Strategic Analysis of Reliance Jio

This report provides a detailed analysis of Reliance Jio, an Indian telecommunication company, including its internal and external environment, SWOT analysis, marketing mix analysis, and recommendations for future growth prospects.

Running head: STRATEGIC ANALYSIS OF RELIANCE JIO
STRATEGIC ANALYSIS OF RELIANCE JIO
Name of the Student
Name of the University
Author Note

1STRATEGIC ANALYSIS OF RELIANCE JIO
Executive Summary
The report is built on the detailed study of the internal and exterior environment of a
company. The firm that has been taken into consideration for the analysis is Reliance Jio that
is an Indian telecommunication based company. The analysis will be built on the external
macro and micro environment factors that have an impact on the organizational operations.
The internal environment is studied with the support of SWOT framework. The marketing
mix of the organization has also been analysed in the report in detail. Recommendations have
been offered built on the future growth prospects of Jio in the industry.

2STRATEGIC ANALYSIS OF RELIANCE JIO
Table of Contents
Background to the company...........................................................................................3
Situation analysis...........................................................................................................3
SWOT analysis...............................................................................................................5
Target market and positioning.......................................................................................6
Marketing mix analysis..................................................................................................8
Recommendations........................................................................................................11
References....................................................................................................................12

3STRATEGIC ANALYSIS OF RELIANCE JIO
Background to the company
Reliance Jio Infocomm Limited or Jio is a mobile network operator of the Indian
origin that is mainly owned by the Reliance Industries and the headquarters of the
organization are located in Mumbai, Maharashtra. The organization is currently operating a
national LTE based network that is able to provide coverage in around 22 different circles.
The company was recognized in the year 2015 and had started provided services to the public
in the year 2016.
Jio has been able to gain the place of the second biggest mobile network based operator in
India (Jio.com. 2019).
Situation analysis
PESTLE analysis of Jio
Political factors – The political factors that are able to affect the operations of
Reliance Jio are mainly based on the government bodies that are develop regulations that
need to be followed by the organization. The regulation and rules that are framed by TRAI
have to be followed by Reliance Jio in order to uphold its operations. The rapid growth of Jio
has a ajor impact on the operations of the competitors (Aguinis, Edwards & Bradley, 2017).
Economic factors – The economic situation that is currently prevailing has a key
influence on the business operations of Jio. However, the organization has always aimed at
providing the best levels of services to the customers at low costs. The company aims at
developing the services at economic prices for its customers in India (Barros, Hernangómez
& Martin-Cruz, 2016).
Social factors – The organization mainly targets its services towards the young people
who are a part of the society. The levels of expectation and the preferences of customers are

4STRATEGIC ANALYSIS OF RELIANCE JIO
different for various types of people who are a part of the society. A social group has been
developed by Jio that is able to connect people in an effective way (Chatterji et al., 2016).
Technological factors – The advanced technology of 4G is implemented by Jio at
cheap rates. The organization has been successful in the growth of a leadership place in the
4G based industry. The implementation of technology is thereby dependent on the levels of
growth of Jio in the industry (Daspit et al. 2017).
Environmental factors – The towers that have been installed by Jio in diverse parts of
the country are considered to be environment-friendly in nature.
Legal factors – The regulations that have been established by different authorities
have been followed in an active way by Jio in order to maintain its operations in the country
(Demir, Wennberg & McKelvie, 2017).
Micro environment analysis of Jio – The customers have been considered to be the
most significant part of the processes of Jio in the telecommunication based industry. The
growth of mobile phone users has been at a rate of 5.54% every year from the year 2005. Jio
has been able to gain more than 30% of the total shares in the market in the first year of its
launch in the industry. Around 93% of the total subscribers in the industry are prepaid
subscribers and 7% are postpaid users. The organization has been able to develop its data
strength in a huge manner in contrast to its competitors in the telecommunications based
industry (Donate & de Pablo, 2015). The development of spectrum has been able to backing
the operations of Jio in the telecommunications industry for a long period of time. The rates
at which the organization had started providing services to the customers had been a major
factor based on levels of competition that have been offered by the company to the
competitors. The key competitors of Jio in the industry are Vodafone and Idea. The survival

