About Reliance Jio:
Founded in 2007 having its Registered office at Makers Chambers, Nariman Point. Mumbai, India. Reliance Jio Infocomm Limited operates as a subsidiary of Reliance Industries Limited.
Jio broadband services to customers using LTE as access technology pan India. The company was formerly known as Infotel Broadband Services Limited and changed its name to Reliance Jio Infocomm Limited in January, 2013.
Jio crossed 50 million subscriber mark in 83 days since its launch.
subsequently crossing 100 million subscribers on 22 February 2017.
October 2017, it had about 130 million subscribers.
Offerings of Jio:
Digital Life to Indian Mass population.
Payment Gateway and many more inbuilt Apps
SWOT Analysis of Reliance Jio:
Free Calls: This has attracted millions to switch to Jio in just few months of launch.
Innovative products: The product mix of Jio stands out in innovation which is one of it’s key strengths.
Market share: In shortest period of time Jio garnered a huge market share forcing others to follow its pricing strategy to stay relevant. This first movers advantage in making Data cost affordable will stay in the mind of new consumer for coming years is well.
Parent company: Jio is a subsidiary of RIL which has huge cash on its financials which acts as backups for Jio to take on innovative route and invest accordingly on future products.
Product Mix: If you look at the Jio App you will be impressed with features smart art lies in most of them are usable by even a average consumer hence making a strong case for future revenue streams.
Engagement Strategy: This one is epic after launch offer (Free SIM, calls etc.) it just kept the momentum going by Sponsoring a BIG B show KBC – this not only generated a huge brand recall in the shortest period of time but engaged users with the native App in real time on KBC play along.
Advertising Campaigns: Most of the AD sets of Jio are lively and targeted towards millennials which is a winning brand strategy.
LYF: Low cost feature phone will surely take brand jio to the masses even in rural areas, coupled with it’s reach and low-cost Data products feature phone of this range will make a significant impact on future growth.
Being late in Market: Jio with all its disruptive ideas and product mix is a late entrant to the market. At this stage getting half of market share is unlikely as competitors are strong and MNC’s where again a cash burn is not a barrier to keep Jio at check.
High dependency on Data: Although JIo has wide variety of Apps to use and add value to its subscribers its still at nascent stage and imagining a single platform for Entertainment, Data, Payment, Chat etc... Seems difficult as niche players have advantage specially in terms of focus and innovation.
Price War: Sooner or later this trend is going to settle and either competition comes down heavily with matching products and services or Jio has to increase pricing, its already doing it in bunded products. How long Indiana consumers perceive Jio as cost effective service provider seems to be seen in coming years.
Data for Billion people: The core opportunity lies for Jio in Data and speed of data. The rate at which millennials are engaged on various platforms is growing rapidly and new applications and government initiatives to push digital services will play as catalyst and make data as necessity rather than privilege.
Smartphone: This is unique selling point so heavy on competition as a opportunity which Jio unlocked. So much so that others are forced to introduce low cost smartphones: Smartphone is a growing trend and here to stay for years to come. Making smartphone accessible to masses is a reach strategy like no other.
Customer Loyalty: In a market where Jio itself positioned itself as low price, Free calls etc.. Making customer loyal to paid service is a challenge. Majority of the Jio users are obsessed with freebies once this come to an end some portion shall shift to other service providers. And competitors shall look at this move as opportunity and counter Jio with similar freebies which shall have large scale subscriber switch.
Technology: Technology is fast and upgradations are capital intensive. From 4G to 5G is a event waiting to happen anytime soon. Making price as an distinctive advantage is not a long lasting strategy.
Conclusion: Although Jio has rattled the competition and made other players follow the price war for now. The competitive landscape shall soon shift to customer service at least in the top 20-25% users, who are in fact revenue contributors for telecom. For e.g., post-paid subscribers and corporates. Jio need to work hard on these long term aspects which keep customers happy and stay with the service provider.