RELIANCE JIO

SWOT ANALYSIS

SHAMSHEER S
  BMS/BA 20-23

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INTRODUCTION TO THE ORGANISATION

Reliance Industries Limited (RIL) is a Fortune 500 company and the biggest private-sector
corporation in India. Reliance’s products and services portfolio meet approximately all of us
on a daily basis, over economic and social bandwidth. The largest company has grown from
being a textiles and polyester company to a mingled pro in entertainment, energy, retail, food
industry and ‘Digital Industry’.
 
In addition to that, the “Reliance industry”, India’s largest brick and mortar retailer, has
also stepped into the red-hot online retail market as online retailing is the need of the time
when individuals get aware of any business. If speaking about the Reliance industry, the
brand already has earlier experience with the e-commerce region with Ajio.com and
Reliance Trends. 

The number of shares of RIL are approx. 310 crore (3.1 billion). The promoter group, the
Ambani family, holds approx. 46.32% of the total shares whereas the remaining 53.68%
shares are held by public shareholders, including FII and corporate bodies. Life Insurance
Corporation of India (LIC) is the largest non-promoter investor in the company, with 7.98%
shareholding.

Now let us take a look at Reliance Jio, the company in which I had been appointed as part of
the Board of Directors.

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RELIANCE JIO

The inception of Jio was in 2005 when RIL split, the company was known as Infotel
Broadband previously, now by this time it is widely acknowledged as “Reliance Jio". It
has begun with broadband services, stepped into 3G and 4G, and is extending its mobile
products and services through e-marketing.
 
Initially, we, at Jio created a really tough competition that Airtel and Vodafone have
watched almost the double-digit rate of decline in their revenues, with Jio Preview offers as
unlimited free data pack for 3 months and free voice calls with SMS.

We used some Combined Marketing Strategies to build Jio to what it is today. I will explain
a few of them here. We used the 4Ps as mentioned below :

 Price: One of the most attractive strategies that we adapt is pricing strategies. Not only the
company offered a satisfying price to their various products for individuals but we also leads
the telecom market. Even our Rival companies modified their pricing strategies when Jio
introduced premium 4G services at cheap prices.
 
 Products: Jio is providing telecom products and assistance with high-speed internet services
and exclusive offers. We also offer a bundle of utilities and services for our customers.
 

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 Place: Our Jio products, and other digital items are sold out at various Jio stores located in
several cities in India through the broadly spread circulatory channels. Reliance Jio stores
have evolved into India’s largest supply chain in a short period of time that turns out to be an
augmented platform for distribution, incorporating a huge number of national and
international personal brands.
 
 Promotion: When it comes to making positive brand consciousness, we adopted a bit
aggressive marketing strategy including launching ad campaigns on television, radio,
newspapers, magazines, and social media platforms like Instagram, Facebook, Twitter, and
YouTube. We also have used film industry stars and celebrities’ power to do acting in the
commercials ads and become joined with our brand. 

ARE EXTERNAL FACTORS AN INFLUENCE ?

I often get questions from my acquaintances whether the External Factors influence
Organisational Formulation and Implementation.
I have always strongly believed that External Factors always influence Organisational
Formulation and Implementation and I will explain why.

Strategy Formulation
Strategy formulation refers to the process of choosing the most appropriate course of action
for the realization of organizational goals and objectives and thereby achieving the
organizational vision.
The vital step in Strategy Formation Process is to evaluate the general economic and
industrial environment ( Evaluating Organisational Environment ) in which the
organization operates. This includes a review of the organizations competitive position. It is

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essential to conduct a qualitative and quantitative review of an organizations existing product

Strategy Implementation
Strategy implementation is the translation of chosen strategy into organizational action so as
to achieve strategic goals and objectives. Strategy implementation is also defined as the
manner in which an organization should develop, utilize, and amalgamate organizational
structure, control systems, and culture to follow strategies that lead to competitive advantage
and a better performance.

Now that you might have a brief idea about what Strategy Formation and Implementation is ,
I’ll explain the importance of understanding the influence of the External Factors

The Importance Of External Factors

What are external factors? The economy, politics, competitors, customers, and even the
weather are all uncontrollable factors that can influence an organization’s
performance. This is in comparison to internal factors such as staff, company culture,
processes, and finances, which all seem within your grasp.

