Snapdeal.com

Description

Snapdeal.com had launched as a platform for online discount coupons, then revamped its business model in the evolving Indian e-commerce sector to become one of India’s largest e-commerce retailers. In India’s rapidly growing market, the major players jockeyed for the top position and used various business models and strategic initiatives. Now, the entry of Amazon into the industry challenged the market dynamics and Snapdeal.com faced challenges of funding, positioning, and consumer dissatisfaction. How could it address these challenges to sustain its position as a leading Indian e-retailer? Would it be able to face the growing domestic and global competition? Would it be acquired by a global player, such as eBay, which was already a stakeholder and was perhaps waiting for the right moment to make its strategic move in India? Was coming out with an initial public offering a possible step in the future?

Learning Objective

The case is best suited for use in a general management or strategy course to assess the strategic changes needed to meet the challenges of increased competition in the Indian e-commerce industry. The case can be used to lead a discussion on the ability of a competitor’s strengths and weaknesses to shape market forces, thereby affecting a company’s position and strategies. The case can also be used to study international business expansion or strategic management in relation to the evolution of a business model. It highlights the essential differences between the business models of the three major e-retailers in India — Snapdeal, Flipkart, and Amazon — reviewing the major pros and cons of each.

Keywords

business model evolution competitive interaction competitive positioning E-Commerce Industry analysis online retail