5STRATEGIC ANALYSIS OF RELIANCE JIO
of the competitors has been under huge question mark after development of the processes of
Jio in the industry (Durand, Grant & Madsen, 2017).
SWOT analysis
Strengths –
 The major strength of Jio is built on the services that are provided to the users
like, voice calls at no charges, 4G internet services at low cost, low tariff
plans, national roaming and free SMS services.
 The services offered by Jio are considered to be the most significant strength
of the organization based on its operations in the market (Dyer et al., 2015).
 The customer base that is developed by Jio is huge.
 The organization is extremely target oriented in nature.
 The highest levels of technologies are held by Jio in the industry (Engert,
Rauter & Baumgartner, 2016).
Weaknesses –
 The customers are currently facing some major connectivity based issues
related to call drop.
 The 3G based mobile phone users cannot avail the services of Jio.
 The entry of Jio in the market had been delayed due to the presence of many
large organizations that provide similar services.
 The competitors of Jio have blocked the calls that are made by its competitors
(Ethiraj, Gambardella & Helfat, 2018).
Opportunities –

6STRATEGIC ANALYSIS OF RELIANCE JIO
 Jio aims at partnering with the digital entrepreneurs in order to accelerate the
growth levels in the telecommunications industry that is highly competitive in
nature.
 The usage of smart phones is considered to be high in the industry.
 The firm can aim at enlarge its processes on a global basis.
 The high consumption of data can provide growth opportunities to Jio.
 The benefits that are offered to Jio users are high.
 Jio has a major growth opportunity in the television sector (Frynas & Mellahi,
2015).
Threats –
 The presence of competitors in the telecommunications industry is considered
to be a significant aspect that has an influence on the processes of Jio.
 The rapid technological developments have been able to play a key part in
formation of services which can be offered to the consumers of Jio.
 The government policies have been able to affect the operations and services
of Jio (Garavan et al., 2016).
 The perceptions of the consumers will have an impact on ways by which Jio
can maintain its operations.
 The huge levels of investments are required for improvement of the services of
Jio.
 The existing customers of the other organizations are quite loyal in nature
(Hanson et al., 2016).

7STRATEGIC ANALYSIS OF RELIANCE JIO
Target market and positioning
The method of segmentation is implemented by Jio in order to divide the customers
into different groups built on services that are offered to them. The five key aspects that have
an influence on the development of customer segments are built on the levels of segment
profitability, segment growth, potential and current customers and different capabilities that
are present on the market (Helfat & Martin, 2015). The development of 4G network is
considered to be a significant aspect that is able to increase the levels of profit of Jio. The
increase in levels of usage of smartphones has been able to play a key part in the exponential
growth levels of Jio.
Targeting – The segment of the customers that are associated to the focus of the
products and services of Jio are helpful in the development of target segments. The targeting
process is considered to be a significant aspect based on different services that are presented
to the consumers. The marketing based efforts that have been applied by the firm are built on
the requirements and demands of the consumers in the industry (Hitt, Ireland & Hoskisson,
2016). Effective tactics have been applied by Reliance Jio order to satisfy the target
customers of Jio. The free services that had been provided by Jio to the consumers are mainly
based on the needs and demands of the young customers. The organization has further set a
limit to number of the customers who are able to benefit from the offers based on 4G services
and internet access. The free services that are provided by Jio are helpful in the development
of prospective customers (Michael, Storey & Thomas, 2017).
Positioning – The market segment that has been developed by Jio will be focussed by
the organization in order to develop its position in the telecommunications market.
Positioning is mainly built on the ways by which the customers are able to perceive the brand
of the company. The services of Jio have been positioned based on the sales and prices of the
products that are offered to the consumers (O’Brien, Scott & Andersson, 2018). The offering

8STRATEGIC ANALYSIS OF RELIANCE JIO
based on free voice calls and high speed based internet services have been able to offer a
major place to the organization in the telecommunications based industry. The services of Jio
have been helpful for the firm to maintain its position (Michael, Storey & Thomas, 2017).
Positioning map of Reliance Jio
High Cost
Idea Airtel Vodafone
Low quality High quality
Reliance Jio
Low cost
Marketing mix analysis
The marketing mix framework can be implemented in order to recognize the methods
by which Jio has been able to offer its services to the consumers. The wireless services that
are delivered to the customers and the broadband services that have been offered are able to
play a key part in the marketing mix that has been formed by Reliance Jio. The key
competitors of Jio in the industry include, Idea, Airtel and Vodafone (Rugman & Verbeke,
2017).
Product- Reliance Jio mainly offers 4G LTE based wireless services to the customers
in Indian telecommunications industry. The beta services had been first launched by Jio in the
year 2016 The fibre optic cable based network had been established by the company in order
to provide its services (Wolf & Floyd, 2017). The different services that are provided by Jio

