1. MSc Systems Engineering (Electronics) and Engineering Management
Module : Business In Engineering (EEM7013)
Submitted by: Yuvraj Singh
y1aes@bolton.ac.uk
Submitted to : Prof. RE Sheriff
R.Sheriff2@bolton.ac.uk
Date of Submission:09/12/2020
2.
3. Introduction
1. Reliance Jio is Indian Telecommunication organization, a subsidiary of Reliance Industries.
2. Reliance Industries acquired 95% of Infotel Broadband Services Limited (ISBL) in year 2007 for $670 million.
3. Later, changed the name to Reliance Jio.
4. Headquarters in Mumbai, Maharashtra, India.
5. Jio commercially launched its services on September 05, 2016.
6. Jio used predator pricing policy and started free 4G services and Voice over LTE across all the 22 circles in country.
5. Product activation was completely digital using e-KYC (Know Your Customer).
6. Jio reached the customer count of 16 million in one month and 100 million on February 22, 2017.
7. Centre of attraction:
SIM activation in 1-2 hours.
Free high speed 4G data and voice calls.
Mobile number portability.
Multiple social applications such as Jio TV, Jio NEWS, Jio Music, Jio Chat, Jio Pay, Jio weather.
4. Timeline
2010 2015 2016 2019 2020
Reliance
Industries
acquired Infotel
Broadband
Services Limited,
later renamed to
‘Reliance Jio’
Acquisition
4G services were
initiated to staff
and internal
associates on Dec
27,2015.
Beta Launch
Commercial
launch took place
on September
5,2016.
Commercial
Launch Commercial
launch of Jio
fiber on
September 5,
2020.
Jio fiber
Mukesh Ambani,
chairman of
Reliance
Industries, made
remarks on the
launch 5G by the
end of year 2021
at India Mobile
Congress 2020.
5G
6. SWOT ANALYSIS
STRENGTH
Cheap 4G Plans.
Optic fiber network across country.
Backing up by strong parent company.
Pan-India license.
S
WEAKNESS
Voice call issues.
Activation issues.
W
OPPORTUNITY
5G.
Global market.
O
THREADS
Competitors.
Unethical business behavior.
Loss of customers.
T
7. Porters Analysis
Entry of Jio caused a huge disruption in
Telecomm sector. Current scenario in Indian
telecomm sector indicates low risk situation
from new entrants.
Threat of new entry
Bharti Airtel and Vodafone-Idea are providing
competitive plans and data speed, which
causes a medium to high level of risk for Jio.
Threat of substitute
Existing players are selling products merely at
same price to have control on market share.
Competitive rivalries are at high level for Jio.
Competitive rivalries
Free 4G phones and high commission were
given to supplier for SIM activation and every
recharge done.
Bargaining power of suppliers
Customers can switch to other mobile networks
using mobile number portability feature.
Customer base is directly linked to revenue of
an organization. High bargaining power of
buyers.
Bargaining power of buyers
8. PESTLE
Due to high sensitivity and tough
competition, Jio remained legally
involved in many controversies.
Legal
Uses network friendly towers which
do not emit electromagnetic
radiation.
Environmental
First to introduce Voice over LTE
technology for better call quality.
Jio Fiber, high speed broadband
facility is highly popular. Also
aiming to launch 5G with
homegrown technology.
Technology
Jio is supporting initiatives of
Government of India. Also, used the
pictures of Indian PM on their
promotional banners.
Political
Currently, Jio is charging minimum
compared to other telecom networks
and no charge for calling on same
network. 31% contribution to
market share in 3 years.
Economics
Launched multiple social mobile
applications( Jio News, Jio Weather,
Jio Music and so on) for different
age group, Scholarships and
provided free internet to some
government departments.
Social
9. Figure1 : Annual report of change in number of network subscribers from 2018 to 2019. (Telecom Regulatory Authority of India,
2019)
10. Conclusions
1. After late entry in telecomm market, Jio is showing positive increase in customer base and
revenue per customer.
2. Initial marketing strategies helped to gain customers in short interval of time.
3. Currently, recharge plans of Jio are comparatively similar to other network operators.
4. After Jio fibre, it is planning on rolling out 5G by 2021. (India.com Business Desk, 2020)
5. Other Dominant operators(Airtel, Vodafone-Idea) are striking competitors in telecom market.
6. Jio is involved in ‘Digital India’ and ‘Make in India’ initiatives of Government of India and
aiming to provide digital facilities to every citizen of country.
7. Global companies are investments in Jio such as Facebook, Google, Mubadala, General
Atlantic Singapore and others.
11. References
1. India.com Business Desk, 2020. Jio 5G To Be Launched In India In Second Half Of 2021: Mukesh
Ambani At India Mobile Congress 2020. [online] Available at: <https://www.india.com/business/jio-
5g-launch-date-in-india-mukesh-ambani-india-mobile-congress-2020-reliance-jio-4251898/>
[Accessed 8 December 2020].
2. Telecom Regulatory Authority of India, 2019. Yearly Performance Indicators Indian Telecom Sector.
4th ed. [ebook] New Delhi, p.11. Available at:
<https://trai.gov.in/sites/default/files/YIR_25112020.pdf> [Accessed 9 December 2020].
3. 3. Internet in india, 2015. Https://Thedotinsaga.Weebly.Com/Current-Statistics-Of-Internet-Users-
In- India.Html. [image].
4. 4. Gupta, A., 2016. Why Is Narendra Modi Promoting Reliance Jio? - Quora. [online] Quora.com.
Available at: <https://www.quora.com/Why-is-Narendra-Modi-promoting-Reliance-Jio> [Accessed
26 November 2020].
5. Kumar, S., 2018. RESTRUCTURING OF INDIAN TELECOM INDUSTRY: EMERGENCE OF
RELIANCE JIO AND M&A CASES INVOLVING AIRTEL-TELENOR AND VODAFONE-
IDEA. Management Insight, 14(1), pp.42-47.
6. Kumar, D., Singh, M. and Singh, G., 2019. APPRAISAL OF JIO.
12. 7. 7. Joy, T. and Bahl, S., 2018. Disruption by reliance jio in telecom industry. International Journal of Pure and Applied
Mathematics, 118(20), pp.43-49.
8. Mishra, K. and Tarannum, A., 1991. Impact of Reliance Jio on Indian Telecom Industry.
9. Lalatendu Mishra, 2013, Optic fibre connects Ambanis, < https://www.thehindu.com/business/Industry/optic-fibre-
connects-ambanis/article4573203.ece >
10. Gochhait, S. and Tripathy, P.C., 2016. The game changer strategy of reliance jio–a case study on predatory
pricing. ICTM 2016, 104.
11. Parasuraman, A., Zeithaml, V.A. and Berry, L.L., 1988. Servqual: A multiple-item scale for measuring consumer
perc. Journal of retailing, 64(1), p.12.
12. Money Control, 2020. Https://Cdn57.Androidauthority.Net/Wp-Content/Uploads/2013/07/Wnri-Airtel-Vodafone-
Idea.Jpg. [image].
13. Philip Kotler, Kevin Lane Keller, Abraham Koshy and Mithileshwar Jha. (2009). Marketing Management-A South Asian
Perspective (13th ed.). Pearson Education, New Delhi, pp. 462-463.
14. Kalyani, P., 2016. An Empirical Study on Reliance JIO Effect, Competitor’s Reaction and Customer Perception on the
JIO’S Pre-Launch Offer. Journal of Management Engineering and Information Technology, 3(5), pp.18-36.