The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
Jio
1.
2. History
• In June 2010, Reliance Industries Limited (RIL) bought a 96%
stake in Infotel Broadband Services Limited (IBSL) for Rs. 4800
crore.
• Later it was renamed as Reliance Jio Infocomm Limited
(RJIL) in January 2013.
3. About JIO
Type Subsidiary of RIL
Industry Wireless
Telecommunications
Owner Mukesh Ambani
Brand
Ambassador
Shah Rukh Khan
Market
competitors
Airtel, Vodafone,
Idea etc.
Product &
services
4G, Jio Fiber (5G),
LYF Smartphone, Jio
Apps
Revenue 11,679 crores INR
(2019)
4. Bargaining Power Of
Customers:
Bargaining Power Of Supplier:
Threat Of New Entrant: Substitutes:
Competition:
-Airtel
-Vodafone & Idea
The Bargaining
power of
suppliers is
LOW, because
switching cost
and ability to
forward integrate
are low
substitutes are
LOW
- the telecom
industry requires
high capital
investment.
- e-sim cards
-GOVT. Policies
Threat of new
entrants is LOW
because for a
new company to
be as successful
as Jio as they have
a first mover
advantage with
VoLTE and 5G.
The bargaining
power of
customers is
HIGH because
Number
Portability is
easily accessible
to all consumers.
JIO has analyzed the market potential very well because of which just after the
demonetization Jio started giving out free data for a few months. This helped
the company attract more customers and increase GDP growth by 1.38% .
After the analysis,they concluded that the telecomm sector had not yet
achieved its full potential, so JIO took advantage of this and came up with
the idea of tapping more and more customers by giving them free
services.
7. P.E.ST.E.L
Political
Economical
Social
Technological
Environmental
Legal
Politically, Jio is following the Prime Minister’s vision of
Digital India. Among many Jio apps, Jio Money facilitates
customers to pay or transfer money digitally. The company is
supported by government as it falls in the ‘Make in India’
scheme that has been encouraged by the government
Socially, Reliance Industries spent
more than Rs.750 crores in terms of
Corporate Social Responsibility . Jio
offered free internet services to
Indore Traffic Police and are planning
to offer their services to other cities.
They are planning to provide free
services at government schools, and
hospitals.
Technologically, the VoLTE technology and jio fibre
is the most advanced technology in the country. This
technology provides better call quality over its competitors
as voice calls are broken up into packets of information
Environmentally, Jio has
installed safe and
environment – friendly
towers that do not emit
electromagnetic radiation.
Legally, All the legal and
lawful aspects affecting
the company as:
-COAI weighs legal options
to counter jio suit
-its competitors have
challenged a lawsuit
against it due to
unauthorized TRAI rules
violation
Economically, after the
demonetization Jio started giving out
free data for a few months. This
helped the company attract more
customers and increase GDP growth
by 1.38%
8. 1) Decreased internet speed: With addition of users to the Jio network, the speed of Jio's 4G data services has came
down drastically after September 5. Now, the internet speed has come down to 6-10 Mbps from 50Mbps during
the launch stage.
2) The Jio TV app is subjected to frequent crashes and has a long boot-time, which is also the case with most apps
released by Jio. In our experience, the Jio4GVoice is one of the most glitchy Jio apps.
3) Apart from the VOLTE support, most Indian smartphone users are still stuck with 3G phones. The Jio sims won't
benefit them in any way.
4) Battery consumption: Reliance Jio has launched its internet services on the 4G band. With not much difference
in the rates of 2G or 3G services and 4G connection, new users are inclining towards Jio. The only constraint with
4G services is that they take a toll on the phone's battery, forcing the user to charge it repeatedly. With no 2G or
3G options, the user can't switch to a slower connection to save battery.
5) The merging of Jio's 4G services with Reliance Telecom's 3G and 2G services might solve this problem in the near
future.
6) It is suggested that Tata Teleservices & Reliance Communication should develop innovative Communication
services with in depth research development and continue improvement in the quality of services.