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.
About JIO
Type Subsidiary of RIL
Industry Wireless
Telecommunications
Owner Mukesh Ambani
Brand
Ambassador
Shahrukh Khan
Market
competitors
Airtel, Vodafone,
Idea etc.
Product &
services
4G, Jio Fiber (5G),
LYF Smartphone, Jio
Apps
Revenue 11,679 crores INR
(2019)
Factors
Internal External
Micro
Environmental
Macro
Environmental
Micro Environment Analysis
Value Chain Analysis
Market Segmentation
Target Customers
Positioning
Strengths and Weakness
Value Chain Analysis
Value chain represents the internal activities a firm engages in when
transforming inputs into outputs.
Value chain analysis (VCA) is a process where a firm identifies its
primary and support activities that add value to its final product and
then analyze these activities to reduce costs or increase differentiation.
Value Chain Analysis
Imported about 4.5
Lakh from China
before launch
- Economic Times
Jio assigned with
GTL infra ltd for
adding 1Lakh
towers for better
network.
-India Infoline
Jio uses Volte
technology and has
launched Jio Fiber
(5G).
-Business Standard
Journal
48,000 employees
and 1200+ stores,
24*7 Customer
Service.
- Reliance Digital
Invested 18,000
crore in Jio Fiber
network and
planning to
expand it.
-livemint.com
Unique promotional
Strategy and invest
about 20-25 crores.
- Gadgetsnow
Value Chain Analysis
Market Segmentation
 Indian customers always prefer
low cost to buy anything.
 The offer provided by Jio are more
valuable in terms of both, cost and
service due to which there has
been increase in Jio subscribers.
 Geographically they segmented
the market over PAN India.
 The new behavior of customers is
using smartphones and Jio utilized
it well.
Targeting
• Jio has segmented the market based
on the masses and have targeted the
youth, employees and working class
of the society (Jio,2017) .
• Moreover, the consumers are
targeted by Jio bundling with LYF
phones and giving free Jio services.
Jio applications, a Jio SIM card, and
a Jio 4G enabled phone is provided
in the bundled offer.
Positioning
• Jio has positioned themselves in
market as a company which provides
regular offers to its customers.
• Recently after the launch
(Moneycontrol) the Apple iPhone 8
and iPhone X, Jio has tied up with
Apple with a 70% buyback offer for
the customers.
• Such offers are not provided by other
company and hence Jio has a upper
hand and advantage over other
companies.
Strengths and Weakness
Strengths
 Approximately, Jio has invested Rs.1,50,000
crore (Livemint) due to which they have the
power to bear the losses that they are making
by providing free services to the consumers.
 Jio also has a wide spread network and cover
all 22 circles (Chaprama) in India.
 Jio has focused towards the Prime Minister’s
vision of Digital India. Reliance Jio’s success
has facilitated Reliance Industries Limited to
surpass its competitors and achieve 2nd
position in the market for its brand value
(Financial Express).
Strengths and Weakness
Weakness
 Highly dependent upon data consumption: - As
per the current trend around 60 to 70 percent
of revenue comes from voice calling and hence
there is a huge potential loss for making voice
calling free. This loss can be offset only when
consumption of data increases manifold.
 Operation of Mobile Number Portability Still
not smooth:- Nowadays mobile number has
become identity of a person and hence it is
difficult for anyone to change his mobile.
 Data speed of jio struck a lot that could
possibly migrate the jio customers to its
counterparts.
Analysis
Competitors
Customers
Intermediaries
Suppliers
Market
share
• Total 350+
millions
customers.
• Added 82.6 lakh
subscribers in
June
• Current : 29.2%
• By FY22 : 45%
Airtel, Vodafone, Idea and
other teleservice providers
• They import sim cards
from China
• Partnership with
Microsoft and Apple
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.
Porter’s Five Forces
Macro Environment Factors
Analysis
P.E.ST.E.L
Political
Economical
Social
Tehnological
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 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%
PESTEL ANALYSIS
Presented By –
Subhadeep
Sumi
Supriya
Tanmay
Tejaswini
Vaivab

Jio

  • 2.
