Successful Business Model of Reliance Jio | IIDE (2024)

FAQs

What is the success strategy of Reliance Jio? ›

Reliance Jio used a loss-leading strategy which means it sold its products or services at a price lower than the actual price in the market. Reliance Jio initially started giving its users free of cost data and voice calls for a long period of time which helped them gain a large customer base and a higher market share.

Reliance Jio generates its money from two major options- Charging extra per unit and selling more units. And as compared to other telecom companies, Jio sells way more of its units to generate more money. For those who refer to Jio as a cheap telecom service provider, they are talking about its per-unit cost.

A fundamental reason for the success of Reliance Jio has been their regular strategy of thinking big and delivering something that neither customers nor even competitors can ever imagine. This power of thinking big often go unnoticed but is fairly perceptible behind the success of all their launches.

Business Strategy of Reliance Jio

The use of the AARRR strategy to penetrate the market adds huge growth to the company.

Ambani began a business trading in spices in the late 1950s, calling his nascent venture Reliance Commercial Corporation. He soon expanded into other commodities, following a strategy of offering higher-quality products and accepting smaller profits than his competitors. His business grew quickly.

Reliance aims to start production of battery packs by 2023 and scale it up to a fully integrated 5 GWh per annum cell-to-pack manufacturing facility by 2024, to be scaled up to 50 GWh annual capacity by 2027. Reliance Industries aims to be net carbon zero by 2035.

Penetration pricing strategy is a marketing strategy wherein a new product or service is introduced at a relatively low price to attract new customers. For example, Reliance JIO entered the Indian telecom industry with a penetration price approach.

Reliance Industries' marketing strategy focuses on implementing aggressive marketing tactics for its telecom subsidiary, Reliance Jio and retail subsidiary, Reliance Retail as they are Business to Consumer (B2C) businesses.

The operating margin of the reviewed quarter rose 50 basis points y-o-y to 26.6 per cent. Net profit margin during the quarter was 17.1 per cent against 15.9 per cent in the year-ago quarter. The company's expenses were ₹16,839 crore during the reviewed quarter, against ₹14,655 crore in the year-ago period.

In other words, desirability, feasibility, viability, and ethicality have to be met. They truly are the cornerstones of product success, as the picture below illustrates. Let's look at the four success factors in more detail. Desirability is probably the most important factor.

What are the challenges faced by Reliance Jio? ›

Jio faced certain challenges like sharing of telecom spectrum, problems with other players related to Points of Interconnection, declining internet speed, number portability, etc.

This company operates in the Indian telecom market. It is not the only one providing services. Its main competitors are Idea-Vodafone and Bharti Airtel. This means that the market is an oligopoly.

Marketing Strategy of Reliance Jio analyses the brand with the marketing mix framework whichcovers the 4Ps (Product, Price, Place, Promotion).

Reliance Jio entered a red ocean market in telecommunication with strong, established players Airtel and Vodafone. Well-versed with the red ocean strategy meaning, they offered unique deals and generous internet packs that eventually made Jio a market leader.

Reliance's success was a result of the following traits: Strategic Partnerships: RIL partners with the world's major players to expand their capabilities. Disruptive Pricing: Jio and Reliance Retail entered the fray with affordable pricing that appealed to the Indian consumer.

Ideas are no one's monopoly. If you're born poor it's not your fault but if you die poor it's your fault. If you work with determination and with perfection, success will follow. If you don't build your dream, someone else will hire you to help them build theirs.

“If you don't build your dream, someone else will hire you to help them build theirs.” This Dhirubhai Ambani quote is so inspiring and motivational that it constantly forces us to get up and chase our dreams.

At Reliance, we believe that any business conduct can be Ethical only when it rests on the core values of Customer Value, Ownership Mindset, Respect, Integrity, One Team & Excellence.

Reliance's distribution network helps the company to gain a competitive advantage by reaching customers quickly and efficiently. Reliance Industries has a strong focus on sustainability and has implemented several initiatives to reduce its carbon footprint and promote sustainable development.

