EBay And Flipkart Competitive Strategies For Achieving Excellence In The Market

EBay Competitive Strategies

Discuss About The Action That Is Designed To Achieve The Long-Term?

A strategy refers to a plan or action that is designed to achieve the long-term objective of business. Nowadays, e-commerce plays the vital role for the government, private sector organizations as well as the consumers which address the convenient and effective process. The study explains the competitive strategy of eBay and Flipkart which is a multinational e-commerce company and facilitating the online services to the customers. The study describes the competitive strategies which are adopted by both the companies in order to achieve excellence in the market and increase its customer base by offering the unique and innovative products and service to the customers. The objectives of this report are to identify the sources of both the organization which enables the business to get their potential customers worldwide and how it sells its goods and services to the customers.

According to Bowonder et al. (2010), eBay is a multinational e-commerce company which provides the online consumer with consumer services and business to consumer sales. It involved in the activities of investment and acquisitions to help the buyers and sellers on the online platform. eBay also offers the marketing services which includes advertizing. The company was founded by Pierre M. Omidyar in September 1995.The reason for choosing eBay as to define their competitive strategy is to describe its worldwide popularity amongst the people and the strategies used by eBay to remain superior in the market. It perceived excellence in the field due to continuous innovation and adaptability according to customer needs. Below are the key factors which show how eBay perceived excellence in the field due to continuous innovation and adaptability according to customer needs.

 Powerful online platform: eBay created a strong platform for the sale of goods and services by an adoring community of individuals and businesses (De Kluyver, 2010). There are a large number of things across finished a considerable number of groupings accessible to be acquired on eBay on any given day. Around 147 million people now use the online association eBay. eBay enables on a local, national and worldwide introduce with changed districts in business areas around the world.

Ease of use: eBay give the simple online stage to use offering, posting and stock gadgets make it easy to offer your things on the site and do it in a faster way.

Flipkart Competitive Strategies

Largest portfolio of products and services: According to Gupta (2015), eBay is the online stage where the world goes shopping, offer and give. The mission of eBay is to be the world's most loved goal for enhancing the considerable esteem and extraordinary determination.

Strategies are made in order to determine the company’s success. eBay makes the competitive strategies in order to achieve the excellence in the market and make the competitive advantage for the business innovation by providing the goods and services to their customers are as follows:

Focus on small sellers: In order for developing and sound commercial center, eBay had constantly considered that little and easygoing dealers are the highest ground. These shippers made the gathering and pass on a human touch to the business focus to make eBay a predominant shopping knowledge (Jayakumar & Jayakumar, 2016). In January, eBay diminished addition charges for every one of the merchants keeping in mind the end goal to diminish the danger of offering on eBay and expedite more general stock eBay.

Innovative strategy: Today, eBay is significantly more than a bartering deal. The business has developed into an overall exchange and portions arrange which engaging $205 billion in business volume in 2013. The association has three specific claim to fame units that is eBay is one of the world's greatest online business focuses which empowers customers to buy and offer in about every country on earth. PayPal enables individuals and associations to securely, easily and quickly send and get propelled portions. The fundamental thought process of eBay was to help the retail business so as to meet client rising desires for a decent shopping knowledge. In this manner, all these are the aggressive methodologies that apparent eBay to accomplish perfection in the market.

CAGE Framework: eBay has first entered the Chinese market in 2002 by getting a 33 percent stake in its local partner. The worldwide market evaluates the volume of universal exchange and the volume of outside direct interest in an industry. eBay is one of the biggest brands of web based business on the planet and TOM Online which is one of the biggest remote specialist co-ops of astounding administrations to Chinese shoppers. TOM online has added a solid political resource by being bolstered by Li Ka Shing which is the greatest holder of the organization and who has likewise solid associations with the enormous positioning authorities both in Chian and Hong Kong. This accomplishment on the Chinese market demonstrates that the firm had an incredible brand that indicates of this business zone and decreases the hazard for eBay to commit errors with its technique.

