INTERNSHIP

Internship report submitted in partial fulfilment requirement for the

award of degree of

Master of Business Administration of University of Kerala

Submitted by;

SRUTHY M SATHEESAN

(Register No: 59519458044)

Under the guidance of

Mr. HARI KRISHNAN R

INSTITUTE OF MANAGEMENT AND TECHNOLOGY,

PUNNAPRA

Under Co-operative Academy of Professional Education (CAPE)

CAPE Campus, Vadackal P.O, Alappuzha-3

2020
 DECLARATION

I, SRUTHY M SATHEESAN hereby declare that the report entitled

“INTERNSHIP” has been prepared from 02-11-2020 to 01-12-2020 is an
original work submitted for the partial fulfilment of the requirements for
the award of the degree of MASTER OF BUSINESS ADMINISTRATION
of the Kerala University, under the guidance of Prof. HARI KRISHNAN
R, project guide, Institute of Management and Technology, Punnapra,
Alappuzha.

I further declare that this report has not been previously submitted
to any institute or university for the award of any similar title.

Place: SRUTHY M
SATHEESAN

Date:
 ACKNOWLEDGEMENT

First of all, I thank God Almighty for enabling me to complete

this study successfully.

I express my sincere gratitude to Mr. PRASANTH M.K,

Director, IMT, Punnapara for providing a golden opportunity to do the
internship training.

I express my profound gratitude to the faculty guide

Prof. HARI KRISHNAN R for his constant guidance and encouragement
throughout the internship. I extended my thanks to all the faculty members
of IMT, for their help and encouragement.

Last but not the least I would like to express my grateful

thanks to my parents, friends, respondents and others for their good co-
operation for the internship.
CONTENTS
 CHAPTER – 1
INTRODUCTION OF THE STUDY
INTRODUCTION
The internship programme is a distinctive opportunity provided to get
professional experience and putting the theoretical concept learned in the classroom
for developing managerial skills along with other skills. The internship is compulsory
and that must be done by each and every student in order to complete their course.
Due to COVID- 19 situation it can be done through secondary source of data only and
there is no company visit assigned. For the sake of convenience, the university
decides to avoid company visit by students and gives an opportunity to choose a
sector or industry and select at-least 3 companies in that sector for compare them. The
internship is mainly focused on comparison of 3 companies.

For this, I had taken E-Commerce industry as the sector. E-commerce (electronic
commerce) is the activity of electronically buying or selling of products on online
services or over the Internet. Electronic commerce draws on technologies such as
mobile commerce, electronic funds transfer, supply chain management, Internet
marketing, online transaction processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems. E-commerce is in turn
driven by the technological advances of the semiconductor industry, and is the largest
sector of the electronics industry. Modern electronic commerce typically uses the
World Wide Web for at least one part of the transaction’s life cycle although it may
also use other technologies such as e-mail. There are three areas of e-commerce:
online retailing, electronic markets, and online auctions. E-commerce is supported by
electronic business.

E-commerce has experienced rapid growth since its humble beginnings

with e-commerce sales projected to grow to 599.2 billion USD by 2024. The COVID-
19 outbreak saw e-commerce sales spike 25% in March 2020 alone. The power of e-
commerce should not be underestimated as it continues to pervade everyday life and
present significant opportunities for small, medium, and large businesses and online
investors.

Under the e-commerce industry this internship study is conducted on e-commerce

companies. E-commerce businesses have significantly lower operating costs
compared to physical shops. Physical businesses usually have limited hours, but an
online ecommerce shop remains “open” 24 hours a day, seven days a week, 365 days
a year. This is hugely convenient for the customer and an excellent opportunity for
merchants.

The internship aims to compare 3 companies in the E-commerce

industry. The first company selected is Amazon.Com. Amazon is the world’s largest
online retailer and a prominent cloud services provider. The company has individual
websites, software development centers, customer service centers and fulfillment
centers in many locations around the world. The next company selected for the study
is Myntra designs Pvt Ltd. Myntra is sponsored by Venture Capital Funds. Basically,
it is an Indian fashion website. It is the online portal which allows consumers to
personalize their products. And the third company is Nykaa E-retails Pvt Ltd. Nykaa
is an Indian retail seller of beauty, wellness, and fashion products. Nykaa
concentrated more on beauty and fashion. This was one of the major reasons for the
company’s major success.This internship includes SWOT analysis, BCG matrix and
Five forces analysis of these 3 companies.
OBJECTIVES OF THE STUDY
 To study the e-commerce industry with the help of comparative analysis of 3
companies
 To learn about the various functions, structures and operational activities of
these organizations.
 To find out the strength, weakness, opportunities and threats of these 3
companies.
 For the detailed analysis with perspective of strategy.
 For an in depth market viability analysis of these 3 companies using Porters
five force factor.
SCOPE OF THE STUDY
The study is being conducted to learn about the industry deeply. This study is
helpful to assess the strength, weakness, opportunities and threats of the 3 companies in
the e-commerce industry and also to compare them to find the best. It also helps to
conduct detailed study about organizational structure, products offered, competitive forces
and growth opportunities of these 3 companies.

LIMITATIONS OF THE STUDY

 The study is restricted to a period of one month. Due to time restraints, it
was not possible to study in depth in get knowledge.
 As the study is mainly based on secondary data, the probability of the
occurrence of the errors might have affected the analysis of study.
 The absence of website made to contribute much time for collecting data.
 The study is limited to our knowledge and experience.
METHODOLOGY
Methodology is a way to solve the research problem systematically. The
information required is collected through primary sources and secondary sources.

Primary Data
Data collected first hand by the investigator as original data are called primary data.
In other words, Primary data are those which are collected for the first time and are
original in nature.

Secondary Data
Data which are not originally collected but obtained from published or unpublished
sources are known as secondary data. Such data already collected by someone for some
purpose and are available for present study. It comprises of;

• Details obtained from company files, records and documents

• Various published books and journals

• Newspapers and magazines

 • Websites.

CHAPTERISATION
 CHAPTER-1: Introduction of the study
This chapter deals with the introduction about the study and internship programme. The
introduction part gives a brief knowledge regarding the e-commerce industry and also
about the companies selected for comparison. This chapter also includes the
objectives, scope, limitations, methodology, etc. of the study.

 CHAPTER–2: Industry Profile

This chapter gives an overall idea about the e-commerce industry in general and quality
accreditations. The industry profile provides a snapshot of the industry based on data
that includes trends and areas of growth. All details regarding the industry upon global,
national and state’s insight is depicted here.

 CHAPTER– 3: Company Profile

This chapter is about history, organizational structure, products and services offered,
etc. of 3 companies (Amazon.com, Myntra designs Pvt Ltd.,Nykaa E-retails Pvt Ltd. )
A clear picture of each company is available through this chapter.

 CHAPTER-4: Environmental Analysis

This chapter deals with SWOT analysis, Posters five forces model and BCG matrix of
selected 3 companies.

 CHAPTER-5: Conclusion
It deals with the overall observation in the study.

