Flipkart: Transitioning to a Marketplace Model, Teaching Note

  • Reference: HBS-516095-E

  • Number of pages: 14

  • Geographic Setting: India

  • Publication Date: Apr 13, 2016

  • Source: HBSP (USA)

  • Type of Document: Teaching Note

  • Industry Setting: E-commerce;Online retail;Retail trade

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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?

Keywords

Information systems Market entry Platforms Retail Technology Web-based technologies