Reliance Jio Infocomm's International Business Strategy in Australia

This report provides an in-depth analysis of Reliance Jio Infocomm Limited's potential expansion into the Australian market. It begins with an executive summary outlining the company's background and the rationale for choosing Australia as a target market. The report then delves into the economic, political, and legal factors influencing business decisions, highlighting Australia's stable economic growth, mixed economy, and efficient legal framework. Cultural and ethical considerations are also examined, emphasizing Australia's individualistic culture and expectations of public etiquette. The analysis includes a company background, a comprehensive country overview, and an assessment of macro environmental factors. The report concludes by suggesting that Jio Infocomm can leverage this opportunity to expand its business in Australia, considering Reliance Industries' growth and targeting customers effectively. The telecom industry in Australia and the increasing use of internet based services is also a key focus.

Running head: INTERNATIONAL BUSINESS
International Business
Name of the Student
Name of the University
Author Note

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Executive Summary
Reliance Jio Infocomm Limited is a subsidiary of Reliance Industries. The company was
founded by Dhirubhai Ambani. . Relianec jio infocomm limited provides broadband services to
customers using WI-MAX as access technology pan India. To expand business in terms to
international Australia is the country chosen to show that Jio should explore the market of
Australia and experience a good feedback from its profits. Australia has a highly stable and well
maintained economic growth since its last years. It lives with a mixed economy and even plans
to stabilize the adaption of the economy. The legal environment in Australia is reported to be
said as steady and smooth with respect to the investors. The legal framework is efficient in
transparency, consistency and dependability. Australia follow a individual concept where the
individual is seen as the primary to the group. The Australian expect a fair amount of public
etiquette from each one of them and as well the foreigners. In the end, Jio Infocomm can opt for
his opportunity to expand its business to consider reliance industry growth in Australia and target
its customers there.

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Introduction
Reliance jio infocomm limited is type of subsidiary of reliance industries. The Reliance
industry was founded by Dhirubhai Ambani. Jio is an Indian mobile network operator. The
company is owned by Reliance Industries and is headquartered in Navi Mumbai, Maharashtra.
Reliance jio infocomm limited provides broadband services to customers using WI-MAX as
access technology pan India. The company offers postpaid prepaid mobile network services to its
customers throughout the country.
The chosen country is Australia where the company is supposed to expand its business.
There are several reasons that creates the need of expanding such the Jio company is successfully
satisfying the customers expectation to meet the market demand and competition in the industry.
The report consist of a small company background, complete country overview and analysis of
the macro environmental factors affecting the business decisions.
The report will highlight the critical evaluation parts of the macro environment with
respect to Australia. the macro environment factors consist of step wise descriptions and along
with signifying the specific importance or benefit of the factor in the business operations. the
factors are economic factors,, political and legal factors, and the culture and ethical description
to give a clear understanding of the each factors in relation to Australia and the company Jio
Infocomm Limited.

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Discussion
Company background
Reliance jio infocomm limited is type of subsidiary of reliance industries. Jio is an Indian
mobile network operator. The company is owned by Reliance Industries and is headquartered in
Navi Mumbai, Maharashtra. It operates a national LTE network providing a coverage across all
22 telecom circles. Jio significantly only offers LTE service even for the voice calls to serve the
voice service on its network.
The Reliance industry was founded by Dhirubhai Ambani. Reliance jio infocomm limited
provides broadband services to customers using WI-MAX as access technology pan India. The
company was known as Infotel Broadband Services Limited, however it later changed to
Reliance Jio Infocomm Limited in January 2013. The company is operated by the chairman and
MD, Mukesh Dhirubhai Ambani. The company is managed by the managing director and
director named Sanjay U. Mashruwala. The company forms an executive committee of audit
committee where the chairperson is Adil Siraj Zainulbhai.
The company Jio Infocomm Limited is under the Reliance Industry which can take the
opportunity for being the competitor in the industry and can seek opportunity in the international
market. This will in turn lead to the company to strongly hold the market position in the home
country and establish itself as an international brand on a global basis. The country that has been
selected for expansion in Australia as the country has an increase rate of internet service
consumption and there has a
Most significantly, the industry is growing in terms of subsidiaries and targeting
customers with various products and services offering. For such business it is necessary to