CHAPTER 2
INDUSTRY PROFILE
INDUSTRY PROFILE

OVERVIEW ON E-COMMERCE INDUSTRY

E-commerce offers the organization an easier reach for the customers, and hence
necessary exposure to business is also achieved. E-commerce is also driven owing to the
increasing importance of online marketing tools, such as Google ads and Facebook ads.
Nowadays, the marketing options are in abundance due to the popularity of social media
applications, which, in turn, helps in driving the market for e-commerce towards growth
trajectories.
The global e-commerce market size was valued at USD 9.09 trillion in 2019 and is
expected to grow at a compound annual growth rate (CAGR) of 14.7% from 2020 to 2027.
Increasing penetration of internet is bolstering the smartphone using population across the
world. Digital content, travel and leisure, financial services, e-tailing among others constitute
a variety of e-commerce options available to the internet accessing customer base that are
gaining momentum with increased internet usage. Hence, technological awareness among
customers is expected to have a positive impact on market growth. The growing importance
of faster browsing has led to the development in the connectivity, thus leading to
development in 4G and 5G technology. Implementation of 4G and 5G technology for the
connectivity purpose is expected to have a positive impact on the market growth as it
provides an uninterrupted, seamless experience to the user. Moreover, the adoption of
smartphones is gaining momentum at a significant rate, thus increasing the exposure of online
shopping for the customer. Therefore, the growing use of smartphones is projected to propel
the market growth over the forecast period.
E-commerce has transformed the way business is done in India. The Indian E-
commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as
of 2017. Much of the growth for the industry has been triggered by an increase in internet and
smartphone penetration. The ongoing digital transformation in the country is expected to
increase India’s total internet user base to 829 million by 2021 from 636.73 million in FY19.
India’s internet economy is expected to double from US$ 125 billion as of April 2017 to US$
250 billion by 2020, backed primarily by E-commerce. India’s E-commerce revenue is
expected to jump from US$ 39 billion in 2017 to US$ 120 billion in 2020, growing at an
annual rate of 51%, the highest in the world.

CURRENT SCENERIO OF THE INDUSTRY

Today Ecommerce is an integral part of business because of various reasons like:

• Ease of use

• Accessibility all across the globe

• Great variety & easy compassion of products from different vendors

• Trusted payment channels

• Shopping can be done sitting in the convenience of home shopping, hence it is less time
consuming.

There are so many factors which makes e-commerce to come to the fore front in
today’s world. Saving precious time involved in business transactions is really a
prominent factor. Like for instance, net banking makes it easy to carry out money and
baking transactions in a break neck speed as compared to the real banking scenario. This
asserts the fact that Ecommerce is beneficial to both business and consumer wise as
payment and documentations can be completed with greater efficiency and reliability.
Another important factor determining the flow of whole business is connectivity.
Connectivity is very important for both consumers and business. Ecommerce provides
better connectivity for all the potential candidates all over the globe, thus helping in
enhancing the business without any geographical barriers. From the view point of the
customer, Ecommerce is a good platform for hassle free shopping by sitting in your home.
The customer can browse through all the products and services available and can review
and compare the prices of the similar products available in the online space.

Furthermore, due to the on-going COVID-19 pandemic, customers’

inclination towards online shopping is rising since brick and mortar shops are closed.
Major economies such as U.S, China, India, and Italy are severely affected due to
pandemic. Hence, the evident impact on the market is projected in regions such as Europe
and North America. For instance, as per the data provided by Emarsys and Good Data,
revenue earned is up by 37% and orders are up by 54% since January in U.S. However,
lack of implementation of technical infrastructure in the rural areas of countries, such as
India, China, and Brazil, is expected to cause hindrance in the market growth.

OPPORTUNITIES AND CHALLENGES

Consumers

A major attraction of e-commerce is the ease of purchase and deep price discounts it
others customers. The convenience of shopping from anywhere through a mobile, while
perusing through products offered by different manufacturers and suppliers; the ability to
access information on customer service and being able to track delivery through the
phone, others substantial appeal to price-sensitive, time-constrained customers. Customer
satisfaction tends to be higher for e-commerce. The array of payment options and delivery
services further add to the choice and appeal for the customer.

Market Development and Efficient Markets

By bringing a large cohort of suppliers together on a common platform, e-commerce

results in increased competition and development of markets. E-commerce embodies a
two-sided market, connecting the supply side to the demand side without the traditional
limitations of physical stores and incurring low transaction costs. A large number of firms
listed on the platform engage with multitudes of consumers. The larger the numbers on
either side of the market, the more efficient the market is likely to be.

Benefits for Micro, Small and Medium Enterprises

MSMEs play a vital role in all market economies. India has over 51 million MSMEs
producing 37.5 per cent of output10 and employing 117 million workers. MSMEs in India
are highly diversified across urban as well as rural areas.11 An overwhelming part of this
cohort is in the informal sector. The growth of e-commerce has created opportunities for
MSMEs to register formally as business enterprises and increase direct participation in
regional and global trade – key to making growth more inclusive. The United Nations
Conference on Trade and Development Information Economy report12 reveals that the
use of digital technologies by MSMEs has not only helped business performance by
providing access to international markets, but also improve livelihoods in some of the
most marginalized communities.

Financial Development

Financial development is both a driver and a consequence of e-commerce. Despite a trend

of increasing use of digital payments, transactions in India are still overwhelmingly
carried out through cash. E-commerce has a tangible impact on financial development by
broadening access to financing, expanding and innovating in the payments space and
helping bridge information gaps. Access to finance is determined by the availability of
information that helps assess the borrower’s creditworthiness. The absence of a credit
history and the inability to raise collateral makes it difficult for MSMEs everywhere to
obtain credit. However, for MSMEs registered on e-commerce platforms, the company
owning the platform can generate and collate real-time information about cash inflows and
outflows and provide an informed assessment of the company’s financial state and
creditworthiness – vital inputs for decision-making on loans.

Employment

E-commerce has demonstrated the potential to unleash new investments that create jobs
in a range of ancillary activities. Employment in the e-commerce sector generates
multiplier effects, with every job created resulting in three to four new jobs in downstream
industries, such as information technology (IT) and IT-enabled services, marketing, sales,
data analysis, etc. with the possibility of creating as many as five million jobs in India,
many of which will be in the smaller cities and the semi-rural areas. The narrower e-tail
sector and its ancillary activities are expected to create up to 1.5 million new jobs by 2021,
with logistics and warehousing accounting for a million openings.

Potential for Rural Areas

Nearly 50 per cent of the Indian population lives in rural areas. Although innovations in
domestic retail have almost completely bypassed the rural economy, rural incomes have a
profound impact on aggregate consumer purchases and thus on aggregate production and
incomes. E-tail companies seeking to expand markets into the groceries space need to
engage directly with the farmers, offering confirmed prices for the produce – the
equivalent of a forward contract. Forward markets help to ensure price stability for
produce. Cold storage facilities that allow for storage of perishables are essential for
storage and stabilising market prices. By nurturing agribusiness, e-tail can help integrate
the rural economy into a nation-wide network.

E-COMMERCE INDUSTRY – GLOBAL PERSPECTIVE

In global market scenario, the emergence of Ecommerce as a forerunner has opened

up various windows of opportunities for a variety of online companies and investors. More
and more resources are being directed into electronic securities, internet facilities, business
plans and new technologies due to the boom in the space of E-commerce. As a result various
new markets have emerged from Ecommerce itself giving a boost to the global market.

International e-commerce is an undeniable growth opportunity. According to a

recent study conducted by Flow Commerce, 67% of online apparel shoppers across 11 top
global markets have made a cross-border purchase in the prior six months. Statista
estimates the global e-commerce market will pass $2 trillion in 2020, with revenues in
China expected to have the largest growth rate at a CAGR of 11.6% up to 2024.
Similarly, Statista expects that U.S. market revenues will exceed $490.9 billion by 2024,
while revenues in Europe will reach $516.2 billion in the same time frame.The highest
incidence of cross-border shoppers according to our research report was in Brazil,
Australia, and Canada, however most of the other countries surveyed, including the U.S.
and China, were well over 50%. This trend is further validated by a separate report
revealing that high cross-border online shopper penetration in those countries as well as in
China and Mexico. The cross-border shopping trend is certainly not slowing down and
continues to gain traction and grow.