From Goal setting to daily operations, it can be easy for an organization to focus on what it
feels it can control internally. Yet it’s critical not to overlook the uncontrollable, external
factors that impact a business.

A company’s stability and profitability are interdependent on its ability to quickly identify
and respond to changes in the external environment. Change is inevitable and having the
flexibility to deal with unexpected market mutations can mean the difference between
survival and extinction for an organization. Something as common as a shift in government
policy could have a significant effect on our business. Even we have faced quite a few
challenges when TRAI brought some regulation changes in the telecom market. Yet we

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suevived because we are always aware of the External Factors and take them into
consideration while formulating strategies .

You may find that outside factors are playing a role in where your business is headed. For
example, in the late 1990s, the music industry evolved from albums to streaming, impacting
many businesses who were associated with the industry. Or if you’re in the manufacturing
industry and do a great deal of business overseas, political unrest or a trade dispute between
your country and the foreign one you operate in could impact your strategy .

For any business to grow and prosper, managers of the business must be able to anticipate,
recognise and deal with change in the internal and external environment. Change is a
certainty, and for this reason business managers must actively engage in a process that
identifies change and modifies business activity to take best advantage of change.

While external factors like government policy changes are sometimes unexpected, that
doesn’t mean you can’t prepare for them. The most effective way for a business to prime
itself to be flexible and adaptive is to develop a framework for conducting an environmental
scan.

An environmental scan is the process of methodically gathering, analyzing, and interpreting

With these informations, I believe I have clearly explained why I agree that External Factors
influence Organisational Strategy Formulation and Implementation.

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SWOT ANALYSIS
SWOT Analysis is used to assess your organization's current position before you decide on
any new strategy. The analysis helps in finding out what's working well, and what's not so
good.

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT
Analysis is a technique for assessing these four aspects of your business. You can use SWOT
Analysis to make the most of what you've got, to your organization's best advantage. And
you can reduce the chances of failure, by understanding what you're lacking, and eliminating
hazards that would otherwise catch you unawares. Better still, you can start to craft a
strategy that distinguishes you from your competitors, and so compete successfully in
your market.

We, at Jio have prepared our SWOT Analysis with the help of a professional team with our
inputs. For a SWOT analysis to be effective, company founders and leaders need to be
deeply involved. This isn’t a task that can be completely delegated to others. But, company
leadership shouldn’t do this work on their own, either. For best results, you’ll want to gather
a group of people who have different perspectives on the company. Select people who can
represent different aspects of your company, from sales and customer service to marketing
and product development. Everyone should have a seat at the table. This is exactly what we
did while creating our SWOT Analysis.

The following SWOT analysis of Reliance Jio that we have prepared focuses on Strength
and Weakness ( Internal factors ) along with Oppurtunities and Threats ( External Factors ).

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Strengths

Strengths are things that your organization does particularly well, or in a way that distinguishes you
from your competitors. These are the advantages your organization has over other organizations. The
following are the strengths of Reliance Jio:

Strong Customer Acquisition Strategy - Reliance Jio probably has the best customer acquisition
strategy till date. Our Brand offered the services for free for 3-6 months to all their users.
This resulted in millions of users using Reliance Jio and resulted in one of the best customer
acquisition strategy in the history of telecom.

Strong Customer Base - Jio boasts of a whopping 100 million subscribers in the first 170 days
of its launch a record which no other provider achieved. Jio current has 400 million
subscribers which is the highest in India.

Technology - Jio currently uses the latest 4 G LTE technology which is one of the world’s
best technologies for the future. This is supported by Voice over LTE which makes it
scalable and supportive of 5G and 6 G technologies which are expected to be the future in
wireless communication. Jio owns spectrum in 850 MHz and 1,800 MHz bands in India’s 22
circles, and also owns pan-India licensed 2,300 MHz spectrum. The spectrum is valid until
2035. Jio also promises to introduce 5G data services by the end of 2021.

Strong Backing of Parent Company - Reliance Industries is a credible brand which echoes with
Indian sentiments and has high trust amongst customers. The association of Jio with
Reliance acts as a core strength.

