DEPARTMENT OF BUSINESS ADMINISTRATION

UNIVERSITY OF LUCKNOW

ASSIGNMENT
ON
CORPORATE EVALUATION AND STRATEGIC
MANAGEMENT

SUBMITED TO : SUBMITED BY :

DR. J.K SHARMA AYUSH BISHT

PROFESSOR ROLL NO : 07
UNIVERSITY OF LUCKNOW MBA SEM 4th
DEPT. OF BUSINESS ADMINISTRATION
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my

Professor Dr. J.K Sharma who gave me the golden opportunity
to do this wonderful project on the topic “Reliance Jio as Disruptor
in Indian Business” which also helped me in doing a lot of
Research and I came to know about so many new things I am
really thankful to them.
Secondly I would also like to thank my parents and friends who
helped me a lot in finalizing this project within the limited time
frame.
AYUSH BISHT
MBA 4th Semester
Reliance Jio as Disruptor in Indian Business

Reliance Industries Limited (RIL) was started by Dhirajlal Hirachand

Ambani (Dhirubhai) as Reliance Trading Corporation (RTC) in 1958
with just Rs. 50,000. Prior to this, Dhirubhai had worked as a petrol
pump attendant and then as a clerk in an oil company.
In 1966, Dhirubhai set up his first textile mill turning out polyester cloth
under the Vimal brand. In 1976-77, RTC recorded an annual turnover of
Rs. 700 million...
Reliance Jio disrupted the Indian telecom market by launching its
mobile telephony and data services in September 2016.Having
established the infrastructure, Jio had to overcome the next hurdle of
acquiring customers. The company planned to lure consumers by
offering high speed mobile internet at affordable prices. As of 2015, less
than 15 percent of the Indian population had access to 4G connectivity.
Jio had ambitious plans to offer 4G connectivity to 90 percent of the
Indian population by 2017…
Jio was touted as an industry disrupter for its ridiculously low data
prices and for doing away entirely with charges for domestic calls. The
telecom major’s offers was nothing short of audacious – unlimited free
voice calls throughout the country and data priced cheap at Rs. 50 per
GB. Since the voice market was crowded, Jio planned to make its
disruptive pricing strategy an attractive feature. In contrast, the
incumbents generated a major chunk of their revenues from voice calls
running on 2G networks. Experts appreciated Jio’s strategy of focusing
on the data market which remained hugely untapped and offered
tremendous potential whereas the voice calls segment was highly
saturated.
By the end of September 2016, Jio had successfully disrupted the market,
garnering 16 million subscribers – an all-time record for any telecom
player. In addition to this, the demand for VoLTE enabled handsets was
increasing. According to a report by market research firm, Counterpoint
Technology, 80 percent of LTE compatible smartphones shipped during
the July-September quarter (Q3) were VoLTE enabled, as compared to
63 percent in Q2 and 30 percent in Q1..
Jio’s pricing strategy sparked a tariff war, forcing incumbents such as
Bharti Airtel (Airtel), Idea Cellular, and Vodafone to slash their own
tariffs in a bid to maintain market share. In addition to its unique
pricing proposition, Jio’s 4G network was technologically more
sophisticated than other players in the Indian telecom market. The
telecom major’s entire network and infrastructure was built from
scratch with the latest technology and new infrastructure from leading
telecom gear manufacturers. The company’s huge digital infrastructure
was designed to handle 5G and 6G. Analysts pointed out that Jio’s
efforts in launching a disruptive technology ensured high efficiency and
better performance for its consumers compared to what was offered by
traditional network operators. On the other hand, Airtel, Vodafone, and
Idea Cellular were focusing on upgrading their existing technologies
instead of investing in 4G or VoLTE since the mounting debt incurred
by the telecom companies on the spectrum auction limited their ability to
spend on core infrastructure. In addition to this, the network operators
also faced several challenges such as frequent call drops, dodgy
reception, and fluctuating internet speeds. Reliance Jio was awarded The
Disruptors title in the CNBC TV18’s India Business Leader Awards
2018.
Challenges faced by Reliance Jio :

Reliance Jio’s entry in India faced quite a lot of challenges as well.

Since China and India have nearly identical 4G networks, there has been
a steady flux of 4G devices in India. The circulation of 4G devices has
been gradually improving but the 4G enabled devices were still a meagre
1.6% according to a study conducted by Nokia. This meant that core
addressable market for Reliance Jio was very small and telecom is a
game of scale. It’s absolutely mandatory for telecom operators to have
good scale to operate profitably unless ARPUs are abnormally high.
Airtel, Idea and Vodafone all had 60% + market share together, whereas
in case of Reliance Jio, the core addressable market was just a mere
1.5% as of then. But it’s important to know that LTE shipments
increased at a very rapid rate with a jump of around 2400% according
to Counterpoint.

