STRATEGIC ANALYSIS

OF JIO (GROUP A13)

 STRATEGIC ANALYSIS OF RELIANCE JIO INFOCOMM
LIMITED
Under
The
Guidance
Of
Dr. Neeraj Singhal

By

Aman Pandey (22PGDM006)

Angela Boxi(22PGDM009)

Jagadesh R(22PGDM031)
Introduction
Reliance Jio Infocomm Limited, or Jio, is an Indian telecom business and a subsidiary of Jio
Platforms based in Navi Mumbai, Maharashtra. It operates a countrywide LTE network that
serves all 22 telecom circles. Jio offers 4G and 4G+ services across India, as well as 5G
coverage in a variety of cities. It is working on a 6G service.
In September 2020, Reliance Industries has raised ₹1.65 lakh crore (US$21 billion) by selling
nearly 33% equity stake in Jio Platforms

VISION
Jio's vision is to transform India with the power of digital revolution - to connect everyone and
everything, everywhere – always at the highest quality and the most affordable price.
MISSION
Reliance Jio promises to shape the future of India by providing end-to-end digital solutions for
businesses, institutions and households and seamlessly bridging the rural-urban divide.
MISSION COMPONENETS
The mission statement of Reliance Jio Infocomm Limited (Jio) is as follows:
"To be the most admired and innovative organization in the country, creating value and
sustainable growth for all stakeholders."
This mission statement includes several key components:
• Is now the most admired: Jio's desire to be recognised and looked up to by its
customers, staff, and other stakeholders is reflected in this.
• Jio acknowledges the need of sustainable growth and tries to achieve it via ethical
corporate practises, resource consumption, and environmental stewardship.

Overall, Jio's mission statement emphasizes the company's commitment to innovation, value
creation, sustainability, and stakeholder engagement.
External Factor Evaluation (EFE) Matrix:

Key External Factors Weight Rating Weighted Score

Growing demand for digital services in India 0.15 4 0.6

Intense competition 0.10 2 0.2

Expansion into new international space 0.10 4 0.4

Adoption of 5G technology 0.15 3 0.45

Regulatory hurdles in Indian market 0.10 2 0.2

Economic and political unstability 0.10 2 0.2

Strong brand recognition 0.15 4 0.6

Large customer base 0.15 4 0.6

Total 1 2.85

The EFE score of 2.85 indicates that Jio is performing relatively well in responding to
external opportunities and threats.
External Analysis of Jio
Opportunities:
• Rising demand for high-speed internet and digital services in India.
• Growth into new foreign markets.
• Increasing use of 5G technologies.
Threats:
• Rivalry from established competitors like Bharti Airtel and Vodafone Idea.
• Government opicies in the Indian telecoms sector.
• Instability in several of Jio's target areas, both economically and politically.
Competitive Profile Matrix (CPM):

Key Competitors Weight Jio Bharti Airtel Vodafone Idea

Market Share 0.3 4 3 3

Product Quality 0.2 4 3 3

Price Competitiveness 0.2 4 3 3

Financial Position 0.2 4 3 2

Brand Reputation 0.1 4 3 2

Total 1 92 74 68

The CPM shows that Jio has a strong competitive position relative to Bharti Airtel and
Vodafone Idea, with a total score of 92 out of 100.
Porter's Five Forces Analysis
Porter's Five Forces Analysis is a framework used to evaluate the competitive landscape of an
industry. Here is a Porter Five Forces analysis of Jio:

• Threat of New Entrants: The telecommunications industry in India has relatively low
barriers to entry, and the government has recently taken steps to encourage new players
to enter the market. However, Jio has established a strong market position with its
extensive 4G network, brand recognition, and aggressive pricing strategy.

• Bargaining Power of Suppliers: Jio's suppliers include equipment manufacturers, tower

companies, and content providers. While some of these suppliers have significant
bargaining power due to their size and market dominance, Jio's large customer base
gives it some negotiating power.

• Bargaining Power of Customers: The Indian telecommunications market is highly

price-sensitive, and customers have a wide range of choices when it comes to selecting
a service provider. However, Jio's affordable pricing and extensive network coverage
have made it a popular choice among Indian consumers, giving it some bargaining
power.

• Threat of Substitutes: With the increasing availability of wireless internet and the
growth of over-the-top (OTT) services such as WhatsApp and Netflix, there is a threat
of customers switching to alternative means of communication and entertainment.
However, Jio has responded to this threat by expanding its own OTT offerings and
providing high-speed internet services.

• Intensity of Competitive Rivalry: The Indian telecommunications market is highly

competitive, with several players vying for market share. However, Jio has disrupted
the market with its aggressive pricing and extensive network coverage, and has emerged
as a strong competitor to established players such as Bharti Airtel and Vodafone Idea.

