Reliance Jio Case Study
The Jio Prime membership offered 1 GB high-speed 4G data and free calls for Rs. 10 a day for a year. The membership fee for Jio Prime was Rs. The unlimited free voice, free data offered in the ‘Happy New Year’ scheme would be available to Jio Prime members till March 31, 2018, at an introductory price of Rs. 303 per month. Reliance Industries Chairman Mukesh Ambani announced the ambitious plans regarding their telecom arm Reliance Jio at their 41st annual general meeting, indicating an 'aggressive' launch in the.
Business Strategy Model Of Reliance Jio:It is said that, almost 80 percent of Indian population has experienced Reliance Jio’s network services within months of its inception. It quickly became a household name in India. Few industry insiders argue that – Reliance brand popularity over years on other sectors helped Jio to gain quick momentum in the telecom sector. But, personally, I disagree with it. I agree to certain extent about the brand popularity that Reliance carried, but, I strongly feel – it is the business strategy model for creating another remarkable service that worked out for Reliance. Reliance Chairman Mukesh Ambani’s idea of Jio is a one of the best business strategy examples for the business students to study across the world.
The impact of Reliance Jio on Indian mobile industry-A case study on mergers and acquisitions of idea – Vodafone and Airtel – Telenor D Satyanarayana, Dr K Sambasiva Rao and Dr S Krishnamurthy Naidu Abstract Indian mobile industryis one of the fastest growing industries in the world. Indians are habituated to.
Logo of Reliance JioThis case study is about how Reliance Jio Infocomm Limited (Jio), who, after a very delayed entry into the telecom network market, grew to become one of the leading telecom networks in India beating more than a decade old big players like Airtel, Idea, Vodafone, Aircel etc. Reliance Jio has acquired a large market share and achieved numbers that normally took the competition over a decade to achieve using its unique business strategy model. It is India’s only network which is solely 4G.Reliance Jio knew the fact very well that, to acquire a huge customer base who are already customers to other big players, they got to offer something that the customers are in badly need for. After a thorough research, the Reliance Jio team could have arrived at the conclusion that, in this information era, where information is scattered all over the internet, people are looking for cheaper means to access internet.
Case Study Definition
The team also understood that, customers have become more obsessed with the data usage (internet access) over mobile phones for which they were paying the network providers in terms of Giga Bytes(GBs) used. So, the only way, Reliance Jio could lure customers of other service providers towards Reliance Jio was by providing free data usage for customers for several months – a business strategy model that scripted success for Reliance again.The unique selling point ( or the USP ) that Jio used to acquire customers is by offering free services to its customers. The company adopted a predatory pricing strategy (Predatory pricing strategy – also called as under cutting strategy – is an example of business strategy model in which a product or service is set at a very low price with the core intention of driving competitors out of the market space or creating strong barriers to entry for potential new and emerging competitors) to enter the competitive Indian telecom market and offered free voice, data, and message services as its “Welcome Offer” from September 5, 2016, to up to December 31, 2016. The offer was later extended up to March 31, 2017, as the “Happy New Year Offer”.Reliance’s business strategy model created a disruption of competition in the Indian telecom sector and major competitors like Airtel, Idea, Vodafone, Aircel started to loose customers. The competitors were forced to resort to lowering their tariffs with an intention to retain customers from migrating to Reliance Jio.
Intense competition in India’s telecom market has hurt service provider Aircel as they lost customers quickly, faced partial network shutdowns and suffered massive cash crunch which forced them to file for bankruptcy.The crucial challenge for Reliance was to hold on to Jio’s subscribers even after the free offers expired which they successfully managed. The company commercially launched its services on 5 September 2016. Within the first month of its launch, Jio announced that it had acquired 16 million subscribers. This is the world’s fastest ramp-up by any mobile network operator. Within 83 days of its launch, Jio crossed 50 million subscriber mark, subsequently crossing 100 million subscribers on 22 February 2017. By October 2017 it had about 130 million subscribers.Today, after the entry of Reliance Jio into the telecom market, we can notice a large number of people having unlimited access to internet at a very cheap subscription price.
All thanks to Reliance Jio. To be honest, even I am one of the indirect beneficiary of Reliance’s business strategy model.
Because, though, I have not used Reliance Jio, after the entry of Reliance Jio, my service provider poured in enough data to my account, more than what I actually needed. That is the reason I told you I am an indirect beneficiary. Like me, there are millions who indirectly got benefitted after the entry of Reliance Jio into the telecom market. What can you learn from this Business Strategy Model?.
Entering into a market that is already dominated by other big players and dominating it is not impossible if you have proper research based business strategy model. Customer retention is equally important as customer acquisition. Once customers are acquired, you got to plan further for customer retention. Customers are not married to your business to be committed to your business. It is easy for customers to switch from one service provider to another if they find something better with others.
Research for customer retention should be an ongoing process.If you find anything else that you can learn from the above case study, please do drop your comments below. Also, if you are running a business with a unique business strategy, then, do give me an opportunity to write about your business strategy that can set as an example for the rest of the world. Further Reading:.
Subhash.K.U is India’s leading Business Explorer and highest paid Business Strategist. He is famously known for his business blog BusyMonk.com. He helps aspiring entrepreneurs and business owners to take their businesses to the next level through strategic business programs that he conducts throughout the world.
He loves speaking to business owners to learn and understand their successful business models and strategies as he strongly feels that there is no single fixed formula for every kind of business.