Reliance on controls that is supported by sufficient and appropriate audit evidence allows the auditor to assess control risk at less than the maximum, which results in a lower assessed risk of material misstatement.

What are the 4 pricing strategies? ›

What are the 4 major pricing strategies? Value-based, competition-based, cost-plus, and dynamic pricing are all models that are used frequently, depending on the industry and business model in question.

Value pricing

Value pricing is perhaps the most important pricing strategy of all. This takes into account how beneficial, high-quality, and important your customers believe your products or services to be.

Most effective marketing strategy: Content marketing

If you are looking for the overall most effective marketing strategy for small business, content marketing is the winner.

Under the new strategy, the Reliance Smart format will be 8,000 to 30,000 sq. ft and will offer all items below MRP. Offers will be available round the year and discounts will be 2-50% across categories. The company wants to communicate—more you buy, more you save.

The 5 P's of marketing – Product, Price, Promotion, Place, and People – are a framework that helps guide marketing strategies and keep marketers focused on the right things.

Last year, Jio obtained a $750 million five-year new-money club loan for capital expenditure. Reliance Industries Ltd's (RIL) last syndicated offshore borrowing was a $1.45 billion dual-currency financing completed in 2020, comprising a $1.1 billion 3.5-year piece and 38.45 billion yen five-year portion.

For the year 2022-23, the company reported a net profit of ₹18,207 crore, up nearly 23 per cent from year ago while revenue was 18 per cent higher at ₹90,786 crore.

According to an average estimate by Bloomberg, Reliance net profit was seen at ₹16,037 crore and the revenue was pegged at ₹1.75 lakh crore.

A strong brand requires a strong brand identity, brand image, brand culture, and brand personality. Implementing a successful brand strategy that develops all four of these components increases brand trust, loyalty, and awareness.

What are 3 important aspects of a successful brand? ›

The five critical success factors are strategic focus, people, operations, marketing, and finances. How to find success factors? The first step in finding and identifying success factors is understanding the overall objective of a project and the processes required to achieve it.

“six success factors” — focused, directed, nurtured, engaged, connected, and valued (see sidebar, Six Success Factors Defined).

Attitude - The #1 Factor in Achieving Success.

A phone automatically switches between bands according to the strength of the signal at a certain location, which explains why Reliance Jio shifts from good speed at certain areas to poor at others. So to get better Jio speed, you need to control the LTE band.

Simply because previously there used to be two or three players, strong margins were possible and that made others get in and now margins are going to come down dramatically with competition coming. A combination of general uncertainty and holding company discount is the number one factor.

Weakness of Reliance Fresh

The following are the shortcomings identified in the Reliance Retail SWOT Analysis: Inadequate Financial and Technical Resources – Because of a lack of technical and financial resources, the company has been unable to expand its services both locally and internationally.

Jio Payments Bank is an Indian payments bank, which started operating in 2018 and is a subsidiary of Jio Platforms, which is owned by Reliance Industries. Reliance Industries was granted an in-principle approval by the Reserve Bank of India (RBI) to establish a new payments bank under the Banking Regulation Act, 1949.

JioMoney was started as a joint venture between the Reliance Industries and State Bank of India, with a stake ratio of 70:30. Reliance Industries received a license to run payments bank from the Reserve Bank of India (RBI) as per Section 22(1) of the Banking Regulation Act of 1949.

How did the Ambanis make their money? ›

Reliance Industries has diversified its business interests, including oil refineries, oil and gas exploration, retail, and telecommunications. All these strategic investments have made Ambani one of the richest people in the world.

Everyday banking, payments and financial services. Simplifying digital payments, banking and financial inclusion for every Indian. You can make recharges, pay bills, transfer money and much more from your Jio Payments Bank account through your MyJio App or by visiting a Jio Payments Bank outlet nearest to you.