Marketing Principles of Reliance Jio: SWOT, PESTLE, Competitor Analysis

This article explores the marketing principles of Reliance Jio, a subsidiary of Reliance Industries Limited. It covers the micro and macro environment factors affecting the company's growth, including Porter's five forces, PESTLE analysis, competitor analysis, and SWOT analysis. The article also discusses the company's strengths, weaknesses, opportunities, and threats.

Running Head: PRINCIPLES OF MARKETING
PRINCIPLES OF MARKETING
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Table of Contents
Introduction and Company background.....................................................................................3
Micro environment.....................................................................................................................4
Porter’s five forces.................................................................................................................4
Macro Environment factors....................................................................................................4
PESTLE Analysis...................................................................................................................4
Competitor Analysis...............................................................................................................5
SWOT Analysis.........................................................................................................................6
Reference list..............................................................................................................................9

3PRINCIPLES OF MARKETING
Introduction and Company background
Reliance Jio limited is the subsidiary organisation of Reliance industries limited that
is known as India's largest private sector organisation. Reliance is the first telecoms service
that managed to hold pan India Unified Licence. This licence allows the company to offer all
telecommunication related service starting from global mobile personal communication.
Reliance Jio has a spectrum of almost 1800 MHZ over nearly 14 circles and 2300
MHZ over 22 circles that has the capability to offer fourth-generation wireless services to the
customers. In this context, the organisation has planned to offer seamless 4g services with the
help of FDD-LTE on 1800 MHz and TDD on the basis of 2300 MHz through the use of the
integrated system of operation (Jio, 2018).
However, Reliance Jio has been planning to set up a pan India telecom service for
offering to the high underemployed market in India with a high-speed fourth-generation
internet service provided with rich service of communication and various digital services on
different domains such as education, healthcare and other media services.
Based on the marketing and management efforts taken by the organisational the study
highlights that potential marketing environment of the organisation while presenting the
existing competitors of the company such as BSNL, MTNL, Vodafone and Airtel India. In
addition to this, the study presents a strength, weakness and opportunities in relevance to the
expanding competitive market.
Micro environment
Porter’s five forces
The number of mobile phone users within the Telecom industry has increased at a rate
of 5.54% each of the year with increasing number mobile phone subscribers. As a result of

4PRINCIPLES OF MARKETING
which the bargaining power of the consumer has increased due to the number portability
availability. They are able to switch on to any service providers without any required costs
(Satyanarayana, Rao & Naidu, 2017).
Competitive rivalry is quite high in the industry as there are several developed brands
such as Airtel, Vodafone and Idea that are present within the market for long. The different
plans offered by Airtel and Vodafone are similar before Jio entered the market (Chinthala,
Madhuri, & Kumar, 2017).
On the contrary to this, the threat from the emerging market and being replaced by
substitutes are comparatively lowers as the telecom industry needs the huge amount of capital
investment. In this context, Reliance Jio has already invested almost Rs.1.65lakh for pan
Indian services (Jose, 2017). Therefore, it will be highly difficult for the emerging companies
to service in the developed market.
Macro Environment factors
PESTLE Analysis
From the political perspectives, Jio is currently following the Prime Ministers mission
of Digital India campaign. Similar to several application of Jio services, Jio Money allows
consumers to pay and transfer money through a digital platform (Gochhait & Tripathy, 2016).
The company, therefore, is highly supported by the government that falls under the Make in
India programs.
From economic perspectives, after the event of demonetisation, the telecom c0mpany
has started offering free data services for a few months. This has helped the company to
increase their GDP by 1.38%. Socially the company has invested over Rs. 750 crores for the
corporate social responsibility (Haq, 2017). They have offered internet services in areas such
as Indore traffic police and are planning to offer service in government schools as well.

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In the case of technology, they are using the most advanced technology VoLTE
operations that offer them to provide enhanced call quality in comparison to their
competitors. Environmentally the company has managed to install safe environment-friendly
services restrict electromagnetic radiation (Gawali, 2018).
Competitor Analysis
Indian telecom market is one of the major competitive industry that grew on par with
the other industry. However, the industry has a high potential to provide service to the people
that are improving each day. Along with the up gradation of the technology and increasing
demand made by the consumers, all the major players from all over the world are using their
money and efforts to enhance this industry (Dutta, 2018).
Apart from these, along with the liberal industrial and legal policies approached by
the government, the company is also facilitating investors to give money in this industry. This
industry is a service industry where people are getting increased services from other telecom
services. In the earlier period, this service was limited to activities such as SMS, MMS, and
internet whereas in the current period technology has changed from 2g to 4g services
(Kalyani, 2016). People now are able to use the technology such as smartphone along with
internet that has changed the competitive statistics of the market.
There are several competitors in the market existing in the Indian Telecom market
like, Airtel, Vodafone, BSNL, Idea, MTNL, Tata that are constantly increasing the entry and
exit barriers. In this context, it has been seen that its competitor organisation Airtel is offering
a 15 GB data pack for a period of 90 days for a price of 1495 (Gochhait & Tripathy 2016).
These services are presently available at the areas of Delhi, where the company is planning to
per launch this services in other locations as well.

