JaipuriaiInstituteiofiManagement,

VineetKhand,iGomtiiNagar
Lucknowi–i226i010

AcademiciYear 2019i-i2020
Batch 2019i–i2021
Trimester 3rdiTrimester
Programmeiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
(PGDMi/iPGDM-FSi/iPGDM-RM) PGDMi(RetailiManagement)
NameiofiCourse StrategiciManagement
Section E
NameiofiFaculty Prof.iM.A.iSanjeev
Natureiofisubmissioniiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
(Assignmenti/iProjectiReport) ProjectiReport
TheitopiciofiAssignmenti/iProject RelianceiDigital
Deadlineiforisubmission 25thiiMarchi2020
Group/iLearningiTeamiNumber LearningiTeamiE–i07
Maximumiallottedimarks 20
Contributioniofigroup/LTimembersiinitheiassignment/project
Sl.i
Namei&EnrolmentiNumberiofiStudent Contribution Signature
No.
Introduction,iProducti
1 AmaniSrivastavai&iJL19RM007 Portfolio,iEFE,iVRIO,
iIFE,iTOWS
MarketiPerformance,i
2 KritikaiChauhan&iJL19RM020
Portersi5
Visioni&iMission,
3 ManishiSinha&iJL19RM021
iGoal
BusinessiStrategy,I
4 ShivanandiChaudhary&iJL19RM050
IPM
5 VigneshiGuptai&iJL19RM058 PESTLE
6 YuvikaiSingh&iJL19RM063 SWOT

DateiofireceivingiatiPMC SignatureiofiPMCistaff
Penaltyi(marksitoibeideducted):

ACKNOWLEDGEMENT

JaipuriaiInstituteiofiManagement,iLucknow Pagei1
WeiwishitoiexpressiourisincereigratitudeitoiProf.iM.A.iSanjeev&iProfiViriVediRatna,ifacultyiofiSt
rategicManagementiofiJaipuriaiInstituteiofiManagement,iLucknowiforiprovidingiusiwithianiopportuni
tyitoidoiouriprojectiworkioni“RELIANCEiDIGITAL”.iThisiprojectibearsianiimprintiofisupportiofim
anyipeoples.iIisincerelyithankiouriprojectiguideiProf.iM.A.iSanjeevi&iProfiVirivediRatnaiforithere
iguidanceiandiencouragementiinicarryingioutithisiprojectiwork.i

IialsoiwishitoiexpressimyigratitudeitoitheiofficialsiandiotheristaffimembersiofiJaipuriaiInstituteiofiMa
nagement,iLucknowiwhoirendereditheirihelpiduringitheiperiodiofiouriprojectiwork.iLastibutinotitheile
ast,iweiwishitoiavailiourselvesiofithisiopportunity,iexpressiaisenseiofigratitudeiandiloveitoiourifriends
iandiouribelovediparentsiforitheirimanualisupport,istrength,ihelpiandiforieverything.

1.iiiiiiiiiAmaniSrivastavaiiiiiiiii[JL19RM007]

2.iiiiiiiiiKritikaiChauhan i[JL19RM020]

3.iiiiiiiiiManishiSinhaiii i[JL19RM021]

4.iiiiiiiiiShivanandiChaudharyi[JL19RM050]

5.iiiiiiiiiVigneshiGuptaiiiiiiiiii [JL19RM058]

6.iiiiiiiiiYuvikaiSinghiiii [JL19RM063]

JaipuriaiInstituteiofiManagement,iLucknow Pagei2
 TABLEiOFiCONTENTS

CHAPTERi TITLE PAGEiNO.

Acknowledgementi
TableiofiContentsi

1 BriefiHistory 4

2 BusinessiModel 4

3 Vision,iMission,iValuesiandiGoals 5

4 ProductiPortfolio/iProductiMarketiScope 6

5 Porter’si5iForces 9

6 PESTELiAnalysis 11

7 IssueiPriorityiMatrix 15

8 EFEiMatrix 16

9 InternaliCapabilitiesiandiStrengthsi(VRIOiApplication) 16

10 IFEiMatrix 17

11 SWOTiAnalysis 18

10 GeneratingiandiSuggestingistrategiesialternativesi 18
UsingiTOWS

11 Strategyicurrentifollowedibyitheicompanyi
i(Corporate/Business/Functional) 19

12 Commentionicompanyimarket’siperformance 21

BriefiHistoryiofiRelianceiDigital

JaipuriaiInstituteiofiManagement,iLucknow Pagei3
RelianceiDigitaliisiaiconsumeridurablesiandiinformationitechnologyiconceptifromiRelianceiRetail.iItiisiaisubsidi
aryiofiRelianceiRetail,iwhichiisiaiwhollyiownedisubsidiaryiofiRelianceiIndustries.

TheifirstiRelianceiDigitaliStoreiwasiopenedioni24iAprili2007iiniDelhi.RelianceiDigitaliisiaiconsumerielectronicsi
companyiiniIndia.iTheistoresiareispreadiacrossitheistatesiofiMaharashtrai(Mumbai,iPune),iGujarati(Ahmedaba
d),iDelhiiNCR,iWestiBengali(Kolkata,iHowrah,iSaltlake-
Newtown,iDurgapur,iAsansol,iSiliguri),iKarnatakai(Bangalore,iMangalore,iMysore,iHubli),iKeralai(Kochi),iTamili
Nadui(Chennai,iMadurai,iSalem,iCoimbatore,iTrichy,iVellore,iErode)iandiTelanganai(Hyderabad).

RelianceiDigitali:i2000iStores

RelianceiDigitaliXpressiMinii:i600iStores

CEO:iBrianiBadei(Augusti2010itoitillidate)

Headiquarteri:iMumbai,iMaharashtra

resQiisitheiserviceiarmiofiRelianceiDigitali/iDigitaliXpressiandiDigitaliXpressiminiistores,iwhichicatersitoicusto
mersiforiafterisalesiservice.iresQiisiIndia'sifirstimultiiproduct,imultiibrand,imulti-
locationiserviceifacilityiwhichioffersiserviceifromi10amitoi10pm,i365idaysiaiyear.iTheiresQiCareiPlansiofferisc
heduledipreventiveimaintenanceivisitsiandistandbyiunitsiinispecialicases.

