This case study examines Jio Infocomm Ltd and the Indian telecommunication industry. It provides background on the industry, major players like Airtel, Jio, and Vodafone Idea, and details on Jio's services, products, and key leadership. A PESTLE analysis identifies factors supporting Jio like government favoritism and its cost leadership strategy. However, risks also exist like dependency on data usage and fiber optic capacity issues. Jio has grown rapidly to 369 million subscribers through its low pricing but this has forced competitors to consolidate and reduced industry ARPU. The case examines Jio's differentiation strategy and performance metrics like revenue for the industry.

1. A case study on
Jio Infocomm Ltd.
Strategic management
Group- 2
Olivia Mukherjee – 19DM129
Pulkita Vyas – 19DM147
Romani Banerjee - 19DM167
Saurabh Kumar – 19DM187
Shreyansh Singh – 19DM206
Tanveer Ahmed – 19DM225
Ashish Dhand – 19DM245

2. About Telecommunication Industry
● The Indian telecom services can be divided predominantly into-
-Basic
- Mobile
- Internet services
● India is currently the world’s second-largest telecommunications market with a subscriber
base of 1.20 billion and has registered strong growth in the past decade and half.
● India has the second highest number of internet subscribers globally which is approx. 560.01
million, at the end of 2018.
● Availability of affordable smartphones and lower rates of data are expected to drive growth in
the Indian telecom Industry.
● Indian telecom industry is regulated by an independent body called Telecom Regulatory
Authority of India (TRAI).
● 5G is expected to launch by 2020.

3. Different Telecom Service Providers
Particulars Airtel Jio Vodafone Idea
Started Operations July 07, 1995, Public Limited
Company
5 September 2016 Aditya Birla Group and
Vodafone Group partnership
Market Share 411 million 369.93 million 304 million
Business Model ● Grow market share.
Grow revenue. Drive
down cost.
● Win Customers For
Life
● Welcome Offer
● Happy New Year Offer
● LYF series
● Free Wi-Fi services at
6 cricket stadiums
● Jio multimedia apps
bundle
Global expertise and deep
local knowledge

4. About Reliance Jio Infocomm Limited
● Mukesh Ambani is the owner of the company.
● The services were first “beta” launched to Jio’s partners and employees on 27
December,2015. Later commercially launched on 5 September ,2016.
● With coverage across all 22 telecom circles in India.
● Reliance Jio Infocomm Limited, doing business as Jio, is a (4G)LTE mobile
network operator in India.
● It is wholly owned subsidiary of Reliance Industries headquartered in Mumbai .
● Lowest international call tariff in the world.
● Various applications of Reliance Jio are – Jio Join, Jio Play, My Jio, Jio On-
Demand, Jio Beats, Jio Mags, switch N walk, Jio XpressNews, Jio Security for
Mobile, Jio Drive.
● Products and services- 4G calling/data service, LYF smartphones, JIOFI,
Affordable 4G phones.

11. KEY PEOPLE IN THE ORGANIZATION
MUKESH AMBANI
CHAIRMAN

12. -Favoritism from the part of Govt.
-Strong Govt. at center
-Linking Jio’s growth with Govt.’s
“make in India” initiative.
-Launch of services after
demonetization at bare minimum
prices, contributed to 1.38% of GDP
-Acquired 31% in just years
-Low cost helped penetrate rural
market where the potential is very
high
-Largest population of youth
-Focused on millennials
-Advertising and pricing strategy mainly
attracted the middle-class youth
-Maintained diverse brand portfolio to retain
customers
-Recharge schemes offered in various segments
depending on the needs and demands of the
customer
PESTLE ANALYSIS – JIO

13. -First network in India to launch voice
over LTE, This technology can support
5G and 6G in the future
-Capability to adapt fast and capital-
intensive technological upgradations
-Launch of Jio fiber- dedicated set up
for providing ultra-high-speed
internet
-Part of various controversies and
allegations from its competitors
-Testing period of 253 days
-Predatory pricing
-Opposition over call ringing
time of Jio
-Contributed more than 750 Cr. On
CSR activities
-Setting up of networks that does
not emit harmful EMR
-Free internet service to Indore
police
PESTLE ANALYSIS – JIO

14. BUSINESS LEVEL STRATEGY - RELIANCE JIO

16. EFFECT OF JIO’S COST LEADERSHIP STRATEGY
•As the cheap rates offered by the Reliance Jio, its competitors reduced their prices drastically to retain
their own customers.
•Airtel has reduced their 4G prices by 67% and also offered free calling to fight back with Reliance Jio’s
cheap plans. Vodafone reduced it prices by 45% and offered free calling too.
•The other major effect was seen in closure of small network operators like Telenor, Aircel etc.
•The merger of Airtel with Tata made them second largest subscriber base in India
•Idea and Vodafone merger

18. PITFALLS IN JIO’S DIFFERENTIATION STRATEGY
There is a differentiation between voice calling and data usage and therefore
company has to depend upon data consumption for profitability due to making
voice calling free.
The ambitious CDMA venture was unsuccessful and so analysts feel that free
users might not come back as a paying consumers.
Company has inadequate fibre optic capacity and it require huge financial
requirement for the same.

19. PERFORMANCE

20. SUBSCRIBER COUNT

21. Growth & Profitability of the Industry

24. Revenue

25. Revenue From Telecom Services (Crores)
Year Gross Revenue Adjusted Gross Revenue ARPU per month
2017 68335.39 48379.00 126.91
2018 63315.18 40831.33 89.34
2019 62198.26 35697.24 71.62

26. Thank You!