- Basic principle of Trading : Sale - Cost = Profit . If you do not follow this principle , you cannot survive whoever you are, irrespective of your high paid strategies and efforts bestowed.
- Cost - Sale = Loss , may be followed on a very temporary basis to attract consumers to purchase goods through Internet but has to reach sooner to the Basic Principle as indicated above.
- So far, Flipkart has followed Cost - Sale = Loss policy to attract more and more consumers, educating consumers to buy online. It has habituated people to buy goods at low prices , higher discounts. I heard that its most valuable .com company of India . Valuation pundits might have evaluated the company for their prospective buyers but do they have indicated that selling at a price lower than cost would make the valuations intact ?
- Flipkart has gained popularity, purchased goods , properties on loan / equity funds infused by investors and bankers but how much it has contributed from retained earnings to ease debt ? How much it has distributed as dividend to make its shares more valuable ?
- Buyers of flipkart have more money than Flipkart and reaching up to that level could be a pipedream for flipkart's promoters. They tried everything, they brought all prospective buyers to flipkart , but now they might short of strategies and new plans.
- So the best way ..... Exit ..... and get praise among Indians that promoters made so much money and now they can retire with a mammoth Bank Balance.
- Is it the real praise or Kudos ? Did Amazon Promoter think or acted positively to sell his company ? I never heard. The real fun and respect to carry on the business and compete with rivalries and beat them .
- But perhaps Indian business schools , as seen in last ten year's trend, teach how to make business wealthier & Valuable ... but perhaps it still does not teach (or do not know ) how to make a business viable for ever and sustainable.
- I think Flipkart was on the verge of perform or perish. They realised , Indians can purchase at discount and deep discount or at free... They cannot let you make Super Normal Profit !!
- All the best to Bansals and would like to read the book he may write after a few months ..
- Bangalore start up kids will now not think to create online selling web sites. If they will , there will be only one objective either Amazon or Walmart or some other giant will buy their invention some day
Caveat : Its just a personal thinking