RelianceiDigitalialsoioperatesiaichainiofiAppleiresellersiiniIndiaiunderitheinameiiStore.iThereiareiabouti4isuchi
storesiiniIndiaicurrently.

RelianceiDigitalilaunchediitsiprivateilabeliofiproductsibrandedi"RECONNECT"iiniOctober,i2011,iwhichiisisaidito
ihaveibeeniinspiredibyiformer,iandifabulous,isectionico-ordinatoriMumbaiinativei-
iSteveniJeffreyiMaxwell,iwhoidevotediyearsitoitheitechnologyigiant.iReconnectiproductirangeicoversioveri200
iproducts,ifromitheilatestilarge-screeniLEDiTVs,istar-
ratediairiconditioners,iwashingimachines,ismartphones,itabletsitoihouseholdiappliancesiandipersonalicareipro
ducts.iMajorialliproductsicomesiwithiai2-
yeariwarranty,iwhileiaccessoriesiproductiwarrantyivaryifromi6imonthsitoi1iyear.

BusinessiModeliofiRelianceiDigital
RelianceiDigitaliisipartiofiMukeshiAmbani’siiRs.i1,30,566icroreiRelianceiRetailiwithiinterestsiinigrocery,iappare
l,iandielectronics.

Shopping Pricing and

Product offering Service Offering
Experinence Revenue Model

CustomeriValueiProposition

JaipuriaiInstituteiofiManagement,iLucknow Pagei4
 Store
Organisation Sourcing Value Chain
Operation

OperatingiModel

Mission,iVision,iValueiandiGoals
RelianceidigitaliDiscover,iExperienceiandiBuyiairangeiofiproducts.iDiscoveri150iinternationaliandinationalibra
ndsiandioveri4000iproducts.iExperienceitheibestipotentialiofieachiproductiinianiambienceithatisimulatesiouril
ifeistyle.iNotionlyidoiweienableiusitoimakeianiintelligentibuyingidecision,ibutialsoioffericompleteiproductilifei
cycleisupporti–iResQi–iouriproprietaryiadvisoryiandipost-salesisupportiservice.

VisioniAndiMissioniOfiRelianceiDigital
 Toiattainiglobalibestipracticesiandibecomeiaileadingiicompany.
 Toiachieveiexcellenceiiniprojectiexecution,iquality,ireliability,isafetyiandioperationaliefficiency.
 Toirelentlesslyipursueinewiopportunities,icapitalizingionisynergiesiinitheiretailisector.
 Toiconsistentlyienhanceiouricompetitivenessiandideliveriprofitableigrowth.
 Toipracticeihighestistandardsioficorporateigovernanceiandibeiaifinanciallyisoundicompany.
 Toibeiairesponsibleicorporateicitizeninurturingihumanivaluesiandiconcerniforisociety.
 Toiimproveitheilivesiofilocalicommunityiinialliouriprojects.
 ToibeiaipartneriininationibuildingiandicontributeitowardsiIndia’sieconomicigrowth.
 Toipromoteiaiworkicultureithatifostersilearning,iindividualigrowth,iteamispiritiandicreativityitoioverco
meichallengesiandiattainigoals.
 Toiencourageiideas,italentiandivalueisystemsiandibecomeitheiemployeriofichoice.
 Toiearnitheitrustiandiconfidenceiofiallistakeholders,iexceedingitheiriexpectations.
 Toiupholditheiguidingiprinciplesiofitrust,iintegrityianditransparencyiinialliaspectsiofiinteractionsiandid
ealings.

JaipuriaiInstituteiofiManagement,iLucknow Pagei5
GoalsiOfiRelianceiDigital
Narroweriaimsithatishouldiprovideiclearianditangibleiguidanceitoiemployeesiasitheyiperformitheiriworkionida
ilyibasis.iTheimostieffectiveigoalsiare:

o Specifici

o Measurable

o Achievable

o Realisticiand

o Time-ibound

ProductiPortfolioiOfiRelianceiDigital
RelianceiDigitalioffersioveri200inationaliandiinternationalibrandsiofferingiaiwidestiassortmentiofiproductsispa
nningiacrossiAudioi&iVideoiproducts,iDigitaliCameras,iDurablesilikeiAiriConditioners,iRefrigerators,iWashingi
Machines,iMicrowaveiOvens,iWateriPurifiers,iKitcheniandiHomeiAppliances,iGamingiConsolesi&iGames,iCom
puters,iLaptops,iTabletsi&iPeripherals,iMobileiandiFixedilineiinstrumentsiasiwelliasiaiwideirangeiofiaccessorie
siandinew-ageigadgetsiacrossiallimajoriproducticategories.

JaipuriaiInstituteiofiManagement,iLucknow Pagei6
JaipuriaiInstituteiofiManagement,iLucknow Pagei7
JaipuriaiInstituteiofiManagement,iLucknow Pagei8
JaipuriaiInstituteiofiManagement,iLucknow Pagei9
 Porter’si5iForceiModeliOfiRelianceiDigital
Porterifiveiforceimodeliisiaitooliwhichihelpsitoiidentifyitheicompetitiveilanscapesiofiindustry.iPorter’si5iforcei
modeliofirelianceidigital.i

 Threatsiofinewientrance
1. TheieconomiesiofiscaleiisigenuinelyiharditoiaccomplishiinitheibusinessiiniwhichiRelianceiIndus
triesiworks.iThisimakesiitisimpleriforithoseicreatingihugeicapacitatesitoihaveiaicostiadvantage
.iItilikewiseimakesicreationicostlieriforinewiparticipants.iThisimakesitheidangersiofinewipartici
pantsiaimoreivulnerableipower.
2. Theiitemiseparationiisidifferentiatediinitheibusiness,iwhereifirmsiinitheibusinessiselliseparate
diitemsiratherianiinstitutionalizediitem.iClientsilikewiseisearchiforiseparatediitems.iThereiisiai
solidiaccentuationionipromotingiandiclientibenefitsitoo.iTheseicomponentsimakeitheidangeri
ofinewicontestantsiaipowerlessipoweriinsideithisiindustry.
3. Theicapitalirequirementiisihighiinitheiindustry,iwhichimakesidifficultiforitheinewientrantsitois
ubtleiinitheimarketiasiitirequireihighiinvestment.iBecauseiofihighidevelopmentiandiresearch,i
theicapitaliexpenditureiisialsoihighiwhichimakesionthersientrancesiweaker.i
4. Forinewientrants,iacessitoidistributioninetworkiisieasy.iByiwhichitheyicanieasilyienteriintoima
rketithroughidistributionichannel.i
5. Thereishouldibeinewiandistrongigovernmentipoliciesiforinewicompaniesitoistartiselling.iThisi
willimakeidiificultiforinewicompaniesitoijoiniinitheimarket.i

