MA625 Trimester 2: Case Study Analysis of Reliance Jio's Success

This case study analyzes the entrepreneurial success of Reliance Jio, founded by Mukesh Ambani, and its impact on the Indian telecom industry. The study explores the founder's observations regarding customer needs, particularly the demand for affordable data and calling services, leading to the innovative launch of Jio. The analysis delves into Jio's business model, which prioritized customer acquisition through free services, a revenue-driven structure, and strategic investments in optical fiber technology. The essay examines Jio's pilot testing, the hierarchical business model, and its revenue generation through a customer-focused approach. Furthermore, it explores the company's future plans, including the Jio Giga Fiber and 5G services. The case study concludes by highlighting key lessons for aspiring entrepreneurs, emphasizing the importance of market analysis, customer focus, and strategic planning. Overall, the study provides a comprehensive overview of Jio's journey, its innovative strategies, and its impact on the communication and networking services in India.

Running head: ENTREPRENEURSHIP AND INNOVATION

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Entrepreneurship and Innovation
Introduction:
Mukesh Dhirubhai Ambani, is one of the greatest industrialist of modern times and is
the biggest businessman of India. He is an engineer and the largest shareholder of the
Reliance Industries Limited. He is the richest man of Asia, according to Forbes Magazine,
and he is ye 13th richest man in the world, as per the report of March. Mukesh Ambani, had
grown and expanded his business basing upon his fathers’ business. He has invested majorly
in petrochemicals, and in the retail industry. The reliance retail stores have now expanded all
across India. The retail business includes all the retail services. His current investment has
been made in the telecom industry, as the name of Jio telecommunications (Reporter, 2014).
The Reliance Jio had gained the position among the top five telecom industries in India, by
September, when it was launched. However, currently Jio has gained the position among the
top three telecom industries of India. Mukesh Ambani, has also invested into the sports
world, in the Indian Premiere League, and has taken the franchise of the Mumbai Indians. He
is also the founder of the Indian Super League, a Football League, in India, and all these
businesses have been made through the Reliance Industries. He is therefore the richest sports
owner of the world, as claimed by the Forbes magazine (Desk, 2016). Among many of
Ambani’s endeavors, the initiation of the Jio telecommunication is one of the most ground
breaking business endeavors, which had made him reach to quite many steps ahead towards
his success. The foundation if the Jio telecom services had not only revolutionized the
telecom industry of India, but also, it made a great many changes in the Indian economy.
Therefore, in the following essay the story behind the foundation and the success of
Jio telecom industry will be analyzed, through the answering of the following questions.
Reliance Jio Infocomm Limited, or the Jio telecom service is a mobile a network that
is dependent upon the LTE technology. It is the first wireless VoLTE technology used in

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India, and is the only operator of the country. Reliance Jio had become the major internet
service provider of the country and also has become one of the major telecom service
providers of the country. With the innovation of thee VoLTE technology, Jio stepped into the
market at the end of the year 2015 and by the year 2016, it had become one of the major
telecom service providers of the country (Desk, 2016). Therefore to understand the motives
and strategies that the founder had taken before initiating the endeavor, the following
questions can be taken in to account.
What observation (about the current state of affairs) do you think the founder of this
business may have made prior to their business being established?
Jio has created an entire new digital ecosystem in India, and is providing the country
with broad band services, smart devices and telecommunication facilities. The telecom
company includes all kinds of services in their orientation and comes up with a market
friendly and customer friendly budget plan. Therefore, the prime aspects that Mukesh
Ambani had considered was that the customer generally invests either for the calling and
texting services or for the data, and there are very few customers, who invests heavily into
both of these services (Singh, 2017). The founder had approached this particular aspect or
mindset of the customers and came up with the strategy that would enable the customers to
enjoy both the calling and texting services and the data pack, at the same time.
What insights do you think may have followed on from the initial observation?
The founder of the Jio telecommunication had rightly recognized the universal truth,
which could not be unfolded by many, and had made his strategies accordingly. He had
provided the nation not only with free calling and texting facilities, but also, with free data
pack. He joined together the needs of the customers, and put it into under a very lucrative and
much affordable pricing structure and approached thee customers (Haq, 2017). More
importantly, this strategy and planning was executed or implemented over night, therefore the

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competitive telecom industries could not come up with a counter strategy plan initially, which
had provided the company with enough time to get a hold of the market.
Also, as according to Satyanarayana et al., (2017), the company first introduced the
Optical fiber technology that had contribution in many folds. Firstly, the company uses the
optical fiber over the copper cables that circuit switched the network use. It has not only
facilitated people to get a strong network connection, even when underground, but also, it has
enabled the people to enjoy the High Definition calls and videos, as the tailored cable
connection that Jio uses increase the efficiency of the network connection.
Did he experiment or test their ideas in any way before proceeding? If so, how?
Jio had initially tried a pilot test to understand the trend and the success rate of the
telecom industry. Initially, after the launch of the telecom services, the organization had made
all the connections free for first three months. This was a pilot test by the company. The
founder of the organization had rightly understood, that, in a country like, India, with a
population of 120 billion people, 65% of whom belong to the poverty level, need an efficient
service that will enable them to enjoy the networking services and the communication
facilities at a very low price structure (Chinthala, Madhuri & Kumar, 2017). This inhibition
of the owner of the company, was much true, and they had rightly gained a position in the
market, within the first six months.
What ‘business model’ does this person employ in their enterprise? What is their ‘revenue
model’?
The company follows a hierarchy business model and a business structure that is
completely revenue driven. The hierarchy model is referred to the division and distribution of
power as per the hierarchical positions. The power of decision making is equally distributed
along with the positions, which include the director of the company, the senior and the