    History • In June2010, 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 Subsidiaryof RIL Industry Wireless Telecommunications Owner Mukesh Ambani Brand Ambassador Shahrukh Khan Market competitors Airtel, Vodafone, Idea etc. Product & services 4G, Jio Fiber (5G), LYF Smartphone, Jio Apps Revenue 11,679 crores INR (2019)
  • 4.
  • 5.
    Micro Environment Analysis ValueChain Analysis Market Segmentation Target Customers Positioning Strengths and Weakness
  • 6.
    Value Chain Analysis Valuechain represents the internal activities a firm engages in when transforming inputs into outputs. Value chain analysis (VCA) is a process where a firm identifies its primary and support activities that add value to its final product and then analyze these activities to reduce costs or increase differentiation.
  • 7.
    Value Chain Analysis Importedabout 4.5 Lakh from China before launch - Economic Times Jio assigned with GTL infra ltd for adding 1Lakh towers for better network. -India Infoline Jio uses Volte technology and has launched Jio Fiber (5G). -Business Standard Journal 48,000 employees and 1200+ stores, 24*7 Customer Service. - Reliance Digital Invested 18,000 crore in Jio Fiber network and planning to expand it. -livemint.com Unique promotional Strategy and invest about 20-25 crores. - Gadgetsnow
  • 8.
  • 9.
    Market Segmentation  Indiancustomers always prefer low cost to buy anything.  The offer provided by Jio are more valuable in terms of both, cost and service due to which there has been increase in Jio subscribers.  Geographically they segmented the market over PAN India.  The new behavior of customers is using smartphones and Jio utilized it well.
  • 10.
    Targeting • Jio hassegmented the market based on the masses and have targeted the youth, employees and working class of the society (Jio,2017) . • Moreover, the consumers are targeted by Jio bundling with LYF phones and giving free Jio services. Jio applications, a Jio SIM card, and a Jio 4G enabled phone is provided in the bundled offer.
  • 11.
    Positioning • Jio haspositioned themselves in market as a company which provides regular offers to its customers. • Recently after the launch (Moneycontrol) the Apple iPhone 8 and iPhone X, Jio has tied up with Apple with a 70% buyback offer for the customers. • Such offers are not provided by other company and hence Jio has a upper hand and advantage over other companies.
  • 12.
    Strengths and Weakness Strengths Approximately, Jio has invested Rs.1,50,000 crore (Livemint) due to which they have the power to bear the losses that they are making by providing free services to the consumers.  Jio also has a wide spread network and cover all 22 circles (Chaprama) in India.  Jio has focused towards the Prime Minister’s vision of Digital India. Reliance Jio’s success has facilitated Reliance Industries Limited to surpass its competitors and achieve 2nd position in the market for its brand value (Financial Express).
  • 13.
    Strengths and Weakness Weakness Highly dependent upon data consumption: - As per the current trend around 60 to 70 percent of revenue comes from voice calling and hence there is a huge potential loss for making voice calling free. This loss can be offset only when consumption of data increases manifold.  Operation of Mobile Number Portability Still not smooth:- Nowadays mobile number has become identity of a person and hence it is difficult for anyone to change his mobile.  Data speed of jio struck a lot that could possibly migrate the jio customers to its counterparts.
  • 14.
    Analysis Competitors Customers Intermediaries Suppliers Market share • Total 350+ millions customers. •Added 82.6 lakh subscribers in June • Current : 29.2% • By FY22 : 45% Airtel, Vodafone, Idea and other teleservice providers • They import sim cards from China • Partnership with Microsoft and Apple
  • 15.
    Bargaining Power Of Customers: BargainingPower 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. Porter’s Five Forces
  • 16.
  • 17.
  • 18.
    P.E.ST.E.L Political Economical Social Tehnological Environmental Legal Politically, Jio isfollowing 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 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% PESTEL ANALYSIS
  • 20.