Flipkart, Myntra, Jabong - A Story Of Consolidation

•  Barriers to entry:
  The e-commerce space has seen a lot of new players emerging but with bigger players consolidating, the barriers to entry are going to increase which is good for the big wigs.
• Diversify product offerings:
  A company looking to offer a new product can take the acquiring route as you get the know-how as well as the experience of dealing in the new product.
• Improving business operations:
  With acquisitions, the parent company gets to use better capabilities be in the form of logistics set up, vendor relationships or customer experience. It also gets to enjoy more competitive benefits through technology and infrastructure up gradation.

Thus, it looks a decent strategic move on part of Flipkart but only time will tell how the acquisition pans out.

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About the Author:
Abishake Koul graduated from BIT Mesra in 2013 and had a 2 year stint with Maruti Suzuki before joining IIM Lucknow where he is a part of Media & Communication Cell. His hobbies include writing poetry and running.