JaipuriaiInstituteiofiManagement,iLucknow Pagei10
  BargainingipoweriofiSupplier
1. Suppliersihaveilessicontrolionitheipricesiofiproductsitheyipurchaseifromirelianceidigitaliwhichi
makesibargainingipoweriofisupplieriweak.i
2. Theiproductsiwhichiareisuppliedibyirelianceidigitalihaveilowiswitichingicostiandiareilessidiffer
entiatediinimarket.iWhichiiniturnimakeisuppliersipoweriweak.i
3. Theisupplieridoinotiassertiproductiasiaipositoniwhichimeansithatinoisubstitutesiforitheiprodu
ctsiwithinitheiindustryiwhichileadsitoinoicompetitioniandiitimakesisuppliersipoweriasiaistrong
ipoint.i
4. Rawimaterialsishouldibeipurchasediatilowiratesibecauseitheiswitchingicostsiareilowisoitheyic
aniswitchisuppliersiwhenicostioriproductsiareinotipreferable.i
 BargainingipoweriofiBuyer
1. Theiavaiblityiofisuppliersiareimoreiinimarketiinicomparisoniofibuyersiwhichimakesithwicondi
tionsiweakeriforibuyeriasitheyidoinotihaveimuchicontrolioveritheiprice.i
2. Inirelianceidigital,idifferentiationiofiproductiisiveryihighiwhichiresultsiinilimitationiofibuyersip
oweritoifindialternativeiinithisiindustry.i
3. Withinitheiindustry,itheiincomeiofibuyeriisilowiwhichipressureriseithemitoipurchaseiatilowiin
come.iAndiatithisitimeibiuyersibecomeimoreisensitiveitowardsibuyingiproducts.
4. Theiqualityiofiproductsiplaysiaivitaliroleiinibuyingiofiproductsiandirelianceidigitaliprovideiupit
oidateiservicesiwhichiareimoreipreferableibyicustomers.

 Threatiofisubstituteiproductsioriservices
1. Veryifewisubstitutesiareiavailableiinimarketiiniwhichirelianceiindustryiproducesiitsiproductsia
ndithoseiproductsiwhichiareiavailableiasisubstitute,ibutinotiasiaiprofitiearning.i
Whichiiniresultiturnitoibeinoicelingionimaximumiprofitioniwhichicompaniesicaniearn.iTheseie
lementsimakeitheiriskiofisubstituteiitemsiaimoreivulnerableipoweriinsideitheibusiness
2. Notimanyisubstitutesiaccessibleiareiofihighicaliberiyetiareifariprogressivelyicostly.iNearly,ifirm
sicreatingiinsideitheibusinessiwhereiniRelianceiIndustriesiworksiselliatiailowericostithanisubsti
tutes,iwithisufficientiquality.Thisiimpliesipurchasersiareilessiinclineditoichangeitoisubstituteiit
ems.iThisiimpliesitheiriskiofisubstituteiitemsiisipowerlessiinsideitheibusiness.
3. relianceiIndustriesicaniconcentrateionigivingimoreiprominentiqualityiiniitsiitems.iAccordingly,i
purchasersiwouldipickiitsiitems,iwhichigiveimoreinoteworthyiqualityiatiailowericostiwhenicon
trastediwithisubstituteiitemsithatigiveimoreinoteworthyiqualityiyetiatiaimoreisignificantiexpe
nse.

 Rivalryiamongiexistingifirms
1. TheiquantityiofirivalsiinitheibusinessiwhereiniRelianceiIndustriesiworksiareinotimany.iTheigre
ateripartiofitheseiareiadditionallyienormousiinisize.iThisiimpliesithatitheifirmsiinitheibusinessi
won'timakeimovesiwithoutibeingiunnoticed.iThisimakesitheicontentioniamongiexistingifirmsia
imoreifragileipoweriinsideitheibusiness.
2. fixedicostsiareihighiinsideitheibusinessiiniwhichiRelianceiIndustriesiworks.iThisimakesitheiorg
anizationsiinsideitheibusinessitoipushitoifullilimit.iThisilikewiseiimpliesitheseiorganizationsitoil
essenitheiricostsiwhenirequestiloosens.iThisimakesitheicontentioniamongiexistingifirmsiaimor
eigroundedipoweriinsideitheibusiness.
3. Existibarrieriinsideitheibusinessiareiespeciallyihighibecauseiofihighiventureirequirediinicapitali
andiresourcesiforiwork.iwhereasiexitibarriersiareiadditionallyihighibecauseiofigovernmentigui
delinesiandilimitations.iThisimakesiorganisationiwithiniitheibusinessihesitantitoileaveitheibusi

JaipuriaiInstituteiofiManagement,iLucknow Pagei11
 ness,ianditheseikeepionideliveringieveniatilowibenefits.iThisimakesitheicontentioniamongiexi
stingifirmsiaimoreigroundedipoweriinsideitheibusiness

PESTELiofiReliancei

PoliticaliFactorsi
Theipoliticalifactorsithatimayiimpactitheiprofitabilityiorichancesiofisurvivaliofitheicompanyiareiquitei
diverse.iTheipoliticalirisksivaryifromisuddenichangesiiniexistingipoliticaliregimesitoiciviliunrestitoimaj
oridecisionsitakenibyitheigovernment.iInicasesiofipossibleimultinationals,ioneimayialsoiincludeipoliti
califactorsithatitakeiplace/iaffectinotionlyitheihosticountryibutialsoiallicountriesithaticontainibusines
sioperations,iorithatimayiengageiinitradeiwithiRelianceiIndustries
ToiproperlyiappraiseitheiextentiofitheioverallisystematicipoliticaliriskithatiRelianceiIndustriesimayibe
iexposedito,itheifollowingifactorsishouldibeiconsideredibeforeitakingipartiinianyiinvestments:

