Nowadays we use amazon and flipkart very frequently. But there was a time when we used an another ecommerce platform Snapdeal to buy various products. Do you noticed that we almost forgot snapdeal now.
Some years ago the condition was such bad that it can go bankrupt or ourt of business. In this article we will discuss how once a big giant ecommerce company failed to survive in the market?
It is very important to know about snapdeal as it was planning to listed in stock market soon. So this article will be helpful to understand little bit better about the company.
Lack of USP
Every company need to have a USP, so that even when they are not in the market, people can recall their name by some unique things of the company. But this company did not have any USP.
Every company need to have clear goal to make themselves better. But this company did not have any good future plan. They focused in a lot of things but get successful in none. They lost their 25 percent market share to 4 percent due to this.
No proper acquisitions
They were so bad in term of acquisitions. They buy freecharge in 400 million dollars but they could not operate it well so they had to sell it to axis bank in just 60 million dollars which was a big loss for the company.
Poor finance management
They did not monitor well their finance. Even their CEO was also not very serious of this. They took 45 crore as their annual salary when the company was not doing well.
After all of these they restructured themselves and started their operation from the scratch by doing some simple strategies.
Analysis the market:
After doing research and analysis they found, most of the people of India are middle class or poor. They specifically targeted this audiences. They completely ignore the creamy section. To attract the rural customers they keep local items in their platform.
Improve quality section
As most of the sellers are independent, snapdeal hardly had any control over them. So sometime sellers used to give bad quality products so that people returned that. That gave negative publicity. Therefor they started to checking the review system and only keep the seller who have good reputation.
Failure and Comeback stories and business model of Ecommerce giant Snapdeal
Improve their supply chain
Previously most of the products came from third party sellers. But then snapdeal decided they will provide good directly to the consumers from the manufacturer. It will reduce their cost in many folds and there are less chance to deliver fake or bad quality goods. After sometime people started to notice snapdeal again.
Snapdeal started to fast their cash in and cash out. It means sellers will get money in a week not after 20 days. It helps them to stock more products as they have higher cash flow.
Find their treasures
Snapdeal focused on their seller and logistics which will ultimately completely deliver the products. Previously they tend to ignore this segment.
For all this changes snapdeal still exists in the market.