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expand its business internationally to achieve success in figures and grow as companies (Kaur,
2018).
Introduction to chosen country
Australia is a country located in the Southern Hemisphere combining the mainland of the
Australian continent. As of 2016 it has 7,692,024 square kilometer in area and has a population
of almost 23,401,892 million people. Its neighboring countries include Indonesia, East Timor
and Papua New Guinea and New Zealand to the southeast. Sydney is comprised as the largest
city in the country. Australia has total 6 states and two mainland territories (Kritz, 2015).
Canberra is the capital of Australia. Australia is one of the developed countries highly
indulged in national performance programs to develop quality of life, human development,
health care, education and political rights. It is engaged in membership with the United Nations,
G20, Commonwealth of Nations, World Trade Organization and Pacific Islands Forum. It
regulates its operation in Australian dollar form of currency.
English is the official language of the country. In addition to English there are several
other languages such as Aboriginal, Tasmanian, mandarin, Arabic, Australiaese, Italian and
Torres Strait Island languages that are spoken in the country by the ethnic groups. However,
English is becoming more popular and being taught as a compulsory subject in the education
system at present times.
Any business organisation operates in two business environments, internal and external,
while the factors of the internal business environment is under the control of the management of
the organisation on the other hand the external factors are not. The analyses of the macro or the
external environment include the economic, political, legal, cultural and social factors of a

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country. For a multinational company while expansion the company has to consider the factors
of the host country as well as the country of origin. The above selected Jio Infocomm Limited
Company is to be expanding its business. It is found that Jio if offers its valuable services to the
people in Australia then it can be a good scope for the company which can be determined with
the following analysis. The telecom industry in Australia has revenue which reached over $42
billion in 2016, a growth of less than 1% for the 12 months to June 2016. Telstra is the leading
telecom company in the Australian market grabbing more than 50 percent of the market share.
The industry and the market in Australia are lucrative as the mobile subscribers are increasing
with the rising population in the country. The revenue for Mobile Network Operators (MNOs) in
recent years has been distinguished by the services based on LTE technology, and to the rising
proportion of mobile data to overall revenue. More and more people in Australia are getting
accustomed to the use internet based services. Online shopping, social media communication,
other e-commerce services have encouraged the telecom industry in Australia to great lengths.
Economic analysis
Australia has a highly stable and well maintained economic growth and can be
considered as one of the largest capitalist economy in the world. The GDP of Australia has
increased by 2.3 percent in 2017, amounting to $1,421,809 million. In 2016 The GDP per capita
of Australia was $51,873, which is lower than the figures of 2017 amounting to $58,304. It is
essential for a business to grow and expand in an economy which is stable as the current asset
prices will be depended on the present values of the expected future returns
(ountryeconomy.com, 2018). There is a high growth of demand in the domestic market where
the consumption capacity depends on the population which is huge amount in Australia. The
above figures show that the economy of Australia is on a growing trend this is one of the reasons

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Australia is attractive to many investors. The customer will get a wide change in the way of the
product purchase decision. It is necessary to study the market before hand to prevent any further
imbalances and it is important for the growth of the company as well.
As mentioned that the country is counted in the high income group where its GDP rate of
growth is to be considered as effectively moderate not much cold or hot. The Australian
economy had been on a continuous economic growth with a low level of public debt
contribution. The country also avails the option of open market with minimal restrictions for the
companies to do business in Australia. It also stands with a stable financial system (Downes,
Hanslow & Tulip, 2014).
However, the company should match its expectation with the unemployment trends,
interest rates, inflation rate and must analyse the GDP growth rates to determine that the
procedure to create and adjust with the strategies to fit in the current situation. This would be
also applicable with the upcoming future changes that would rather take place in the country’s
economy. The price at which the labor cost is to be hired needs to be determined to schedule the
financial accounting matters accordingly. It also becomes necessary to evaluate the skills and
capabilities that are offered by the workforce of the country. Australia is highly depended in the
mining and agriculture sectors for its economic growth. It helps the company to plan its required
training and skill development programs that needs to be provided to the employees. The
economies of this trend have also given rise to a number of competitions in the market making
the industry difficult to enter.
The development of the economy in Australia is balanced. The developing is between
upstream and downstream where the development takes place at a rapid pace with a sustainable

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environment. The development of an economy with appropriate sustainable practices and result
is finely accepted to equivalently impact the business operations and practices. Development can
be considered in the need of infrastructure, roads, transportation, and housing and to meet all the
necessary development of the needs (An, Hoi & Chi, 2016). All in all Australia provides with an
ease of doing business guide. All these factors add to the rise in the consumption of the telecom
services as well as communication is an important part of growth and development.
However, continued inflation can lead to challenges such as access to expensive credit
and financial management with highly consideration of currency devaluation. The GDP rate of
growth that either increases or decreases affects the business profits and its expenses as well.
Relience telecom is an organization that is originally from India, which is a developing country,
though the economy of the country is growing at a rapid speed but the cost of establishing the
infrastructure required competing with the giant players in the industry are significantly. Despite
of that the organisation is one of the leading in the world and has the resources and means to
expand in the new country. The revenue of the Reliance Industries amount to around $66 billion
USD.
Political and Legal Analysis
Australia lives with a diverse economy and even develops to stabilize the adaption of the
economy. In this practice the government plays an important part for the role in planning and
governing. The market economy of Australia is high in GDP with low rate of poverty. The
country is wealthy. However, the communist party that governs Australia keeps the economic
and political factors steady (Fforde, 2016). The company would benefit from its mixed economy
that serves the political environment to gain a market where positioning and segmentation would
become an advantage.

