ADALYA JOURNAL ISSN NO: 1301-2746

A STUDY ON WITH REFERENCE TO AND SNAPDEAL

NAYANA. N. MBA,(Ph.d) ASSISTANT PROFESSOR, ACHARYA B-SCHOOL ANDRAHALLI MAIN ROAD, OFF MAGADI ROAD, BENGALURU - 560 091 Email: [email protected]

Dr. Veena K.P. M. Com., MBA-Fin., PGDMM, PGDHE. , Ph.D., ASSOCIATE PROFESSOR, DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION, VISVESVARAYA TECHNOLOGICAL UNIVERSITY, MYSORE REGIONAL CENTRE, MYSORE - 570 019.

ABSTRACT

Internet became more powerful and basic tool for every person’s need and the way people work. By integrating various online information management tools using Internet, various innovative companies have set up systems for taking customer orders, facilitate making of payments, customer service, collection of marketing data, and online feedback respectively. These activities have collectively known as e- commerce or Internet commerce. Online shopping made so easy for everyone with their product variations and simple way to buy things. An attempt has been made to critically examine various corporate and business level strategies of two big e-tailers and those are Flipkart and Snapdeal. E-commerce has reached to doorstep of a common individual in it can be seen as a future of commerce. The e-commerce has broken the technological and geographical barriers over the years and has got huge amount of success which many economical analyst and experts never predicted and still it has to go a long way ahead in India. A comparative study of Flipkart.com with one of the close competitor Snapdeal.com delivers the information about the success of Flipkart.com in present Indian market scenario.

KEYWORDS

E-Commerce, Shopping experience, Technology, Online consumer

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INTRODUCTION

The increase in technology provides good opportunities to the seller to reach the customer in much faster, easier and in economic way. Online shopping is emerging very fast in recent years. Now a day the internet holds the attention of market. Millions and millions of people shop online. On the other hand the purchasing of product from traditional market is continuing since years. Many customers go for purchasing offline so as to examine the product and hold the possession of the product just after the payment for the product. In this contemporary world customer’s loyalty depends upon the consistent ability to deliver quality, value and satisfaction. Some go for offline shopping, some for online a nd many go for both kind of shopping. The focus of the study is on the consumer’s choice to shop on internet and at the traditional stores at the information gaining period.

FLIPKART

Flipkart was founded in 2007, by Sachin and Binni Bansal, students of IIT who were the ex-employees of Amazon.com. Flipkart is an e-commerce company based in Singapore, it operates in India. According to alexia internet, Flipkart is one of the most popular website visited in India.

Flipkart sells goods in India through a company called WS retail. The other third-party traders or companies can also sell goods through the platform of Flipkart. Initially in 2008 Flipkart sold books but soon it established itself wide and started selling products like consumer electronics, clothing, home decoration products, appliances, beauty and fashion products etc. Due to the powerful network all over India and effective customer relationship management, Flipkart has earned a topmost position in India. Flipkart allows payment methods such as cash on delivery, net banking, debit or credit card transactions, e-gift voucher and card swipe on delivery. The founders of Flipkart Sachin and Binny Bansal, now has taken the combined net worth in excess of $1 billion, reaching closer to that of Narayana Murthy and Nandan Nilekani of Infosys.

The value of Bansal’s combined stake has crossed over Rs. 6000 due to the fresh $1 billion fund raise. The Murthy family has a net worth of near Rs. 8,700 crore being India’s second largest it services company, while the Nilekani family's net worth holds at Rs 6,500 crore. Infosys took about four decade to reach market cap of about $30 billion while Flipkart raised the valuation of $7 in just seven years, and according the Flipkart officials the company has a set future goal of becoming $100- billion e-commerce Company.

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SNAPDEAL

Snapdeal was started on 4 February 2010 as a daily deals platform, but expanded in september 2011 to become an . Snapdeal has grown to become one of the largest online marketplace in India offering an assortment of 10 million products across diverse categories from over 100000 sellers, shipping to more than 5000 towns and cities in India. In march 2015, Snapdeal brought actor for the promotion of its website in India. In October 2017, According to the reported, Snapdeal's CFO Anup Vikal resigned.

