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Reliance jio
- 1. Made By:- Arjit Sharma Ashima Singh Reliance Jio
- 2. About Reliance Jio Reliance Jio Infocomm Limited is an Indian mobile network operator owned by Reliance Industries. It’s headquarter is in Navi Mumbai, Maharasthra. Founder of Reliance Jio is Mukesh Ambani. It was founded in 2007. Jio became publically available on 5th September 2016. The subscriber base of Jio is 227 million.
- 3. History In June 2010, Reliance Industries (RIL) bought a 96% stake in Infotel Broadband Services Limited (IBSL) for Rs 4,800 cr. Although unlisted, IBSL was the only firm to wi broadband spectrum in all 22 zones in India in the 4G auction that took place . Later continuing as RIL’s telecom subsidiary, IBSL was renamed as Reliance Jio Infocomm Limited (RJIL) in January 2013. In June 2015, Jio announced that it will start its operations all over the country by the end of 2015. At the beginning stage, Jio was opened only for employees. The company commercially launched its services on 5th September 2016. Within the first month of commercial operations, Jio announced that it had acquired 16 million subscribers. This is the fastest ramp-up by any mobile network operator anywhere in the world.
- 4. Mission Vision Harness the full potential of the internet to create a digital revolution through high speed connectivity. Movement that will give Indians the power to make their dreams possible.
- 5. Objective Reliance Jio aims to cover 99% population by end of FY18. Jio has built India’s largest next generation all-IP network with latest 4G LTE technology which is ready to deploy 5G technology and beyond. Reliance Jio aims at providing internet services to the rural areas of the country.
- 7. Strength Weakness Strongest Customer Acquisition Strategy Strong Customer base Technology Strong backing of parent company Reliance Industries Brand Management Fast and wide network Multiple offerings under a single name Late entry into the market Activation issues Pricing Controversies Too many freebies Data connection poor
- 8. Opportunity Threat Future driven technology 5G and 6G technologies Applications Competitive Pricing Strategies Expansion to other countries Risk of loss of customers Saturated market Highly competitive market Changing Government Policy Rapid upgradation in Technology
- 9. Porter’s Five Force Model Competitive Rivalry Threat of New Entry Buyer Power Threat of substitution Supplier Power
- 10. Competitive Rivalry Customers’ low switching cost intensifies the competition in the industry. Price sensitivity of customers also adds to this. Telecom sector in India is almost saturated. Almost every household possess a mobile network. In this case, every rival is fighting for the same share. There is no market left for new entrants. New entrant Jio must get significant share only from the competitors.
- 11. Threat of New Entrant The entire Indian telecom sector redesigned by the new aggressive entrant of RJio. The Reliance announcement of its free offers creates drastic changes not only on its rivalry competitors but also on subscribers, power of suppliers, power of buyers and threat of substitutes. Jio has come up with a device that upgrade 3Gmobile to function 4G services.
- 12. Threat of substitutes Hardly there are no substitute products for mobile services in the industry. Hence the impact of substitutes is insignificant in this case.
- 13. Bargaining power of buyers Switching cost is very low. Customers can switch their service through the option ‘port’ without changing their number. Customers in this industry is observed to be price sensitive. Therefore, customers expect superior quality service at lower cost. This made mobile giants Airtel and Vodafone Idea to slash their tariff nearly 40%. Eventually it adversely affect industry profitability. Also become threat to the new entrant
- 14. Bargaining power of suppliers Being supplier of mobile services, the players have less bargaining power with the customers. This force the players to offer better services at reasonable price.
- 16. What is Competitive Advantage? Competitive advantage is the favorable position an organization seeks in order to be more profitable in its rivals. It is the leverage that a business has over its competitors. A company must be able to detail the benefit that they provide to their target market in ways that other competitors cannot.
- 17. Top Telecom of India Rank Operator Subscribers Market Share 1. Vodafone Idea Limited 443.94 million 38.37% 2. Airtel 344.87 million 29.81% 3. Jio 227.05 million 19.62% 4. BSNL 113.34 million 9.80% 5. TATA DoCoMo 24.26 million 2.10% 6. MTNL 3.51 million 0.30%
- 19. Service and Data war of JIO and its competitors JIO Jio provides same offers to each customer. Jio offers unlimited data with minimum price High speed of the internet Latest 4G technology Through ‘MY JIO app’ so many facilities available to the users like; 1. Jio Music 2. Jio Cinema 3. Jio TV 4. Jio 4G Voice 5. Jio Newspaper 6. Jio Mags 7. Jio Security etc. Competitor Airtel Airtel offer differ from one user to other user Latest 4G technology is adopted Saving up to 20% on family mobile spends. Vodafone Idea Now idea Provides more data with low price. In Vodafone the unused data will be added back to next month Merging of Idea and Vodafone is a block buster deal because both networks are one of the top networks in India
- 20. Pre Jio Vs Post Jio
- 22. Why Jio? Before Jio High base rate 16000 plans to confuse customers Roaming Charges Blackout VAS charges Pay for every service separately High Data rates Voice Charges After Jio Base rate = Rs 250/GB Simple Structure India Free Roaming No Blackout/ Unfair Charges No old-world VAS in digital world Only pay for one Service Lowest Data rates in the world Truly Free voice
- 24. DATA Explosion Jio has created world record for fastest 100 mn acquisition Market expanded 6X with Introduction of Jio in less than 6 months 100 Cr GBs/month (With JIO) 20 Cr GBs/Month0 5-6 Months 20 Cr GBs/month
- 25. Impact on Jio Ranking 0 20 40 60 80 100 120 INDIA South Korea Japan China United States CR GB/month
- 26. Jio bringing the best in India World’s largest all IP network Highest VoLTE traffic of 200 cr mins/day Created device ecosystem for 4G in India Jio hits 3.6 mn peak simultaneous video streams daily( v/s largest US operator who had a peak of 1.7 mn) Jio is India’s only 5G ready network due to its elastic network and deep fiber
- 27. Bibliography www.wikipedia.com Jio University www.marketing91.com SWOT analysis by “Hitesh Bhasin” economictimes.indiatimes.com searchcio.techtarget.com - Definition Slide Share- Presentation uploaded by “iKartikRT” www.ijrmbs.com – Report given by S Salomi www.ijcsmc.com – Research article about Porter’s Five forces on Telephony service in India www.ril.com – Analysis report