NAME OF COUNTRY: INDIA
1.324 Billion (2016 – World Bank)
POPULATION GROWTH RATE
1.2% Annual Change
HINDI & ENGLISH
Government : Federal Parliamentary republic
Government : Narendra Modi (Prime Minister)
General features: India is a south Asian country between Burma,
China and Pakistan bordering the Bay of Bengal and the Arabian sea. Geographically, India is one of the most benefited
country in the world because of the 6 physical features which are:
1. The Mountains in the North
2. The Northern Plains
3. The Peninsular Plateau
4. The Great Indian Desert
5. The Coast
CLIMATE: India has the climate of tropical monsoon in
the south and temperate in the north
SURFACE AREA: 3.287 million km square
LARGEST CITIES BY POPULATION:
NAME OF CITY
POPULATION (in millions)
Source: India’s national census 2011
Gross Domestic Product (GDP) : $9.446
trillion (2017 ppp)
GDP Per Capita : $7.173
trillion (2017 ppp est)
GDP Growth Rate : 6.7%
SECTORAL SHARE IN GDP
INFLATION RATE: : 9.6%
UNEMPLOYMENT RATE : 8%
MAJOR INDUSTRIES/PRODUCTS: Textile, Food processing, chemical, cement, steel, software, mining,
petroleum, machinery, pharmaceutical and transportation equipment.
EXPORTS (in Billions)
IMPORTS (in Billions)
MAJOR TRANSPORTATION INFRASTRUCTURE:
1. Telephone system
2. Broadcast media
is an online shopping store in India. It is an Indian e-commerce company
located in New Delhi, India. Snapdeal was started by two people naming Kunal
Bahl and Rohit Bansal in February 2010. Basically, it is launched as an online
deals merchant with the purpose of selling products online at low cost than the
market value and is called Snapdeal.com.
In India’s online marketplace it is the
largest online shopping store with the widest variety of 60 million plus
products across 800 categories from regional, national and international brands
and retailers. Across the country, Snapdeal has millions of users and it has
become the shopping destination for internet users with more than 300,000
sellers and delivering to 6000 plus cities and towns in India. The Journey of Snapdeal
starting from 2010 and till now has been remarkable it has partnered with a
number of global investors and individuals such as Soft Bank, Black Rock,
Temasek, Foxconn, Alibaba, ebay Inc., Premji invest, Intel Capital, Bessemer
Venture Partners, Tata, etc.
features a wide variety of products across diverse categories like Electronics,
Mobiles, Fashion accessories, Apparel and footwear, Computer and gaming, Home
and living, Sports fitness and outdoor, Motors accessories, Books, Music, Gift
cards and Daily needs. Services provided by Snapdeal are Restaurant, Spas,
Entertainment and real estate and financial services. It offers easy online
payment options which are cash on delivery, online banking and credit and debit
card payment option with easy return option and refund. Snapdeal also provides
an instant discount option for its customers if the payment is made from a
particular bank debit card or credit card. For example, if a customer will pay
using “State Bank” debit card or credit card he/she will get 10% discount on
payment on any product.
choose Snapdeal because it’s an Indian company and we are personally well known
about it. As we all group members are Indian we are familiar with Snapdeal and
we have used it before to order products and services. Snapdeal is an online
store like Amazon and it is giving tough competition to not only Amazon but also
to other online stores in competition like Ebay, Flipkart, Shopclues,
Myntra.com and others.
ROLE OF GEOGRAPHY IN FIRM
is the main region of work and sales for Snapdeal.com India is a big country
with 3.2 million square kilometers of land and second largest country in
population. So there is no doubt that India has a big market and potential.
ROLE OF TRANSPORTATION
transportation system is also very good in the country so snap deal need not to
focused on his own transportation system rather than they are taking advantage
of existing transportation companies like E-cart, Blue-Drt, DTDC, India post
etc. are the major players in the transportation and logistics system of Snap
deal. By the partnership with all major logistics snap deal is trying to
provide as early delivery as they can to ensure the customer satisfaction.
ROLE OF DEMOGRAPHY
is the second largest country by population with the population of almost 1.324
billion. With literacy rate of almost 74 %. So it is also works as an advantage
for the companies like snap deal which try to sell their products through
online portals. And with high literacy rate India has the most young population
in the world which is also an advantage for India as more young people will be
attracted to these kind of websites where they can purchase whatever they want
by just ordering online by sitting in their homes and offices.