Snapdeal is an Indian E-Commerce company based in , India. The company was started by Kunal Bahl and Rohit Bansal in February 2010. As of 2014 Snapdeal had 300,000 sellers, over 30 million products across 800+ diverse categories from over 125,000 regional, national, and international brands and retailers and a reach of 6,000 towns and cities across the country.

OBJECTIVES

 To study the online marketing in Flipkart and Snapdeal.  To known how consumers are evaluating E-Commerce sites for their purchases.  To understand the workflow of both the company’s.  Comparative analyse of Flipkart and Snapdeal. RESEARCH METHODOLOGY

This part of study defines all the process of data collection. When it comes to data collection, there are two methods in general used by researcher to collect data, primary and secondary. Primary method includes observation method, interview/questionnaire method, and case study method. Secondary method is the method in which already collected data. The present study is based on combination of both qualitative and quantitative data. The qualitative data is collected through the sampling from the consumer. Random consumer is selected for the sampling purpose. The sample individual is selected from different age group, different sex and from different location of Rourkela. The different group of people including student, employee and unemployed, housewives, etc is considered as sample for the study.

The exploratory study was done by circulating the questionnaire within the educational campuses, in some work place and to some online users. Quantitative research in the form of a structured questionnaire was carried out. Sampling was done through non probability convenient sampling. Questionnaires were circulated in the

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form of handouts. The researcher collected data by using a convenience-sampling method by providing 100 samples all around the survey area.

LITERATURE REVIEW OF RELATED STUDIES

Shilpa Arora and Suman Preet Kaur ( 2015), A Comparative Study of leading E- commerce Websites in India. The number of internet users around the world has been gradually growing and this growth has provided the opportunities for global and regional e- commerce. This number is expected to touch 39.0 million users by 2015 as internet penetration increases and ecommerce becomes more secured. The effects of E-commerce are already seen in all areas. This paper analyzes the two emerging giants of E-commerce- Flipkart and Snapdeal. Their current scenario in market and challenges to them are discussed. We also present the future of these two web portals in Indian market. It has been concluded from the secondary data collected from various websites, newspapers that Flipkart has a more command on current e-market and Snapdeal is growing its business at faster rate to compete Flipkart. Based on various parameters these two web portals are analyzed in this paper.

Sheeba Praveen and Prof.(Dr.) Devendra Agarwal andSumaiya faizyab (2015), Comparative study of Flipkart.com, Snapdeal, E-bay: India’s Leading E-business Portals. Ecommerce portals are now trending in India. It is growing in every place and customers are showing interest in using these portals effectively. There are so many portals which are unique in their features and the design ofwebsite. After analyzing the whole model of E-commerce I found basically three business Models have evolved over a period of time in this space and each has its own Pros & cons. Rest all business models are mix and match of any of following 3 models.

K FRANCIS SUDHAKAR and HABEEB SYED (2015), A comparitive study between FLIPKART and AMAZON India, Internet became more powerful and basic tool for every person’s need and the way people work. By integrating various online information management tools using Internet, various innovative companies have set up systems for taking customer orders, facilitate making of payments, customer service, collection of marketing data, and online feedbackrespectively. These activities have collectively known as e-commerce or Internet commerce. Online shopping made so easy for everyone with their product variations and simple way to buy things. An attempt has been made to critically examine various corporate and business level strategies of two big e-tailers and those are Flipkart and Amazon. Comparison have been doneconsidering e-commerce challenges, their business model, funding, revenue generation, growth,survival strategies, Shoppers’ online shopping experience, value added differentiation, and product offerings. Both these big players made their own mark in India, but who is going to be ultimate winner or be the top one is going to be. A comparative study of Flipkart.com with one ofthe close competitor Amazon.com delivers the information about the different strategies to succeed in ecommerce market and different opportunities available in India.

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Swapnil V. Mishra and Dr. Shamkant N. Kotkar (2015), A Study on Current Status of E-Commerce in India: A Comparative Analysis of Flipkart and Amazon, E- commerce has reached to doorstep of a common individual in India it can be seen as a future of commerce. The e-commerce has broken the technological and geographical barriers over the years and has got huge amount of success which many economical analyst and experts never predicted and still it has to go a long way ahead in India. A comparative study of Flipkart.com with one of the close competitor Amazon.com delivers the information about the success of Flipkart.com in present Indian market scenario.