In a Global Market Outlook report, projections estimate that global e-

commerce will grow at a CAGR of almost 20% to reach $18.89 trillion by 2027. There are
a number of factors impacting this growth. The global nature of search and increasing use
of search engines facilitates the discovery of new brands and online retailers. Mobile
penetration has also had an impact helping to drive cross-border purchases. Mobile
commerce sales are projected to show a 25% growth in 2020 over 2019, with additional
growth in 2021. With over 3 billion smartphone users worldwide, more and more global
consumers are also shopping via mobile phones and the opportunity in m-commerce is
showing impressive growth. Through mobile, more consumers have access to social media
platforms. With the recent global pandemic and quarantine rules, social shopping has
become even more widespread among consumers, which is why it represents a popular
channel for many retailers to reach their global customer base.

E-COMMERCE MARKET SHARE: US vs GLOBAL TRENDS

Though the United States is often thought of as the largest market for ecommerce, it isn’t.
The top 10 largest e-commerce markets in the world:

 China: $672 billion

 USA: $340 billion
 United Kingdom: $99 billion
 Japan: $79 billion
 Germany: $73 billion
 France: $43 billion
 South Korea: $37 billion
 Canada: $30 billion
 Russia: $20 billion
 Brazil: $19 billion

Nielsen’s Global Connected Commerce report provides a detailed breakdown of the most
lucrative industries by country, with South Korea taking the cake in fashion (77%) and
beauty products (66%), as well as non-food household groceries (52%), packaged grocery
food (51%) and fresh groceries (37%).However, when it comes to books, stationery, and
music purchases, Japan leads the charge at 79%. Spain tops the charts for travel with 67%,
and Brazil takes the highest spot on the podium with consumer electronics at 57%. As
more global markets are developed, the US’s share of ecommerce market sales is steadily
decreasing. From a global share of 20.2% in 2015, the US is expected to be down to
16.9% by 2020.

The ecommerce marketplace is also bolstering globalism with 57% of online

shoppers having made a purchase from an overseas retailer. The preferred payment
method used by these shoppers varies around the world. Globally, credit cards are the
preferred method of payment, being used in 53% of transactions, followed by digital
payment systems (43%) and debit cards (38%). However, digital payment systems are the
most preferred method in China and Western Europe, while cash-on-delivery is the go-to
method for Eastern Europe, Africa, and the Middle East.
 Over the last few years, e-commerce has become an indispensable part of the global
retail framework. Like many other industries, the retail landscape has undergone a
substantial transformation following the advent of the internet, and thanks to the ongoing
digitalization of modern life, consumers from virtually every country now profit from the
perks of online transactions. As internet access and adoption are rapidly increasing around
the globe, the number of digital buyers worldwide keeps climbing every year. In 2019, an
estimated 1.92 billion people purchased goods or services online. During the same year, e-
retail sales surpassed 3.5 trillion U.S. dollars worldwide, and according to the latest
calculations, e-commerce growth will accelerate even further in the future.

E-COMMERCE INDUSTRY- INDIAN PERSPECTIVE

The E-commerce business in India has seen exponential growth over the last decade. This
growth is due to many contributory factors, including rapid adoption of technology by
Indian Consumers, large increases in the number of internet users, new enabling
technologies, Innovative business models and alternative payment options offered by E-
commerce companies. Moreover, the high growth in E-commerce continues unabated,
with the sector expecting to Witness a steep increase in revenues in the coming years.
Current Status of MSMEs & E-commerce development in India

E-commerce Size in India

The E-commerce business is expected to form the largest part of Indian economy with a
value of approximately USD 100 billion by 2020. E-commerce is facilitating MSMEs to
scale up their operations by providing a means of financing, technology and training.
Evolution of technology Led innovations such as digital payments, hyper-local logistics,
mass customer engagements and digital advertisements have enabled the E-commerce
industry to grow speedily. Within the E-commerce industry, the Gross Merchandise Value
(GMV) is an important metric for valuations, especially during the early stages of growth.
The majority of B2C E-commerce companies report low profitability even in developed
economies and the situation in India is no different. While the GMV is rising, the
companies have to suffer an overall loss as the E-Commerce companies establish
themselves. The GMV for B2C segment in India was Approximately USD 16 billion in
2015.
Growth of B2B E-commerce in India

The growth of the B2B E-commerce segment is relatively slower compared to the B2C E-
Commerce segment in India. This is because the entry barriers in the B2B E-commerce
are more than those in the B2C E-commerce industry. A B2B E-commerce company has
to have a strong business model, long term logistical arrangements with rail, road and
ports and also adhere to stringent regulatory and taxation laws. With an aim to tap the
huge potential in the B2B E-Commerce market in India, apart from the existing B2B
companies, leading B2C companies have also started to build their own platforms for
small business owners and traders. This is expected to be supported by rising expectations
among a growing number of companies buying and selling online and a shift to conduct
procurement transactions through the Internet. Understanding this untapped potential of
the B2B E-commerce industry, the Government has allowed 100% FDI in B2B E-
commerce, which has enabled globally successful B2B E-Commerce companies such as
Walmart and Alibaba to evince interest in the India B2B E-commerce industry.

Market Size

Propelled by rising smartphone penetration, launch of 4G network and increasing

consumer wealth, the Indian E-commerce market is expected to grow to US$ 200 billion
by 2026 from US$ 38.5 billion in 2017. Online retail sales in India is expected to grow
31% to touch US$ 32.70 billion in 2018, led by Flipkart, Amazon India and Paytm Mall.
Smartphone shipments in India increased eight% y-o-y to reach 152.5 million units in
2019, thereby making it the fastest among the top 20 smartphone markets in the world.
Internet penetration in India grew from just 4% in 2007 to 52.08% in 2019, registering a
CAGR of 24% between 2007 and 2019. The number of internet users in India is expected
to increase from 687.62 million as of September 2019 to 829 million by 2021.

Government initiatives

Since 2014, the Government of India has announced various initiatives, namely
Digital India, Make in India, Start-up India, Skill India and Innovation Fund. The timely
and effective implementation of such programs will likely support growth of E-commerce
in the country. Some of the major initiatives taken by the Government to promote E-
commerce in India are as follows:

 Government e-Marketplace (GeM) signed a Memorandum of Understanding

(MoU) with Union Bank of India to facilitate a cashless, paperless and transparent
payment system for an array of services in October 2019.
 In February 2019, the Government of India released the Draft National e-
Commerce Policy which encourages FDI in the marketplace model of E-
commerce.
 In order to increase the participation of foreign players in E-commerce, Indian
Government hiked the limit of FDI in E-commerce marketplace model to up to
100% (in B2B models).
 Heavy investment made by the Government in rolling out fiber network for 5G
will help boost E-commerce in India.
 In Union Budget of 2018–19, Government allocated Rs 8,000 crore (US$ 1.24
billion) to BharatNet Project to provide broadband services to 150,000-gram
panchayats.
 As of August 2018, the Government has been working on the second draft of E-
commerce policy, incorporating inputs from various industry stakeholders.
E-COMMERCE INDUSTRY – STATE PERSPECTIVE (Kerala)

A consumer state, Kerala has a high potential for the e-commerce market. The policies and
tax laws are being addressed to encourage small and medium enterprises,
traders/merchants to adapt to the online marketplace and to use the opportunities to
expand the business globally.

