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23 views15 pages

Revised Case Study

Uploaded by

bhavnakaushik2000
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CASE STUDY OF BLINKIT

Made by :-
Paras Sharma
Vikas Kanojia
Nikita Tiwari
Bhawana Kaushik
Anand Yadav
Khagendra
Lokesh Rao
Rohit
Saurabh
Chetan
BLINKIT: A CASE STUDY INQUICK COMMERCE INNOVATION

Blinkit, formerly known as Grofers, is a pioneering Indian e-commerce platform


specializing in rapid grocery delivery.
Founded:December 2013
Founders:Albinder Dhindsa and Saurabh Kumar
Headquarters:Gurugram, India
Acquisition: Acquired by Zomato for $569 million in June 2022
Mission: Instant commerce indistinguishable from magic
Purpose of the Study: To analyze Blinkit’s operational model, challenges, and
strategies for sustained competitiveness and profitability.
Facts About Blinkit

Operates in 30+ Indian cities.


Rebranded from Grofers to Blinkit in December 2021, emphasizing ultra-
fast delivery.
Pioneered a 10-minute delivery model leveraging technology and
proximity-based logistics.FY23 Revenue: ₹724.2 crore (up from
₹236.1 crore in FY22).
FY23 Losses: ₹1,078.9 crore (up from ₹996.7 crore in FY22).
Competitors: BigBasket, Swiggy Instamart, Zepto, Amazon, Dunzo.
Problem Statement

1. Operational Challenges
Managing the efficiency and costs of a 10-minute delivery model.
Criticism over potential employee burnout.
2. Competitive Pressure:
Market dominance of players like BigBasket and Amazon.
Entry of new rivals in the quick commerce sector.
3. Profitability Concerns:
Significant financial losses despite increasing revenue.
4. Customer Trust and Safety:
Addressing safety concerns of delivery partners and maintaining service quality.
Brainstorming Strategy

1. Operational Efficiency:
• AI-based inventory management and route optimization.
• Advanced in-store planning to reduce order processing
time.

2. Employee Well-being:
• Flexible work schedules and improved compensation
models.
• Emphasis on delivery safety standards.
3. Revenue Diversification:
• Expansion of private-label brands.
• Enhanced monetization through advertising and
partnerships

4. Market Expansion:
• Aggressive entry into Tier 2 and 3 cities.
Evaluation of Solutions

SWOT Analysis:
• Strengths: Strong brand backing (Zomato), innovative delivery model,
loyal customer base.

• Weaknesses: Operational losses, heavy dependency on


logistics infrastructure.

• Opportunities: Expanding e-commerce market, potential in


untapped regions.
• Threats: Regulatory hurdles, rising competition, worker dissatisfaction
risks.

Evaluation Metrics:
• Financial viability.
• Employee satisfaction.
• Customer retention rates.
• Competitor benchmarking.
Strategic implications of SWOT analysis

The insights from a swot analysis can guide strategic decisions in several
ways:

• So strategies (strengths-opportunities): being acquired by zomato


provides financial stability and synergy in customer base and operational
expertise.

• Strategic implication: utilize zomato’s network to expand reach


and integrate offerings for bundled food and grocery services.
WO Strategies (Weaknesses-Opportunities):

• High Operating Costs: Instant delivery models require


substantial investment in warehouses, logistics, and staff, leading
to low-profit margins.

• Strategic Implication: Focus on economies of scale and


renegotiating supplier contracts to optimize costs. Explore
subscription models or premium services for profitability.
• ST Strategies (Strengths-Threats):
• (Strength: Tech-Driven Operations)
Use advanced analytics and AI-driven solutions to optimize inventory
management and predict consumer demand, ensuring faster and more
accurate deliveries.

• Threat: Intense Competition


Continuously upgrade the mobile app to improve user experience,
making it more attractive than competitors.
• WT Strategies (Weaknesses-Threats): Optimize Costs to
Address High Operating Expenses
Weakness: High Operating Costs:
Implement route optimization and energy-efficient delivery methods
(e.g., electric bikes) to cut operational costs.

Threat: Economic Downturn :


Negotiate bulk discounts with suppliers and local vendors to
reduce procurement costs, passing some savings to customers.
Selection of Best Solution

Optimal Approach:
1. Integrated Logistics Optimization:
• Invest in AI-driven tools for better efficiency in delivery and inventory.
2. Sustainable Operations:
• Focus on eco-friendly practices and rider safety.
3. Customer-Centric Innovations:
• Personalized offerings and enhanced user experiences.
4. Profitability Drivers:
• Strengthen private-label offerings and advertising revenue streams.
Reasoning: This multi-faceted approach ensures financial sustainability
while addressing customer and employee needs, thus bolstering Blinkit’s
market position.
Analysis
Findings and Insights:
1. Blinkit has successfully disrupted the quick commerce industry,
but challenges like profitability and operational sustainability
need urgent attention.
2. Its technology-driven business model offers scalability but requires
strategic investments in employee welfare and market adaptation.
3. The company’s rebranding and innovation demonstrate a commitment
to staying competitive in the evolving e-commerce landscape.

Conclusion:With strategic enhancements and a focus on holistic growth,


Blinkit can transform its current challenges into long-term opportunities for
market leadership

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