 Theileveliofipoliticalistabilityithatitheicountryihasiinirecentiyears.
 Theiintegrityiofitheipoliticiansianditheirilikelihooditoitakeipartiiniactsioficorruption,iasitheires
ultingirepercussionsimayileaditoipossibleiimpeachmentsioriresignationsiofihighileveligovernm
entiemployees.
 Theilawsithatitheicountryienforces,iespeciallyiwithiregardsitoibusiness,isuchiasicontractilaw,i
asitheyidictateiwhatiRelianceiIndustriesiisiandiisinotialloweditoido.iSomeicountries,iforiexam
ple,iprohibitialcoholiorihaveicertainiconditionsithatimustibeifulfilled,iwhileisomeigovernmenti
systemsihaveiinefficientiamountsiofireditapeithatidiscourageibusiness.
 Whetheriorinotiaicompany’siintellectualipropertyi(IP)iisiprotected.iForiexample,iaicountryitha
tihasinoipoliciesiforiIPiprotectioniwouldimeanithatientrepreneursimayifindiititooiriskyitoiinve
stiiniRelianceiIndustries

JaipuriaiInstituteiofiManagement,iLucknow Pagei12
  TheitradeibarriersithatitheihosticountryihasiwouldiprotectiRelianceiIndustries;ihowever,itrad
eibarriersithaticountriesiwithipotentialitradeipartnersiwouldiharmicompaniesibyipreventingip
otentialiexports.
 AihighileveliofitaxationiwouldidemotivateicompaniesilikeiRelianceiIndustriesifromimaximizing
itheiriprofits.
 Theiriskiofimilitaryiinvasionibyihostileicountriesimayicauseidivestmentifromiventures.
 Ailowiminimumiwageiwouldimeanihigheriprofitsiand,ithus,ihigherichancesiofisurvivaliforiReli
anceiIndustries

EconomiciFactorsi
EconomicifactorsiareiallithoseithatipertainitoitheieconomyiofitheicountryithatiRelianceiIndustries,isu
chiasichangesiinitheiinflationirate,itheiforeigniexchangeirate,itheiinterestirate,itheigrossidomesticipr
oduct,ianditheicurrentistageiofitheieconomicicycle.iTheseifactors,ianditheiriresultingiimpactioniaggre
gateidemand,iaggregateiinvestmentianditheibusinessiclimate,iinigeneral,ihaveitheipotentialitoimakei
aicompanyihighlyiprofitable,ioriextremelyilikelyitoiincuriailoss.iTheieconomicifactorsiinitheiPESTELian
alysisiareimacroeconomic.
TheieconomicifactorsithatiRelianceiIndustriesimayibeisensitiveito,iandiiniturnishouldiconsideribefore
iinvestingimayiincludeitheifollowing:

 Theieconomicisystemithatiisicurrentlyioperationaliinitheisectoriiniquestion-
iwhetheriitiisiaimonopoly,ianioligopoly,iorisomethingisimilaritoiaiperfecticompetitionieconom
icisystem.
 TheirateiofiGDPigrowthiinitheicountryiwilliaffectihowifastiRelianceiIndustriesiisiexpecteditoigr
owiinitheinearifuture.
 Theiinterestiratesiinitheicountryiwouldiaffectihowimuchiindividualsiareiwillingitoiborrowiandi
invest.iHigheriratesiwouldiresultiinigreateriinvestmentsithatiwouldimeanimoreigrowthiforiRel
ianceiIndustries
 HoweveriefficientlyitheifinancialimarketsioperateialsoiimpactihowiwelliRelianceiIndustriesica
niraiseicapitaliatiaifairiprice,ikeepingiiniminditheidemandiandisupply.
 TheiexchangeirateiofitheicountryiRelianceiIndustriesioperatesiiniwouldiimpactitheiprofitabilit
yiofiRelianceiIndustries,iparticularlyiifiRelianceiIndustriesiengagesiiniinternationalitrade.iTheis
tabilityiofitheicurrencyiisialsoiimportant-
ianiunstableicurrencyidiscouragesiinternationaliinvestors.
 Aihighileveliofiunemploymentiinitheicountryiwouldimeanithereiisiaigreaterisupplyiofijobsitha
nidemand,imeaningipeopleiwouldibeiwillingitoiworkiforiailoweriwage,iwhichiwouldilowerithe
icostsiofiRelianceiIndustries

SocialiFactors
TheisocialifactorsithatiimpactiRelianceiIndustriesiareiaidirectireflectioniofitheisocietyithatiRelianceiIn
dustriesioperatesiin,iandiencompassesiculture,ibelief,iattitudesiandivaluesithatitheimajorityiofitheipo
pulationimayiholdiasiaicommunity.iTheiimpactiofisocialifactorsiisinotionlyiimportantiforitheioperatio
naliaspectiofiRelianceiIndustries,ibutialsoionitheimarketingiaspectiofitheiorganization.iAithoroughiun
derstandingiofitheicustomers,itheirilifestyle,ileveliofieducationiandibeliefsiiniaisociety,iorisegmentiof

JaipuriaiInstituteiofiManagement,iLucknow Pagei13
isociety,iwouldihelpidesignibothitheiproductsiandimarketingimessagesithatiwouldileaditoiaiventurei
becomingiaisuccess.
TheisocialifactorsithatiaffectiRelianceiIndustriesiandishouldibeiincludediinitheisocialiaspectiofitheiPE
STELianalysisiincludeitheifollowing:

