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Reliance Jio

Reliance Jio disrupted the Indian telecom industry with its launch in 2016, offering free voice calls and cheap data. It has grown rapidly to become India's largest telecom operator by subscribers within 5 years. This project aims to analyze Jio's strategy, its impact on competitors like Airtel and Vodafone, and Jio's future potential through a SWOT, PEST, Porter's Five Forces, and literature review on the industry and Jio's business model. Non-probability sampling and a structured online questionnaire will be used to collect primary data, which will be pilot tested before full distribution.

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0% found this document useful (0 votes)
423 views11 pages

Reliance Jio

Reliance Jio disrupted the Indian telecom industry with its launch in 2016, offering free voice calls and cheap data. It has grown rapidly to become India's largest telecom operator by subscribers within 5 years. This project aims to analyze Jio's strategy, its impact on competitors like Airtel and Vodafone, and Jio's future potential through a SWOT, PEST, Porter's Five Forces, and literature review on the industry and Jio's business model. Non-probability sampling and a structured online questionnaire will be used to collect primary data, which will be pilot tested before full distribution.

Uploaded by

avinash k
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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By Group 3

Abhishek
Ayush
Avinash
Prankush
Shivanshi
Tribhuvan
Introduction
In September 2016, Jio announced its bold entry
into the Indian telecom market with unlimited 4G
services at literally zero costs, a move that shocked
the industry. Funded by an investment of over 1.5
Trillion INR, along with strong partnerships with
international operators, Jio quickly captured the
Indian market with its aura and became India's
biggest telecom operator in terms of subscribers in
less than five years, beating well established
players like Airtel, Vodafone, etc. Along with
Telecom, it also ventured into broadband, feature
phones, app services, and many other categories
and has built a strong ecosystem around the
Digital India trend that we are experiencing today. 
Since its entry, Jio has disrupted the entire telecom segment and has completely
changed how we use Internet. From 200 INR for 1GB data, we have shifted to
unlimited high-speed data at a fraction of a cost. 

Our objective with this project is to understand in detail the strategy adopted by Jio
during its bold initial phase and to see how positive or negative the impact was with
entry of Jio in the telecom sector. We would also be analysing Jio as a brand in detail,
its strengths and weaknesses and what could be the road ahead for Jio and its
competitors in the coming years.

This Photo by Unknown author is licensed under CC BY-SA.


SWOT ANALYSIS
Strengths Weaknesses

1. Ecosystem of related devices & services 1. Predatory pricing controversy


2. Fast growing customer base 2. Lower network speeds
3. Financial support from parent company 3. Low ARPU

Opportunities Threats

1. Migration towards 5G 1. Price wars among remaining players


2. Smartphones such as Jio Phone Next 2. Political controversies
3. Higher pricing power after exit of few 3. Negative image due to predatory pricing
players
PEST ANALYSIS
Telecom sector is a highly regulated sector with organizations like TRAI & DoT
always looking for abnormalities. Also, Jio’s predatory pricing and relations with
Political central government have been under the scanner for long time now. Also,
Government of India is also considering a major relief package for the Telecon
industry

India is a fast growing economy with constant rise in per capita income.
Economic Furthermore, there is a huge market that has opened up following the rise in
disposable income in rural areas and the increased attention being given to Digital
Media.

Increased awareness towards digital technologies and adoption of Internet use


Social cases at individual and companies level has increased data traffic and reliance on
operators like Jio. Changing consumer behavior and shift towards OTT, Cloud, and
digital technologies are expected to remain in trend for the next decade

Telecom industry operates in adynamic environment with new technologies like


Technology 5G, AI changing the game everyday. Along with Telecom, Jio also operates in
broadband, smartphones, and related services. Jio has also partnered with major
technology players in the world including Google, Facebook, and Microsoft
PROJECT OUTLINE

Company Data Collection & Conclusion &


Introduction Industry Overview
Overview Analysis Recommendations
PORTER’s FIVE FORCES MODEL
Threat of new Threat of substitute Bargaining power of Bargaining power of Existing competition
entrants products buyers suppliers

