Business Report: Analysis of Reliance Jio's Business Model

This report provides a comprehensive analysis of Reliance Jio's business model, a prominent player in the telecom industry. The report deconstructs the business model, identifying key components such as value propositions, channels, customer relationships, revenue streams, key resources, cost structure, key activities, customer segments, and key partners. It examines the inter-relationships between these blocks and highlights the critical success factors, including marketing and pricing strategies. Moreover, the report identifies impactful factors affecting the business and offers strategic recommendations for improvement. The analysis covers the company's management structure, its relationship with Reliance Industries, and its market strategies, culminating in a detailed assessment of its current position and future potential within the global telecommunications landscape.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

1MANAGEMENT
Executive Summary:
The paper discusses the business model of a business organization of telecom industry named
as Reliance Jio. The company is managed by Reliance Industries. The paper identifies the
various blocks of the business model such as Value Proposition, Channels, Customer
Relationships, Cost Structure, Key Resources Revenue Streams, Key Partners, Key Activities
and Customer Segments. In addition to this, the paper identifies the inter-relationship
between the blocks of the business model and along with that, it identifies the impactful
factors and the critical success factors of the organization such as the marketing strategies and
the pricing strategies. Apart from this, the paper provides significant recommendations for the
betterment of the business operations of the organization.

2MANAGEMENT
Table of Contents
Introduction:...............................................................................................................................3
Business Model:.........................................................................................................................3
Key Partners:..........................................................................................................................3
Key Activities:.......................................................................................................................4
Customer Segments:...............................................................................................................4
Value Propositions:................................................................................................................4
Channels:................................................................................................................................5
Customer Relationships:........................................................................................................5
Revenue Streams:...................................................................................................................5
Key Resources:.......................................................................................................................5
Cost Structure:........................................................................................................................6
Inter-relationships:.....................................................................................................................6
Critical Success Factors:............................................................................................................6
Impactful factors:.......................................................................................................................7
Changes:.....................................................................................................................................8
Conclusion:................................................................................................................................8
References:.................................................................................................................................9
Appendix:.................................................................................................................................11
Business Model:.......................................................................................................................11

3MANAGEMENT
Introduction:
The paper is focused in the elaboration of the business model of a chosen organization
in the form of Reliance Jio. The chosen organization is a global leader in the
telecommunications industry. However, the organization is relatively new to the industry
compared to the other competitor organizations, the company is able to create a significant
market share in the industry (Satyanarayana, Rao & Naidu, 2017). The success of the
mentioned company is seen to be based on the excellence of the company’s business model.
The paper discusses regarding the various aspects of the business model of the mentioned
organization. Adding to that, the paper analyses the inter-relationship between the blocks of
the business model with precise focus on the critical success factors and the impactful factors
that affect the business operation of the chosen organization. In addition to this, the paper
also provides significant recommendations to the organization for the improvement of their
business operations.
Business Model:
As mentioned earlier, the chosen organization operates in the telecommunications
industry. Sanjay Mashruwala, the managing director of the organization and Akash Ambani,
the chief of Strategy for the mentioned organization are able to provide visionary leadership
to the organization which enabled the mentioned organization to generate a profit of 831
crore in the third quarter of the financial year 2018-19 (Jio.com, 2019).
Key Partners:
The chosen organization is managed by the parent organization Reliance Industries
(Ril.com, 2019). The current chairman of the parent organization is Mukesh Ambani. Along
with that, Nita Ambani, the director and Alok Agarwal, CFO of the organization are seen to
be the fundamental figures in senior level management of the parent organization which

4MANAGEMENT
directs the chosen organization (Ril.com, 2019). Along with that, the Telecom Regulatory
Authority of India is considered one of the most important partner of the mentioned
organization responsible to monitor the ethical business conduction of the chosen
organization (Trai.gov.in, 2019). Apart from this, a series of companies such as BT Group,
Deutsche Telekom, Milicom, Orange S.A., Rogers Communications, MTS, Telia Company
along with Telecom Italia are observed to be the key partners of the chosen organization
(Rogers.com, 2019).
Key Activities:
The primary responsibility of the company is to provide the telecommunications
service to the customers. Other than this, the chosen organization is seen to serve the
customers with high speed internet, JioPhone, JioPhone 2, 4G broadband, LYF smartphones,
Jionet WiFi, Jio Giga Fiber along with a range of mobile applications (Jio.com, 2019).
Customer Segments:
The company is seen to employ significant strategies such as high speed internet at
considerably lower prices or the free calling services for targeting the customers.
Reliance Jio Customers
Sex Male and Female both.
Income Monthly salary ranging above 5 thousand
Indian rupees.
Age 13-47 Years
Other Characteristics Credit and Debit Card Users, Online
customers and offline store customers.

