Case study on reliance jio (must read)

About reliance jio:-

Reliance jio is the largest network provider in India & 3rd largest network provider in the world. Whose marketing strategy took the world by storm. Some milestones they have achieved is that It gained more than 50 million subscribers in exactly 83 days of launch.

2. In just 5 years of launch they have a full of life subscribers base of 414.9 million as per the most recent report issued by TRAI(telecom regulatory authority of India).

3. As a comparison , chairman of jio Mukesh Ambani said that reliance jio users consume as much data as the entire USA and 50% more than all china.

4. Ambani says, reliance jio has added 7 customers every second, each day.

5. After the entry of jio India has moved from 155th rank in mobile broadband penetration to being the no.1 nation in mobile data consumption in the world in less than two years.

Who is Mukesh Ambani & how he started reliance jio:-

Mukesh Ambani is the richest person of India with a net worth of 84.5 billion dollars. He started reliance jio on 5 sept 2016 with a huge investment of 21 billion $ with a mindblowing marketing strategy which makes 20billion$ of annual revenue. Let’s understand why he entered in such a saturated market, what opportunities he sees in the market , let's see how the pre-telecom industry looks like in India.

Before jio the telecom market in india:-

Before jio there were many big players in the telecom industry like airtel, idea, vodafone, who captured around 60% of the market.

Before jio the telecom companies working on old technology of 2G and 3G networks . and they focus on calling and sms and they make 80% of revenue from calling and sms & Mobile data is so expensive.

People in india really think before using mobile data because it’s slow and expensive also

Now let’s see when India decided to launch new 4G technology how Mukesh Ambani took this advantage to rule the market and how he became king of the telecom industry.

Business strategy of jio:-

Entry barrier:-

The other telecom companies who are working with old technology, have made huge investments in old technology with high cost of capital. With expensive technology and strong government regulations, now it's difficult to make huge investments in new technology. whereas one more problem jio created with a huge entry barrier with a huge investment of 21 billion$ .

Barrier pricing:-

In the first 6 months jio gave free sims to customers who are looking for high speed data & cheap pricing & it also created a demand for 4G enabled smartphones as their service could only be availed using that. For this they have used a gun-bullet strategy . the strategy in which buyers have to buy another product for the use of these product . same jio have done with their users. So the demand for 4G enabled mobile phones increased for the jio sim with high speed data for free.

GROWTH HACKING STRATEGY:-

Acquisition – After the launch of Jio in September 2016, Jio offered free services to its customers for 3 months. This plan worked as the trump card for Jio to acquire the customers. Within one month, Jio has acquired 16 million subscribers.

Activation – The users were provided with the best experience, which was never provided by any telecom service provider. The unlimited high-speed 4G data with unlimited calling and sms was unimaginable to the customers and it’s made a craze in society.

Retention – Jio didn’t stop here. On the occasion of the new year in 2017, they extended the free services to the users for another 3 months. Jio became the first-ever telecom company to provide 6 months of free service to customers. In just two and a half years into the business, Jio gained more than 300 million active subscribers. It took more than 19 years for its competitor Airtel to reach such a number. That's the power of Jio.

Referral – The customers became their promoters. Jio got more and more business through positive customer reviews and user experience. This the point where jio became buzz in the society and people started talking like “you don't have jio sim what are you doing brother”.

Revenue – using loss leading strategy in starting it grab a market with Slashing the prices to 1/10th the existing cost, Jio got ahead with revenue, which was the major factor in getting such a leap in the market.

This is how jio created their existence in a saturated market. Jio has become a great learning for every person in the world that you also can make such a big business .

Great learning from jio we get that:-

1 You should not think of profit , you should always think from the customer's side.

2 You also can have a monopoly in a saturated market if the price of the product is higher than expected. This can be a great opportunity for you.

3 with a good strategy and high goals you can achieve anything in your life.

Thank you

Have a good day.

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