leap, "hich is

li#ely to give another boost to mobile commerce. 2hanges in lifestyle and shopping

choices "ill see buyers preferring online and mobile channel over physical channel to

save time and see# "ider range and possibly comparative pricing. ;or mobile "allets,improvements on the payments front "ith multiple payment instruments and increase

in payment gate"ays aided by enhanced security "ith multiple authentication layers

"ill help the consumers "ith a seamless mobile experience. Ciche categories are also

expected to gather momentum including cars and real estate. 8remium and

international brands are li#ely to Doin eTail, purchases from Tier ? and E cities "ill

continue to rise and differentiated products such as exclusive brands by designers "ill

gro". 5iding high on the gro"th prospects e2ommerce companies "ill loo# at more

"ays to raise funds such as (8:s. )ome consolidation "ill also happen "ith the

leaders focusing on high gro"th and smaller players finding their o"n niche.

•

• Top F things the e2ommerce companies need to do to accelerate gro"th

1.cu%to!r !B,!ri!"c!

• As the customers progress from research to purchase to fulfilment stages, their

expectations change fast. e2ommerce companies need to understand these change drivers and

adapt their proposition accordingly. 6asy transitions bet"een ordering on tablets, mobile



phones or 82s "ill have to be facilitated. 1esides, convenient multichannel returns and

delivery options need to be developed along "ith the provisions of touch and feel the product

before buying. They should also ensure sufficient after sales service and support. :nline

product revie"s and ratings, videos, more advanced sizing and fitting tools should be

provided.

2. T!c("olo#ic'l 'd)'"c!!"t%

• e2ommerce companies constantly have to upgrade their offerings "ith changing

technology. ;or instance, shopping through mobiles have truly arrived, they need to devise

easy to use mobile apps for their "ebsites. They need to ensure that their "ebsites have the

required speed to do fast business, especially during sale, deals and discounts. )olutions

enabling seamless integration of bac#'end and front'end infrastructure, customer experience

enhancement initiatives, integrated inventory management and analytics "ould be crucial for

the e2ommerce firms.•

3. Co")!r#!"c! o+ o"li"! '"d o++ li"! c('""!l%

• As the customers progress from research to purchase to fulfilment stages, their

expectations change fast. e2ommerce companies need to understand these change drivers and

adapt their proposition accordingly. 6asy transitions bet"een ordering on tablets, mobile

phones or 82s "ill have to be facilitated. 1esides, convenient multichannel returns and

delivery options need to be developed along "ith the provisions of touch and feel the product

before buying. They should also ensure sufficient after sales service and support. :nline product revie"s and ratings, videos, more advanced sizing and fitting tools should be

provided.•

4. D!li)!r0 !B,!ri!"c!

• Gith lac# of integrated end to end logistics platform, the e2ommerce industry is

facing issues related to procurement operations and transportation. :nline purchases from

Tier'? and Tier'E cities are expected to significantly increase, than#s to the emergence of lo"

cost smartphones, ho"ever, poor lastmile connectivity could act as a deterrent. Oeepingcontrol on logistics and on ground fleet management, especially courier companies, is

essential for gro"th.•

6. P'0!"t% '"d tr'"%'ctio"%

• (ndia continues to be a cash'based society due to limited ban#ing and credit card

penetration. This, combined "ith a lac# of consumer trust in online merchants, has forced

companies to offer 2o< services, "hich imposes significant financial cost for firms in the

form of labour, cash handling and higher returns of purchased items. <ata protection and the



integrity of the system that handles the data and transactions are serious concerns. 2ompanies

should ta#e necessary action for management even if this imposes a cost on them.•

