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How wise is Flipkart's strategy

E-commerce in India is a young player and has just reached less than 10% of its potential. Out of 120 Crore Indians not more than 1.5 crore use e-commerce frequently.  At this steady modern age it should be at least above 10% which means the market should reach at least 15 Crore users by 2016. At this stage, they should continue attracting people and alongside keep soaking losses just, just to ensure that their transaction volume and userbase keeps expanding.
But there's genuine Hope. The path is full of wealth and hope, that must be realised.
The Daewoo founder Kim Woo-jung , was a Newspaper vendor in teenage. In war-raged South Korea in 1970s, people were crazy and eager for news. He realized that if he delivers and collects change from each of his customers, he would lose time, limit his sale and wont become the largest newsboy. He devised a new approach. He ran along the pavements giving newspaper to each and every person who would take it and reach the other end of the street fastest. He would collect the money on the journey back. He calculated that even if 10-15 people slipped away without paying, he could make 3 times more profit. This is what this visionary did. Flipkart and its investors at this stage are seemingly losing money. In the long run it may not. In chess, this trick called 'Queen sacrifice', a master, apparently offers to sacrifice a bishop. The amateur bites the bait and goes for it. The next masterstroke then beheads his Queen. Flipkart at this stage may be on this forward pass of delivering. The losses in Cash-On-Delivery are a tactics from Chess book of Rules.





This post first appeared on The Door To The 22nd Century, please read the originial post: here

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How wise is Flipkart's strategy

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