CASE STUDY ON Reliance Jio

Reliance Jio: Jio jee bharke

Presented by:-
― Aditya Singh (S003)
― Binod Xalxo (S079)
― Madan Rathod (S036)
― Sagnik Biswas (S060)

1
Brief History & Introduction

 Reliance Jio Infocomm Limited, doing business as “JIO”, is a LTE mobile

network operator in India.
 It is a wholly owned subsidiary of Reliance Industries headquartered in
Mumbai.
 Provides wireless 4G LTE service network

 History:
 Jul 2015: Reliance Industries partners with Intex to make 4G VoLTE smartphones.
 Oct 2015: Reliance announces LYF, its own brand of smartphones compatible with
Jio.
 Dec 2015: Reliance Jio’s services is launched for employees in beta.
 Jan 2016: First smartphone under the LYF series – Water 1, is launched.

2
Mission and Vision

 Mission
― To provide the best and most value-adding advice within investor relations,
financial communications, media relations, crisis communications, issues
management and CSR reporting

 Vision – “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.”

― To be our clients’ “first call” and preferred collaboration partner within our
business area.
― To consistently exceed our clients’ expectations for professional and value-
adding service.
― Our objective is long-standing and trustful client relationships created via
excellent advice and service.
3
JIO Product

4
Business Strategy of Jio

5
Business Strategy of Jio

 Jio know about the one of the most important Porter Five Forces i.e
“Threat Of New Entrant”
BARGAINING
POWER OF
SUPPLIER

 Jio step into the business with “Lose leader Strategy”

 A loss leader strategy prices a product lower than its production cost in order to attract customers THREAT OF
or sell other, more expensive products NEW INDUSTERY
RIVALRY
THREAT OF
SUBSITUTE
 Companies use a loss leading strategy when aiming to penetrate new markets to gain market ENTRANT
share.
 Large companies can afford to price a product with no margin because they have other products
they can sell profitably to make up for the loss
 Loss leading strategies can hurt small businesses as well as suppliers, who might be forced to keep BARGAING
POWER OF
their own prices low so that a business can continue with its loss leading strategy. BUYER

PORTER FIVE FORCES

6
Operation Strategy of Jio

7
Operation Strategy of Jio

 Jio initial offering to make customer base

 Initial 3 month free data and calling with further 3 month extension post expire of
initial 3 month.
 Nominal charges of 2000/- for the internet router in the name of Jio wifi without
billing for initial 3 month.
 10 Nos Sim can be taken on single Aadhar Card.
 Tie up with the Nokia and Real me phone company for Free sim with its purchase.
 Lowest cost 1500/- Jio Flex smart phone with Jio sim connection.


 Tie up and signing pact during the launching of 4G to use

the Existing tower of certain companies

 82000 towers Bharti Airtel.

 42000 Viom Network Ltd.
 11000 ATC India Ltd.
 All Tower of lose making companies of Reliance communication.
Mobile Tower

8
Operation Strategy of Jio
 Long Term Strategy
 Merger of RCOM and Hathway like Companies to increase Jio’s operating
bandwidth fixed by TRAI to counter the increasing demand of the day by day
increasing user.
 Exploring the new services like Jio business Solution:
i. IP Centrex - A telephone service in which an IP-based PBX is located in the
telephone company's facilities. It connects to the customer via the LAN rather than Merger and Tie Ups
by telephone wires. IP CENTREX offers voice over IP and other IP-based services as
well as connectivity to the regular telephone system (PSTN)
Ii. Fixed Mobile convergence - Fixed mobile convergence refers to the ability of
telecommunications companies to provide their subscribers with services that
interact with and use both the fixed networks incumbent wire line and/or cable
operators and the mobile/cellular networks of mobile operators.
Iii. Jio Meet – Services like zoom and google meet.
Iv. Jio Attendance – In this type of facilities attendance will be real time basis of on
location of the Person.
V. Jio Digital First business Membership: It is devices to be used to avail the above
facilities.
 Jio Services will extended in the field of Big Data and Analytic field since it is the
most important part of the IOT system as on of the service in Big data.