;. T'B '"d r!#ul'tor0 !")iro"!"t

• =a"s regulating e2ommerce in (ndia are still evolving and lac# clarity. ;avourable

regulatory environment "ould be #ey to"ards unleashing the potential of e2ommerce andhelp in efficiency in operations, creation of Dobs, gro"th of the industry, and investments in

bac#'end infrastructure. ;urthermore, the interpretation of intricate tax norms and complex

inter'state taxation rules ma#e e2ommerce operations difficult to manage and to stay

compliant to the la"s. Gith the "ide variety of audience the e2ommerce companies cater to,

compliance becomes a serious concern. 2ompanies "ill need to have strong anti'corruption

programs for sourcing and vendor management, as "ell as robust compliance frame"or#s. (t

is important for the e2ommerce companies to #eep a chec# at every stage and adhere to the

relevant la"s, so as to avoid fines.•

. O,!r'tio"'l +r'!/or&

• 1usiness models have been evolving rapidly in the e2ommerce sector largely due to

heightened competition and the inability of players to sustain high costs. 2ompanies in

e2ommerce "ill need to adapt and innovate constantly to sustain their businesses.

;urthermore, several of these companies entered into the e2ommerce industry as startups and

have gro"n to a huge size aided by the continuous gro"th in the mar#et but lac# "ell definedcapabilities and organisational structure. )ystem building, financial and talent management

become #ey.•

=. Cu%to!r 'cui%itio"

• The customer acquisition costs in (ndian e2ommerce have been climbing rapidly due

to intense competition bet"een multiple "ell'funded players. :nly ?N of "ebsite visits

currently result into transaction. Thus, there is a gap bet"een potential and actual buyers.

2oupled "ith high transaction costs, this area could pose serious problems. (n the U), L>N of consumers have stated that they "ill usually s"itch bet"een brands, and for the rest of the

"orld, this rate is KFN, according to 6commerce ;oundation.L This suggests companies

should constantly "or# on their brand positioning•

. Di#it'l i"+r'%tructur!

• <igital disruption has driven change in the e2ommerce industry "ith shoppers

embracing multiple touch points in their purchase Dourneys. 2ompanies should spend enough

resources on technology development as also advertising and branding, especially because



the younger population is demanding. (n the Dourney to"ard digital business transformation,

embedding )7A2 technologies in the business becomes crucial.•

1<. Addr!%%'$l! 'r&!t%

To gro" their businesses, the (ndian e2ommerce sector needs to closely "atch the

gro"th of their mar#ets in the Tier ? and E cities. They need to improve their logistics andsupply chain management in these cities, do an effective demand management to #eep an eye

on "hat products are being sought in these cities. Gith e2ommerce largely being a borderless

activity companies need to #eep in mind that customers al"ays have the option to buy across

the border if they cannot fulfil customers’ expectations.•

•

6.3CONCLUSION TO STUD8

• (ndian e'commerce mar#et is distinct that it has a large illiterate population, ris#'

averse consumer behaviour and difficulty in tracing postal addresses that challenges delivery

system, especially in semi'urban and rural areas. Additionally, consumers here are found to

be "ary of the quality and after'sale. 1ut, this trend is fast transforming "ith increasing

penetration of mobile and internet in semi'urban and rural areas. (n order to realize the true

potential of the 6'commerce all the sta#eholders including 1an#s, Aggregators and online

merchants need to contribute in building a conducive environment. All e'commerce

companies, be it small or large understand the importance of going mobile and started

offering mobile commerce solutions to their customers. 7'commerce to contribute up to LFN

of online shopping in (ndia experts ILFN of e'commerce sales to soon come via smartphonesI

' The Times of (ndia. The intrusion of information communication technology in our lives has

changed our life completely. The "hole "orld is coming closer. The mobile commerce is the

future of globalization. The (ssues in mobile commerce are numerous. :nly a fe" are

discussed here. The complication arises due to mobile commerce need ne"er cyber la"s.

2orporate good governance is evolutionary in nature. 0ence, 7obile commerce is Dust

to"ards the stage of corporate good governance. The paradigm shift from management to

governance is ta#en ahead by the 7obile commerce.

