Amit - Reliance Assignment

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Reliance Jio:

SWOT Analysis:
Strength:
1. JIO gets strength through providing various advanced services to the user such as,
• No charges for voice calls and unlimited calling it’s highly benefits to customer which
leads to get more attention towards JIO.
• They introduced 4G with high speed it highly attracted towards net user.
• Low tariff plans rate.
• Free SMS and national roaming service.
• Free one and two GB of 4G data per day for the JIO user and free subscription to Apps.
2. These above benefits highly attracted towards the people is the biggest strength of JIO.
3. Now in the market JIO stands in the leadership position.
4. In very short period JIO attracts more customers.
5. Highly target oriented in its upcoming projects.
6. Its holds highest technology in the market and create new trend.
Weakness:
1. JIO’s user faced connectivity problem like call drops while in the time of calling, so it creates negative
impression towards user.

2. This system will not support 3G, because JIO preferred only for LTE (4G) and voLTE.

3. They delayed to entry in the market because already various kinds of network available in the market
and they have lot of customers.

4. Everything new to the user regarding JIO apps so it may difficult to use.

5. Other networks most of the time deny the calls while calling from JIO.

Opportunity:
1. They look to partner with digital entrepreneur; this will not only accelerate their growth but also give
them opportunity to form strategic partnership.

2. Users of smart phones are high.

3. Trade and market through globally.

4. Consumption of data is high.


5. Now, JIO benefits for 4G users only, so they have opportunity to concentrate for 3G users also to
increase number of customers.

6. Opportunity in related segment like television.

Threat:
1. Competitors are high in the market already they have lot of customers like (Airtel, Idea, Vodafone
etc…)

2. Rapid development in technology. (i.e., 2G to 3G, 3G to 4G, 4G to 5G). 3. Maintaining of quality


service is difficult like speed, tower range etc.

4. Government policies (i.e., TRAI).

5. Perception of customer: Once free services are over, people will not want to continue.

6. Requirements of huge investments for up gradation.

7. Existing competitors have a strong and loyal customer base so it is difficult to change the mindset of
the customer.

PEST Analysis:
Political:
“TRAI” is frames the rules and regulations for telecom industries. The rapid growth of JIO made the
competitor to disturb the schemes and offers of JIO. The competitors appeal their rights in “TRAI”.

Economic:
In this current economic situation it is very difficult task to run the business at the same time while
taking telecom industry already there is large number of network operators but JIO is providing free
services with minimum charges to its service like call rate, minimum price of their products. It feels the
people more economic in developing country like India; where the pricing is focused.

Social:
To satisfy the whole society is impossible, if the company concentrate in the term of society it should
covers all type of people like youngster, middle age people and old person. At the same time
expectation, preference will differs from one segment to another segment in the society. JIO creates
social group which connects the people in one end it helps the nation to be connected in all means.

Technology:
The advanced 4G technology has been adopted by JIO with cheaper rate. They are the leader in the 4G
market. But the fact is technology is always depends upon the growth. So, there is some requirements
and technological research need for the next level. Conclusion: The growth of the Reliance JIO Company
depends upon the consumer behavior towards the pricing. As already mention in this study about price
sensitive customers, they expecting with the minimum investment to gain maximum benefits. The study
reveals the new strategy adopted by the JIO to overcome the challenges in the past Reliance
communication lost their market but now, the entry of Reliance changes the past situation in the market
environment. But always there will be a competition between the mobile operators; the one who
exceeds the customer’s satisfaction level will be the king of market. Recommendations: They should
have their own network to provide coverage of network. They should provide transparency in their
services, polices, programs. They should have a consistency in their pricing strategy. Customer oriented
service is to be recommended for the good customer friendly services. More advertisements (ad
campaign) to gain other network customer. To elaborate postpaid services in order to attract the
different types of customers like business people.

Six ways in which Reliance Jio may have changed India’s


telecom landscape
References:
[1] Vodafone- Idea merger – Forbes India.

[2] http://economictimes.indiatimes.com/news/company/ corporate-trends/

[3] Telecom from The Economic Times.

[4] Strategy Tools from MindTools .com

PLANS VALIDITY PRICE AIRTEL PRICE BENEFITS BENEFITS


JIO AIRTEL JIO
2GB/DAY 28 359 299 AIR JIO
1.5 GB/DAY 28 299 239
2GB/DAY 84 839 1066 DIS+ XTREAM DIS+JIO
1.5GB/DAY 84 719 666 SAME
2GB/DAY 365 3359 3119 DIS+HOT/ DIS+JIO
PRIME TRAIL
1.5GB/DAY 365 NO PLAN 2545 JIO
- Airtel – Tata- Tele Merger- more spectrum + threat of elimination
- 2019- focused on high valued customer- minimum recharge limit of 35/month- lost
48million customers but gained 107 crs in profit
- Integration- ecosystem- exclusive products like wynk
- Multiple channels- Loss Leader Strategy
- Leveraging B2B clients
- WFH/SFH packs
- Local cable operator
- Set top box
- 999/ month – they gave almost every thing
- And broke into jio ecosystem
- Out of 97 lac new broadband subs during pandemic- airtel gained 70 lac of them
-

Jio
- Welcome offer and new year offer – 45 days of free internet gave them the largest
data traffic in the world

Loss leader strategy for first six month – just 45 days of which made jio the largest internet
traffic
Penetration Pricing –
CompetitiveAirt pricing

- Competative pricing strategy


- Loss leader
- Penetration pricing

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