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Essay / Swot Analysis of Flipkart - 724
Limited Distribution Channel Reach: Although its logistics arm has kept its costs low, the reach has been affected, which is a weakness for Flipkart. With the use of outsourcing, global giants like Amazon and eBay can deliver the product anywhere in the country. However, Flipkart still struggles in this area. But Flipkart is intensively trying to overcome this weakness by following various techniques.2. Acquisition Cost: Due to high competition in the market and low customer retention, the acquisition cost is high because Flipkart acquires many customers through online advertising. According to Flipkart data, the company spends on average Rs 400/- to acquire a new customer.3. Power in the hands of buyers: Since this industry is flooded with many players, buyers have many options to choose from. Switching costs are also lower for customers since they can easily switch from one service of one online retail company to another. The same products will be displayed on several online sales sites. Product differentiation is almost absent and the struggle then begins solely on the basis of price. Opportunities in SWOT Analysis of Flipkart 1. Business Expansion: By targeting other emerging markets, the company can increase its revenue and save costs.