2roadand and digital services will no longer e a lu3ury item - a scarce

commodity - to e rationed amongst the privileged few,+ %ores magazine

)everal important phenomena are associated "ith e'commerce. 6'2ommerce has

unleashed yet another revolution, "hich is changing the "ay businesses buy and sell products

and services. Ce" methodologies have evolved. The role of geographic distances in forming

business relationships is reduced. 6'2ommerce is the future of shopping. Gith the

deployment of E4 and @4 "ireless communication technologies, the internet economy "ill



continue to gro" robustly. (n the next E to > years, (ndia "ill have EFF to @FF million internet

users "hich "ill equal, if not surpass, many of the developed countries. (nternet economy

"ill then become more meaningful in (ndia. Gith the rapid expansion of internet, 6'

commerce is set to play a very important role in the ?st century, the ne" opportunities that

"ill be thro"n open, "ill be accessible to both large corporations and small companies. The

role of government is to provide a legal frame"or# for 6'2ommerce so that "hile domestic

and international trade are allo"ed to expand their horizons, basic rights such as privacy,

intellectual property, prevention of fraud, consumer protection etc. are all ta#en care of.•

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REFERENCES• . E4 subscription in (ndia, Avendus, ?FE• ?. 1arnes, ). 3. %?FF?a&. The mobile commerce value chain analysis and future

developments. (nternational 3ournal of (nformation 7anagement, ?? %?&,F-.•

E. 1arnes, ). 3. %?FFEa&. 8oc#et money ban#ing on mobile devices. 6'business)trategy 7anagement, @ %@&, ?KE?L.• @. 1arnes, ). 3. and )cornavacca, 6. %?FF>a&. 2ases in m1usiness. (dea 4roup

8ublishing.• >. <atacomm %?FF?&. Ginning 1usiness )trategies for 7obile 4ames. <atacomm

5esearch.• K. <elotte’s Technology and telecom predictions ?F@,

http++brandalyzer."ordpress.com •

L. <ic#inger, A., )charl, A. and 7urphy, 3. %?FF>&. <iffusion and success factors of mobile mar#eting. 6lectronic 2ommerce 5esearch and Applications, @ %?&, >LE.

http://brandalyzer.wordpress.com/

http://brandalyzer.wordpress.com/



• http++an#itmar#eting.blogspot.in+?F+?+flip#artcom'legend'in'ma#ing.html• http++blog.flip#art.com+?'ne"'features'cash'on'delivery'online• http++businesstoday.intoday.in+story+flip#art'online'shopping'e'commerce'order' boo

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for'flip#art'mar#eting'essay.php

http://ankitmarketing.blogspot.in/2011/12/flipkartcom-legend-in-making.html

http://blog.flipkart.com/2-new-features-cash-on-delivery-online

http://businesstoday.intoday.in/story/flipkart-online-shopping-e-commerce-order-%C2%A0books-online/1/20797.html


http://thenextweb.com/in/2012/08/13/digital-music-takes-indias-flipkart-flyte-soars-%C2%A0past-600000-downloads-6-months/


http://timesofindia.indiatimes.com/tech/news/internet/Flipkart-raises-150m-in-latest-funding-round/articleshow/15674360.cms


http://trak.in/tags/business/2012/06/01/jabong-trumps-flipkart-offers-door-step-card-%C2%A0payment-cod/


http://www.hindustantimes.com/technology/IndustryTrends/How-Flipkart-broke-India-s-online-shopping-inertia/Article1-780440.aspx


http://www.livemint.com/Companies/pbOfYVBQigpqm1D2FguQDO/Flipkart-raises-160-million-in-another-round-of-funding.html


http://www.quora.com/What-will-happen-to-Flipkart-when-Amazon-launches-its-operations-in-India


http://www.academia.edu/6324047/Case_Study_of_an_Emerging_Giant_in_the_Online_World_-_FLIPKART


http://ankitmarketing.blogspot.in/2011/12/flipkartcom-legend-in-making.html

http://blog.flipkart.com/2-new-features-cash-on-delivery-online

















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