Reliance JIO

Post on 21-Feb-2017

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Presented by: PGDM2Prashant Narishetty

Sakshi NataniKajal Tiwari

Priyanka BanerjeeDinker Vaid

Shubham Pareskar

Reliance JIO

Telephone was introduced in India in 1882Telephone subscribers (wireless and landline): 995.9million (May 2014)Land lines: 31.53 million (May 2015)Cell phones: 929.37 million (May 2015)Monthly cell phone addition: 8.35 million (May 2015)Tele-density: 79.28% (May 2015)Annual cell phone addition: 227.27 million (March2014 - 2015)Cell Phone users May 2015 (as per COAI): 968mn.Worldwide smartphone market revenues are forecast to grow 42% year-over-year from $152 billion in 2011 to $1.6 trillion by 2018.(Telecommunications Market Research Published on Thursday, 21 January2016 10:40)

Telecom Industry

MARKET PLAYERS & Analysis

• HEADQUARTERS - Navi Mumbai• MD & DIRECTOR – Sanjay

Mashruwala• PARENT COMPANY - Reliance

Industries Ltd.

• FULL NAME – Reliance Jio Infocomm Limited

• FOUNDER – Mukesh D. Ambani

• FOUNDED – 2007• 4G LAUNCH - Sept 05,

2016

TIMELINE:

2015Internal launch to partners on Dec 27,2015.

IBSL changed to Reliance Jio Infocomm Limited in

Jan,20132013

RIL bought 96% stake IBSL for 4800 Cr.

IBSL won 4G spectrum in all 22 zones.

2010

Infotel Broadband service Limited established

2007JAN 2017

Reliance’s vision for India is that broadband and digital services will no longer be a luxury item.

To reach 2 lakh villages and 18 cities.

MUKESH DHIRUBHAI AMBANIBORN – 19th April,1957.

PLACE – Yemen.CHAIRMAN & MD – Reliance Industries LimitedNETWORTH – 22.8 Billion USD (2016)

KEY WORK

1. ABOLISHED FEUDALISM• Delegate Authority along with Responsibility to a network of

people and trained them.2. SELF MOTIVATED• Death of his father and his cousin Rasikbhai Meswani in quick

succesion.3. AIM HIGH• Goal was to beat Taiwan and Korea in Polyster business.• Reliance built capacity of 75000 tonnes during license Quota -

Raj4. EXPANSION• Ability to see growth for various business in different parts of

the world

• Benevolent Authoritative ( Behavioral theory of Leadership)

• Supportive

LEADERSHIP STYLE

SWOT

Digital connect with mobile phone operators.

App Based Services.

Interconnecting infrastructure with current telecom operators

Multi service operator.

TECHNOLOGY

POLITICAL/LEGAL Auctions of Infrastructure.

Mobile Number Portability

Regulations by Department of Technology 1985.

ECONOMICAL

• Increase in Inflation Rate

• Subscriber base expanded at a Compound Annual Growth Rate (CAGR) of 19.5 per cent.

• Efficient Customer Care.

S.T.D.SEGMENTATION:• BEHAVIOURAL• PSYCHOGRAPHIC• DEMOGRAPHICS (SPLY STUDENTS)

SEGMENTATION:• BEHAVIOURAL• PSYCHOGRAPHIC• DEMOGRAPHICS (SPLY STUDENTS)

SEGMENTATION:• BEHAVIOURAL• PSYCHOGRAPHIC• DEMOGRAPHICS (SPLY STUDENTS)

STUDENT PLAN:25% MORE DATACONNECTING 30K SCHOOLS & COLLEGES

PAN INDIA

SMARTPHONE USERSINTERNET USERS TARGET

15%

11%

43%

31%

TELEPHONE USERSURBAN WIRELINE RURAL WIRELINE URBAN WIRELESS RURAL WIRELESS

DIFFERNTIATION

Competitive frameworkCompetitors

Impact on competitors

Loss of Rs. 15,600 cr

ore in market

capitalization9% 11%

IDEA and VODAFONE are most vulnerable with 4G airwaves. They will have to bid aggressively in spectrum auctions for 4G.

Jio will push smaller service

providers to the

fringes, if not to exit altogether.

• Reliance Jio has partnered with several smartphone brands where Jio Preview Offer is available for a period of 90 days.

• It has purchased in bulk LYF mobiles from OEM’s like micromax and intel.

• Host of Jio Premium apps such as JioPlay, JioOnDemand, JioBeats, JioMags, JioXpressNews, JioDrive, JioSecurity and JioMoney.

• Starting from September 5, offers free SIM from Reliance Digital, Reliance Digital Xpress, and Reliance Digital Xpress mini stores.

• Under the deal, Reliance Jio will utilize the telecom tower infrastructure of the Bharti Infratel to launch its services across the country, also telecom infrastructure sharing arrangement with Bharti Airtel Limited

• Cheap prices and offers.

Competitive moves

Competitors moves• Bharti Airtel acquisition of Aircel's 4G airwaves has taken

out Reliance Jio Infocomm's first-mover advantage in the fast mobile broadband turf, with India's No. 1 telco becoming a pan-India 4G player even before the Mukesh Ambani-owned firm launches commercially.

• Airtel claims to have reduced the price of its 3G/4G data pack in Delhi by up to 80 percent. 

• Vodafone also revised its 3GB 3G/4G monthly recharge pack. Earlier a Rs 650 plan came bundled with 3GB data, but now you get 5GB for the same price.

• Idea also recently slashed its data tariffs by up to 67 percent.

The Good, the Bad and the Ugly

The Good

• Data Abundance• Fresh Competition

High

Buyer Power Analysis• Product differentiation • Buyers’ switching cost

(Low)• Buyers’ information

(High)

Supplier Power Analysis• Mobile Tower Companies (13

Telecom Tower Companies)• Mobile phone handsets• Bargaining power (Mid)

Threats of Substitute Threat of entry

Capital RequirementsCost of maintaining one. 60,000-65,000 per month.Rented : Rs. 40,000-45,000 Government And Legal Barriers

PORTERs 5

forces

Rivalry

The optical fiber cables laid by Jio has 288 individual fibers in it compared to competitors with 12 -24 fibers in it.

100%of Reliance Jio Infocomm's tweets were retweeted by its followers

Users can get their numbers activated within 15 minutes with the E-KYC system

Free internet surfing is only from 2.00 am to 5.00 am

Jio has inversted Rs 1500000000000

They own two international submarine cable landing

stations.

The only company to

have 4G spectrum in all

22 Zones

They have erected mobile

towers that looks like trees. So,

they blend into the surrounding

helping it maintain the

beauty

Thank You