the market strategy of Reliance Jio and its competitive advantage in the market angainst various other telecomm service providers

1. STRATEGIC
MANAGEMENT

8. KEY PEOPLE IN THE ORGANIZATION
MUKESH AMBANI
CHAIRMAN

9. BUSINESS LEVEL STRATEGY - RELIANCE JIO

11. 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

13. 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.

14. PERFORMANCE

15. SUBSCRIBER COUNT

16. Growth & Profitability of the Industry

19. Revenue

20. Revenue From Telecom Services (Crores)
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

21. Different Telecom Service Providers
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

22. -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

23. -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