Monday, May 9th, 2016

The Flipkart Downgrade Effect

Manik Roy | May 9, 2016 12:27 pm Print
Flipkart will need some quick repair in its management board and make it happen quickly as Amazon is breathing near its neck for the number one spot
The war is on : Flipkart vs Amazon

It is said that if you are overvalued without any real character, then one day you will be downgraded to the level where you will never imagine before. First, you have to know yourself well and get to work accordingly. However, it is true that our conscious mind will never accept any type of downgrade tag in our identity. Practically, it happens similar to Flipkart. Actually, you have to get deep delve into the Flipkart development. Its model was based on the western startup theme. It is just like a copycat. Therefore, it is inevitable for them for getting negative feedback from the rating body. It is observed that if your startup is based on an original idea, then you can expect the steady rating about its identity and it will stable at the point where there will be no fear at all as well. Therefore, some elements appeared to be responsible for downgrading Flipkart market value.


According to the startup ecosystem, a startup will be successful through its journey if it has an original theme which new to the business world. In this case, Flipkart followed a short-cut path to rise quickly through the copycat of the Western startup model. Therefore, after nine years, they begin to feel the heat of copycat mechanism. Actually, you will see that Amazon is quite successful through its self-invented way for the startup journey. It is observed that Amazon is inching towards its goal despite its one worry about the delivery mechanism. The reason is that in India, Amazon is far away from Flipkart in delivery segment. If Flipkart followed its own startup theme, then it could not face the downgrade humiliation, which is very much detrimental towards its work force.


When Flipkart starts its business as an online bookseller, then they begin to shine as a soft identity as a newcomer in the startup world. Nevertheless, after nine years they closed its first business instantly. It is their big mistake of its life. The reason is that Flipkart should not underestimate the power of book in any business. Book always attract the royal readers who can be transformed into a real customer at the latter stage. You should keep in your mind that book always attracts the finest mind as customers who can be an instrumental for moneymaking venture of Flipkart. It is said that at any cost you should not throw away or forget your fist event or moment in your life. The reason is that it will steer you to the peak when the time will arrive as well.

Market Valuation

When you like to make the valuation of your company, then it will need so much care and attention also. It happens to Flipkart also. The reason is that it will make or break its branding in the business world. Moreover, if its value is exaggerated without any limit, then it will face the music. Before the valuation of a company, for attracting investors is crucial. The reason is that if the company gets the exaggerated valuation mark without any in-depth analysis, then in the course of time, it will bring the real face to the outer world as well. It is observed that some kind of greed and excessive ambition will compel to exaggerate the company’s market valuation. It is true that sometimes obdurateness works in this case despite them know its consequences as well.

Employee Exodus

When the pool of talent makes an immediate exit from a company, then the company’s reputation will be at stake. Moreover, it will give bad impact on the rest of work force in the company. Flipkart in recent time, some talents left and make the chaotic wave to the management as well. Actually, what happens is that you should keep in your mind that your employee will never leave the company for the remuneration. Nevertheless, they will leave the company if the company could not give them support, appreciation, inspiration, encouragement, engagement in the company’s decision and care for the employee as well.

Management Chaos

When a company going through the bad phase, then you will definitely understand that, something is going wrong in the company’s management. The reason is that it is observed that the company runs by the management and its future lies on it as well. Now, Flipkart will need some quick repair in its management board and make it happen quickly as Amazon is breathing near its neck for the number one spot. Of course, 2016 is the hibernation point for Flipkart and it will give enough time to get back in the business around 2020.

Elusive profit

If a company could not make a profit over the time, then its brand name will suffer. Because it will create an adverse impact on the investor and its shareholders as well. Last nine years, Flipkart could not make any substantial profit, which could make it more stable one in the coming years. It is said that if money comes in the company’s account, then the company will make substantial command over its competitor. In this case, Flipkart overlooks its power over the years. If they intentionally lose the market but make some profit at the regular interval, then its market value would have today more than five times more as well.

Therefore, you can expect that Flipkart will able to overcome this phase with a brilliant comeback. Moreover, it is very much important for Indian startup community to go proceed further also.

Manik Roy