CASE

STUDY

CONTENT
S
INTRODUCTION
HISTORY
TELECOMMUNICATION
SECTOR IN INDIA
CLIENT Jio
Mobile Network Operator Company
ARRIVAL OF Jio
How Jio Grabs users
Pricing and Market
Results and Profits
Similar Strategies
Application of Course AMAL RAJ SINGH
Material BBA ‘BA’
03
INTRODUCTIO
N

Reliance Jio Info COMM. Limited, Jio, is an

Indian mobile network operator wholly owned
by Reliance Industries and headquartered
in Mumbai, Maharashtra, India, it operates a
national LTE network with coverage across all
22 telecom circles. Jio does not
offer 2G or 3G service, and instead uses voice over
LTE to provide voice service on its network.
 HISTORY

• Dhirubhai Ambani’s death in 2002.

• Conflicts arise between the brothers Mukesh Ambani(Elder) and Anil
Ambani (Younger), Since both of them have different perspective and
vision.
• Splitting of Reliance took place in 2005.

MUKESH AMBANI ANIL AMBANI

Reliance Industries Ltd. (RIL) Reliance Energy Ltd.
IPCL (Indian Petrochemicals Company
Ltd.)
Reliance Capital Ltd.
Reliance Infocommunications.
Note : Reliance Infocomms. was the country’s largest telecommunication
network with 11.5 million users as in June 2005 (the time of Split.)
CONTEXT

• Mukesh Ambani was always interested in the

telecommunication business, and he was the one who
was in charge of Reliance Telecommunications (When
Dhirubhai Ambani was alive). Reliance
Telecommunications was brought up in the underseeing
of Mukesh Ambani until June 2005 (before the split).
• At the time of Split, An agreement was signed which
stated that Mukesh Dhirubhai Ambani was not allowed
to be a part or start any business in the
Telecommunications sector which might prove to be a
competitor to Anil Dhirubhai Ambani’s Reliance
Telecommunications.
TELECOMMUNICATIO
N SECTOR IN INDIA

A simple Infographic of the tariff rates and offers provided by other mobile
service providers (Mainly):
• Airtel
Airtel
• Vodafone
• !dea
• Aircel
!dea
AIRCEL

Vodafone
ARRIVAL OF Jio

2010
• The 5 year Business limit according to the agreement is
done with.
• Mukesh Ambani starts working on his dream plan [i.e
sector of interest(Telecommunications)].
• RIL bought 96% stake in Infotel Broadband Services Ltd.
(IBSL) for Rs.4800 Crores.
• IBSL is then renamed as Reliance Jio Info communication
Ltd. (RJIL) in Jan 2013.
Note : Mukesh Ambani invested $34,916,250,000 ($34.916 Billion) or (approx.
Rs. 2.5 Lakh Crores) into R&D for faster speed and efficiency of the network
in 5 years time span (2010 - 2015).
 IBSL
(why IBSL?)

• During the time period of 5 years (i.e 2010 - 2015). While other
telecom service providers such as Vodafone, Airtel, !dea, AIRCEL
etc. were concentrating on 3G network and connectivity.
• IBSL used to provide 4G BROADBAND services, when very less
amount of people used cellular data (3G, 2G, GPRS).

Note: Mukesh Ambani didn’t dive into the market with a lot of
competition (Airtel, Vodafone etc.), but invested in R&D keeping in
mind about the future of Telecom Services.

This was the best option at that point of time with lesser risk and more
profit, with respect to the motive of Jio i.e High Value and Low Price.

3 x investment(AIRCEL + !DEA + AIRTEL + VODAFONE) = RJIL’s Investment (R&D)

How Jio Grabs
Users.

• Jio was officially launched on 5th of September 2016 and it’s advertising was
already at it’s best featuring star Cricketers and Bollywood Superstars.
• But the main attracting feature was it’s release offer. Which couldn’t be
matched by any of it’s competitor.

Jio promised it’s new users to provide them with

free voice calling, 4G Data and text messages
for the next 90 days.
 • As the 90 days time period was nearing an end from the day of it’s
launch.
• Jio had to retain it’s customers as well as get new users by providing
more juicy offers as such.

Jio then came up with new

offer, to keep the previous users
hooked as well as get new
customers.

Jio also introduced “Jio Prime” which

provided unlimited 4G data + Voice
calls + Text messages at just Rs.10/- per
day (this membership costed Rs.100 and
was valid for 365 days).
PRICING

Jio Tariff rates and plans are still unmatched by it’s major competitors
due to the Large User base that Jio has and it’s motive of

“High Value and Low Price”

RESULTS and
PROFITS

Jio presently has 331.3 Million subscribers in India.

Year Net Profit

2017 (Q2, Q3, Q4) Rs. 510 Crores
2018 Rs. 2964 Crores
2019 (Q1) Rs. 891 Crores

50 Million subs in 83 days.

 Similar
Strategies.

HIGH VALUE and LOW PRICES

Application of
Course
Material.

• Market Research
• Legal Environment
• Importance of Business Environment
• Identify Opportunities
• Meeting competition
• PESTLE Analysis [Technological (i.e Emerging
tech, R&D Efforts);
Social Cultural (Demography, Income
Distribution); Legal (Law Enforcement)]
 Sources of
Information.

• Wikipedia
• Youtube
• Economictimes.indiatimes.com
• Google
• Icmrindia.com (IBS Center for Management Research)
• Forbes.com
• Indiatoday.in
• Digit.in