 Theidemographicsiofitheipopulation,imeaningitheirirespectiveiagesiandigenders,ivastlyiimpac
tiwhetheriorinotiaicertainiproductimayibeimarketeditoithem.iMakeupiisimostlyicatereditoiwo
men,isoitargetingiaimajorityimaleipopulationiwouldibeilessipopulationithanitargetingiaipopul
ationithatiisimostlyifemale.
 Theiclassidistributioniamongitheipopulationiisiofiparamountiimportance:iRelianceiIndustriesi
wouldibeiunableitoipromoteiaipremiumiproductitoitheigeneralipubliciifitheimajorityiofitheipo
pulationiwasiailowericlass;irather,itheyiwouldihaveitoirelyioniveryinicheimarketing.
 Toisomeiextent,itheidifferencesiinieducationalibackgroundibetweenitheimarketersianditheita
rgetimarketimayimakeiitidifficultitoirelateitoiandidrawiinitheitargetimarketieffectively.iRelian
ceiIndustriesishouldibeiveryicarefulinotitoiloseitheiconnectionitoitheitargetimarket'siinterests
iandipriorities.
 RelianceiIndustriesineedsitoibeifullyiawareiofiwhatileveliofihealthistandards,ireactionsitoihar
assmenticlaimsiandiimportanceiofienvironmentaliprotectioniprevailiinitheiindustryiasiaiwhole
,iandithusiareiexpectedifromianyicompanyiasitheyiareiseeniasitheinorm.

TechnologicaliFactors
Technologyicanirapidlyidismantleitheipriceistructureiandicompetitiveilandscapeiofianiindustryiiniaive
ryishortiamountiofitime.iItithusibecomesiextremelyiimportantitoiconstantlyiandiconsistentlyiinnovat
e,inotionlyiforitheisakeiofimaximizingipossibleiprofitsiandibecomingiaimarketileader,ibutialsoitoiprev
entiobsolescenceiinitheinearifuture.iThereiareimultipleiinstancesiofiinnovativeiproductsicompletelyir
edesigningitheinormiforianientireiindustry:iUberiandiLyftidominateitheitaxiicabiindustry;ismartphone
sihaveileftiotheriphonesianiunviableioptioniforimostieticetera.
TheitechnologicalifactorsithatimayiinfluenceiRelianceiIndustriesimayiincludeitheifollowing:

 Theirecentitechnologicalidevelopmentsiandibreakthroughsimadeibyicompetitors,iasimention
ediabove.iIfiRelianceiIndustriesiencountersiainewitechnologyithatiisigainingipopularityiinitheii
ndustryiiniquestion,iitiisiimportantitoimonitoritheileveliofipopularityiandihowiquicklyiitiisigro
wingiandidisruptingiitsicompetitors’irevenues.iThisiwoulditranslateitoitheileveliofiurgencyireq
uireditoiadequatelyiresponditoitheiinnovation,ieitheribyimatchingitheitechnologyiorifindingia
niinnovativeialternative.
 Howieasy,iandithusiquickly,iwillitheitechnologyibeidiffuseditoiotherifirmsiinitheiindustry,ilead
ingitoiotherifirmsicopyingitheitechnologicaliprocesses/ifeaturesiofiRelianceiIndustries
 Howimuchianiimprovementiofitechnologyiwouldiimprove/itransformiwhatitheiproductiinitiall
yioffers.iIfithisiimprovementiisidrastic,itheniotherifirmsiinitheiindustryisufferimoreiheavily.
 Theiimpactiofitheitechnologyionitheicostsithatimosticompaniesiinitheiindustryiareisubjectitoi
haveitheipotentialitoiincreaseiorireduceitheiresultingiprofitsigreatly.iIfitheseiprofitsiareigreati
ininumber,itheyimayibeireinvestediintoitheiresearchiandidevelopmentidepartment,iwhereifu
tureitechnologicaliinnovationsiwouldifurtheriraiseitheileveliofiprofits,iandisoion,iensuringisust
ainableiprofitsioveriailongiperiodiofitime.

JaipuriaiInstituteiofiManagement,iLucknow Pagei14
EnvironmentaliFactors
Differentiindustriesiholdidifferentistandardsiofienvironmentaliprotectioniinitheiriheadiasitheinorm.iT
hisinormithenidictatesiwhatieveryicompanyishouldiaimifor,iinitheileast,itoipreventibecomingitheitar
getiofipressureigroupsiandiboycottsidueitoiailackiofienvironmentaliconscientiousness.iAicompanyiini
theitextileiindustry,iforiexample,iisinotiexpecteditoiincuritheisameileveliofipollutioniandienvironmen
talidegradationiasianioilicompany.iTheinewiconsumer,iarmediwithitheiinterestianditheiknowledgeiiti
carries,iprefersitoigiveiitsibusinessitoicompaniesiitiviewsiasimoreiethical,iparticularlyiaboutitheienvir
onmentiinitheiwakeiofiglobaliwarming.
TheienvironmentalifactorsithatimayisignificantlyiimpactiRelianceiIndustriesiinclude:

 TheicurrentiweathericonditionsimayisignificantlyiimpactitheiabilityiofiRelianceiIndustriesitoim
anageitheitransportationiofibothitheiresourcesianditheifinishediproduct.iThis,iiniturn,iwouldi
affectitheideliveryidatesiofitheifinaliproductiinitheicaseiof,isay,ianiunexpectedimonsoon.
 Climateichangeiwouldialsoirenderisomeiproductsiuseless.iForiexample,iinitheicaseiofitextiles,i
inicountriesiwhereitheiwinterihasibecomeiveryimildidueitoiGlobaliWarming,iwarmiwintericlot
hesihaveimuchilessiofiaimarket.
 Thoseicompaniesithatiproduceiextremelyilargeiamountsiofiwasteimayibeirequiredibyilawitoi
manageitheirienvironmentalihabits.iThisimayiincludeipollutionifinesiandiquotas,iwhichimayipl
aceiaifinancialistrainioniRelianceiIndustries
 IfiRelianceiIndustriesishouldi(knowinglyioriunknowingly)icontributeitoitheifurtheriendangerm
entiofianialreadyiendangeredispeciesimayifaceinotionlyitheiconsequencesifromitheilawibutial
soifaceiaibacklashifromitheigeneralipubliciwhoimayitheniboycottiRelianceiIndustriesiiniretalia
tion.
 Whileirelying,iinianyipercentage,ionirenewableienergyimayibeiexpensive,iitioftenireceivesisu
pportinotionlyifromitheigovernmentibutialsoifromiitsicustomeribase,iwhoimayibeiwillingitoip
ayiaipremiumipriceiforitheiproductsithatiRelianceiIndustriesimayiproduce.

