Myntra and Flipkart

FLIPKART-MYNTRA

ACQUISITION

CONTENTS

Merger and Acquisitions

E-commerce Industry in India

E-business Model

Flipkart Pvt Ltd

Myntra.com

Flipkart-Myntra

Conclusion

Merger & Acquisitions

Both these terms are aspects of corporate finance, strategic management and companies dealing

with buying, selling and combining two or more different companies and similar entities that can help

a company grow at a higher rate in its existing industry or a new industry or location, without

creating a subsidiary to run the added operations. M&A result in restructuring of an

organization with an aim to increase growth rapidly. The process is very complex, with many

dimensions influencing the outcome. Whether the purchase of a company is perceived as being a

"friendly" or a "hostile" one depends significantly on how the proposed acquisition is communicated

to and perceived by the target company's board of directors, employees and shareholders.

In an acquisition, both companies may continue to exist. However, in a merger he acquiring

company continues to do business whereas the acquired company gets integrated into the acquiring

company and thus ceases to exist after the merger. As a result of either merger or acquisition,

companies get access to new markets and industries that were previously unaccessible due to cost,

regulations or indirect barriers like the ability to create resources such as capital, knowledge and

labor. Challenges come from foreign competitors entering the domestic markets and from local

competitors reducing their product or service costs through global sourcing, moving operations

offshore or gaining economies of scale by venturing into new markets. Globalization requires firms

to become more streamlined and efficient while simultaneously extending the geographic reach of

their operations.

Thorough Planning and execution are essential for a successful strategic alliance. Integration

is reached only after mapping the processes...