Porter's Competitive Strategy of Flipkart and Paytm.

 



Flipkart

COST LEADERSHIP: Cost leadership strategy involves gaining a competitive advantage by lowering the cost. Cost leadership is the main generic strategy that FLIPKART uses in various consumer markets.

COST LEADERSHIP STRATEGIES USED BY FLIPKART:

·        The objective of using the cost leadership strategy is to preserve market leadership by the efficient value chain management.

·        Flipkart targets the middle class and it helps them to expand their market share.

·        Flipkart frequently offers discount and coupons.

·        Flipkart focuses on affordability and easy accessibility.

 

DIFFRENTIATION: Differentiation is another Porter’s strategy that Flipkart follows with the combination of cost leadership strategy.

 

DIFFRENTIATION STRATEGY USED BY FLIPKART:

·        Unique product features.

·        Extensive experience, the oldest brands and strong presence.

·        Brand logo, unique and distinctive brand logo.

 

FOCUS STRATEGY: Focus is the third generic competitive strategy that encourages companies to concentrate their resources on expanding the narrowly targeted segments.

 

FOCUS STRATEGY USED BY FLIPKART:

·        It has adopted focus strategy by lowering the cost and offering the best value.

·        Brings changes in product designing and packaging to satisfy customers psychological expectations and value for money.

 

PAYTM

COST DIFFRENTIATION STRATEGY: Paytm uses this strategy for lowering cost to lead the market.

 

COST LEADERSHIP STRATEGY USED BY PAYTM:

·        This strategy helps Paytm accelerating growth through diversification to expand the market share by targeting the middle class, which is the largest proportion of consumer market.

·        It focuses on affordability and easy accessibility.

·        It does promotional campaigns to increase brand popularity and encourage consumption.

 

DIFFRENTIATION STRATEGY: This strategy focuses on diversification.

 

DIFFRENTIATION STRATEGY USED BY PAYTM:

·        Paytm expands its customer base emphasizing by diversification.

·        Unique product features.

 


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