SNAP-DEAL FAILURE- CASE STUDY

SNAP-DEAL FAILURE- CASE STUDY

 Snap-deal founder and CEO Kunal bahl said by 2016 Snapdeal will be number one one company in terms of sales that time Snapdeal was at number 2  position

By March 2017 snapdeals market share decrease from 25% to  4%

earlier snapdeals revenue was 6.5 billion dollar but in 2017 it was less than 1 billion dollar

There were so many reasons for the downfall of Snapdeal

No unique Identity

Snapdeal could not prepare it's different it image or identity

Founder started Snapdeal in 2010

It was initially just a platform for daily deals

2011 de converted Snapdeal into e-commerce website Snapdeal could not create your own identity it used to do the same thing which is done by Flipkart and Amazon Jack ma one said you should learn from your competitor but never copy copy and  you Die

Snapdeal was not having any unique proposition

Like Flipkart focus on fashion and electronics

Amazon focus on prime and pantry

Amazon and Flipkart make exclusive partnership in xiaomi and oneplus mobiles

Snapdeal could not make any great partnership wood partnership

Snapdeal gold in which we have free home delivery and 14 days return time and free services did not make Snapdeal increase their sales

Amazon prime paid services made them very attractive

Customer not only wanted fast delivery but also good Customer services required

Snapdeal could not able to give that  services

Snapdeal could not make themselves different from the competitors

Lack of vision

Snapdeal could not decide their vision 

Snapdeal wanted to be platform of APP

Like Facebook purchased Instagram and WhatsApp Snapdeal wanted to purchase other companies

Founder thought that let's not make this company e e commerce company but ecosystem

Flipkart purchase jabong and myntra and make use of it I was never been could not do it

Snapdeal purchase freecharge for 400 million dollars then in demonetisation paytm I am was ahead of of everyone and Snapdeal could not make use of freecharge

Snapdeal purchase fashion portal exclusively.com and could not make it run so they sold it

Snapdeal started purchasing e-sportsbuy.com. Doozton.com

Shopo.in  wishpicker.com 

Groupon.com but could not make them run profitable and successful

It was difficult to to make them successful as Snapdeal itself was not what profit making

Snapdeal used to you do everything except improving customer experience and quality

Focus

The problem was lack of focus

Lack of education

Founders many a times started changing goals and objectives

The Can not execute one single thing

And used to try new things

Sometimes they wanted to be India's largest marketplace

Sometimes they wanted to be India's largest seller

India's largest catalogue

Largest shifting of products in 24 hours

These are the different different goals Snapdeal has but could not focus on any one single goal

They used to focus on when you think and used to forget other old thing

Snapdeal will not focusing on profits

With themselves don't know what they were doing

Founders used to take big decisions regarding  Snapdeal without asking any senior management or senior officials

that's why many senior officials the left the place because they will not participate in the decision making they were not involved in decision making

Founders could not execute their ideas into reality

Difference between startup and Company

Founder we're running Snapdeal like a company but actually it was a startup

Snapdeal got investment and he was shifted to gurugram near Delhi then they started to hire lot of employees from IIT without focusing on profitability because of that their salary budget has increased

Targets increase but nobody was accountable duty and efficiency decrease drastically

Founder salary was  43 crore

While other founders of CEO of the similar startup where taking 2 to 4 crores of salary

Because of that trust of the employees started  decreasing

Slowly funding start decreasing

Nikesh Arora quit softbank and it was major loss because nikesh Arora only help Snapdeal to get investment from softbank

Softbank never said Snapdeal to take investment from others that's why Snapdeal left with no investor

July 2016 Snapdeal has 500 million dollar

After use of heavy branding in Diwali and lot of other expenses Snapdeal left with less investment

Softbank did not invest further in SnapDeal

Softbank decided to to sell Snapdeal order to Flipkart or paytm because then you that Snapdeal cannot become a market leader now

That's why they were ready to sale Snapdeal below 1 billion dollar however Netflix and other companies denied because they were having losses in this deal

From this incident we learn we should not copy from others and do things differently

Startup should work with vision

Startup should be profitable as early as possible