Flipkart & Citibank

1. What problems if any are faced by Citi Bank? Evaluate the options and suggest your solution

Major problems faced by Citi Bank are 1) Growing credit losses 2) Less number of net cards in usage 3) Loss of market share to its competitors 4) People's usage of cash as their preferred medium 5) Increased popularity of debit cards and ATMs resulting in reduced usage of credit cards and 6) Less impact of the technological advancement in the financial services sector 7) Card acquisition cost associated with getting new customers 8) Operating cost of the credit card business etc.

For avoiding most of the above mentioned problems, citi bank should properly segmentize the market into high end users and the rest. After that, it shall concentrate only on the niche market side of high end users. With this approach, the conversion charges, credit losses and other problems shall easily be removed.

2. What is the business model of Flipkart? Do you think Flipkart is doing well? If you are responsible for the company, what strategic changes do you suggest?

Flipkart is India's leading e-commerce portal allowing the sellers and buyers to transact online through them. They are a combination of both the marketplace model which offers a lot of sellers to sell their stuff as well as the reseller/inventory stocking model with less number of sellers. Flipkart earns a commission amount from each transaction which happens through them. They have e-Kart as their