Reliance Jio:

Revolutionizing Indian Telecom

Group 4
2 Anand Kumar • 11 Chirag Thakkar • 13 Devansh Saxena • 32 Raj Shah
36 Rohan Nandi • 40 Shahin Selkar • 43 Souvik Biswas • 49 Vedant Dhakate
1. India is the second largest market for telecommunication, and third
largest with internet user base. Discuss from the point of view of a new
entrant, the attractiveness and challenges of the market.

The attractiveness of the market

►By their strategy they can attract large volume of new user(rural which
accounted for 70% of India’s population) which are price sensitive
►In India telecommunication market grow at 10.3% year on year
►In 2010, there was a major shift from voice calling to data offerings.
►Due to FDI overseas companies had planned to set up manufacturing
plants in India.
►Make in India program launched by government in 2015 which attract
local companies to manufacture and smart phones sales raised to 23%
year on year which is much higher than global growth of 5%
►Innovations in smartphones were skewed towards 4G technology
►Set up of The Telecom Dispute and Appellate Tribunal

Group 4 • PGDM (IM) • 2019-21 • AIIM

1. India is the second largest market for telecommunication, and third
largest with internet user base. Discuss from the point of view of a new
entrant, the attractiveness and challenges of the market.

Challenges of the market.

►Stiff resistance from already existing players
►Technological challenges(4G-enabled handset ecosystem)
► Squeezed margins in a highly competitive industry
►Massive investment requirement to cover rural area which contributed to
70% of population
►High taxes and licence fees

Group 4 • PGDM (IM) • 2019-21 • AIIM

2. What are the elements of Jio’s entry strategy that make it
successful?

Group 4 • PGDM (IM) • 2019-21 • AIIM

3. What is Jio’s growth strategy? What are the underlying
challenges for Jio and for other existing players in the market?

The Jio’s growth strategy

►Step 1: To get as many consumers on board as possible. With variety of

offer initially, they did manage to get substantial consumers onboard.
►Step2 : To retain these consumers.
►Step 3: To continue consumer acquisition aggressively
►With increasing user base, Jio adds muscle to their bargaining capacity
in striking a deal with media publishers

Group 4 • PGDM (IM) • 2019-21 • AIIM

3. What is Jio’s growth strategy? What are the underlying
challenges for Jio and for other existing players in the market?

Challenges for Jio

►Voice call failures: In Sept 2016 it saw 80% fail rate due to insufficient
points of interconnectivity provided by the other players in the market.
►Fluctuating and decreasing internet speed: Drop of internet speed on
average from 50 Mbps to 6-10 Mbps.
►Faulty Bundled Apps: frequently crashing, loading issues, long boot time
►Absence on VoLTE in older phones: required to use JIO voice app for the
connectivity –Difficulty for the user and wastage of SIM

Group 4 • PGDM (IM) • 2019-21 • AIIM

3. What is Jio’s growth strategy? What are the underlying
challenges for Jio and for other existing players in the market?

Underlying challenges other existing players in the market

►To convert the 2G & 3G spectrum for 4G service. For example Airtel,
Vodafone and Idea use some amount of spectrum for 2G, while Jio uses
same spectrum for VoLTE network and high speed 4G internet.
►To buy as much as spectrum in all possible circle in the upcoming
auction and utilize it for 4G service.
►To increase its customer base using aggressive marketing and offer
connections with the lucrative smartphones.
►Maintaining the constant internet speed.
►Reduce the number of call drop.

Group 4 • PGDM (IM) • 2019-21 • AIIM