Disruptive innovation strategy by Reliance JIO

1. Made By:
Aditya Jain

2. • 1) Introduction
• 2) History
• 3) Mission & Vision
• 4) Objectives
• 5) Disruptive Move
• 6) Why JIO?
• 7) Reliance Jio V/S Other Competitors
• 8) Explosion of Data
• 9) India’s achievement by Jio
• 10) SWOT analysis
• 11) Porter’s 5 Forces
• 12) Sustainable Development Goals (SDGs)
• 13) Conclusion
• 14) References

3. • Reliance Jio Infocomm LTD. is a subsidiary company of Reliance Industries Ltd (RIL).
• Headquarter of Reliance Jio is in Mumbai, Maharashtra, India.
• Mukesh Ambani Founder of Reliance Jio and founded this company in 2007.
• RJio has invested around ₹1,500 billions / £15 billions for pan– India operations
(Reuters,2017).
• On September 5, 2016, Jio was made available to the general public.
• Jio had 227 million subscribers in 2018; as of 2022, there are now than 410 million.

4. • In June 2010, RIL acquired a 96% share in Infotel Broadband Services Limited (IBSL) with
₹48,000 millions/ £480 millions.
• IBSL was later rebranded as Reliance Jio Infocomm Limited (RJIL) in January 2013,
continuing to serve as RIL's telecom subsidiary.
• Jio declared in June 2015 that before the end of the year, it will start operating
everywhere over the country.
• Jio first opened its doors only to staff.
• Company allowed general public to use its services from September 5, 2016.
• Jio announced that within the first month of its operations, it has amassed 16 million
customers, setting a new global record for any mobile network.

5. • Reliance Jio wants to reach 99% of people.
• With the most recent 4G LTE technology, Jio has
constructed the largest next-generation all-IP network in
India that is prepared for the deployment of 5G technology
and beyond.
• The goal of Reliance Jio is to bring internet access to rural
areas of the nation.

6. • Reliance Jio used the Freemium model of subscription
to attract customers.
• It provided the customers with free internet service for
3 months after which it charged a minimal cost to
retain the customers.
• Because of this disruptive move, it forced its
competitors to change the way their business is
conducted.

7. • The sole provider of fourth generation (4G) LTE service
was JIO.
• Jio offered download speeds starting at 15-20 Mbps.
• World's lowest international call rate.
• A 4G phone with a free connection can be purchased for
as little as ₹2,999 (£30).There are no surcharges for
holidays, festivals, or the new year.

9. WHY JIO?
Before JIO After JIO
• Strong Base Rate
• 16,000 Schemes to
mislead customers
• Mobile Data fees
• Blackouts and unfair fees
• VAS costs
• Pay separately for each
service.
• Extreme data rates
• Call Charges
• Small Base Rate
• Simple Design
• India Free Roaming
• No Blackout and Inequitable fees
• Digital world has no traditional
VAS
• You only pay for one service
• World's Lowest Data Rates
• Unlimited free voice calls

11. Reliance JIO
• Jio gives the same deals to all
customers.
• Jio provides limitless data for a low
cost.
• Internet speed is good
• Modern 4G and 5G technology
• Numerous services are available to
the users by “My Jio” app.
Other Competitors
Airtel:
• The Airtel deal varies depending on
the user.
• Modern 4G /5G technology is used
• Spending on family cellphone can
be cut by up to 20%
Vodafone Idea:
• Idea now offers additional data at a
moderate cost with average data
speeds.
• Vodafone will add any unused data
to the next month.
• Given that both Idea and Vodafone
are among India's top networks,
their merger represents a game-
changing business decision.

12. • World record for the quickest 100 million subscribers was set by Reliance JIO.
• With the launch of JIO, the market increased by 6X in less than 6 months.
200 mn. GB/month 200 mn
GB/month
1200 mn. GB/month
(with JIO)
5-6 months

13. INDIA South
Korea
Japan China USA
• India has become no.1 country for mobile data usage with JIO
12
0

14. • Largest all-IP network in the world.
• India has the highest VoLTE traffic of 200cr min/day
and a developed 4G device ecosystem.
• Jio surpasses the top US Operator's daily peak of
1.7 million concurrent video streams with 3.6
million.
• Due to its elastic network and deep fiber, Jio was
the only 5G ready network in India.