Flipkart is one of the essential electronic business players in the nation. With more than 11.5 million book titles recorded, 11 charming depictions, more than 2 million selected customers to offer of 30000 things for consistently. Flipkart was founded by Sachin Bansal and Binny Bansal in 2007. It has the refinement of being one of the principal expansive organizations to offer products over the Internet. It additionally has an all-around created conveyance coordinate with distribution centers spotting the nation. The reason for selecting Flipkart e-commerce Company is its popularity amongst the world (Kinyuira, 2014). Its high customer service and amazing ease in purchasing items from cart make Flipkart made it perceived excellence in E-commerce. The main factors which show how Flipkart perceived excellence in the market are:

Price is a deterrent: According to Padmanabh (2017), Flipkart has accomplished such monstrous scale that it gets most perfect expenses from its traders. Flipkart can wear down razor-thin edges and still advantage on the exchange. Retailers can't do that because if they drop costs online they danger tearing up their own specific arrangements and driving edge down while having each of the comparative overhead costs.

Personalizing the Shopping Experience: According to Schaper (2016), Flipkart understands that the more noteworthy the thing is to the customer the more plausible clients will purchase. Online retailers can pick up from Flipkart and redo the shopping background however substantially more could sensibly anticipate. This strategy helps the customer to pick Flipkart every time for all of its purchases.

Innovative Strategy: Flipkart is coming up with an inventive methodology for picking up the prevailing position in the market. Flipkart concentrated on guaranteeing greatest incentive to clients by making the quality items reasonable and open. Flipkart starts the inventive projects like no cost EMI and item trade programs for the moderateness sanction keeping in mind the end goal to give the rebates to buyers. Flipkart as of late propelled Flipkart First which is an apparent membership benefit for its clients. The membership approaches are sufficiently straightforward which say that client need to pay INR 500 for each annum and consequently, get free dispatching of requests for guaranteeing an ensured conveyance and get 50 percent off on the same day. This imaginative methodology gives a couple of more components to the clients.

CAGE Framework: With the development of a worldwide commercial center, Flipkart had since ridden on the rushes of the open doors that accompany globalization. After over a time of the extension, Flipkart worldwide operations represented around 43 percent of its income. This demonstrates the hugeness of focusing on the universal markets. Flipkart could enter in the UK showcase without noteworthy changes to its plan of action to focus on the UK advertise. The physical separation between the United States and the United Kingdom despite the fact that was expensive and could without much of a stretch be connected by Flipkart to create built up strategic system and administrations.

Conclusion

Strategies adopted by eBay and Flipkart are exclusive and attractive. Their customer retention comparatively high in comparison to others. eBay offers several useful features to make email experiences as smooth as possible which include spam filtering, conversation view, built-in chat and video calls which make its products and services more attractive. On the other side, Flipkart is already creating a superior brand image for all products it sells to the customer and solves queries for each customer by remaining available all time.

References

Bowonder, B., Dambal, A., Kumar, S. &Shirodkar, A., 2010.Innovation strategies for creating competitive advantage. Research-technology management, vol. 53, no. 3, pp.19-32.

De Kluyver, C., 2010. Fundamentals of global strategy: a business model approach. Business Expert Press, 202-240.

Gupta, M., 2015. Strategy Formulation for Performance Improvement of Indian Corrugated Industry: An Application of SWOT Analysis and QSPM Matrix. Journal of Applied Packaging Research, vol. 7, no. 3, p.3.

Jayakumar, T. & Jayakumar, T., 2016.Behavioral lessons from Flipkart’s Big-Billion Day sale. Competitiveness Review, vol. 26, no. 4, pp. 453-475.

Kinyuira, D., 2014.Effects of Porter's Generic Competitive Strategies on the Performance of Savings and Credit Cooperatives (SACCOs) in Murang'a County, Kenya, Journal of Business and Management, vol. 16, no. 6, pg. 94-110.

Padmanabhan, B., 2017. Flipkart. com's Strategy on Amazon. com's Entry into India: A Case Study. Ushus-Journal of Business Management, vol. 12, no. 4, pp. 131-143

Pandey, A., 2017. Capital structure and competitive intensity: Considerations for Start-Up Firms.

Schaper, M. ed., 2016. Making ecopreneurs: developing sustainable entrepreneurship.CRC Press.