Overall, Jio has established a strong market position by leveraging its extensive network
coverage, aggressive pricing strategy, and focus on digital services. While there are challenges
such as the threat of substitutes and intense competition, Jio's strong brand recognition and
market position give it some advantages in the industry.

Internal Analysis of Reliance Jio

Strengths:
• Broad 4G network coverage across India; and •
• Substantial financial support from parent business Reliance Industries.
• A pricing approach that is aggressive and has disturbed the Indian telecoms sector.
Weaknesses:
• Before to the introduction of Jio, he had no expertise in the telecoms business.
• Reliance Jio's financial dependency on its parent business.
• Reliance Jio's lack of expertise dealing with regulatory obstacles in the telecoms
business.

Internal Factor Evaluation (IFE) Matrix:

Key Internal Factors Weight Rating Weighted Score

Extensive 4G network coverage 0.15 4 0.6

Strong financial backing from Reliance Industries 0.10 4 0.4

Aggressive pricing strategy 0.20 4 0.8

Focus on digital services 0.15 4 0.6

Brand recognition and customer loyalty 0.20 4 0.8

Limited experience in the telecommunications industry 0.10 2 0.2

 Dependence on Reliance Industries 0.05 2 0.1

Experience dealing with regulatory hurdles 0.05 2 0.1

Total 1 3.0

The IFE score of 3.0 indicates that Jio is performing well in leveraging its internal strengths
to meet external opportunities and threats.

Value Chain Analysis of Jio:

Inbound Logistics:
Jio sources its network equipment and other hardware components from global suppliers. It
also works with content providers to offer a wide range of digital services to its customers.
Operations:
Jio's core operations involve the deployment and maintenance of its extensive 4G network
infrastructure across India. It also develops and manages digital services such as JioTV and
JioCinema.
Outbound Logistics:
Jio distributes its SIM cards and other hardware components through its own retail outlets as
well as through partnerships with other retailers. Its digital services are delivered directly to
customers through its mobile app.
Marketing and Sales:
Jio has built a strong brand identity through aggressive advertising campaigns and pricing
strategies. Its sales channels include its own retail outlets, online sales, and partnerships with
other retailers.
Service:
Jio provides customer support through various channels such as its customer care hotline, social
media, and self-service options on its mobile app. It also offers additional services such as
device repair and exchange programs.

Strategies Identified in Organization in JIO

Jio, a subsidiary of Reliance Industries, has adopted several strategies to establish itself as a
dominant player in the Indian telecommunications industry. Some of these strategies include:
 • Aggressive Pricing: Jio's initial strategy was to offer 4G data services at highly
discounted rates, which disrupted the Indian telecommunications market and forced
other competitors to lower their prices. This pricing strategy helped Jio to acquire a
significant customer base and establish its brand in the market.

• Expansion of Digital Services: Jio has diversified its offerings beyond

telecommunications and has entered the digital services market. It has launched various
digital services such as JioTV, JioCinema, JioMusic, and JioSaavn, which have helped
it to attract and retain customers.

• Investment in Network Infrastructure: Jio has invested heavily in building an extensive

4G network infrastructure across India. This has enabled it to provide high-speed
internet access to a large number of customers, even in remote areas.

• Partnerships and Acquisitions: Jio has formed partnerships and acquired companies to
expand its offerings and gain a competitive advantage. For example, it acquired music
streaming service Saavn and rebranded it as JioSaavn.

• Focus on Customer Experience: Jio has focused on improving the customer experience
through its mobile app, customer care services, and other initiatives. This has helped it
to build a loyal customer base and improve its brand image.

Strategy Analysis
IE Matrix
 IE Matrix
EFE
Score

4 Strong Average Weak

I II III High
3

IV V VI Medium

2
VII VIII IX Low

1 4 3 2 1
IFE
Score

Integration Strategy, Mkt

Build & Grow Penetration,
Mkt Development, Product
Development
Mkt Penetration, Product
Hold & Maintain Development

Harvest or Divest Retrenchment, Divestiture

IE Matrix
The IE matrix is a tool that helps companies assess their position in the industry based on
their internal and external factors. Here is an analysis of Reliance Jio using the IE matrix:
Internal Factors:
• Financial strength: +5
• Competitive advantage: +6
• Technological superiority: +6
• Product diversification: +5

External Factors:
• Industry growth potential: +7
 • Market share: +6
• Competitive pressure: -5
• Technological change: -4
Based on this analysis, Reliance Jio falls into Quadrant II of the IE matrix, which indicates an
aggressive strategy. This means that the company should pursue an aggressive strategy by
leveraging its competitive advantage and technological superiority to expand its market share
and diversify its product offerings.

BCG MATRIX

RIL --> STAR Relative Market Share

BCG-Stage 2 High Low

High

STARS:High-speed internet QUESTION ? :IoT

services services
Mkt Growth

Low

DOGS: Non-core
CASH COW:4G network
services

Based on the BCG Matrix analysis, Reliance Jio should focus on investing in the question mark
category to increase market share and convert them into stars in the future while maintaining
the cash cows. Reliance Jio should invest heavily in IoT services to turn them into stars, while
maintaining its high-speed internet services as its primary source of revenue. Non-core services
should be divested or discontinued.