Benefits of E-commerce in the Perspective of Kerala

Online shopping has become very common, largely due to the convenience and time
saving option. The additional feature of safe transactions has also attracted more
customers. The development of a dynamic and user-friendly e-commerce website with
different features including search products, customization of products, 24x7 technical
support and maintenance, security features for safe transaction, tracking of orders and info
on shipping, track history, prompt delivery, etc. attracts the customer easily and
effectively, and increases the online sales. The dependence on the e-commerce portals to
obtain the products instantly are increasing worldwide. In this scenario, the e-commerce
with multifaceted features can boost the expansion of Kerala’s business and economy
sector in the following ways.

 Opportunity for the SMEs and Kerala-brands to flourish and expand.

 Access to the global or international market.

 Creation of multiple job opportunities like content developer, web designer, manager,
etc.

 Job opportunities for small-time craftsmen, women, etc.

 Flexible, accessible and cost-effective platform for the entrepreneurs.

Key E-commerce platforms or portals in Kerala

To expand the e-business trading, Kerala State Industrial Enterprises Ltd (KSIE) has
hosted their own e-com portal. This is one of the initiative, which will provide
opportunities for SMEs to join this venture as “partners in progress” and will allow them
to showcase their products and grab the opportunities for business in the global market.
The e-com portal of the company “www.keralarcade.com” allows the customers to browse
the wide range of products and also visit the partner micro-sites. This is first of its kind in
Kerala and with the facility of online payment [38]. In an another e-commerce move,
household retailer major Alapatt Super Shoppe, a part of Alapatt group has become the
first offline appliances retailer in the state to open a secured online shopping portal for
appliances from leading brands and with an option of free home delivery of appliances to
the six central districts of Kerala including Kochi. The same group plans to climb an
another level by setting up an APP to facilitate the shopping. Another e-commerce
example, ‘Keralaspecial.in’ portal focuses on marketing and selling of exquisite products
like handlooms, handicrafts, spices, gift articles and apparels for Keralites across the
world. They procure high quality products from the manufacturers and sellers to provide
the best customer service. To enable prompt delivery they are linked up with India Post
and other courier services, and provide both COD and e-payments method.

MAJOR E-COMMERCE COMPANIES IN THE WORLD 2020

 Amazon.Com
 Ali Baba.Com
 eBay
 Jingdong
 Zappos
 Rakuten
 Home Depot
 Flipkart
 Zalando
 Otto
 B2W Digital
 Groupon
 Groupon
 Walmart
 Priceline
 Shopify
 Myntra designs pvt Ltd.
 Nykaa e-retails pvt Ltd
 Snapdeal

CHAPTER 3

COMPANY PROFILE
Amazon.com, Inc

Amazon.com, Inc. is an American multinational technology company based in Seattle,

Washington, which focuses on e-commerce, cloud computing, digital streaming, and
artificial intelligence. Amazon was founded by Jeff Bezos in Bellevue, Washington, on
July 5, 1994. It is considered one of the Big Five companies in the U.S. information
technology industry, along with Google, Apple, Microsoft, and Facebook. The company
has been referred to as “one of the most influential economic and cultural forces in the
world”, as well as the world’s most valuable brand. Amazon is known for its disruption of
well-established industries through technological innovation and mass scale. It is the
world’s largest online marketplace, AI assistant provider, live-streaming platform and
cloud computing platform as measured by revenue and market capitalization. Amazon is
the largest Internet company by revenue in the world. It is the second largest private
employer in the United States and one of the world’s most valuable companies.
 Amazon distributes downloads and streaming of video, music,
and audiobooks through its Prime Video, Amazon Music, Twitch, and Audible
subsidiaries. Amazon also has a publishing arm, Amazon Publishing, a film and television
studio, Amazon Studios, and a cloud computing subsidiary, Amazon Web Services. It
produces consumer electronics including Kindle e-readers, Fire tablets, Fire TV, and Echo
devices. Its acquisitions over the years include Ring, Twitch, Whole Foods Market, and
IMDb. The company has been criticized for various practices including technological
surveillance overreach, a hyper-competitive and demanding work culture, tax avoidance,
and for being anti-competitive.

HISTORY

Jeff Bezos founded Amazon in July 1994. He chose Seattle because of technical talent as
Microsoft is located there. Bezos selected the name Amazon by looking through a
dictionary; he settled on “Amazon” because it was a place that was “exotic and different”,
just as he had envisioned for his Internet enterprise. The Amazon River, he noted, was the
biggest river in the world, and he planned to make his store the biggest bookstore in the
world. Additionally, a name that began with “A” was preferred because it would probably
be at the top of an alphabetized list. Bezos placed a premium on his head start in building
a brand and told a reporter, “There’s nothing about our model that can’t be copied over
time. But you know, McDonald’s got copied. And it’s still built a huge, multibillion-dollar
company. A lot of it comes down to the brand name. Brand names are more important
online than they are in the physical world. In May 1997, the organization went public. The
company began selling music and videos in 1998, at which time it began operations
internationally by acquiring online sellers of books in United Kingdom and Germany. The
following year, the organization also sold video games, consumer electronics, home-
improvement items, software, games, and toys in addition to other items.

In 1999, Amazon first attempted to enter the publishing business by buying a

defunct imprint, "Weathervane", and publishing some books "selected with no apparent
thought", according to The New Yorker. The imprint quickly vanished again, and as of
2014 Amazon representatives said that they had never heard of it. Also in
1999, Time magazine named Bezos the Person of the Year when it recognized the
company's success in popularizing online shopping. In September 2017, Amazon
announced plans to locate a second headquarters in a metropolitan area with at least a
million people.

In 2002, the corporation started Amazon Web Services (AWS), which provided data on
Web site popularity, Internet traffic patterns and other statistics for marketers and
developers. In 2006, the organization grew its AWS portfolio when Elastic Compute
Cloud (EC2), which rents computer processing power as well as Simple Storage Service
(S3), that rents data storage via the Internet, were made available. That same year, the
company started Fulfillment by Amazon which managed the inventory of individuals and
small companies selling their belongings through the company internet site.

In 2012, Amazon bought Kiva Systems to automate its inventory-management

business, purchasing Whole Foods Market supermarket chain five years later in 2017
.According to an August 8, 2018 story in Bloomberg Businessweek, Amazon has about a
5 percent share of US retail spending (excluding cars and car parts and visits to restaurants
and bars), and a 43.5 share of American online spending in 2018. The forecast is for
Amazon to own 49 percent of the total American online spending in 2018, with two-thirds
of Amazon’s revenue coming from the US.

Net Revenue of Amazon

ORGANISATION STRUCTURE OF AMAZON
Amazon organizational structure can be classified as hierarchical. Senior management team
Senior management team include three CEOs and three senior vice presidents responsible for
various vital aspects of the business reporting directly to Amazon CEO Jeff Bezos.

Amazon organizational structure has the following three key features:

1. Hierarchical corporate structure.

Hierarchical structure at Amazon has developed due to the immense size of the
business. The largest internet retailer in the world by revenue employs more than 647,00
people worldwide.
 2. Flexibility of the business.

It is important to note that despite its large size, unlike many other companies with
hierarchical organizational structure, Amazon remains highly flexible to adapt to frequent
changes in the external marketplace. Moreover, the online retail giant leads changes in
external business environment, it has caused disruptive innovation in e-commerce and
currently it is about to cause a disruptive innovation in global logistics industry. This is
mainly due to visionary and efficient leadership by Amazon founder and CEO Jeff Bezos.
Amazon organizational structure integrates many small teams that deal with various
aspects of the. Amazon founder and CEO Jeff Bezos is credited with the introduction of
‘two pizza rule”. According to this rule, meetings should be held in teams small enough
that could be all fed with only two pizzas.

