EKART's venture doesn't affect Flipkart's propositions of deliveries.
Q. What is included in normal courier services?
A. All the deliveries P2P and documents, etc sent from enterprises like banks, government institutions and all is included in courier services.
Q. What is the goal of venturing into normal courier?
A. Revenue generation.
What could be stopping EKART from getting into normal courier?
Buying power of customers(P2P and enterprises): High - depends on cost.
Threat of alternatives: High - Many local and national options available.
Threat of new entrants: Medium - More or less same infra for providing services is present for all companies.
Intra-industry rivalry: Medium - Not many large players are available however, many service providers are present.
Advantages for EKART -
- Core competancy is in courier services itself hence delivery network is sorted.
- Flipkart's brand name could provide a good starting edge for EKART.
Around Rs. 71B with 33% CAGR in the past decade.
My Recommendation: EKART should totally venture into normal courier delivery