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Marketing & Brand Management - The reason for the huge customer base of Reliance Jio is
the brand management strategies that it has adopted. The right promotion backed by
lucrative offers and credible brand ambassadors like ShahRukh Khan and Amitabh
Bachchan have helped in building connectivity with the customers.

Fast and Wide Network - Reliance Jio has a presence in all 22 telecom circles in India and is
known to be a robust and fast network with zero connectivity issues.

Wide Range of Offerings - Reliance Jio offers a variety of services like movies, games,
shopping, chats, and messenger etc. giving the customer a lot of options to choose from.

Trained Labour Force - Reliance Jio has invested heavily in educating its employees, which
has resulted in recruiting a large amount of inspired and skilled staff.

Strong Presence in Social Media - Reliance Jio has a strong social media presence on the
three most popular social networking sites, with over millions of followers: Facebook,
Twitter and Instagram. It has a high level of customer engagement on those platforms, with
low customer response time.

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In this section, analyze and dissect the business rivals. Competitive analysis enables the
owner to know more about and gain a deeper understanding of the business’ competitors.
Make sure that this section describes clearly how the company’s solutions are better for
consumers compared to the competitors identified.
Here are some factors to consider when analyzing the competition:
 Direct competitors - When identifying competitors, focus on those who are providing
products or services that are similar to the business. How long have they been in business?

 Competitor strengths and weaknesses – Determine what competitors are good at and
what they are not offering. Use creativity to identify opportunities that rivals do not have.

 Status quo – Examine the mindset of the other businesses and target customers. Does the
business intend to introduce a new idea that will disrupt how things are done?

 Messaging – How will the package of this business’ services overcome the competition?

 Uniqueness - What advantages does the business have over the competition? Why will the
company’s service stand out and capture market share?

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Weaknesses

The areas of business which needs improvement or are not at par with the market
expectations are termed as Weaknesses. The following are the key weaknesses of
Reliance Jio:

Late Entry to the Telecom Market – Reliance Jio has made a late foray into the market in
2016 which already had established players like Airtel and Vodafone who had
occupied a place in the minds of the customer.

Activation Issues - Reliance Jio faced numerous gestation issues owing to not being
able to contain the huge volumes of customers it had acquired. On such was delays
in SIM Card activation during the period that followed its launch.

Too Many Freebies - Reliance Jio currently offers many services for free and this was
one reason for share increase in sales. However, the company may not be able to
afford all of them in the long run which may affect the business negatively.
Pricing Controversies - Reliance Jio was criticised for having lowered its prices beyond
what was ethical to penetrate into the market and this stirred allegations like
corruption and money laundering against them.
Poor Data Connection - The data connection is many times poor from Reliance Jio and
the range is less due to huge customer base causing slower loading speeds in
selected regions.

SWOT ANALYSIS
A SWOT analysis is a useful tool for evaluating the business by zooming in on its strengths,
weaknesses, opportunities available, and potential threats. Consider the following:
 Strengths – What strengths does the company have now and how will these strengths
evolve moving forward?

 Weaknesses – What are the deficiencies in the services? Which areas of the business
should be improved first?

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 Opportunities – How can the business leverage partnerships and new innovations to grow
the business? Which other segments of the industry would the company consider entering
in future?

 Threats – Are there external factors (controllable and uncontrollable) that could potentially
stifle cash flow or business growth?

STRENGTHS WEAKNESSES
 Advantage  Disadvantages
 Capabilities  Gap in capabilities
 Assets, people  Cash Flow
 Experience  Suppliers
 Financial reserves  Experience
 Value proposition  Areas to improve
 Price, value, quality  Causes of lose sales

SWOT
OPPORTUNITIES THREATS
 Areas to improve  Economy movement
 New segments  Obstacles faced
 Industry trends  Competitor actions
 New products  Political impacts
 New innovations
 Key partnership  Environmental effects
 Loss of key staff
 Market demand

Once the SWOT analysis is complete, consider the following aspects of the business:
 How will the business’ strengths help capitalize on available opportunities while minimizing
threats?

 How will the business’ weaknesses prevent it from maximizing on these opportunities?

 How will the business’ weaknesses expose it to threats?

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