India is focusing
on increasing the use of internet and technology in the country so government
is always willing to help these kind of initiative.
Snap deal is an
India based company so Indian government want to support Indian ventures rather
than bringing international companies into country.
India provides good Tax benefits to cooperate
recently increased the % of foreign investment into domestic companies.
Indian Economy is in booming Stage
spending powers of Indians is increasing
Use of Internet
is increased to 10 times in past 6 years
are now very much comfortable in online shopping.
higher priority to less time consuming and to convenience
Increased use of
internet and higher computer literacy is also play an important role in online
developing as software hub of world
spending to increase and for betterment of Internet usage.
websites are better managed and simple to use.
THE ROLE OF CULTURE
With a population of over one
billion, 3.29 million square kilometers of landmass to cover and a multitude of
languages and customs, the Indian market can be a daunting place for
businessmen. Business success can depend to a large extent on an understanding
of the culture, the people, the land and the business environment that a
foreign company and investor would be expected to operate within.
However, India promises great
business opportunities and many organizations have already turned to this vast
country, seeing potential in a substantial developing workforce and a cost
effective geographical base for offices and factories. Yet, how is it
possible to overcome the challenges of doing business in India due to a lack of
relevant information, political uncertainly, the geographical scale that the
country presents, the regional variations that exist and above all the cultural
complexity that needs to be contended with? It is critical to also note
the importance religion plays amongst all communities. The four principle
religions are Hinduism (80%), Islam (14%), Christianity, and Sikhism with a
small fraction of the population also practicing Buddhism, Zoroastrianism, and
Judaism. Festivals are celebrated with much fanfare, so it is important
to respect the major festivals in every region and province across the country
at various times of the year. During these holidays work comes to a halt but
not for every business. A major part of businesses profit or are at their peak
during these festival seasons although given the fact that a large part of
these are national holidays too.
The company we are discussing in
this report today is an Indian e-commerce website called Snapdeal, a subsidiary of the parent company, an Indian
tech giant, Jasper Infotech. Snapdeal
is an Indian e-commerce company based in New Delhi, India. The company was started by Kunal Bahl and Rohit Bansal of the above mentioned Tech
Company in February 2010. (BUSINESS TODAY INDIA, 2017)
mentioned above, the key feature of business in India is the local cultural
connection. For an online retailer, the key would be his category listing with
products from diverse regions of India, from various cultures, which would help
them grow their customer or clientele through the country. Where international
websites like Amazon.in and ebay.in have yet to master the local culture
integration, Snapdeal has gone way ahead and done so. Below are few snapshots
from their website categories which may further explain the same.
An example of Local Integration
where Snapdeal takes pride in listing Indian products. This is also their
Republic Day Sale, an Indian Calendar event on the 26th January.
has also integrated with Indian Banks and promoted their partnership with them
as shown above and below.
Snapdeal has a separate category of India’s cultural products as
shown below in the screenshots from their website defining their involvement
with the local cultures with promotions for festive sales and ethnic wears.
Snapdeal’s major success in India is primarily based on delivering what the
Indian culture demands and expects with promoting local festivals to cultural
events to national events, they have got it right in their listings.
Every firm adopt some different strategies to
be successful in business. Similarly, In September 2011, Kunal Bahl made
decisions on advancing from unadulterated online courses of action website page
to an unquestionable level web business association by methods for a market
show. This change was not new to the association, as he had started his
entrepreneurial experience in 2007 as a physical discount coupons player and in
2010, had turned to each day deals. Consistently deals incorporate only 5
percent of Snapdeal’s general business while online business includes the rest.
According to Bahl, each one of these turns were a bit of considered, imperative
thinking, rather than shots or key movers. Snapdeal moved quickly from offering
coupon books to deal vouchers online to a thing business focus now. Such smart
turns look cleverer than a trademark headway. The intense model of neighborhood
trader and physical item web based business is something which is extremely
remarkable to Snapdeal.com, and it gives the chance to give more extensive
assortment of decision to the clients. They also started “Get your first
game plan free” offer which got huge response from the customer side. This
provoked the strong brand estimation of Snapdeal. One by the other to these
procedures, part advancing exertion was moreover working. So by this Snapdeal
took a place in India market. For limited time
movement, Snapdeal utilized the substance of some outstanding Bollywood famous
people including Aamir Khan, Pulkit Samrat, Alok Nath and Krishna Abhishek as
their brand ambassador. This made Snap deal successful in India.
