Name: Utkarsh Deep Roll No: PGP39334

Subject: Business Data Communication Section: B

Assignment-1

Q. How did Reliance Jio manage to be a market leader though being a late mover in the
Indian telecom Industry?

Answer:

Reliance Jio managed to become the market leader in the Indian telecom industry despite
being a late mover by leveraging several strategic advantages:
1. Aggressive Pricing Strategy
Jio adopted an aggressive pricing strategy, offering free or low-cost services to rapidly gain
market share. This disrupted the industry by forcing established players to reduce their tariffs
to match R-Jio's prices, leading to a sharp decline in industry profits.
2. Future-Ready Network
Reliance Jio (R-Jio) focused on building a future-ready network by leveraging the latest
technology, including 4G and 5G. This allowed it to bypass the legacy infrastructure and costs
associated with older technologies, giving it a competitive edge over established players.
3. Infrastructure Investment
Jio made substantial investments in its infrastructure, laying 250k kilometers of fiber-optic
cables to ensure widespread network coverage in both urban and rural areas. This large-scale
setup enabled high-quality services at lower costs through economies of scale.
4. Focus on Digital Services

R-Jio focused on digital services, including IoT solutions, which became a critical growth
engine for the company. This allowed it to differentiate itself from competitors and capitalize
on emerging trends.
5. Scale of Operations

Jio acquired customers at a much lower cost compared to industry standards. Its scale of
operations and strategic partnerships with handset manufacturers and other technology
providers enabled significant cost reductions, allowing for competitive pricing without
compromising quality.
6. Strategic Partnerships
R-Jio formed strategic partnerships, such as with Facebook, to expand into new areas like
digital payments and e-commerce. This increased its competitiveness and diversified its
revenue streams.