3. Stability in the top management. 

Stability is one of the key features of Amazon. Specifically, the largest internet

company by revenue in the experiences “very little turnover among its most important
power players, with many of them having been at the company for years, if not
decades.”

LEADERSHIP STYLE OF AMAZON

Amazon leadership style has been classified as pragmatist. Pragmatist leaders “set high
standards and unapologetically expect those standards to be met by themselves and by
their employees”. The company’s founder and CEO, Jeff Bezos is an exceptional and
proven business leader. Bezos efficiently exercises visionary and servant leadership styles
and places exceptional customer service at the core of Amazon’s business practice.

Moreover, Jeff Bezos leadership style is unique in several ways. Jeff Bezos’ leadership
style can be analyzed through the prism of contingency leadership theory. According to
contingency leadership theory, “leader’s effectiveness is contingent upon with how his or
her leadership style matches to the situation.” Jeff Bezos leadership style has been
characterized as harsh, cutthroat and demanding. It can be argued that such a leadership
style fitted the situation o the onset of the business, when the company had to strengthen
its position on rapidly expanding industry.

MISSION AND VISION

Mission

Amazon’s mission statement is “We strive to offer our customers the lowest possible
prices, the best available selection, and the utmost convenience.” This corporate
mission promises attractive e-commerce services to satisfy target customers’ needs. The
company focuses on the variables of price, selection, and convenience. In this regard, the
following characteristics are identifiable in Amazon’s corporate mission statement:

 Lowest prices
 Best selection
 Utmost convenience

Vision

Amazon’s corporate vision is “to be Earth’s most customer-centric company, where

customers can find and discover anything they might want to buy online.” This vision
statement underscores the business organization’s main aim of becoming the best e-
commerce company in the world. In this regard, the following characteristics are
identifiable in Amazon’s corporate vision statement.

 Global reach
 Customer-centric approach
 Widest selection of products
PRODUCTS AND SERVICES

Amazon. com's product lines available at its website include several media (books, DVDs,
music CDs, videotapes and software), apparel, baby products, consumer electronics, beauty
products, gourmet food, groceries, health and personal-care items, industrial & scientific
supplies, kitchen items, jewelry, watches, lawn and garden items, musical
instruments, sporting goods, tools, automotive items and toys & games. In August 2019,
Amazon applied to have a liquor store in San Francisco, CA as a means to ship beer and
alcohol within the city Amazon has separate retail websites for some countries and also offers
international shipping of some of its products to certain other countries In November 2020,
the company started an online delivery service dedicated to prescription drugs. The service
provides discounts up to 80% for generic drugs and up to 40% for branded drugs for Prime
subscribe users. The products can be purchased on the company's website or at over 50,000
bricks-and-mortar pharmacies in the United States

Amazon.com has a number of products and services available, including:

 Amazon Fresh

Amazon Fresh is a subsidiary of the American e-commerce company Amazon.com

Seattle, Washington. It is a grocery delivery service currently available in most major
U.S. cities, Berlin (including Potsdam), Hamburg, London, Munich, Tokyo and India.
Amazon Fresh offers grocery items for sale, as well as a subset of items from the main
Amazon.com storefront. Items ordered through Amazon Fresh are available for home
delivery on the same day or the next day, depending on the time of the order and the
availability of trucks.
  Amazon Prime

Amazon Prime is a paid subscription program from Amazon that gives users

access to additional services otherwise unavailable or available at a premium to regular
Amazon customers. Services include same, one or two-day delivery and streaming music and
video. In January 2020, Amazon reported that Prime had more than 150 million subscribers
worldwide.

 Amazon Web Services

Amazon Web Services (AWS) is a subsidiary of Amazon providing on-demand cloud

computing platforms and APIs to individuals, companies, and governments, on a metered
pay-as-you-go basis. These cloud computing web services provide a variety of basic abstract
technical infrastructure and distributed computing building blocks and tools. One of these
services is Amazon Elastic Compute Cloud (EC2), which allows users to have at their
disposal a virtual cluster of computers, available all the time, through the Internet. AWS's
version of virtual computers emulates most of the attributes of a real computer.

 Amazon Alexa

Amazon Alexa, also known simply as Alexa, is a virtual assistant AI technology

developed by Amazon, first used in the Amazon Echo smart speakers developed
by Amazon Lab126. It is capable of voice interaction, music playback, making to-do
lists, setting alarms, streaming podcasts, playing audiobooks, and providing weather,
traffic, sports, and other real-time information, such as news. Alexa can also control
several smart devices using itself as a home automation system.

 Appstore

The Amazon Appstore for Android is an app store for the Android operating system

operated by Amazon.com. It was opened on March 22, 2011 and was made available
in nearly 200 countries. Developers are paid 70% of the list price of the app or in-app
purchase.

 Amazon Drive
 Amazon Drive, formerly known as Amazon Cloud Drive, is a cloud
storage application managed by Amazon. The service offers secure cloud storage, file
backup, file sharing, and Photo printing. Using an Amazon account, the files and
folders can be transferred and managed from multiple devices including web
browsers, desktop applications, mobiles, and tablets. Amazon Drive also lets their
U.S. users order photo prints and photo books using the Amazon Prints service.

 Amazon Echo
Amazon Echo (shortened to Echo) is a brand of smart speakers developed
by Amazon. Echo devices connect to the voice-controlled intelligent personal
assistant service Alexa, which will respond when you say "Alexa". Users may change
this wake word to "Amazon", "Echo" or "Computer". The features of the device
include: voice interaction, music playback, making to-do lists, setting alarms,
streaming podcasts, and playing audiobooks, in addition to providing weather, traffic
and other real-time information. It can also control several smart devices, acting as
a home automation hub. The smart speaker needs to use Wi-Fi to connect to Internet,
there is no Ethernet port.

 Amazon Kindle

The Amazon Kindle is a series of e-readers designed and marketed by Amazon.

Amazon Kindle devices enable users to browse, buy, download, and read e-books,
newspapers, magazines and other digital media via wireless networking to the Kindle
Store. The hardware platform, which Amazon subsidiary Lab126 developed, began as
a device in 2007. Currently, it comprises a range of devices, including e-readers with
E Ink electronic paper displays and Kindle applications on all major computing
platforms.

 Amazon Fire
 The Amazon Fire, formerly called the Kindle Fire, is a line of tablet
computers developed by Amazon.com. Built with Quanta Computer, the Kindle Fire
was first released in November 2011; it features a color 7-inch multi-touch display
with IPS technology and running a custom version of Google's Android operating
system called Fire OS

 Amazon Prime Video

Amazon Prime Video, or simply Prime Video, is an American subscription video on-demand
over-the-top streaming and rental service of Amazon.com, Inc., offered as a standalone
service or as part of Amazon’s Prime subscription. The service primarily distributes films and
television series produced by Amazon Studios or licensed to Amazon, as Prime Originals (or
Amazon Originals) or Exclusives, with the service also hosting content from other providers,
content add-ons, live sporting events, and video rental and purchasing services.

 Amazon Music

Amazon Music (previously Amazon MP3) is a music streaming platform and online

music store operated by Amazon. Launched in public beta on September 25, 2007, in
January 2008 it became the first music store to sell music without digital rights
 management (DRM) from the four major music labels (EMI, Universal, Warner,
and Sony BMG), as well as many independents.