QSPM Matrix for reliance Jio

To create a QSPM matrix for Reliance Jio, we need to first identify the key external and internal
factors that could impact the company's performance. Here are some possible factors:
Internal Factors:
• Strong brand recognition and customer loyalty
• Wide range of product offerings
• Strong financial position
• Advanced technology infrastructure
• Efficient supply chain management

External Factors:
• Increasing competition from other telecom providers
• Government regulations and policies
• Economic instability
• Shifting consumer preferences and expectations
• Emerging technologies and innovations

Based on these factors, we can create a QSPM matrix for Reliance Jio:

Strategic Options Weight Attractive (1-5) Total Score

Expand product offerings 0.15 5 0.75

Improve customer service 0.1 4 0.4

Enhance technology 0.2 5 1

Increase market share 0.15 4 0.6

 Develop new markets 0.1 3 0.3

Strengthen supply chain 0.1 4 0.4

Invest in research 0.2 5 1

Total 1 3.45

In this matrix, we have given weights to each strategic option based on its perceived
importance, and then rated each option on a scale of 1 to 5 based on its attractiveness. The total
score is then calculated by multiplying the weight by the attractiveness rating for each option
and summing the results.
Based on the QSPM matrix, the most attractive strategic options for Reliance Jio are to enhance
technology and invest in research. These options have the highest total scores and could help
the company stay ahead of the competition, improve customer satisfaction, and expand its
market reach.

Space Matrix for JIO

Based on the SPACE matrix scores assigned for Reliance Jio, the company's position would
be plotted in the aggressive quadrant, which is located in the upper right quadrant of the graph.
The coordinates for Reliance Jio would be approximately (+5,+6), which indicates that the
company has strong internal factors and is pursuing an aggressive strategy to capitalize on
opportunities and overcome threats.
The graph also shows four quadrants: aggressive, conservative, defensive, and competitive.
Companies that fall in the aggressive quadrant pursue aggressive strategies to take advantage
of opportunities and overcome threats. Companies that fall in the conservative quadrant have
strong internal factors but face external challenges and should focus on stability. Companies
that fall in the defensive quadrant have weak internal factors and face external challenges, and
should focus on retrenchment and cost-cutting. Finally, companies that fall in the competitive
quadrant have weak internal factors but face favorable external factors and should focus on
diversification and market development.
 SPACE Internal Strategic Position External Strategic Position

Competitive Advantage(CA) Industry Strength(IS)

(-6 Worst,-1 Best) (+1 Worst, +6 Best)

-1 Product Quality 4 Entry Barriers

X Axis
-1 Market Share 5 Growth Potential
-1 Brand & Image 6 Access to financing
-2 Prod Life Cycle 5 Consolidation

-1.25 Average 5 Average

TOTAL X AXIS Score: 3.75

Financial Strength(FS) Environmental Stability(ES)

(+1 Worst, +6 Best) (-6 Worst,-1 Best)

5 Return -3 Inflation
Y Axis
4 Leverage -2 Technology
5 Liquidity -4 GST
6 Cash Flow -4 Demand Elasticity

5 Average -3.25 Average

TOTAL Y AXIS Score: 1.75

Based on the SPACE matrix, Reliance Jio is positioned in the aggressive quadrant, indicating
that the company has a strong financial position, advanced technology infrastructure, and high
customer loyalty. However, it also faces significant competition from other telecom providers,
and there are emerging technologies and shifting consumer preferences that could impact its
market share.
To improve its position, Reliance Jio could focus on strategies that leverage its strengths, such
as expanding its product offerings, improving customer service, and investing in research and
development to stay ahead of emerging technologies. It could also look for ways to minimize
its weaknesses, such as developing new markets and strengthening its supply chain
management.
Conservative Aggressive
4

1.75
2

0
1 3.75

-3 -2 -1 1 2 3

Defensive 3 Competitive

4
Conclusion of JIO

In conclusion, Jio has disrupted the Indian telecommunications industry with its aggressive
pricing strategy, innovative digital services, and high network coverage. It has quickly become
one of the leading players in the industry, competing primarily on price and quality.
Jio's focus on digital services and its investment in high-speed network infrastructure have
helped it differentiate itself from competitors and attract a large customer base. The company
has also shown a willingness to adapt and innovate, introducing new services and technologies
to stay ahead of the competition.
However, Jio does face challenges in maintaining its market position and profitability. Its
aggressive pricing strategy has put pressure on profit margins, and it will need to continue to
invest in network infrastructure and digital services to stay competitive.
Overall, Jio has proven to be a disruptive force in the Indian telecommunications industry, and
its impact is likely to continue to be felt in the coming years.