PORTER’s FIVE FORCES MODEL

Threat of new Threat of substitute Bargaining power of Bargaining power of Existing competition
entrants products buyers suppliers

• Entire sector got • There is hardly any • For buyers, • Reliance Jio, being • Low switching cost
redesigned because substitute for switching cost is the supplier of on the industry
of the entry of mobile services in close to minimal mobile services, • Consumers are
Reliance Jio India • Customers are price players have less price sensitive
• If someone so • The impact, thus, is sensitive bargaining power • Telecom sector is
disruptive enters a bit insignificant • Consumers have with consumers saturated in India
again, the sector • However, some started expecting • This forces them to • The only option left
might get an firms maybe able to superior quality offer services at is to gain the
overhaul once again offer the same service at lower lower costs market share from
• Huge capital is product at a lower costs • Telecom industry existing customers
required for entry, cost due to • ARPU for the entire does not have a • No market for new
thus less threat technological or industry has gone specific value chain entrants
from new entrants human advantage down significantly • Spectrum purchase
in recent years price impacts cost
to firms
 LITERATURE REVIEW
Overview of the telecom sector
Currently, India is the world’s second-
largest telecommunications market with a
subscriber base of 1.16 billion and has
registered strong growth in the last decade.
The Indian mobile economy is growing
rapidly and will contribute substantially to
India’s Gross Domestic Product (GDP).
The total number of internet subscribers
increased from 778.09 million in March
2021 to 782.86 million in April 2021.
Impact of Reliance Jio
The impact of Jio’s entry on telecom industry of India is
that the entry has resulted in creating a price war in the
industry. It can be stated brand such as Airtel, Vodafone,
Idea and BSNL started struggling even in terms of
making sustainable profits in the country. Offering
almost all services at free of cost is that the strategy of
Jio which has created a sensation in the marketplace and
created issues for other network providers in India. The
brand has been able to penetrate the Indian telecom
industry in the best possible manner through its strategy
of offering deep discounts and low price services.
Business Model of companies
It is defined as the plan which is devised and
implemented by companies with an objective to carry out
successful operations and activities in the long run.
Reliance Jio business model emphasized on offering high
speed and 4G data at prices which were very cheap and
the strategy has supported the company in carrying out
effective penetration in the Indian market. The tariff
plans introduced by Reliance Jio were innovative, and
during the initial stage, they seemed to be unrealistic.
Ways in which Reliance Jio dominated
Reliance Jio has employed the strategy of loss leadership
and as per this strategy, the brand started providing free
voice calls to its customers. the brand also offered nil
roaming and a diverse portfolio of application which
result in attracting more and more customers. The impact
of implemented loss leadership strategy is that it
encouraged customers of other mobile network providers
to switch towards Reliance Jio. the strategy resulted in
creating complications for brands such as Airtel, BSNL,
Idea and Vodafone to retain their existing customers and
attract the new ones.
 RESEARCH METHODOLOGY
Research Design
Research Design is the framework that has been adopted to conduct your study and find conclusions. Considering the nature of
the present study where the main aim of the study is to know the real impact of the Reliance Jio on the telecom industry of
India and for accomplishing this aim descriptive design has been adopted as through this design it is possible to understand
about the topic in the proper manner. It has lead to proper analysis of the topic and in turn all the key objectives of the study can
be accomplished easily.
Data and Sampling
The data employed for this research project is primary data. The main target for the research was to collect reliable and accurate
data from the target population and then start the analysis. Google forms were used to make a Structured Questionnaire online
which was sent to various groups through online means such as Mail and WhatsApp.
Non-Probability Sampling will be used for the purpose of research. The online questionnaire will be distributed to respondents
and they were also given detailed instructions for completing the survey. The survey will be done over a period of 15-20 days,
and each respondent will be given ample time to think over the questionnaire.
Pilot Testing
The pre-test will be done on 20 respondents personally to take their feedback as to how well did they understand the
questionnaire and whether they were facing any problems in understanding or answering the questions. Then required changes
will be made and some questions will be added after gauging their response and noting down their constructive feedback.
DATA COLLECTION AND ANALYSIS
Data collection
There are mainly 2 modes to collect data. They are primary and secondary sources. As mentioned in the previous slide, we will
be mainly using primary sources to collect data. A questionnaire in the form of a google form will be floated to the general
public in order to know their perception of Reliance Jio. Apart from that, different articles have been accessed that provides
overview of the Indian telecom industry and the key players that are operating in the market. Therefore, in this way both the
sources have been undertaken for obtaining information and it has proved to be beneficial for the entire research.
Data Analysis
This part is linked with analyzing information so as to know the actual results obtained after conducting the overall study. Data
analysis can be done in two forms either qualitatively or quantitatively. In case of qualitative technique the data is present in the
non numeric form and mainly thematic analysis is carried out. On the other hand, in quantitative technique statistical tools are
adopted through which analysis is done. It involves computation of mean, mode, median etc. for the overall analysis.
In this research, both kinds of data analysis will be done. Quantitative data will be represented in the form of bar chart and pie
charts to make them visually appealing. We also plan on performing hypothesis testing on various variables. Correlation, Chi-
square test of independence will be used.
Based on the research done, qualitative analysis will be provided for the final positioning strategy of Reliance Jio,
recommendations, conclusion, implications and limitations of the study undertaken.