Leaving the core addressable market problem, there was also the
problem of Ecosystem. Reliance Jio initially had spectrum in three
bands namely 1800 MHz band, 2300 MHz band and 800 MHz band. The
first two bands couldn’t penetrate (in terms of coverage) as well as lower
800 MHz band. This 800 Mhz band was absolutely crucial for Reliance
Jio to have a robust coverage. Most recent 4G smartphones in India
supported 2300 MHz and 1800 MHz, but very few supported the 800
MHz band. How Reliance Jio intends to make handsets support 800
MHz band is yet to be known.

Since Rjio is a 4G only network, they were planning to carry voice over
their LTE (VoLTE) but as usual very few smartphones currently
support it. Also the handoff between Vo-LTE and Vo-Wifi is was
tricky which even lot of international operators failed to get right. I
understand that calling is now just a feature in the grand scheme of
things people do on a smartphone, but it’s still a feature nonetheless and
if a network can’t reliably place calls, then that’s an issue for a lot of
people.

Reliance Jio also faced a challenge to monetize users as it moves from

free subsidized content to a freemium model in later on period.
Now, willingness to pay for content became key for Reliance Jio inorder
to make a successful migration to freemium model. Now , Fourth-
generation (4G) mobile broadband services could face stiff challenges
once 5G deployments happen, as traditional pricing models will undergo
a complete overhaul and voice and data services will no longer be billed
on a “per-minute” or “per-bit-per-second” basis.

Market Share in Telecom Company

Before Jio After Jio

Strategic logic of Reliance Jio :

The spotlight i.e. three-pronged on broadband networks,reasonable

smartphones and data services, and the approachability of rich element
and applications has endowed Jio to make an incorporated business
procedure .
From the initial preparatory point
and today, Jio is equipped For offering an exceptional mix of telecom,
rapid info, Computerized trade, media and payment services. The
various strategies adopted by Reliance JIO to capture Indian Market are
as follows ; The various strategies adopted by Reliance Jio to capture the
Indian market included free voice, apps, SMS, and data initially, which
pulled 100 million subscribers within 170 days; bundled entertainment of
apps; huge investment in physical advertisements like flyers and posters
in most of the parts of the country, sponsorship of events like Indian
Super League; low-cost mobile phones; new and very affordable pricing
strategies, traditional pricing strategies were having 12 billing cycles
(recharges) but it got reduced to about three to four billing cycles
(recharges); free voice calls, free roaming and 100 SMS per day; plans
like 84 GB data for 84 days at Rs 399 as against the prevalent 1 GB data
for Rs 190. High-speed data was now a commodity.
TheTelco’s
operational strategy was equally aggressive. Extensive construction of
towers, forging agreements with towercos, laying extensive fiber
backhaul, and last mile fiber connectivity; construction of international
networks like Bay of Bengal Gateway; and investment in licenses and
spectrum were the initial steps. Technological advancements like voice
over long term evolution and the vision for upgrades like 5G so that it is
prepared for future development innovation like progress to 5G with
negligible extra capital use in systems were part of the process
technology. The company’s distribution strategy included more margins
and schemes to distributors and retailers, fast and

digital SIM activations through eKYC, and 4G smartphones and other

merchant devices for retailers to start business.The stage had been set
very early to make available high-speed data to every Indian at the most
affordable rates, with zero call charge forever.
Jio is constantly striving to enrich the digital experience of its customers
through innovative applications developed in-house, or in collaboration
with the unique ecosystem of small and large partners. Jio offers its
subscribers unique content such as PyeongChang 2018 Olympic Winter
Games and Jio Cricket Play Along. The MyJio app is the most popular
self-care app with over 150 million downloads and substantial additional
features. Jio has forged partnerships with the likes of Balaji Telefilms,
Eros International, and Saavn to bring unique content with an intuitive
user interface to every Indian.
The company continues to make progress on delivering enterprise
solutions, FTTH and IoT, with beta trials initiated in a few locations.
These services are being offered using the existing integrated network
and platforms. During the year, Jio was awarded the first rank in India
and 17th globally in the Fast Company’s World’s 50. “Change your
strategy as trends change” this is an excellent prescription for the
successful business, and it is what most of the largest and highly
profitable retail companies embrace, and hence Reliance Industries do.
At a world level, the Reliance industry aims to be amid the top 20
companies with refining and petrochemicals, it has established new era
businesses – Reliance Jio and Reliance Retail.
 Subscriber Based Revenue of Reliance Jio

It can be logically derived that JIO’s strategies – Marketing,

Pricing, Operational, Distribution, Capacity Management – Have
been successful in disrupting the Indian telecom market And
.achieving commercial success in a short period of time
 REFERENCES

 https://www.icmrindia.org/casestudies/catalogue/
Business%20Strategy/Reliance%20Jio/
 https://techpp.com/2015/12/09/reliance-jio/amp/
 https://www.communicationstoday.co.in/reliance
-jioinfocommlimited/