Jio Services

9
Operational Strategy
Process Technology Capacity

 Future ready 4G LTE technology  Follow Marketing strategy with disruptive expansion
 A game changer in call and data business  Keep an asset light model initially for rapid expansion and to
shift the risk
Supply Strategy

 Buy low cost and sell at low price

 Source from limited suppliers

Organization & Development

 Build on the market share
 Recruit best from the industry
 Build capabilities in hardware and software
development for 5G.
 Foray into internet related business such as smart
homes / Broadband / enterprise solutions / DTH etc

10
10
Operational Challenges
Ecosystem/ Market Challenges
(Process Technology Challenge)
 Target Users had been using 2G/3G phones. Reliance Jio
had 4G LTE technology offering VOLTE/VOIP incompatible
with the most of the existing phones/ devices.
 Laying of Fiber Optics in given schedule was a challenge
as in metro cities, this needs more time and regulatory
approval and cost. Reliance Jio came with HDD
Technology that was first in India to lay the Fiber optics
cable in record and required very few approvals.
 Installation of towers within city , made use ground
based towers to save on cost and time
Incumbent operators
 Legal proceedings involving incumbents
 Accusations & Counter Accusations with Competitors
 Call drops leading to customer dissatisfaction arising
from insufficient points of interconnectivity by
Competitors .
Challenges Arising from Mega Launch & Rapid Growth Plans
(Capacity)
 Greenfield project, meeting aggressive target was a challenge.
 Challenging to match the demands arising from Capacity
expansion and rapid growth.
 Reliance Jio went for Asset Light / Low infra Model. And had
Tie-up with Tower infra companies.
 Spectrum problem- Initially Reliance had acquired 2.4 GHz
bandwidth which was not suitable for good market
penetration
Supply Chain Issues- Covid 19 impact
 Recently semiconductor chip shortage has been
affecting electronics producers globally.
 Reliance had to delay the launch of its Jiophone Next
because of shortage in supply.
 In past also such supply shortages were faced during
infrastructure development phase
11
11
 Future Challenges
5G Launch
 Reliance is planning to use make use of ORAN technology for
5G, not a lot of such networks are present in the world. Not
much experience to operate such technology.
 This can pose some unexpected challenges which are not
identified before.
 This also involve multi vendor operations. O&M in
multivendor setup can pose a challenge. which can be
challenging and can cause delays
Supply Chain
 Semiconductor shortage / Supply Chain issues due to ongoing
Covid -19 restrictions
 Can affect Upcoming JioPhone” Pricing and capacity
Retaining Customers / Increasing ARPU
 Jio has the lowers active subscriber percentage of all the three
private Telco's
 Many users are secondary users which are low ARPU users
 Converting them into active users will be a challenge
 With price parity coming, rate of addition of new user has
fallen behind that of Airtel
 Superior Infrastructure and Technological Advantage with
Competitors
 Oligopoly Market
Government Policies

Product Offerings  Make in India 5G hardware

 Trying to foray into many product offering such as enterprise  Regulatory
solution / Smart Homes etc., meeting service/ product quality  Spectrum Allocation
and schedule will be challenge  Bandwidth Cost
 Resistance/ Challenges emanating from incumbents  Pricing Cap on 5G services
 Downgrading quality of Services / data speed

12
12
References
 Launch of Reliance Jio has caused a revolution in telecom industry overcoming challenges along with its
 Loss leader disruptive pricing strategy
 Asset light (infrastructure) growth model
 Future ready technology (4G LTE)
 Timing the product launch with digital revolution in India

“Jio Aims to bring the benefit of evolving digital technology to every Indian through an entire ecosystem
that will Indians to live the digital life to the fullest”

13
Conclusion

 Rahul Mhabde, Ali Damani, Internal and External Analysis of Jio, IJARIEE, Vol. 4, 2018
http://ijariie.com/AdminUploadPdf/INTERNAL_AND_EXTERNAL_ANALYSIS_OF_JIO_ijariie7686.pdf

 Shahbaz Khan, “ Strategy of Jio that shook the telecom Industry, Linked-in, October 2016
https://www.linkedin.com/pulse/strategy-jio-shook-whole-telecom-industry-shahbaz-khan

 ICMR Article, Jio enters in indian telecom market and becomes the game changer, published 2016-17, https://
www.icmrindia.org/casestudies/catalogue/Business%20Strategy/reliance-jio-disrupting-indian-telecom-industry-excerpts.htm

 ET Article : Open RAN: Critical to India 5G success but a road fraught with challenges, date Nov 16, 2021
 ET Article: JioPhone Next delay: Challenges ahead for Mukesh Ambani to manage component crunch and price, say analysts

 Telephonic Interview with Mr. Ramesh Chavhan, DGM, Reliance Jio, dated 11/03/2022

14
Thank You

15
15