 Amazon Digital Game Store

Amazon Digital Game Store is a digital video game distribution service owned by the
international electronic commerce company Amazon.com. It was launched on 3rd
February 2009, having 600+ game titles available for download at that time. Gamers
can buy PS3, PS Vita or PS4 game from Amazon and receive a code for use over the
PlayStation Network. On 11 December 2013, the digital PlayStation store was
launched in UK too.

 Amazon Studios

Amazon Studios is an American television and film producer and distributor that is a
subsidiary of Amazon. It specializes in developing television series and distributing
and producing films. It was started in late 2010. Content is distributed through
theaters and Prime Video, Amazon’s digital video streaming service, and is a
competitor to services like Netflix and Disney+.

 Fire phone

The Fire Phone is a 3D-enabled smartphone developed by Amazon.com and

manufactured by Foxconn. It was announced on June 18, 2014, and marked Amazon's
first foray into the smartphone market, following the success of the Kindle Fire.

FINANCIAL STRUCTURE OF AMAZON

Amazon.com is primarily a retail site with a sales revenue model; Amazon takes a small
percentage of the sale price of each item that is sold through its website while also allowing
companies to advertise their products by paying to be listed as featured products As of 2018,
Amazon.com is ranked 8th on the Fortune 500 rankings of the largest United States
corporations by total
revenue. Net Total
Revenue
income Assets
Year in mil. Employees
For the in mil. in mil. fiscal year
USD$
2018, Amazon USD$ USD$ reported
earnings of
200 14,835 476 6,485 17,000
US$10.07 billi 7 on, with an
annual revenue 200 of
19,166 645 8,314 20,700
US$232.887 bi 8 llion, an
increase of 200
30.9% over the
24,509 902 13,813 24,300
previous fiscal 9 cycle. Since
2007 sales increased from
201
14.835 billion 34,204 1,152 18,797 33,700 to
0
232.887 billion , thanks to
continued 201 business
48,077 631 25,278 56,200
1
expansion.
201
Amazon's 61,093 −39 32,555 88,400 market
2
capitalization went over
201
US$1 trillion 74,452 274 40,159 117,300 again in early
3
February 2020 after the
announcement 201 of the fourth
88,988 −241 54,505 154,100
quarter 2019 4

results Amazo 201 n's total

107,006 596 64,747 230,800
employees 5 now number
798,000
201
135,987 2,371 83,402 341,400
6

201
177,866 3,033 131,310 566,000
7

201
232,887 10,073 162,648 647,500
8

201
280,522 11,588 225,248 798,000
9
RESPONSE TO COVID-19 PANADEMIC

Hazard pay and overtime

Amazon introduced new policies to reward frontline workers for continuing to come into
work during the crisis. One of these policies, announced on March 16, 2020 was a
temporary $2-per-hour rise in pay. This policy expired in June 2020. Amazon also
announced a policy of unlimited, unpaid time off that lasted until April 30, 2020.

Additional hiring as a result of pandemic

In response to the COVID-19 pandemic, Amazon introduced temporary restrictions on the

sale of non-essential goods. In March 2020, it hired some 100,000 more staff in the US to
help deal with essential items such as food and medical equipment. It also reported that it
was so busy that it was unable to bring on board new customers and therefore had to have
a waiting list. In April, the firm announced that it was going to hire up to 75,000 workers
to help deal with increased demand.

Closure in France

The SUD (trade unions) brought a court case against Amazon for unsafe working
conditions. This resulted in a French district court (Nanterre) ruling on April 15, 2020,
ordering the company to limit its deliveries to food and essential medical or hygienic
products or pay a €1 million per day fine. Amazon said it would appeal, and on the
following day shut its six French warehouses until at least April 21, 2020, for evaluation
of the situation.
MYNTRA DESIGNS PVT LTD.

Myntra is an Indian fashion e-commerce company headquartered in Bengaluru, Karnataka,

India. The company was founded in 2007 to sell personalized gift items. Myntra is an e-
commerce platform for buying branded footwear, apparel, and accessories for men and
women. Myntra was established by Mukesh Bansal, Ashutosh Lawania and Vineet Saxena
in. Myntra’s headquarter is in It began its operations in the B2B (business to
business)segment with the personalization of gifts, which included clothing, footwear,
cosmetics. In 2010, the company shifted its strategy to becoming a B2C (business to
customer) oriented firm, expanding its catalogue to fashion and lifestyle products.
Myntra.com is ranked among the top 10 e-commerce companies in India. In May 2014,
Myntra.com was acquired by Flipkart. In the last 3 years, Myntra has become the most
popular destination for personalized products in the country.

Being India’s largest e-commerce store for fashion and lifestyle products,
Myntra aims at providing a hassle free and enjoyable shopping experience to shoppers
across the country with the widest range of brands and products on its portal. The
Company sells a range of clothing, footwear, accessories, bags and backpacks, jewelry,
and personal care products for men, women, and kids. It also develops an in-house
application Style Studio, a virtual dressing room aimed at making online shopping
interactive for shoppers.The company’s marketplace offers an easily navigable user
interface, product catalogue, authentic products and cash on delivery, enabling consumers
to find and create unique, personalized and creative merchandise.

HISTORY

Myntra was established by Mukesh Bansal, Ashutosh Lawania, and Vineet

Saxena in February 2007. All three are IIT alumni, and have worked for several start-
ups.Myntra is headquartered in Bangalore and has been funded by Venture Capital funds
like IndoUS, IDG & Accel Partners.

The company started off in the business of personalization of products, and soon
expanded to set up regional offices in New Delhi, Mumbai and Chennai.It began its
operations in the B2B (business to business) segment with the personalization of gifts,
which included T-shirts, mugs and caps to name a few. However, in 2010, the company
shifted its strategy to becoming a B2C (business to customer) oriented firm, expanding its
catalogue to fashion and lifestyle products. From 2007 to December 2010, Myntra.com
was in the business of online demand personalization.

In 2011, Myntra began selling fashion and lifestyle products and moved away
from personalisation. By 2012 Myntra offered products from 350 Indian and International
brands. The website launched the brands FastTrack Watches and Being Human. In 2014
Myntra was acquired by Flipkart in a deal valued at ₹2,000 crore (US$280 million). The
purchase was influenced by two large common shareholders Tiger Global and Accel
Partners. Myntra functions and operates independently. Myntra continues to operate as a
standalone brand under Flipkart ownership, focusing primarily on “fashion-conscious”
consumers.In 2014, Myntra’s portfolio included about 1,50,000 products of over 1000
brands, with a distribution area of around 9000 pin codes in India. In 2015, Ananth
Narayanan became the Chief Executive Officer of Myntra.

On 10 May 2015, Myntra announced that it would shut down its website, and serve
customers exclusively through its mobile app beginning 15 May. The service had already
discontinued its mobile website in favour of the app. Myntra justified its decision by
stating that 95% of traffic on its website came via mobile devices, and that 70% of its
purchases were performed on smartphones. The move received mixed reception, and
resulted in a 10% decline in sales. In February 2016, acknowledging the failure of the
“app-only” model, Myntra announced that it would revive its website. In September 2017,
Myntra negotiated the rights to manage Esprit Holdings’s 15 offline stores in India.
Myntra reported a net loss of ₹151.20 crore in the financial year 2017-18.

ORGANISATION STRUCTURE OF MYNTRA

CEO

Experience Human
CFO Marketing Product CTO
and Fashion Capital

Engineerin
Design Sourcing Marketing
g

HR, Real
Human Talent estate and
Capital Acquisition work place

MISSION AND VISION

Mission

Use technology to democratize fashion & lifestyle and help people look good.

Vision
To make the world a more stylish, colorful and happier place.

