Reliance Jio Case Study Revealed

Jio Case Study is the best inspiration guide for everyone who wants to make his business scalable with the ninja techniques of business.

Do you remember that time when we were thinking hundred times before downloading even MP3 songs to our mobile?

Have you remembered those days when we had to keep our PC ON for the whole night or for more than 6-8 hours when we were putting any movie in downloading?

I know, you better remember those days, how can we forget those days, right?

But then suddenly magic came into the market, and rushed all the problems in the dustbin and enabled us for fast downloading, live streaming, watching movies and web series online, etc…

And the name of that magic is “Reliance Jio”.

But you might also know that a huge revolution or a big change doesn’t happen in one day or one month with easiness.

It takes a long duration, and, yes, of course, we can not do so without facing the challenges.

The success of Reliance Jio is not an overnight success, or it has not achieved it without any obstacle.

In this article, we are going to do Jio Case Study and will be exploring all the facts about Reliance Jio.

How Reliance jio was founded, which kind of obstacles it faced during the journey, how it dealt with problems, what is the Jio marketing strategy, how it is competing with rivals and beating them, everything.

Jio Case Study : A to Z About Jio

India is too ahead than the other countries in the world in the data consumption segment, like China, France, Spain, Germany, South Korea, Japan, and other countries.

In the last some years, the growth of data usage of India has increased by 93% around, between 2015 to 2019, and the major reason behind it is easy availability & consumption of internet.

Jio Case study, data increment of internet usage in India

The average data usage per month per user is the highest in India in the world, which is 11.7 GB, where, the mobile broadband connection is on 45%.

Now, just think if the internet connectivity were available at every corner of India, then where these figures will reach?

According to these states and prediction, we can assume that how the data segment is bright in India in the upcoming time, right?

Growth of Telecom Sector in India

If we focus on the growth in the telecom sector in India, it has come between 2015 to 2019, and there are many reasons behind it.

Like, availability of smartphones at very affordable rates, governments involvement, and low cost data usage.

In this article, we are going to explore the success story of Jio, and will deep dive into how Mukesh Ambani made his company Reliance Jio successful, profitable, and scalable even after giving millions of GB data free of cost for more than one year to entire India.

Foundation of Reliance Jio in India

The full name of Jio is Reliance Jio Infocom Limited, which we call Jio normally, and very few people know that Jio stands for Join Implementation Opportunity.

Jio was founded on 15th February 2007, and it was founded by one of the richest person of India Mukesh Ambani.

Again, most people India whoa are using Jio, are not aware of the real story of Jio foundation, they don’t know how the Jio was founded, and what is the story and idea behind it.

Foundation Story and Idea For Reliance Jio

Very few people know that the idea of Jio establishment is thankful to the daughter of Mukesh Ambani, Isha Ambani.

When she was working on the assignments of her college, she was experiencing too much difficulties to submit the projects, and she shared this thing to her father.

And even his son Aakash Ambani told him the same thing that the telecom companies are just limited to generate the money from the voice calling only, but the future of India is in digitalization.

By this incident, Mukesh Ambani realized that India is suffering too much from the poor internet connectivity, overpriced, and unaffordable data rates.

And by doing some sort of research, he came to know that the real strength of telecom segment is the data facility instead of the voice facility.

Because the upcoming generation is going to rely on the digitalization, and on the other hand, the world was focusing on 4G, 5G, and 6G data due to a good infrastructure, so why not India?

4G, 5G, 6G internet data usage

This just one incident is the cause of the establishment of Jio, but as you know, the formation of new idea can not be succeed without hurdles, challenges, and problems, and Jio was yet to face all these stuff.

Challenges Faced By Jio Pre-Launching

Every new opportunity comes with the bundle of challenges and hurdles, so how can Mukesh Ambani and Jio can be excluded from it, right?

Mukesh Ambani was also yet to face the huge challenges before starting Jio, but as a successful mind has all solutions, similarly, Mukesh Ambani dealt in a very better way with them.

Non-Compete Agreement With Anil Ambani

During the separation of entire Reliance company, the telecom segment i.e. R-com was allocated to Anil Ambani.

It was not a problem, but the problem is that there was the agreement between both brother, and it was the Non-Compete Agreement.