5MANAGEMENT
Value Propositions:
To provide high speed internet services at the most competitive price possible.
To provide unlimited phone calling facilities to the customers.
To make sure that the customers even belonging to lower economic groups do not
face any sort of difficulty in connecting to the other people in a speedy fashion.
Channels:
The organization has several number of offline stores across the nation and along with
that, the company uses their website for the effective business conduction. Along with that,
with the creation of Jio application, the company is observed to each out to the customers
through the smartphones in an effective manner.
Customer Relationships:
The chosen organization has the required facilities in place for the e-mail
communication, online advertisements, social media advertisements along with the
significantly wide spread offline advertisements for the effective interaction with the
customers of the organization regarding their products and the services (Mahalaxmi &
Kumar, 2017).
Revenue Streams:
The organization is able to generate a sum of 831 crore in the form of profit in the
third quarter of the financial year 2018-19 with a 22.1% increment in the quarter on quarter
basis (Jio.com, 2019).
Key Resources:
The key resources that are much needed for the successful business conduction from
the part of the organization are the development telecommunications infrastructure,

6MANAGEMENT
significant specializations in the information technology along with considerable number of
skilful employees as the human resources. Apart from this, the significant investment from
the part of the senior level management of the organization is also much needed for the
success of the organization.
Cost Structure:
The administration cost of the organization is calculated to be 13% of the revenue of
the company (Jio.com, 2019). In addition to this, distribution and selling cost of the
organization is estimated to be 17% of the total revenue of the organization (Jio.com, 2019).
Inter-relationships:
With a precise focus on the demands of the market, the parent organization Reliance
Industries is able to come up with the plan of increasing the product chain of the organization
with the effective introduction of a subsidiary, Reliance Jio. The parent organization have
invested in a significant manner for the infrastructural development of the organization along
with for recruitment of the skilled employees which enabled the organization to serve the
customers with the high speed internet at significantly competitive price along with the
products such as JioPhone, JioPhone 2, 4G broadband, LYF smartphones, Jionet WiFi, Jio
Giga Fiber. The recruitment of the skilful employees from the part of the organization in the
CRM department of the organization, plays a crucial role in the communicating to the
customers through the e-mail, online and social media advertisements. Apart from that, the
organization is seen to target the youth generation for their products as it is pretty evident that
the consumption of the internet and the above mentioned products amongst the youth is
notably high (Modi & Gandhi, 2014). With the effective achievement of the improved
infrastructure for the above mentioned products that are to be sold through the offline stores,
company website and the Jio application, the company is able to generate a profit of 831

7MANAGEMENT
crores in Indian rupees with a 22.1% increment rate in the quarter on quarter basis (Jio.com,
2019).
Critical Success Factors:
The application of the low pricing policy is seen to be one of the crucial factor
responsible for the success of the organization (Singh, 2017). The company introduced a plan
for the mobile operations which is considered to be the best in the business in terms of low
pricing which enabled the company to target the low income groups and increase their profit
(Kumar et al., 2018). In addition to this, the marketing strategy of the chosen organization is
significantly unique. The company provided free of cost internet services to the probable
customers on trial basis for considerable number of days. This increased the loyalty level of
the customers in a significant manner and along with that, it helped the organization to target
the customers in a significantly effortless manner (Kalyani, 2016). The organization is in
need to make sure that the application of these strategies remains to have a positive impact on
the success of the organization.
Impactful factors:
In telecommunication industry, the signal strength is considered to be one of the
significant factor in the service of the organization. The mentioned company is in definite
need of improving their signal strength through the construction of increased number of
towers (Bhushan et al., 2014). This will be helpful for the organization in providing quality
service to the customers of the organization.
Along with the improvement in the signal strength of the organization, the company is
in definite need of some important restructuring in their packaging of the mobile phones. It is
pretty evident that the significant success of the company is dependent on the visionary
leadership of the managers and the senior level management of the organization. The