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On the other hand, Vodafone is that is the second largest telecom operator has also
made a competitive pitch in comparison to Reliance Jio. The complaint has started a free data
plan offer with 10GB mobile with a cost of 1 GB data. Again, Vodafone 4G services have
planned to spread the services at different locations of the nation including Kerala, Karnataka
at the cheapest price of Rs.29 for 120 MB Data (Prabhudesai, 2014).
Therefore, it can be seen that competition is increasing in the market with the
expansion of the location where all the competitive organisation are offering unbeatable
offers. These develop competitors like Vodafone, Airtel, BSNL are increasingly taking an
effort to restrict the customers from opting for Reliance as the substitute in the market.
SWOT Analysis
Strengths
 Reliance Jio has the best customer
acquisition strategy until now. The
brand provides the free services for
almost 3 to 6 months to all their
active users (Kalyani, 2016).
 The company has strong customers
base as it boosts mullions of
subscribers in the period of 170 days
of its launch like no other provider.
 Jio presently used the latest
technology 4G LTE that is one of
the best technology operation
assisted by 5G as well as 6G
Weakness
 Reliance Jio has entered the market
lately that has resulted in the
development of other competitors
like Airtel, Vodafone that has
occupied customer choice.
 Reliance Jio has several activities
issues for which they are not able to
manage high volumes of the
customers followed by SIM card
activation issues (Dutta, 2018).
 The operator has been often been
criticised for having reduced prices
beyond ethical limitation for

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services. entering the market with allegations
such as money laundering.
Opportunities
 Reliance Jio used VoLTE network
that offers opportunities for
numerous avenues for future
expansion of the bandwidths.
 The technology used by the
company has high scope in terms of
bandwidth as well as it can offer
customers chargeable service and
free services in their initial period
(Jio, 2018).
 Presently the company is operating
in India. However, the company has
high scope for expanding their
services in international countries.
Threats
 Government regulatory framework
on price and existing competitors
that have a strong presence with a
loyal customer base may threat the
company’s productivity.
 The company has passed through a
lot of controversies since the time
they began their business. These,
have led to the creation of a negative
brand image for the organisation
(Jose, 2017).
 Several strategies implemented by
the organisation such as reduced
price and free bandwidth has been
highly represented as an unethical
practice that may impact upon the
sustainability of the business.

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Reference list
Chinthala, G., Madhuri, H., & Kumar, K. (2017). Customer satisfaction towards
telecommunication service provider—A study on reliance JIO [J]. International
Journal of Engineering and Management Research, 7(2), 398-402.
Dutta, S. (2018). Economic Development and Growth under the Telecommunication Sector
in India–An Empirical Case Study. International Journal of Research, 5(16), 1214-
1237.
Gawali, S. (2018). A Study On Advanced Marketing Techniques Adopted By Reliance Jio,
Nagpur. International Journal of Research, 5(13), 21-24.
Gochhait, S., & Tripathy, P. C. (2016). The game changer strategy of reliance jio–a case
study on predatory pricing. ICTM 2016, 104.
Haq, N. (2017). Impact of Reliance JIO on the Indian Telecom Industry. International
Journal of Engineering and Management Research (IJEMR), 7(3), 259-263.
Jio (2018). Home: Digital Life. Retrieved from 2 September 2018. Retrieved from
https://www.jio.com/
Jose, C. A. (2017). Effect of introduction of Reliance Jio on the competitive environment in
the telecommunication business in India. Economic and Social Development: Book of
Proceedings, 241.
Kalyani, P. (2016). An Empirical Study on Reliance JIO Effect, Competitor's Reaction and
Customer Perception on the JIM'S Pre-Launch Offer. Journal of management
engineering and information technology, 3(5), 18-36.

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Prabhudesai. A., (2014). Growth in Indian telecom industry in 10 years. Retrieved on 4
September 2018. Retrieved from http://trak.in/tags/business/2007/06/19/indian-
telecommunication-story-from-10-million-to-150-millionmobile-subscribers-in-5-
years/
Satyanarayana, D., Rao, K. S., & Naidu, S. K. (2017). The impact of Reliance Jio on the
Indian mobile industry-A case study on mergers and acquisitions of the idea–
Vodafone and Airtel–Telenor. IJAR, 3(3), 209-12.