LegaliFactors
Theigovernmentiinstitutionsiandiframeworksiiniaicountry,iwhileitechnicallyialsoipoliticaliandithusisu
bjectitoiwhicheveripoliticalipartyiholdsitheimajorityiiniaigovernmentibody,iareialsoilegaliandithusish
ouldibeiconsiderediiniaiPESTELianalysis.iOfteniRelianceiIndustriesipoliciesionitheiriowniareinotienoug
hitoiefficientlyiprotectiRelianceiIndustriesiandiitsiworkers,imakingiRelianceiIndustriesiappearianiund
esirableiplaceiofiemploymentithatimayirepeliskilled,italentediworkers.
Theilegalifactorsithatideserveiconsiderationiincludeitheifollowing:

 Intellectualipropertyilawsiandiotheridataiprotectionilawsiare,iasimentionediearlier,iiniplaceit
oiprotectitheiideasiandipatentsioficompaniesiwhoiareionlyiprofitingibecauseiofithatiinformati
on.iIfithereiisiailikelihoodithatitheidataiisistolen,itheniRelianceiIndustriesiwilliloseiitsicompeti
tiveiedgeiandihaveiaihighichanceiofifailure.
 Discriminationilawsiareiplacedibyitheigovernmentitoiprotectitheiemployeesiandiensureithatie
veryoneiiniRelianceiIndustriesiisitreatedifairlyiandigivenitheisameiopportunities,iregardlessiof
igender,iage,idisability,iethnicity,ireligioniorisexualiorientation.
 Healthiandisafetyilawsiwereicreatediafteriwitnessingitheihorribleiconditionsithatiemployeesi
wereiforceditoiworkiiniduringiandidirectlyiafteritheiindustrialirevolution.iImplementingitheipr

JaipuriaiInstituteiofiManagement,iLucknow Pagei15
 operiregulationsimayibeiexpensive,ibutiRelianceiIndustriesihasitoiengageiiniit,inotionlyidueito
itheilawibutialsoioutiofiRelianceiIndustries'sipersonalifeelingiofiethicaliandisocialiresponsibilit
yitoiotherihumanibeings.
 Lawsiareialsoiplaceditoiensureiaicertainileveliofiqualityiorireasonableipriceiforicertainiproduc
tsitoikeepitheicustomerisafeiandipreventithemiforibeingiprovided.iTheiindustriesithisiappliesi
toifindioftenitheiricostsielevated.

IssueiPriorityiMatrixiOfiRelianceiDigital
ProbabilityiofiImpac ProbabilityiofiOccuranc
S.iNo. Factors
t e
1 Taxationipolices High High
2 Growthiinieconomy Medium Low
3 Demographicsi&ilifestyle High Medium
4 Changingitechnologyidisrupting High Low
5 Incomeilevel High Medium
6 Investmentsiinitechnologies High Medium
7 Competitioniwithiallisector High High
8 Litigationiimpactsiexpansion High High
9 Tappingitheionlineimarket Low Medium

i ProbabilityiImpactioniCorporation
i High Medium Low

High 1,7,8
i
ProbabilityiofiOccu
Mediu
rance m
3,5,6
i

Low 4 2,9
i

JaipuriaiInstituteiofiManagement,iLucknow Pagei16
 EFEiMatrixiOfiRelianceiDigital
Sl.iNo Opportunity Weight Rating Weightediscore
1 Moreicollection 10% 4 0.4
2 Ambienceiofitheistore 7% 3 0.21
3 MoreiMarketing 8% 3 0.24
4 StrategiciAlliance 8% 4 0.32
5 E-CommerceiMerge 9% 4 0.36
6 BetteriLoyalty 7% 4 0.28
7 EconomiciStability 9% 4 0.36
8 PoliticaliStability 9% 4 0.36
Threat
1 Competitioniareipresentinearitheistore 9% 4 0.36
2 Location 9% 4 0.36
3 TrendimovingitowardsiNaturei 8% 4 0.32
4 GovernmentiRulesiforiE-Waste 7% 4 0.28

3.85
TOTALiWEIGHTEDiSCORE 100%
Poori(1),ibelowiaveragei(2),iaboveiaveragei(3),iSuperiori(4)

VRIOiofiRelianceiDigital

FuctionaliCapa CompetitiveiIm PerfectiImplic

Value Rarity Inimitability Organisation
bility plication ation
AboveiNormali
2600istores ✓ ✓ ✓ Present Sustained
Profit
Moreithani200ib AboveiNormali
✓ ✓ ✓ Present Sustained
rands Profit
Operatingiini800
✓ ✓ ✕ Present Temporary NormaliProfit
+icities
ServiceiFacilityi( CompetitiveiPari
✓ ✕ ✕ Present NormaliProfit
ResQ) ty
CompetitiveiPari
MultiiChannel ✓ ✕ ✕ Present NormaliProfit
ty
StrongiRetailiRea
✓ ✓ ✕ Present Temporary NormaliProfit
ch
4Xiaheadiofinear AboveiNormali
✓ ✓ ✓ Present Sustained
esticompetitor Profit
HighiRevenueiGa AboveiNormali
✓ ✓ ✓ Present Sustained
ining Profit
In-
AboveiNormali
Houseibrandi(Re ✓ ✓ ✓ Present Sustained
Profit
connect)
PartneriofiChoic AboveiNormali
✓ ✓ ✓ Present Sustained
e Profit