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Australia remains as a federal parliamentary constitutional monarchy with its apex as
Elizabeth II as the Queen of Australia. Bureaucracy and corruption would stay as a problem but
it is stable in the country and with its rising level despite of the government taking actions to
apply solutions. This could lead to severe loss for the company in terms to pay taxes, required
documents to indulge into business activities would need more time (Halpin, 2015).
Comprehensive Economic Cooperation Agreement negotiations have been a major factor
of encouragement for any organisation of India to invest in Australia. The comprehensive
agreement would help in the expansion of the foundation of merchandise trade by addressing
tariff barriers and improve the regulations of the border in business and trade (Dfat.gov.au,
2018). The relations in between the two countries are strong and an alliance with the help of a
leading company will ensure strong political bond between the two countries
(India.embassy.gov.au, 2018). India rank tenth on Australia’s trading partner list and is fifth-
largest export market. Australia and India two-way goods and services trade amounted to $18
billion in 2014-15. Major Australian exports to India in 2014-15 included coal ($5.5 billion),
education-related travel ($2.1 billion) and gold ($903 million). Major Australian imports from
India in 2014-15 were refined petroleum ($910 million), personal travel services ($561 million)
and business services ($481 million) (India.embassy.gov.au, 2018).
The Australian economy enjoys encouragement of trade and business and welcomes
foreign investors. It avails the investment laws, trade laws and other regional agreements.
However, the company would face challenges in the implementation of these laws in real. The
legal factor also considers the greenhouse gas emission and environmental protection laws. The
adapted Australian government policy contributes significantly in the country standards to
effectively increase the government working. Overall, the political and regulatory environment is

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steady and progressive and can quickly responds to the economic challenges and policy
direction.
The legal factors are the external factors that affect the business operations internally and
externally as well. Legal factors decide the framework of the business behind the selling of the
product and the service of the company. It also determines the mechanisms of the inventory to
stock and even the interactions of the customers with the company. For example, the strong
system of checks and balances with a high respect to judicial and law enforcement system makes
the country one of the most important markets for MNC’s in the Asia Pacific part.
Culture and Ethics
Australia has become one of the dynamic economies. However, the free market
democracy in the country will lead to an effective system of government facilitating
development.
The Australian uses English as their primary language and accent marks to show tones
while writing. However, talking about the culture and its society Australia describes position is
with individual characteristic in the society. The society is also influenced with behaviors and
ethics towards building relationship. Under this system the head of the family is to be considered
as to be the father and he is burden with responsibility to provide with all the necessary amenities
such as shelter, food and clothing.
Australian find the importance of people in the quality of person’s reputation, modest,
humble, self-depredating with a smart approach. Hence, it is necessary for the company to
maintain its face in the society to gain competitive business opportunities. Appraisal of

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performance and disregarding the poor performer could make to lose the quality of the
characteristics of the person or business (Turner, Fiske & Hodge, 2016).
Figure: Australia’s Hofstede cultural dimensions
Source: (Hofstede Insights, 2018)

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The Australian expect a fair amount of public etiquette from each one of them and
as well the foreigners. They strictly avoid un-appointed people for meetings for which they
prefer appointments to be made prior weeks. It is significant for the company to understand and
operate with the cultures and ethics of business to represent conservatively. They expect people
to be punctual and departing and even they are such same. There is a scope for the company to
put effort for the successful business partnerships by investing times to build both personal and
business lines. Australian prefer handshakes with smiles that add as suffix. The people living
here are relaxed, informal and closed to their families (Nguyen, Mujtaba & Cavico, 2015). This
factor the company can take advantage while expanding the business. The people there prefer to
adapt to new technologies to produce high quality products. This opens up opportunity for the Jio
Infocomm Company to take the advantage of new technology in the country.
Conclusion
From the above discourse it can be observed that the Jio Infocomm company situated in
India and headquartered in Navi Mumbai is an successful subsidiary of the Reliance industries.
The company can consider to expand its business operations on a global basis. For this purpose
the company can take the benefit to use the new updated technology and prefer growing its
business and continue to be a strong competitor in the home country and internationally as well.
The above report has shown an analyze the macro environment in the country Australia
while to make the decision to expand the business of Jio. The report will show analysis of brief
to the economic analysis, legal and political factors that affect the company with its decision
making and business activities. The analysis of the society’s culture and ethics that significantly

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shows the business has variety of options in the form of opportunities and threats as well which
needs to be focused equivalently to earn the business profits and achieve objectives.
The report showed that Australia is a well organized and stable country with a
satisfactory GDP level and economic growth. This will enable them to extract a good amount of
business financing and strategic positioning to gain competitive advantage and customers value.
The leadership is a significant to evaluate the findings of the macro environment factors. In the
end, Jio Infocomm can opt for his opportunity to expand its business to consider reliance
industry growth in Australia and target its customers there.

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