Dr. Komal Chopra and PrernaBhan (2016), Study of E - Com Retail Models in India, The E-Com business sector is prospering and balanced for a solid development in Asia. There are players who made a decent start. Their prosperity relies on upon their comprehension of the E- Com sector and offerings. This paper gives an outline without bounds of E-Com in India and talks about the future development verticals in India's E- Com. It likewise discovers different elements that would be fundamental for future development of Indian E-Com. A primary survey of consumer purchase behaviour has also been done. The results reveal that convenience and discount offers play a very important role in the buying decision of the consumer. The study concludes that inventory based model, marketplace model and hybrid model are the three prominent models that help a retailer sustain in the market.

DEMOGRAPHIC PROFILE OF THE STUDY AREA:-

This study was conducted in college, work places and to some particular places were it is well established area. The following section will be mainly focused on some demographic characteristics of their study area in terms of sex of the respondent, qualification, income, education etc...

Table 1 :- It represents the male and female of the respondent.....

Male 61 61% Gender Female 39 39%

100 respondents were taken into consideration for the study. The table representation shows the percentage of male and female who are doing online shopping. It shows that 61% of male go for the shopping while 39% female do the shopping. This means

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that more of the male member involved on the shopping. This gives a general idea of the sex ratio who is more involved in shopping.

Table 2 :- iIt shows the age content of a specified respondent

18-29 71 71% 30-39 23 23%

40-49 6 6% AGE 50-59 0 0%

60-79 0 0% 80 above 0 0%

The above table representation shows the age category of population who choose online shopping .The major of customers who use online shopping to fulfill their need ranges mostly between 18 to 29 age category comprising of 71% of the total consumers and this is mostly seen among them because of the increasing technological revolution among the youth population and they are able to use this technology for their well-being more than other age group category. Next the age group of 30-39 contribute as the second most consumer type using online shopping services of 23%. For this age group time is the major factor for using them this stream as way to shop. Next the age group of 40-49 contribute the next online users with 6% and the next age group doesn't prefer online because of their olden days technology. Because most of them have lack of adequate knowledge of technology used.

Table 3 :- Shows th qualification of the respondents...

Student 28 28% Metric 20 20% EDUCATION Graduate 22 22% QUALIFICATION post graduate 30 30%

The above table representation shows the qualification of the respondent, and the maximum qualification is other than that of post graduate people which consist around 30%. Next it comes to graduate were it is 28%. The intermediate group of metriculation which consist of 20% and the primary group like student consist of 22%.Qualification is a major factor for online shopping,Unless and until the person is qualified enough to access the Internet. They cannot do online shopping Table 4 :- Shows the current occupation of the respondent

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Retired 0 0% Private job 16 16%

Government 2 2%

CURRENT self employed 14 14% OCCUPATION IT profession 0 0% Teaching 3 3% House wife 5 5% Unemployed 60 60%

By the above table we can conclude that maximum number of respondent are unemployed that is about 60% and then it comes to 16% of the respondents are private job people. and next preferably it comes to self employed people of 14% and then some of the respondents like government employee, teaching profession and house wife comes to 2%, 3% and 5% respectively.

Table 5 :- Shows the monthly income of the respondents...

1. < RS 5000 62 62% 2. RS 10001 - RS 50000 31 31% MONTHLY 3. RS50001 – RS 100000 7 7% INCOME 4. Rs1000001-RS 200000 0 0%

5. > RS 200000 0 0%

The above table representation shows the income of the respondent, and the maximum income for the shopping site comes from the student class of 62% of less than 5000 income. These people are not employed rather they study and do shopping online this is because they are updated with the current technology. Second the representation shows that the 31 % of the people respondent belongs to the income category of ten thousand to fifty thousand . Next 7% respondent of these particular study belongs to between fifty thousand and one lakh. next when it comes to more than one lakh no respondents are there according to our study area.

DATA ANALYSIS

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1.1Based on customer’s perception….. Here we are going to study on the basis of customer perception according to their tastes and mind perception………..