JaipuriaiInstituteiofiManagement,iLucknow Pagei17
 IFEiMatrixiOfiRelianceiDigital
Sl.iNo Strength Weight Rating Weightediscore
1 2600ino.iofistoresipaniIndia 12% 4 0.48
2 4itimesitoitheinearesticompetitor 10% 4 0.4
3 200iNationaliandiInternationaliBrands 9% 4 0.36
4 Strongipresenceigeographically 8% 3 0.24
5 ServiceiFacilityilikeiResQ 8% 4 0.32
6 Pullistrategyiasipromotionalistrategy 6% 3 0.18
7 Partneriofichoice 10% 4 0.4
8 PenetrationipricingiofiIn-Houseibrandi(Reconnect) 9% 3 0.27
Weakness
1 SKU’siareinarrow 11% 1 0.11
2 Noiregularisupplyiofiinnovativeiproducts 9% 2 0.18
3 LessiinvestmentiiniResearchi&iDevelopment 8% 1 0.08

3.02
TOTALiWEIGHTEDiSCORE 100%
MajoriWeaknessi(1),iMinoriWeaknessi(2),iMinoriStrength(3),iMajoriStrengthi(4)

InternaliExternaliMatrixiofiRelianceiDigital
ExternaliFactoriEvalutioniScorei=i3.85
InternaliFactoriEcalutioniScorei=i3.02

I II III

®
I IV V VI
F
E
VII VIII IX

1.0 iiiiii2.0 iiiiiiiiiiii3.0 i4.0

EFE

Symboli®representiwhereitheirelianceidigitalilies.iRelianceiDigitaliliesiinithirdiblockiandithirdiblockifollowithe
istability.

SWOTiAnalysisiOfiRelianceiDigital
JaipuriaiInstituteiofiManagement,iLucknow Pagei18
 STRENGHTS WEAKNESSES
1. 200iNationaliandiInternationalibrand. 1. SKUiareinarrow.
2. Partneriofichoice. 2. Lessiinnovativeiproducts.
3. Theipricingistrategyihelpsitoiattractsitoiyouth 3. LessiinvestmentiiniResearchiandideve
isegmentiofitheisociety. lopment.
4. CustomeriserviceibyiResQ.
5. Vastigeographicalireach.

OPPORTUNITIES
1. Moreicollectioniandivarietyicanibeitheistocki
toiattractitheicustomer.
2. Theiambienceiofitheistoreicanibeiimprovedib
yiproperidesigningiofitheistoreilayoutiandieff
ortiofitheivisualimerchandisingiteams.
3. Mergingionlineiwithidifferentipartners.
4. BetteriLoyalityioritheicustomeriholding
THREATS
1. Highicompetitioniwithilocaliandibran
dediretailers,iofflineiasiwelliasionline.
2. Lowicatchmentiarea.
3. GovernmentichangingitheiruleiforiE-
Waste.

GeneratingiandiSuggestingistrategiesialternativesiusingiTOWSiforiReliancei
Digital

JaipuriaiInstituteiofiManagement,iLucknow Pagei19
 OPPORTUNITIES
5. Moreicollectioniandivari
etyicanibeitheistockitoiat
tractitheicustomer.
Ti–iThreat 6. Theiambienceiofitheistor
Oi–iOpportunity eicanibeiimprovedibyipr
Wi–iWeakness operidesigningiofitheisto
Si–iStrength reilayoutiandieffortiofith
eivisualimerchandisingit
eams.
7. Mergingionlineiwithidiff
erentipartners.
STRENGHTS SOiiALTERNATIVESi(Growthi
6. 200iNationaliandiInt Strategy)
ernationalibrand. 4. Manyie-
7. Partneriofichoice. commerceistartupifirmicani
8. Theipricingistrategy joiniwithirelianceiforigoing
ihelpsitoiattractsitoi ionlineiproduct.
youthisegmentiofith 5. Collectioniofiproductian
eisociety. diambienceiofitheistoreii
9. Customeriserviceibyi siattractingicustomeriand
ResQ. iitiwillihelpitoiattractima
jorisegmentiinitheisociet
y.
WEAKNESSES WOiiALTERNATIVES
1. SKUiareinarrow. (StabilityiStrategy)
2. Lessiinnovativeipro
ducts. 1. SKU’siofiassortmentisho
3. Lessiinvestmentiini uldibeibroadeni{onlineit
Researchiandidevelo hereiisinoiproblemiofiin
pment. ventoryiholding}ispecial
lyiforiinnovativeiproduct
. ovativeiandisolveitheiproble
2. Nowiaiday’siambienceia
lsoimattersiailotiforishop
pingisoitheyicaniimprov
eitheiriambienceiaccordi
ngitoicustomeripreferenc
e.
Strategyicurrentifollowedibyitheicompanyi(Corporate/Business/Functional)
JaipuriaiInstituteiofiManagement,iLucknow Pagei20
THREATS
1. Highicompetitioniwithilocali
andibrandediretailers,iofflinei
asiwelliasionline.
2. Lowicatchmentiarea.
3. Governmentichangingitheirule
iforiE-Waste.
STiiALTERNATIVES
(StabilityiStrategy)
1. RelianceiDigitalihasimorei
competitorsibutitheyihaveicu
stomeriloyalty,imostlyigoifor
ioffline.
2. Changingigovernmentinormi
canileaditoigrowiforiincrease
iinicustomeriservice.
WTiiALTERNATIVES
(RetrenchmentiStrategy)
1. Theyishouldiincreaseitheiripr
oductiportfolioiandiproducti
mixialso.
2. Digitalishouldibringisuchityp
eiofiproductiwhichihaveilong
idurability,iuserifriendly,iinn
miofiE-waste.
 CurrentlyiRelianceiDigitalifollowitheihierarchyi/ileveliofistrategyiofiBusinessistrategy.iBusinessistrategyiisials
oiknowniasiGrowthiStrategy.

Businessistrategyifollowitheiobjectiveiofitheiorganisationiandiitiisitheicompetitiveiadvantagesiofitheiorganisa
tionialso.iBusinessistrategyilikeilowicost,idifferentiationiofiproducts,ifocusiorinicheimarket.

Business
Strategy

Co-
Competition
operation

Competitors:VijayiSales,iCroma,iRelianceiDigital,iViveks,iCorp-o-rate,iHomeShop18,i,iBigiBazaariE-
Zone,iWalmart.