15. Strengths:
• Strong strategy for acquiring
customers
• solid clientele
• Technology
• Reliance Industries Ltd., the main
corporation, has strong support.
• Management of a brand
• Broad and quick network
• Several products offered under a
single name
Weakness:
• market entry that was delayed
• activated problems
• Price-related disputes
• A surplus of freebies
• bad data connection

16. Opportunities:
• Innovative Technology
• Uses for 5G and 6G technologies
• Comparative Pricing Techniques
• Expansion into new nations
Threats:
• the potential for consumer loss
• a crowded market
• high level of competition
• Modifying Govt. Policy
• A rapid upgradation in technology

17. 1.Threat of New Entrants
2.Threat of Substitutes
3.Bargaining Power of Buyers
4.Bargaining Power of
Suppliers
5.Competitive Rivalry

18. • The threat of a new entrants is low for JIO as
setting up a telecom network is capital
intensive.
• Reliance JIO, a new aggressive entrant,
completely changed the Indian telecom
industry.
• A gadget developed by Jio allows 3G mobile
devices to use 4G services..
• Substitute threat is low in case of
Reliance Jio.
• The switching cost of using the
substitute product is high.
• Customers cannot derive the same
utility (in terms of quality and
performance) from substitute product.
• Cost of switching is extremely Low
• Through the "port" option, customers can
change their service without altering their
phone number.
• Customers want higher quality products at
lesser prices.
• Due to this, cellphone industry giants Airtel
and Vodafone Idea cut their rates by about
40%.
• Players who provide mobile services have less
negotiating leverage with clients.
• This forces the participants to provide better
services at fair prices.
• The position of the suppliers against Reliance
Jio is strengthened when there are few
providers and a large demand for the goods
they are offering.

19. • Rivalry is very high as there are numerous competitors in
the market.
• A mobile network is present in almost every home. Every
competitor in this situation is battling for the same share.
• The new competitors have no access to the market.
• Low switching costs for customers make the market more
competitive.

20. • Reliance main moto is “Growth is Life”. They also believe in “WE CARE” philosophy.
• “WE CARE” : For an inclusive ecosystem, For digital transformation, For
sustainable value creation, For an empowered workforce, For a greener planet, For
societal well-being.
• Over 5.75 billion people's lives have been impacted by Reliance Foundation in more
than 50,600 rural and urban areas across India.
• 'HerCircle' has 50 million users worldwide and is India's fastest-growing women's
digital network.
• Since 2014, "JioGenNext" has assisted 170 startups in raising more than £26 crore
in early-stage venture capital.
• One of the biggest employers, with 3,42,982 employees and 55.2% workforce under
30
• Continued to improve employee well-being and provide universal access to
healthcare, motivated by the "We Care" philosophy.
• 2.11 million GJ of energy were saved because to conservation efforts.
• 1,460 Jio-bp petrol pumps have been partnered with to promote low carbon growth.

21. • Reliance Jio made history as new entrant in the telecom industry.
• It changed the telecom industry completely by providing tariff plans at very low cost.
• RJio changed the way/ strategy of its competitors as they were used of.
• Only because of JIO, India surpass every country and became the most mobile data
usage country.
• A lot of new talents came into the market just because of JIO.
• Reliance JIO also working for the planet as well. They are running several
campaigns to make every one’s life better and this planet liveable.

22. • Danneels, Erwin (2004). Disruptive Technology Reconsidered: A Critique and Research Agenda. Journal of
Product Innovation Management 21(4):246–258.
• FRPT- Telecom snapshot. 11/30/2015, p36-38. 3p
• Hamel, Gary (2000). Leading the Revolution. Boston: Harvard Business School Press.
• https://www.businessinsider.in/small-business/tech/mukesh-ambani-announces-disruptive-reliance-
jioservices/heres-how-mukesh-ambanis-reliance-jio-is-the-biggest-disruption-for-the-
telecomindustry/slidelist/53961106.cms
• Markides, Constantinos and Geroski, Paul (2005). Fast Second: How Smart Companies Bypass Radical
Innovation to Enter and Dominate New Markets. San Francisco: Jossey-Bass.
• Porter, Michael E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York:
Free Press.
• Reliance Industries Ltd. (2022) RIL integrated annual report 2021-22 [Online] Available from:
https://www.ril.com/ar2021-22/index.html [Accessed 30 November 2022].
• Slywotzky, Adrian J. (1996). Value Migration: How to Think Several Moves Ahead of the Competition. Boston:
Harvard Business School Press.