SL NO STATEMENT Flipkart Snapdeal Amazon others

1 Which is the most preferred online site?..... 39 23 24 14

2 When it comes to discount which site provides 32 15 25 28 you more offer?.....

3 Respondent is more satisfied with which site 35 27 26 12 pricing.....

4 Which site has got more loss increased for every 38 29 18 15 rupee spent?.....

The E-commerce in India has grown rapidly in India. The main reasons for the fast growth in various sites is because of customer preference and tastes. By calculating the customer preference and by the above table the graph is given below……

1.1. Here the chart is talking about customer perception.

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40

35

30

25

Flipkart 20 Snapdeal

15 Amazon Others 10

5

0 Most preferable more discounts Respondent is Loss increased online site on which sites more satisfied for every rupee with which site spent pricing…

Source:- Survey of data

Interpretation…

The most preferable website for online shopping is Flipkart as it was the only site for online shopping in the country for many years later when other sites came into picture its market went down, still it’s the most preferred site as its marketing done properly with superior brand quality of product’s and services over other sites . The next comes the snapdeal site were consumers prefer after flipkart. This is because of the recent increasing in the marketing strategy of the site and an assurance to give better product and service. Next comes Amazon site to the major people it is an online shop gaint outside the country still its striving hard to market its brand in the country and assures a major potential for market in the future. Next comes few other sites like Myntra, Jabong, Shopclues etc……

Next when it comes to discount factor in particular sites the majority of the member have been voted for Flipkart, what the Flipkart do is provide discount factors and purchase the consumers by attracting according to the preferable taste. After

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Flipkart 28% of consumers preference goes to other sites like , shopclues etc… And next comes the Amazon were it plays major role of discount factor after Flipkart were it as 25% of customers preference. Finally it comes to 15% Snapdeal, when we compare between both of the sites like Flipkart and Snapdeal, it produces less number of discount factors…

When it comes to the pricing level the maximum level of 35 % of the consumers have responded to the Flipkart, as they provide more level of discount and less cost of price were customers may prefer only those sites. After that it comes to Snapdeal were 27% of consumers prefer to that site. And it comes to Amazon of 26% and other sites to 12% .

Next when it comes to loss faced by the customer for every rupee spent 38% of respondent were voted to their preferable respondent that is flipkart,were it is reciprocal in this area. Next it comes to snapdeal of 29% , after it is amazon and other websites which the respondent is nearly 18% and 15% respectively.

1.2. It is based on most preferable site respondent under age…

Less than 15 15-25 25-40 40 above

The most preferable respond are under which age..... 9 71 14 6

1.2 Here the graphical representation shows that the most respond are under which age…

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80 70 <15 60 15-25 50 25-40 40 >40 30 20 10 0 The most preferable respond are under which age…..

Source:- Survey of data

Interpretation…..

By this graph we came to known that 71% of the respondents are under the age group of between15-25 years. Were the young generation prefer and adopt new technology and go to shop in online. Next the age group of between 25-40, as per our survey it is 14% of people go and shop through online under this age group and next comes the age group of less than 15 of 9% were there are still child and do no to use the technology properly and finally rest of the 6% comes to the age group of more than 40.

1.3 Here the table conveys that how often the respondent on shop through online occurs…

Once in Once in 2 More month month frequently Very rare

How often respondent on shop through online occurs?..... 19 41 27 13

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1. 3 Therefore here the graph is showing the data survey of how often the respondent on shop through online occurs…

45 40 35 Once in month 30 Once in 2 month 25 More frequently 20 Very rare 15 10 5 0 How often respondent on shop throughy online occurs?......

Source:- Survey data

Interpretation:-

From the above given graph recent study shows that due to increasing need of society and time constant has led most of the population switch to online shopping . It has seen that nearly 41% of the regular population do buy the product in every 3 months at a regular interval. 19% of population do online shopping More frequently. 19% of population do online shopping atleast once in a month which is because of availability of income and technology to do shopping and 13 % of consumers do very rarely

1.4. Here table conveys us about through which method they respond quickly.

Online By friends Advertise. reviews Others

Respondent Choosing Method of E- commerce site site will be morely depends through.. 18 27 44 11

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1.4 chart shows the graphical presentation of the above table...