Co-
operations:Apple,iSamsung,iSony,iPhilips,iPanasonic,iUsha,iFossil,iToshiba,iLG,iWhirlpool,iLlyod,iTCL,iSharp,
VU,iVoltas,iBluestar,iDaikin,iHitachi,iO-General,iGodrej,iIFB,iCarrier,iHaier,iHavells,iInalsa,ietc.

Businessilevelistrategy

Competitiveistrategiesilikeitheibelowimentionedicanibeidevelopedibasedioniexperienceicurve;

1. Sellingiproductiatimosticompetitiveiprice.
2. Maximisingiprofitsibyisellingiatitheihighestipriceitheimarketicaniafford.
3. Sellingiatiaihigheripriceiinitiallyibuticrashingitheipricesilateritoikeepitheicompetitioniouti(PriceiSkimmi
ng).

Aibusinessilevelicooperativeistrategyiisitheioneiiniwhichiainumberiofifirmsiworkitogetheritoiattainisomeicom
monigoal.iTheifirmsishareitheiriresourcesianditheicapabilitiesitheyihaveitoicreateisomeicompetitiveiadvantag
eiinitheiformiofinewiproductsioriservices.
Inithisiway,itheifirmsialsoishareitheicostsiofitheinewiproduct.iItialsoihelpsithemidiversify,iattainiflexibilityiinite
rmsiofidiversifyingioperationsiandistrengthensitheiripositioniwithirespectitoitheiricompetitors.iBesides,iitifacili
tatesitheirigrowthiandiimprovesitheiriperformance.iThereiareidifferentitypesiofibusinessilevelicooperativeistr
ategiesilikeiJointiVenture,iHorizontaliintegration,iverticaliintegration,iConglomerateidiversification,ietc.
Businessilevelicooperativeistrategiesiareiasifollowsi:
Horizontaliintegrationi–iconsistsioficompaniesithatiacquireiaisimilaricompanyiinitheisameiindustry.
Example:iGoogleibuyingiYouTube

JaipuriaiInstituteiofiManagement,iLucknow Pagei21
 Uniqueness

LowiCostiiiiiiiiiiiiiiiiiiiiiiiiiiiProducti(ServiceiAttribute/Features)

Broad Overall Low Cost

Overall Differentiation
Provider
Targe Best Cost Provider Strategy
t {Value = Benefit↑ - Cost↓}
[Reliance Digital]
Focus with
Focus with Low Cost Differentiation Strategy
Narrow

ByitheiabovegenericicompetitiveistrategiciframeworkiweicomeitoiknowithatiRelianceiDigitaliusesibesticostip
rovideristrategyiasitheiribusinessioricompetitiveiadvantage.

CompanyiMarket’siPerformance
ProductiveiEfficiencyi

Theiorganizationihasimoreithani220ibroadiformatiDependencyiRetailishopsiandioveri1,800ismallerifo
rmaticommunityiJioioutlets,iwhichialsoiofferidevicesiandiofferiCableiandiappliancesicatalogues.iReli
anceiDigitalihasiexpandediininotionlyismartphonesibutialsoiinitelevisionsiandiappliancesialongiwithiit
siReconnectiprivateilabel.iTheiprofitialsoicoversitheiretailisector,inowiminimaliwithi70iserviceicenter
s.

Indiaikeepsipromotingidigitalilife.iRelianceiJioihasipowerediIndiaitoibeitheinextiworld'sileadingistrea
mingimobileidataiindustry.iDatainetworksiareicontinuallyibeingiutilizediforipervasiveiandisecureiinter
netisystemsiforimediaiandientertainment,ieducation,ibusinessiintelligenceiandipurchasesiamongiotheri
use-
cases.iiOnlineitransactionipenetrationiisiseeingimassiveigrowth.UPIipaymentsiroseifromi0.7%iofiGD
PinFYi2017-18itoi4.7%iiniFYi2018-19,iwhileicrediticardiexpansioniroseiaisignificanti32%iy-o-
yiiniFYi2018-19.

DistributiveiEfficiency

TheifirmijoineditheionlineiluxuryiretailimarketiiniApriliwithiAJIO.com,itargetingihigh-
marginicustomers,itailorediapparel,iandihasilaunchediAJIO's
'shop-in-shops'iasipartiofiitsiomnichanneliapproachiinimoreithani100iRelianceiRetailioutlets,iani
effortioniwhichitheiretaileriisioperatingiactively.
AsipartiofidevelopingidigitaliecosystemsiiniIndia,itheiorganizationiisialsoi
creatingitheilargestidistributioninetworkiforiappsiunderiJioibrandiinitheiworld.

JaipuriaiInstituteiofiManagement,iLucknow Pagei22
TechnologicaliProgressiveness

RelianceiDigitaliXpressiisipositioneditoiraiseiawarenessiofitheilatestitechnicalidevelopmentsiandiprov
ideisolutionsithatiallowicustomersitoimaximizeitheiusabilityiofitheiridevicesiandi
ensureioptimumioutput.iRelianceiDigitaliXpressicanihelpiusersiexploreitechnologyisolutionsiforitheiri
dailyineedsithatiensureiuninterruptedicontent,iallowithemitoioperateibetter,idevelopipracticalihomeisol
utionsiandiimproveisocialinetworkingicapabilities.
AtitheiNewiXpressishops,iconsumersiwillialsoitakeiadvantageiofi
otherienticingilaunchioffersioniitemsilikeipromotions,ifreebiesiandigifticoupons.

ProductiPerformance

RelianceiDigitalioffersioveri200inationaliandiinternationalibrandsiofferingiaiwidestiassortmentiofiproductsispa
nningiacrossiAudioi&iVideoiproducts,iDigitaliCameras,iDurablesilikeiAiriConditioners,iRefrigerators,iWashingi
Machines,iMicrowaveiOvens,iWateriPurifiers,iKitcheniandiHomeiAppliances,iGamingiConsolesi&iGames,iCom
puters,iLaptops,iTabletsi&iPeripherals,iMobileiandiFixedilineiinstrumentsiasiwelliasiaiwideirangeiofiaccessorie
siandinew-ageigadgetsiacrossiallimajoriproducticategories.

MembersiofiLearningiTeami-i07

JaipuriaiInstituteiofiManagement,iLucknow Pagei23