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executive level managers, the administrative department and the associates and the
employees (Esselaar, Song & Stork, 2017).
The business model or the business strategy of the organization is completely revenue driven,
therefore, the revenue structure or the revenue model of the organization is very well planned,
and follows four simple steps.
The first step is to approach with an undercut market price and attract the customers
with lucrative and undeniable price structure and offers. The second step is to make people
want to and actually switch to the Jio network. Thirdly, make the most use of the optic fiber
and the enable the people to avail a superfast network connection. Fourthly, implement and
execute all the three plans strategically and accordingly, so that the customer base of the
organization is grown. Lastly, make huge investments at the initial level, and then with
growing and ever expanding customer base, recover the investment. Also, Jio aims at keeping
a low profit structure, and focus more on the increase of the customer base (Curwen, 2018).
Most importantly, the tariff plan of Jio upholds that the organization is not even actually
charging for the unlimited voice calling services that they are providing. They are only
charging the customers for the network services.
Is there any evidence you can find that this person is planning for the next phase of their
business? If so, how?
Mukesh Ambani, is planning on to take Jio to the next level. Firstly, he has already
announced that by the end of 2019, Jio will bring into the market the Jio Giga Fiber
broadband services, which will enable people to enjoy a faster and High Definition network
services.

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The company has also announced to launch the Jio DTH services into the market.
With the Giga TV box, that the company is planning on to launch, Jio will provide the DTGH
services as well.
However the ground breaking announcement, that the company has made and which
is already under process, is the Jio 5G services. Reliance is already building its 5G network
for the future, and it will tentatively get introduced in the market by the end of 2019
(Mahalaxmi & Kumar, 2017).
What overall lessons might be drawn from the experience of this person and their
business, for the benefit of future entrepreneurs?
Jio is trying to get a hold of the entire communication and networking services of the
country. The way Mukesh Ambani has planned the future for the company, it is likely that the
organization will become the only giant figure in the industry, and will include all other
services and organizational houses. Therefore, the case study or the structure analysis that has
been made in the essay, focuses upon certain key aspects of the company, which can be very
helpful for the business houses.
Firstly, the environment and the market analysis are two very important aspects that
all the entrepreneurs should remember. Before coming up with a new plan or endeavour, it is
important for the business houses to find out a niche and a need of the market, which will
enable them to gain a position in the market.
Secondly, initially, all the business houses or the entrepreneurs must focus upon
gaining a customer base and adding volume to the same, and not focus upon making profit, as
that will eventually come along with an increased market base.

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Conclusion:
Therefore, as a concluding point, it can be said that Jio is aiming to create monopoly
in the communication industry of India, and eventually will aim to expand itself in other
industries as well, and thus, Mukesh Ambani provides one of the best example, of how
business should be conducted and done.
References:
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.
Curwen, P. (2018). Reliance Jio forces the Indian mobile market to restructure: A regular
column on the information industries. Digital Policy, Regulation and
Governance, 20(1), 99-102.
Desk, T. (2016). Reliance Jio 4G launch: Mukesh Ambani Says all Voice Calls will be free
on Jio, data at Rs. 50 per GB. The Indian Express, 1.
Esselaar, S., Song, S., & Stork, C. (2017). Freemium Internet: Next Generation Business
Model to connect next billion.
Haq, N. (2017). Impact of Reliance JIO on the Indian Telecom Industry. International
Journal of Engineering and Management Research (IJEMR), 7(3), 259-263.
Mahalaxmi, K. R., & Kumar, S. (2017). Changing the Indian telecom sector: Reliance
Jio. International Journal of Advanced Research and Development, ISSN-4030, 2.
Reporter, S. (2014). Forbes India rich list: Mukesh Ambani tops again, Gautam Adani moves
up. Economic Times. Retrieved from http://articles. economictimes. indiatimes. com.

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Satyanarayana, D., Rao, K. S., & Naidu, S. K. (2017). The impact of Reliance Jio on Indian
mobile industry-A case study on mergers and acquisitions of idea–Vodafone and
Airtel–Telenor. IJAR, 3(3), 209-12.
Singh, R. (2017). Impact of Reliance JIO on Indian Telecom Industry: an empirical
study. International Journal of Scientific Research and Management, 5(7), 6469-
6474.