8MANAGEMENT
increasing market share of the company is approaching a monopoly in the mentioned market
and is seen to force many of the organisations of the same industry towards the bankruptcy.
However, the company is seen to have limited impact in the mobile manufacturing industry
with the comparatively less impactful representation of the JioPhone and LYF smartphones.
Hence the chosen company is in need to make sure that they be able to serve the customers of
the organization with the introduction of the mobile phones with the modern facilities.
Changes:
A precise consideration of the scope of improving the infrastructure of the
organization is seen to be much needed for the mentioned organization. The focus of the
senior level management of the organization towards the increment of the signal strength for
producing better quality service is considered to be a much needed change for the mentioned
organization. Along with that, the organization is in need to shift their focus a bit towards the
mobile phone manufacturing industry as that is significantly profitable business industry for
the mentioned organization. The organization is in need to come up with a comparatively
improved plan for introducing innovative products to the mobile phone manufacturing
industry for achieving the varying preferences of the customers and retaining the customers.
Conclusion:
On a concluding note, the mentioned organization has the potential to become one of
the market leader of the global telecommunications industry. However, with the application
of the low pricing, the organization is in need to make sure that the quality of service from
the part of the organization is monitored in an effective manner and the necessary
infrastructural improvement is achieved for a sustainable business conduction.

9MANAGEMENT

10MANAGEMENT
References:
Bhushan, N., Li, J., Malladi, D., Gilmore, R., Brenner, D., Damnjanovic, A., ... & Geirhofer,
S. (2014). Network densification: the dominant theme for wireless evolution into
5G. IEEE Communications Magazine, 52(2), 82-89.
Jio.com. (2019). [online] Available at: https://www.jio.com/
Kalyani, P. (2016). An Empirical Study on Reliance JIO Effect, Competitor’s Reaction and
Customer Perception on the JIO’S Pre-Launch Offer. Journal of Management
Engineering and Information Technology, 3(5), 18-36.
Kumar, A., Balaji, M., Krishna, U., & Yadav, M. (2018). Jio-Bharti Airtel Data War and
Strategy. In Harnessing Human Capital Analytics for Competitive Advantage (pp.
171-179). IGI Global.
Mahalaxmi, K. R., & Kumar, S. (2017). A study on service quality and its impact on
customer’s preferences and satisfaction towards Reliance JIO in trichy
region. International Journal of Advanced Education and Research, 2(3), 35-41.
Modi, Y. A., & Gandhi, I. S. (2014). Internet sociology: Impact of Facebook addiction on the
lifestyle and other recreational activities of the Indian youth. In SHS Web of
Conferences(Vol. 5, p. 00001). EDP Sciences.
Ril.com (2019). Reliance Industries Limited – Retail Markets | Telecom | Petroleum Refining
& Marketing | Petrochemicals | Hydrocarbon Exploration & Production | Jio 4G |
Reliance Shares. Retrieved from http://www.ril.com/
Rogers.com (2019). Rogers: Wireless, Internet, TV, Home Monitoring, and Home Phone.
Retrieved from https://www.rogers.com/consumer/home

11MANAGEMENT
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.
Trai.gov.in (2019). Home | Telecom Regulatory Authority of India | Government of India.
Retrieved from https://main.trai.gov.in/

12MANAGEMENT
Appendix:
Business Model:
Key Partners
Reliance
Industries.
Telecom
Regulatory
Authority of
India.
BT Group.
Deutsche
Telekom.
Milicom.
Orange S.A.
Rogers
Communication
s.
MTS.
Telia Company.
Telecom Italia.
Key Activities
Telecommunication
s service.
High speed
internet, JioPhone,
JioPhone 2, 4G
broadband, LYF
smartphones, Jionet
WiFi, Jio Giga
Fiber along with a
range of mobile
applications.
Value
Proposition
s
To
provide high
speed
internet
services at
the most
competitive
price
possible.
To
provide
unlimited
phone
calling
facilities to
the
customers.
To
make sure
Customer
Relationship
e-mail
communicatio
n, online
advertisement,
social media
advertisements
and offline
advertisements
.
Customer
Segment
 Male and
Female
both.
 Monthly
salary
ranging
above 5
thousand
Indian
rupees.
 13-47
Years.
 Credit
and Debit
Card
Users,
Online
customer
s and
offline

13MANAGEMENT
that the
customers
even
belonging to
lower
economic
groups do
not face any
sort of
difficulty in
connecting
to the other
people in a
speedy
fashion.
store
customer
s.
Key Resources
Telecommunicatio
ns infrastructure.
Specializations in
the information
technology.
Skilful employees
as the human
resources.
Financial
investment.
Channels
Offline Stores,
Jio application
and company
website.
Cost Structure
13% of the total revenue is the Administration
cost of the organization.
17% of the total revenue is the Distribution and
the selling cost of the organization.
Revenue Stream
22.1% increment in the quarter on
quarter basis.