Will Flipkart and OLA Survive?

Will Flipkart and Ola Survive in Indian Market?

   

   I found a very interesting piece of answer for this.The international rivals for Flipkart is Amazon and Ola is Uber. After Comparing the Burning rate,Sales and the Investment coming up for the Local Companies and International Companies one simple question arises whether Localities can Survive in the market or not?

  As i was going through some posts in Quora, Written by Mandeep Kumawat, He has explained the situation very nicely.As the history says money has always won over the innovation. He explains it with an example.

In 1970 coca-cola had made their expansion in india and became the most famous brand till 1977, due to Indian government policies. At that point of time, Thums-up and Campacola were launched by Chauhan brothers (of parle) and Charanjeet singh(pure drinks). They had made there mark in India with the advertisement ‘Happy days are back again’.

But after 16 years coca-cola again made the entry and they had to face tough competition against Thumps-up. But since they were profitable in other markets they had forced Thums-up to sell their ventures to them by saying either you sell to us or we will burn your cash out by providing free drinks in market. This was the Indian venture which had provided the tough competition to its foreign ones but had been sold out due to lack of funds and lack of fighting spirit. 

https://www.youtube.com/watch?v=ZX604kR5Q-Y&feature=youtu.be

Same is the case with Flipkart as amazon made their entry in india with the huge capital. Since Flipkart also has the best brains in the industry to innovate and beat the beast Amazon is. But these best brains may lose hope in the vision and may be lured by amazon through hefty packages. So, it boils down to capital game at the end. I believe in the 90’s thumps up could have done great if they had fought till the end. But it is the capital and sentiments of people towards foreign companies made them quit.

I totally agree with Flipkart that they have much innovation and larger audience to impact upon but Amazon lost against Alibaba in China so they are on their toes to mark their presence in India even at the cost of money.

Flipkart Should take advantage of being a localite in the  market and through its innovation both Flipkart and Ola should win the market upon its rivals. Lets hope the best wins.