45 40 35 By friends 30 advertisement 25 Online reviews 20 15 Others 10 5 0 Respondent choosing method of E-commerce site will be morely deoends through…

Source:-survey data

Interpretation:- Which is the perfect way to reach the customers? Or by what basis client is choosing online site for shopping. According to the above table and the graph respondents are choosing as per online reviews that is 44% and next comes to the advertisement were 37% of the consumers prefer sites only through advertisement and giving equally balanced 18% of them prefer through the suggestion of the friends and 11% by others…..

1. 5. Under what they face problem morely.....

Delay in Product cheap Non- delivery damage quality Delivery Others

Under which respondents do they face more problem..... 32 27 19 15 7

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1.5. Graph represents the above mentioned data of under which respondent do they face more problem...

35

30 Delay in Delivery 25 Product 20 Cheap quality Non-Delivery 15 Others 10

5

0 Under which respondents do they face more problem…….

Source:- Survey data

Interpretation:- From product order to the delivery of the product its company's responsibility to fulfill customers requirements. Customers expect what they paid for, if some things happen they will hesitate to purchase again. From the above graph we came to known that most of the respondents of 32% have facing the problem in delay in delivery and after that they are with product damage of 27% and 19% cheap quality, 15 % of the consumers are facing with Non-Delivery of products and 7% by others…

1.6 This table convey us the dependable way of payment mode…..

Debit Credit Cash on card card delivery Others The most respondent preferable consumer depend on which payment mode….. 33 8 57 2

1.6 The below mentioned graph represents us the consumer taste on what basis customer prefer their their mode payment…

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60

50

40 Debit card Credit card 30 Cash on delivery

20 Others

10

0 What preferable do they depend on payment mode?.....

Source;- Survey data

Interpretation…..

This graph speaks that the majority of the online users do prefer only for cash on delivery. According to our survey 57% of the consumer do prefer only for cash on delivery product, were it may feel easier and convenient to the consumers to buy the product. 33% of the people do go through online transaction according to their taste. And next comes the credit card of 8% and other options to 2%.

1.7 Table shows the yes or no answer of the respondent in the specified survey data...

Yes or No on personal basis....

Yes No

STATEMENT

Do you feel confident and relaxed about returns or money back policy when you buy a product in online... 74 26

Do they accept returns with easy?..... 29 71

Does the service center executive listen to you? Solve your problem on the first call?..... 52 48

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Shipping charges will be based on the prices?... 80 20

1.7 Here the below mentioned graph says that how many of them are responded according to their satisfication....

80 70 60 50 40 Yes 30 20 No 10 0 Are you Do they accepts Do they provide Shipping confident about returns with you first charges will be money back easy….. preference from based on the policy….. service prices….. centre…..

Source:- Survey data

Interpretation:- It is clear from the study 74% of people are confident about their money back policy and rest of them does not accept to this. When it comes to returns it becomes reciprocal were majority 71% of people does not easily accept their returns. And next when it comes to response that is balanced between them, because 52% says that preference given to consumer by the service center is satisfied and rest of 48% does not satisfy. And here last comes the shipping charges were 80% of them says that shipping charges is based only on the price of product what they do purchase in sites…..

FINDINGS

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1. The respondents were between the age group of 18-80 above. Out of which 71% were of the age group of 18-29 and the rest 23% were between the age group of 30- 39 and rest of 6% belongs to the age group between 40-49

2. The respondents were also asked about the frequency of shopping. 41% of them shop once in a 2 month. The remaining of 27% shop more frequently. 19% said that they shop atleast once a month on online and rest of 13% shops very rarely.

3. Most of the respondents shopped online. The reasons of shopping online were many but the most likely reason for the respondents to shop online were reduced prices, COD and convenience.

4. 25% of the re said that convenience was their main reason to shop. An equal amount of them shopped due to reduced prices. A majority of them of 57% shopped for the cash on delivery option most e commerce sites offer. The sites for comparison were flipkart, snapdeal, amazon, paytm and jabong.

5. The most preferred online site for most of the respondents was Flipkart & snapdeal. The likely division was an equal 50% for both these sites.

6. Customers are preferring quality product from e-commerce sites, even it is bit expensive.

7 Snapdeal is trying very hard to reach the top position but flipkart is giving very tough competition towards consumers.

8. Flipkart is leading in every aspect of survey such as price, preferred and also suggesting to friends.

9 Undoubtedly Flipkart and Snapdeal made their impact on customers very strongly and captured loyal customers. And they are ready suggesting their online shopping site to rest of their friends.