9STRATEGIC ANALYSIS OF RELIANCE JIO
on the Google Play based platform include, wireless router named JioFi, transfer content
named JioSwitch, Wallet app named JioMoney Wallet, JioDrive, JioXpressNews, JioMags,
Jio4GVoice, JioMusic, JioChat Messenger, JioCinema, JioTV, MyJio (Jio.com. 2019).
Place – Reliance Jio has its origin in India and the presence of the organization has
been developed in the entire country. The distribution channel that has been developed by the
organization is highly widespread in nature. Jio owns 1800 MHz and the 800 MHz bands.
The organization had entered the into the deal with Reliance Communications for the sharing
of 800 MHz in around seven different circles that are owned by the firm (Rugman &
Verbeke, 2017). A deal had also been made by Jio with the BSNL in order to use the intra-
circle roaming facilities in the national roaming activities. The telephony services that have
been offered by the organization had also led to the development of Wi-Fi hotspots in the
different Indian cities including, Dewas, Ujjain, Indore and Jabalpur. The free internet based
services that are offered by the organization are offered in different cities like, Delhi,
Bengaluru, Kolkata and Mumbai (Jio.com. 2019).
Price – The estimated revenues gained by Jio in the year 2015 had been around 13
million rupees that was quite more than the revenues that had been gained previously. The
organization had mainly targeted the customers with the help of smartphones in order to offer
effective services and the high speed internet based services to the target customers (Jio.com.
2019). The organization had taken different steps in order to transform India into a digital and
techno-savvy nation. The pricing policy that has been implemented by the organization is
quite reasonable in nature (O’Brien, Scott & Andersson, 2018).
Promotion – Jio has implemented aggressive marketing based approaches in order to
develop positive levels of brand awareness in the country. The ad campaigns had been
launched by the organization on newspapers, radio, television, billboards and magazines in

10STRATEGIC ANALYSIS OF RELIANCE JIO
order to upsurge the stages of awareness built on the products that are provided to consumers
(Jio.com. 2019). The social media based platforms that have been used by Jio in order to
upsurge the awareness include, Twitter, YouTube and Facebook. The importance levels of
star power had been able to play a key part in the growth of the brand value of Jio in the
telecommunications industry (Helfat & Martin, 2015).
People – The people based aspect of marketing mix is mainly related to the total
number of employees who are a part of the organization. The training and development
related activities that have been developed by Jio was able to play a key part in the growth of
the employees (Jio.com. 2019). Jio is an important part of the service industry of India and
the interaction with the customers is able to play a major part in the methods by which the
firm can uphold its place in the industry. The workforce of the organization is dedicated and
passionate in nature and is able to upsurge the levels of employee engagement in different
organizational operations (O’Brien, Scott & Andersson, 2018).
Process – The services that are provided by Jio to the consumers is based on the
levels of ease that the customers have based on their proper usage. The support that is
provided by the firm to the consumers is possible with the help of the customer service
executives of Jio (Jio.com. 2019). The flow of different organizational processes is
smoothened with the support of proper Data and IT warehousing based actions. The proper
improvement of organizational processes has been able to play a key part in the growth of the
position of Jio in the industry (Frynas & Mellahi, 2015).
Physical evidence – The levels of physical evidence are developed by Jio in the
industry with the support of different types of products like, recharge vouchers, digital TV
based services, service outlets and the reports, punch lines and signage. The physical

11STRATEGIC ANALYSIS OF RELIANCE JIO
equipments are able to play a key part in the methods by which Jio can uphold its processes
in the telecommunications industry (Hitt, Ireland & Hoskisson, 2016).
The marketing mix analysis of Jio has been able to show that the firm has been
successful in the proper development of its place in the telecommunications industry with the
support of different types of services that are offered to the consumers (Barros, Hernangómez
& Martin-Cruz, 2016). The quality and price range of the services have been able to play the
most important part in the growth of the customer base of the firm. The competitors of Jio
have not been able to offer effective competition to the company based on the levels of
services that are offered by the company at the low costs (Aguinis, Edwards & Bradley,
2017).
Recommendations
Jio has major opportunities to grow in the telecommunications industry in an active
way. The key recommendations that can be offered to the organization based on its future
growth plans are as follows,
The organization can aim at expanding its operations on a global basis in order
to increase its presence in different parts of the world.
The investments can be made by Jio in order to improve the services and also
adding more area within the coverage that is already being provided to the
customers.
Considering the call drop related issues that are being faced by the customers
in order to maintain the operations in a profitable manner.
Developing attractive packages that can attract different types of customers
towards the products and services that are being offered by Jio.

12STRATEGIC ANALYSIS OF RELIANCE JIO
Taking advantage of the opportunity based on television related services that
can be offered by the organization in order to increase the types of services
that can be provided by Jio to the customers.
Improving the support that is provided by the executives to the customers in
order to develop an effective relationship with them.

13STRATEGIC ANALYSIS OF RELIANCE JIO
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