BUSINESS MODEL OF MYNTRA

The business model of any company is the strategy it uses to gain a larger market space.
The chart describes the business model of Myntra in tabular form.

Value proposition Key Resources Key Activities

 Fast delivery time  Delivery staff  Partnership with
 Wide selection  IT infrastructure distributors
 Sales  Marketing
 Quality products  Sales
 Supplychain
optimisation
Key partners Key channels Customer relationship
 Sellers  Websites  Customer service
 Distributors  App  Customer support
 Affiliate program  Easy to use app
Customer segmentation Cost structure Revenue stream
 Fashion  Marketing  Commission
enthusiasts  Technology structure
 Discount lovers  Own sale

Value Proposition

Value proposition refers to distinct services a company provides that enables it to gain
commercial value. Myntra offers a wide selection of products. Other than that, Myntra
uses ‘outbound logistics’ as a method of a value proposition. It means it uses a third-party
courier service to reduce the lead time. It also has started ‘Alteration Service’ in 2019. It
enables Myntra to connect to its customers in offline mode also.
Key Resources

The human resource department plays an important role in the success of Myntra. It
focuses on the work-life balance of employees. Additionally, the supplier and wholesalers
also are some of the key resources. The staff that comprises delivery persons and IT
personnel are also an important resource.

Key Activities

Myntra envisages itself as a fashion portal. It serves as a platform for fashion content,
trends, and tips. Myntra has tied up with 3000 brands and offers a high-quality product.
Along with this, It also focuses on marketing and sale management.

Key Partners

Ever since it has been taken over by Flipkart, the partners of Myntra have increased. Its
partners are different brands that give their product to Myntra for listing. In 2019, Myntra
entered the luxury segment by partnering with Purple Style Labs- a luxury brand that sells
apparels up to 1.5 lakh. This helps in customer acquisition.

Key Channels

The flow-chart describes the key channels Myntra uses to operate.

Key channels

Direct via Direct via web Direct via Via affiliate

website app mobile app networks

The channels through which Myntra operates are its applications and website. It also
operates through affiliate programs.
Customer Relationship

Myntra operates through a self-service platform that is supported by 24/7 customer care
service. It has also decreased its shipping time from 48 hours to 24 hours. It ensures it
maintains a sound relationship with customers.

Customer Segmentation

Myntra has a massive urban market, and it is very popular among discount lovers. Myntra
caters to fashion enthusiasts as it offers as many as 15000 products of one category.
Myntra also hosts “End of Reason Sale”, which gathers enormous crowd, according to
Aman Nagaram, the C.E.O of Myntra. Such sales and discounts also attract people from
tier 2 and tier 3 cities.

Cost Structure

Myntra spends most of the revenue in purchasing stock in trade. Additionally, Myntra
spends on technology up-gradation and infrastructure improvement. Other than that, it also
has to spend on warehouse management and advertisements. Salary to workforce comes
under the fixed cost of Myntra.

MARKETING STRATEGY OF MYNTRA

Myntra also ropes in celebrities, like Sonakshi Sinha to promote the brand. It started a
show called “fashion Influencer” in 2019 to market the brand more extensively. Other
than that, Myntra also uses social media platforms, like Facebook and Instagram, to
promote its sale season. In its End of Reason Sale (EORS) 2019, Myntra sold 1.77 lakh
items within the first 10 minutes of the sale going live. Over 3.3 million products were
sold on day one.

COMPETITIVE STRATEGY OF MYNTRA

Myntra’s top competitors include Yepme, Amazon, LimeRoad, Snapdeal, Voonik,

Zopper, HSN, GoRootz, Fynd and Flipkart. The competitive advantage of e-commerce
companies is mainly because of cost leadership or product differentiation. With Myntra, it
is because of cost leadership. However, before 2010, Myntra also had gained market space
in product

differentiation by providing customised t-shirts and mugs. For instance, during IPL,
Myntra provides t-shirts with a person’s name printed on it.

Revenue Model Of Myntra

Revenue model of
Myntra

Commission on sales Inhouse brand sale of Sale of other

(5%-10%) apparals accessories

Myntra earns through an aggregator model. It buys current season merchandise from
various brands and makes the product available on its website. It earns through
commission. The revenue model of Myntra is that of B2C (Business to customer) now.

SUCCESS FACTORS OF MYNTRA:

 Hybrid logistics model

 Aligned its goals and metrics towards its vision since Inception i.e., being India’s
largest online lifestyle products retailer.
 Keeping a vigilant eye on the consumer experience front.
 Utmost care on supply chain management.

 Rigorous hiring and evaluation criterion for employees and delivery agents with
high delivery experience.
 Customers were infused with an idea that whenever they wish to buy any apparel,
footwear or any other fashion and lifestyle item, they should think of Myntra first.
 Offering great deals, exclusive sale offer for the day, coupons etc., which enables
customer ends up buying the product at Myntra when finds product at reasonable
rates.
 Marketing Strategy – Tie-ups with celebrities through associations with movies
and events as they represent fashion sense.

MARKETING MIX

Product
Myntra.com is a marketplace that deals in a bouquet of nearly 150,000 products
from more than 1,000 International and Indian brands. It started its operations with
B2B model of business but also offered few personalised products to its customers
like calendars, watches, mugs and mouse pads.

Price
Myntra.com is one of the most powerful fashion brands in the online market. Its
investors include IDG Ventures, NEA-IndoUS ventures and Accel Partners.
Myntra has targeted fashion conscious, online shoppers and the medium-income
group as its target customers. It faces intense competition from several companies
that has resulted in the implementation of competitive pricing strategy.
Myntra.com has kept product prices at reasonable and pocket-friendly rates to lure
customers and increase its market share. It has also adopted a promotional policy
and offers several incentives to draw its customers to its portal.

Place
Myntra.com is an Indian company with its presence spread over nearly 9,000
locations in India. Its headquarters base is at Bengaluru in Karnataka and regional
offices in Chennai, Mumbai and New Delhi. The company is aware how
important seamless logistics is as it can make or break an e-commerce portal.
Hence

Myntra.com has decided to adopt the Hybrid-logistic model, which would help
them to gain recognition and also penetrate in further areas. Third-party
distributors were allotted to help the company in their operational logistics. Its own
strong and widespread distribution network includes an efficient supply chain and
a capable delivery service so that goods reach its customers safely and within
allotted timeframe. Its merger with Flipkart has increased its
distribution channel and helped it to penetrate and reach additional markets.
Besides online platform, Myntra.com also offers a personalized experience to its
loyal customers via mobile shopping.

Promotion
Myntra.com has gained immense brand recognition because of intensive and
aggressive marketing campaigns. It has launched ad campaigns with distinctive
taglines like Ramp it Up and Real Life Mein Aisa Hota Hai Kya. Its ads are shown
via print, electronic and social media platforms like newspapers, television,
Twitter, Facebook and its own website. Myntra offered personalised sports jerseys
of football and cricket teams like FIFA, IPL and Team India as part of its
promotional strategy. It has also adopted several schemes like the end of season
sale, discounts and periodic offers. Myntra.com realises the impact of star power
and its association with celebrities like Lisa Haydon, Ranveer Singh, Kangana
Ranaut and Hrithik Roshan has helped it to create positive brand visibility in the
consumer market. It has been the recipient of awards and recognition like Pride of
India 2009-10 and Red Herring Global 100 Winner in the year 2010.
NYKAA E-RETAIL PVT LTD.

