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Flipkart: Transitioning to a Marketplace Model, Teaching Note
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Reference: HBS-516095-E
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Number of pages: 14
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Geographic Setting: India
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Publication Date: Apr 13, 2016
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Source: HBSP (USA)
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Type of Document: Teaching Note
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Industry Setting: E-commerce;Online retail;Retail trade
Description
Teaching note for case 516017. In 2015, Sachin and Binny Bansal, co-founders of India's largest e-tailer, Flipkart, announced that the company would switch to a marketplace model and move its logistics arm into a separate company. At the time of the announcement, Snapdeal already claimed to be India's largest marketplace, and Amazon and other deep-pocket traditional retail giants like Reliance, Future Group, and Tata left no stone unturned to capture market share. Was Flipkart too late in switching to a marketplace model? Was such a move even desirable? Would it threaten Flipkart's competitive advantage of superior customer service?