As indicated by
information by Morgan Stanley, Snapdeal is at present the second-greatest
player in India, with a piece of the overall industry of 32 percent. Jasper InfoTech
Pvt. Ltd drove Snapdeal enrolled an income development of 56% to Rs 1,457 crore
from Rs 933 crore, in the year finished 31 March 2016. For the better
growth they are thinking for installments after inventory network and that
would be one of Snapdeal’s concentration regions for the innovation. Moving to
the labor growth Snapdeal encouraged a noteworthy cutback in the organization,
with a motivation to chop down 80 percent of its worker quality. Also, online
commercial center Snapdeal is purportedly endeavoring to move its office to
cooperating spaces as opposed to working from rented workplaces, with an end
goal to trim expenses.
The Market share
of Snapdeal in India’s vast and growing e-commerce websites.
OPPURTUNIES AND THREATS
has been a successful business enterprise in India from last few years. When
some company does business in country like India there are vast number of
opportunities and threats prevailing in the external environment for which the
company needs to be very conscious about and be ready to face external threats
and take advantage of opportunities.
OPPORTUNITIES FOR SNAPDEAL:
widespread market: As, we know that the population of India is 1.3 Billion
therefore is an opportunity for Snapdeal to cover all the regions of India in
order to have a greater customer base. There were 100 million online buyers in
2016 compared with 50 million in 2014 which means more and more Indians are
inclining towards the online shopping which is an opportunity for Snapdeal
of Internet Users: In 2011 only 10% of Indian population was using Internet but
with the ease availability of Smartphone and reduced Internet price by Service
providers by the End of 2017 the number has surged to 60% which is a good
Indicator for E-Commerce Industries Like: Snapdeal.
India is the
fastest growing E-commerce globally and by 2020 and it will be touching the
size of US$ 119 Billion. Which is a positive indicator for E-Commerce.
As, various E-
commerce industries like Amazon is Catering besides apparel and electronics
even the grocery can be done Online and
people are responding to it positively and Snapdeal can also go into this area
and besides serving limited services it can also tap the areas of grocery and
other niche products.
There can also be
an opportunity for Snapdeal to partnership with bigger corporate houses for
reluctant in shopping online can be persuaded to buy products by offering
There is a
political Instability in India the government kept on changing. Each government
frames its own policies and changes law according to their Ideology which
forces business to change their policies. There, is a probability that in order
to protect small vendors, govt. may pass strict regulations on E- commerce.
believe that online shopping is a fraud from their own experiences. Therefore,
they prefer to buy offline.
of competitors is also a major threat to online shopping Industries in India.
The major players in Indian E-commerce are Flipkart, Amazon, Shopclues, etc.
and every year new companies comes into market. Snapdeal share is very less in
total E-Commerce industry in India that is just 14% whereas, Amazon India’s
share is more than double to it.
There has been
several cases with Snapdeal in past of delivering poor quality. It’s goodwill
gets effected at that time and still many people have bad perception of it in
their minds and that will be an major challenge for it to rebuild it’s goodwill
and to gain large share in the market.
Rural areas in
some parts of India lacks Internet access it will be a challenge for Snapdeal
to how to serve them. Because in order to have an online shopping Internet
access is must and those areas of India are not served by online retailers like
to Summarize the Business Model of SnapDeal, snapdeal makes revenue from the
following lines of business:
of Goods and Services (Own Portal of SnapDeal, Exclusively, EsportsBuy etc).
of Seller Listing.
on the Landing Page.
Business of FreeCharge.
As of now, Snapdeal has over 150,000 sellers,
shipping to 5,000+ towns and cities in India, offering more than 6,000 brands
across 500 categories. It has 25 million of user base and adds a new product
every 20 seconds. One out of every eight internet users in India is subscribed
on Snapdeal, and the company is growing at the rate of 2 million new subscribers
per month. Technology is the single biggest expense in the company. Every line
of code in Snapdeal is written in-house as they don’t outsource anything and
don’t use other platforms. The company is tapping customers in non-metros and
tier-II and tier-III cities; 60 percent of its sales come from these areas, and
Snapdeal is hoping to widen its reach.