• Entire sector got • There is hardly any • For buyers, • Reliance Jio, being • Low switching cost
redesigned because substitute for switching cost is the supplier of on the industry
of the entry of mobile services in close to minimal mobile services, • Consumers are
Reliance Jio India • Customers are price players have less price sensitive
• If someone so • The impact, thus, is sensitive bargaining power • Telecom sector is
disruptive enters a bit insignificant • Consumers have with consumers saturated in India
again, the sector • However, some started expecting • This forces them to • The only option left
might get an firms maybe able to superior quality offer services at is to gain the
overhaul once offer the same service at lower lower costs market share from
again product at a lower costs • Telecom industry existing customers
• Huge capital is cost due to • ARPU for the entire does not have a • No market for new
required for entry, technological or industry has gone specific value chain entrants
thus less threat human advantage down significantly • Spectrum purchase
from new entrants in recent years price impacts cost
to firms
LITERATURE REVIEW
Overview of the telecom sector Business Model of companies
Currently, India is the world’s second- It is defined as the plan which is devised and
largest telecommunications market with a implemented by companies with an objective to carry
subscriber base of 1.16 billion and has out successful operations and activities in the long run.
registered strong growth in the last decade. Reliance Jio business model emphasized on offering high
The Indian mobile economy is growing speed and 4G data at prices which were very cheap and
rapidly and will contribute substantially to the strategy has supported the company in carrying out
India’s Gross Domestic Product (GDP). The effective penetration in the Indian market. The tariff
total number of internet subscribers plans introduced by Reliance Jio were innovative, and
increased from 778.09 million in March during the initial stage, they seemed to be unrealistic.
2021 to 782.86 million in April 2021.

Impact of Reliance Jio Ways in which Reliance Jio dominated


The impact of Jio’s entry on telecom industry of India is Reliance Jio has employed the strategy of loss leadership
that the entry has resulted in creating a price war in the and as per this strategy, the brand started providing free
industry. It can be stated brand such as Airtel, Vodafone, voice calls to its customers. the brand also offered nil
Idea and BSNL started struggling even in terms of roaming and a diverse portfolio of application which
making sustainable profits in the country. Offering result in attracting more and more customers. The
almost all services at free of cost is that the strategy of impact of implemented loss leadership strategy is that it
Jio which has created a sensation in the marketplace and encouraged customers of other mobile network
created issues for other network providers in India. The providers to switch towards Reliance Jio. the strategy
brand has been able to penetrate the Indian telecom resulted in creating complications for brands such as
industry in the best possible manner through its strategy Airtel, BSNL, Idea and Vodafone to retain their existing
of offering deep discounts and low price services. customers and attract the new ones.
RESEARCH METHODOLOGY
Research Design
Research Design is the framework that has been adopted to conduct your study and find conclusions. Considering the nature of the present
study where the main aim of the study is to know the real impact of the Reliance Jio on the telecom industry of India and for accomplishing
this aim descriptive design has been adopted as through this design it is possible to understand about the topic in the proper manner. It has
lead to proper analysis of the topic and in turn all the key objectives of the study can be accomplished easily.
Data and Sampling
The data employed for this research project is primary data. The main target for the research was to collect reliable and accurate data from the
target population and then start the analysis. Google forms were used to make a Structured Questionnaire online which was sent to various
groups through online means such as Mail and WhatsApp.
Non-Probability Sampling will be used for the purpose of research. The online questionnaire will be distributed to respondents and they were
also given detailed instructions for completing the survey. The survey will be done over a period of 15-20 days, and each respondent will be
given ample time to think over the questionnaire.

Pilot Testing
The pre-test will be done on 20 respondents personally to take their feedback as to how well did they understand the questionnaire and
whether they were facing any problems in understanding or answering the questions. Then required changes will be made and some questions
will be added after gauging their response and noting down their constructive feedback.
DATA COLLECTION AND ANALYSIS
Data collection
There are mainly 2 modes to collect data. They are primary and secondary sources. As mentioned in the previous slide, we will be mainly using
primary sources to collect data. A questionnaire in the form of a google form will be floated to the general public in order to know their
perception of Reliance Jio. Apart from that, different articles have been accessed that provides overview of the Indian telecom industry and
the key players that are operating in the market. Therefore, in this way both the sources have been undertaken for obtaining information and it
has proved to be beneficial for the entire research.
Data Analysis
This part is linked with analyzing information so as to know the actual results obtained after conducting the overall study. Data analysis can be
done in two forms either qualitatively or quantitatively. In case of qualitative technique the data is present in the non numeric form and mainly
thematic analysis is carried out. On the other hand, in quantitative technique statistical tools are adopted through which analysis is done. It
involves computation of mean, mode, median etc. for the overall analysis.
In this research, both kinds of data analysis will be done. Quantitative data will be represented in the form of bar chart and pie charts to make
them visually appealing. We also plan on performing hypothesis testing on various variables. Correlation, Chi-square test of independence will
be used.
Based on the research done, qualitative analysis will be provided for the final positioning strategy of Reliance Jio, recommendations,
conclusion, implications and limitations of the study undertaken.
THANK YOU

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