NYKAA is an Indian e-commerce company and the largest beauty shopping destination
in India. It was founded by Falguni Nayar, former MD of KOTAK Mahindra Capital co.,
in the year 2012. Nykaa is headquartered at Mumbai (formerly known as Bombay), the
capital city of the state of Maharashtra, India. The word ―Nykaa is derived from the
Bengali word - ―Neyka‖, which means one in the spotlight. It is the only biggest multi-
brand beauty retailer in India that sells nearly 60,000 beauty and wellness products of
various national and international brands. Nykaa ships to over 1000 cities across India. It
currently has 650+ brands among which 25 are luxury brands which include big names
like MAC, Clinique, Estée Lauder, NYX, Bobbi Brown, Calvin Klein, L‘Occitane, Yves
Saint Laurent etc. Approximately, around 15,000 orders fly out every day. Nykaa has 33
physical stores/outlets categorized under 2 formats namely Nykaa on Trend and Nykaa
Luxe, and also has popular in-house collection under its private label called the Nykaa
collection. Nykaa can be accessed through its 33 outlets running successfully across the
nation, mobile app and also its webpage (www.nykaa.com).

Nykaa hosts the ‘Nykaa Femina Beauty Awards’ in partnership with women’s lifestyle
magazine Femina (India) since 2015. In 2019, Nykaa Fashion launched ‘The Power List’ in
partnership with Vogue India. In October 2019, it partnered with Bollywood actress Katrina
Kaif to launch the brand Kay Beauty.

HISTORY

The Mumbai resident founder and the CEO of Nykaa, Falguni Nayar, is a graduate from IIM
Ahmedabad, India. Before launching Nykaa, she served Kotak Mahindra Capital Co. for 18
years but she quit her job as she always wanted to be an entrepreneur. She noticed that there
was a huge gap in the Indian beauty line market – the demand was greater than the available
mediums to buy beauty essentials in the country. This led her to launch Nykaa with her
husband Sanjay Nayar, a banker by profession and daughter Adwaita Nayar on 2012. It was
launched as an ecommerce portal curating a range of beauty and wellness products. The
brand name Nykaa is derived from the Sanskrit word nayaka, meaning ‘one in the
spotlight’.Falguni saw that there was a huge opportunity in the online space and considering
all the different areas she could invest in or start a company, she focused on beauty. In 2015,
the company expanded from online-only to an Omni channel model and began selling fashion
products.

Nykaa raised its business funding of about 40M USD in multiple rounds of funding from
various investors and generated a turnover of about 39M USD in the very first 5 years. In the
last 2 years, its revenue has raised to nearly 400%. Nykaa follows inventory-based business
model and content-based marketing strategy. All its products are sourced directly from the
original label/brand. Recently with the launch of lingerie, Nykaa attempted to enter the
apparel segment in the market.(Panthangi, 2017). Nykaa prides itself on offering a
comprehensive selection of cosmetics, skincare, haircare, fragrances, bath and body, luxury
and wellness products for women and men. Nykaa has grown strength to strength over years;
they have always focused on customer needs and worked closely with its brands to achieve
the desired results. From last year to this year, Nykaa has grown by about 350% and this year
onwards they are going to grow on other 300%. Today they are running at about 600 crore
run rate and have got very aggressive targets, which they are assured to achieve.

VALUE CHAIN FRAMEWORK OF NYKAA

Porter‘s Value Chain Analysis, also known as Porter‘s value chain Framework is a
management tool that Nykaa can use to separate its strategic business activities and re-
assemble them in a way that can add up to its competitive advantage through price
fluctuations in the market. This analysis focuses on the differences in the business activities
and explains relative pricing and costing concept of Nykaa.

Competitive Advantage

Competitive advantage is all about high quality performance. Nykaa has a distinct
competitive edge when compared to its rivals. It operates at a way too lower cost and
Commands a good premium price.

Value Chain

The value system of Nykaa is a big part of the market that includes both distributors and the
suppliers at upstream and downstream levels. This makes the manager‘s role very prominent
as he is solely responsible to observe the company‘s value system and all of its activities
causing high impacts on Nykaa with their new additions or reductions from the existing ones.
Manager here is entitled to make the decision about where to have a grip in the value system.

Value chain activities

According to the Porter‘s model, the value chain activities are basically of 2 types:
 Primary
 Supporting

Nykaa has 5 categories of primary value chain activities:

1. Inbound Logistics :These Logistics are associated with disseminating, storing and
receiving product inputs. This includes warehousing, handling materials and
architecture to maintain consumer database for the company. Nykaa has currently
outsourced most of these activities.

2. Operations: Operations is the process of transforming raw materials into the finished
products. In Nykaa‘s café, the operational activities are quite broad. It involves
collected consumer data from Nykaa‘s database to build company‘s new strategies
based on consumer buying behavior.
 3. Outbound Logistics: These are about the distribution of final products to the buyers
and the channel partners. They include wholesalers, distribution channels, retailers
etc.

4. Marketing and Sales: This activity focuses on creating a sales medium where
Nykaa‘s potential customers can buy its products. Selecting channels, pricing
strategies, ad campaigns, promotional activities etc., are few of the activities that
come under this category.

5. Services: Like every other company, Nykaa needs an activity that can keep track of
post-sale data information and maintain it for further successful usage in terms of the
progress of its products.

Nykaa‘s support value chain activities are those that supports its primary activities.
There are 4 such activities:

1. Firm Infrastructure: This includes general management, quality management,

finance & accounting, planning and legal services. These activities support Nykaa‘s
value chain wholly. The scope of all these activities differ as Nykaa is a diversified
organisation within the industry. Nykaa‘s planning and financing strategies are made

at the corporate level where as legal services, accounting and quality management are
dealt with at the business unit level.

2. HRM: In any organisation, Human Resource Management is the key to its success as
it supports various activities like – recruitment, selecting & hiring employees,
training, people planning, skill assessment, development, compensation at various
business levels like unit level and corporate level. In a firm, this particular support
activity either affects the competitive advantage or defines it.

3. Technology development: Today technology is considered to be the most prominent

factor as it supports almost everything in an organisation. Tech-development at Nykaa
consists of activities like field-testing, tech-selection, component & feature design,
and process engineering.
 4. Procurement: Nykaa uses its procurement activities to make input purchases like raw
materials, machinery needs, lab equipment, supplies & office essentials, buildings etc.
procurement support activities also use technology to evaluate a company‘s on-going
performance.

BUSINESS MODEL

Nykaa’s business model is based on certain strategic business operations that ultimately
deliver the final order as a product to the consumer. Its business model majorly involves three
main aspects starting from the inventory model, showcasing inventory as selling products and
order fulfillment.

 Inventory model

Nykaa runs its business on both online and offline platforms and to run it effectively
they maintain adequate stock in form of inventory in their warehouse. The inventory
model is very productive at delivering a faster delivery of goods to the customers as it
eliminates the dependence on other sellers for fulfilling the order and it also maintains
reliability in terms of quality as the product is directly received from a specified brand
without involving middlemen.

 Displaying goods online and offline stores

Nykaa showcase its beauty and wellness products on its online portals and it has
established various offline stores for serving the customers locally. And for the local
stores, the products are directly bought by the customers. While in the case of an
online store it depicts the goods range as per the inventory available. So, it becomes
crucial for the business to keep a regular check on stock availability and required.

 Order fulfillment

In the case of online shopping Nykaa promises to deliver within 1 to 4 days of tenure
after the order placement. Eventually, Nykaa manages to generate revenue from the
discounts provided to them for procuring goods from direct brands. They get a great
product margin as they buy goods in bulk and at last the final consumer is also
benefited in terms of reliability, quality, and the genuine price charged by Nykaa.