As everyone know that failure is stepping stone for success, and "Reliance Jio Infocomm" had made it real.
And my presentation is all about the failure of reliance and "Evolution of Reliance Jio Infocomm Ltd".
2. Abstract
Reliance Jio Infocomm Ltd is an Indian mobile network operator. Launched on
15th July 2004, which led to a major failure for Reliance Industries Limited (RIL).
And after many years with a great idea again Reliance Infocomm entered the
indian mobile network on September, 5th 2016. In this Presentation the success
story of the recent management principles adopted by the company were
analysed. The organisational structure and marketing strategy planning, SWOT
Analysis.
4. Evolution of Reliance Jio Infocomm Limited
The case is about how Reliance Jio Infocomm Limited (Jio) rose to become one of
the leading telecom networks in india, after a big failure of reliance communication
limited in the year 2005.
In the year 2016, Jio has captured a large market chunk (thick and solid) and
achieved numbers that took competition over a decade to achieve. It is India's only
network which is solely (not involving anyone) the 4G Volte network and the free
service that it offers. The company adopted a Predatory Pricing Strategy to enter
the Indian telecom market.
5. And offered free voice, data, and message services in the name of "Welcome
offer" from September 5, 2016, to December 31, 2016. Later, the offer was
extended up to March 31, 2017, as the "Happy New Year offer".
The subscription process for the Jio sim was also simplified and there was a huge
response from Indian customers.
And in 6 months Jio achieved around 369.93 million subscribers.
6. Apart from that, Jio planned to start its commercial operations from April 1, 2017,
by charging the customers under different tariff plans. the crucial challenge for
Ambani was to hold the subscribers even after the offer than with his strategy he
came up with low tariff plans. And for which the subscribers are habituated for the
internet or digital life. So, they need to sustain in the same network for past
internet life.
And then all the subscribers sustained in the same network and slowly Ambani
was into profits with 369.93 million subscribers.
7. SWOT Analysis
> S - Strength
-The cheap priced tariff plans.
-Jio Apps services.
> W - Weakness
-Call drop issues.
-Unpredictable plans.
(Before commercial plan started)
8. > O - Opportunities
-Jio is the first Indian network to offer free 4G services and it got reached
everywhere in the country.
> T - Threat
-An increase in the user base may cost reduce speed.
9. Strategy Used for Reliance Jio Infocomm Limited
Predatory prices are an investment for a future monopoly, a sacrifice of today's
profits for tomorrow's bright future. The investment must be recouped.
To recoup the investment
● Pricing below cost to injure rival firms and thus induce their exit:
> Predator sets, price very low
> Rival firms cannot compete and exit the market then the firm becomes a
monopoly and then increases the price.
10. Average Rough Calculation of Jio Profits
Example :
10 crore consumer base (Subscribers)
Minimum Recharge Amount : 149 Rs per month * 12 months = 1788 Rs
So, 10 crore base * 1788 Rs = 17.8k crore.
This is the Jio infocomm Ltd profit on an rough average calculation.