10. Every age group people are interested in offers, if they are in need or not they want to purchase.

SUGGESTION

Snapdeal is performing ok but not good enough. There are so many cases where people felt that packing might have been better than this. Either it may be big or small / expensive or not product has to be treated with care. Some of the products mostly apparel’s are turning out with original cover of supplier, which shows negligence of them. In this issue Flipkart made a mark among us, because whatever the product is their packing will obviously safe and secure. As per the above data we found that

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there are so many reasons behind the E-Com. E-Com is performed in India but very slow there is not a single factor responsible for it so many factors are responsible for it. And if we can remove these factors we can change the performance of the ecommerce in Indian market these are some below: When we talk about the E-Com then we say that only those people can use the ecommerce those are literate. The main reason of the little growth of E-Com is the internet. Here people don’t know about the E-Com they don’t have the availability of internet. Normally we found that in small or backward city's internet facilities is not there. As soon as internet access will increase the size of E-Com will increase. There are so many fraud cases with online customer that’s why they don’t want to again use E-Com and one more thing some time they confused what we should do and where we should do they complain. Security of the funds also of the main reason of the behind the E-Com .Sometimes, online customer faces the problem of the refund of the funds. So government as well as facilitators of the E-Com should make the clear guideline regarding this.

The increase in internet penetration with the advent of 4G technology, extensive and vast use of Smartphone’s and lower and lower data rates, how India shops has completely changed the scenario. The increasing demographics and the growth in the internet user base aid to the further growth of E-tail in India. From the customers and prospective investors viewpoint, Flipkart, Snapdeal and Amazon have done a considerably good job to gain attention and loyalty. The potential of these companies to become profitable is extremely big. However, the suitable sustainable business model has to be put in place for future growth. Their success depends upon the ROI’s on the huge investments on the infrastructure and logistics which also add to the ingredients of success.

CONCLUSION

The e-commerce has been in the peak in India during past 2 years, the fast growing technological changes has opened an option of online selling and purchase for a common man in India. The Research provides information about an overall analysis of a leading ecommerce platform in India and thereby examines their strategies with respect to E-business and marketing. The Overall Brand Value of Flipkart is good, but it is facing some tough competition from its global competitors like Snapdeal and Amazon. But according to this research paper analysis if talking about domestic market i.e. India, Flipkart is the most superior E-business portal which is aggressively expanding & planting its roots deep into the Indian market & at the same time shifting the mindset of the people i.e. from going & shopping from physical store to online stores.

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REFERENCE

1. Shilpa Arora and Suman Preet Kaur ( 2015), A Comparative Study of leading E- commerce Websites in India, International Journal Of Business Management , www.ijbm.co.in ISSN NO. 2349-3402 , VOL. 2(1),2015

2.Sheeba Praveen and Prof.(Dr.) Devendra Agarwal andSumaiya faizyab (2015), Comparative study of Flipkart.com, Snapdeal, E-bay: India’s Leading E-business Portals.International Research Journal of Engineering and Technology (IRJET) e- ISSN: 2395-0056 , Volume: 02 Issue: 08 | Nov-2015 p-ISSN: 2395-0072 , www.irjet.net

3. K FRANCIS SUDHAKAR and HABEEB SYED (2015),A comparitive study between FLIPKART and AMAZON India, AIJRRLSJM VOLUME 1, ISSUE 8 (2016, SEPT) (ISSN-2455-6602) online Anveshana’s international journal of research in regional studies law, social sciences, journalism and management practises

4. Swapnil V. Mishra and Dr. Shamkant N. Kotkar (2015), A Study on Current Status of E-Commerce in India: A Comparative Analysis of Flipkart and Amazon, Volume 3, Issue 2, February 2015 International Journal of Advance Research in Computer Science and Management Studies Research Article / Survey Paper / Case Study Available online at: www.ijarcsms.com

5. Dr. Komal Chopra , PrernaBhan (2016), Study of E - Com Retail Models in India, Volume-6, Issue-2, March-April 2016, International Journal of Engineering and Management Research, ISSN (ONLINE): 2250-0758, ISSN (PRINT): 2394-6962

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