Reliance patrician

According to this agreement, if one brother is working in a particular segment, then another one can not work into the same segment to compete the first one.

This was a very big challenge for Mukesh Ambani, because Anil Ambani was working in the telecom segment, and instead of having the legendary business idea, Mukesh Ambani was not able to execute it.

Mukesh Ambani made this agreement dropped by doing such stuff so that he can enter the telecom segment, and the first problem was solved.

License of 4G Spectrum

After establishment of Reliance Jio, the next step was to get the license and spectrum of 4G technology.

While the auction of 4G spectrum and license in 2010, one one company got license over the India.

That company was Ahmedabad based Infotel Broadband Services, and it got the license for all the 22 states of India.

Now, just think what can Reliance do, was its supposed to wait for the next opportunity? No, it acquired the 95% stacks of this deal by paying a very high cost to Infotel and rebranded that company as Reliance Jio Infocom.

By doing this very different stuff, the Reliance Jio Infocom became the first company of India holding the 4G spectrum license.

Reliance Infocom stack certificate

Now, Mukesh Ambani with Reliance Jio Infocom was able to provide the 4G data and voice telecom services across 22 circles of India, and he submitted the one time entry fees of Rupees 1,673 Crore rupees as well.

After facing and dealing with too much problems and challenges, finally Jio was launched on 5th September 2016 in India.

Supporting Devices

Hence, the technology of 4G had been launched, but the compatible devices for the 4G technology was not developed well, and whatever the available, were too costly, and they were not affordable for the middle class person.

As a solution of this problem, Reliance Jio launched the LYF 4G mobile which was affordable for every person having the compatibility of 4G technology as well.

Reliance Jio and LYF mobile

With this event, there was a huge revolution in the telecom sector due to the great marketing strategy of Mukesh Ambani.

The marketing strategy of Jio was too different, and as the result of the marketing strategy, the Jio became the emerging brand in people’s eye, and people started to love the Reliance Jio.

Reliance Jio Marketing Strategies

Marketing strategies is the one of the most essential pillars in the growth of the business, a perfect marketing plan can make the business a very profitable.

Till now, Mukesh Ambani had cross and passed all the hustles coming in the way of establishing the business.

But now, there were many rivals of Jio to compete it, and he has to occupy and audience with Jio if he would want to sustain the business.

In order to do so, he implemented a very different strategy for marketing and hopefully it worked very fantasticly.

As I discussed in the beginning of the article that there was a time when were thinking hundred times before downloading a single song because it was consuming very much data with very low speed.

Even, we were watching the videos on a very low quality resolution to save the data, Mukesh Ambani caught this problem, and worked on this.

Youtube  video resolution

He predicted that the future of India is in the digitalization, and he needs to clear the fear of data loosing or having less data.

Free Sim Card of Jio With Unlimited Data Strategy

Mukesh Ambani predicted why India is on backfoot in the segment of the digitalization, and he observed that all the major players of telecom segment were offering the data services and voice calling at a very high price.

So, when Jio was launched, Mukesh Ambani started to provide the sim cards free to the people to aware them of Jio brand and increase the customer base.

Moreover, he was offering up to 5 sim cards with 4G unlimited usage on 1 aadhar card, so entire family can utilize their technology.

A word free is very attractive in itself, and he provided all the players free, data, call, and sms per day to each subscribers, and it worked in a very legendary manner.

Reliance Marketing Stragegy

By this strategy, more and more people started using the Reliance 4G, and according to the report of that time, Reliance Jio acquired more than 5 crores subscribers in just first 83 days, and as of January 2021, it has more than 41 Crores Subscribers.

In the beginning, he offered all thing unlimited for one year, and after one year, he extended that offer for more 3 months.

Now, the logic of this marketing strategy was to make the people habitual for faster data connectivity and unlimited calls and sms, then he would start charging according to the norms.

At that time, none of telecom operators had the 4G technology apart from Jio and that is why people did not want to switch to any other network.

These are not only the outcomes, but one more unexpected outcome was that the other operators had to fall down their prices to survive.

Moreover, the major target audience of Jio while launching was Tier 2 and Tier 3 cities where the internet was not developed completely.

Now, when Jio covered this areas, it was liked by many people due to the affordable prices and affordable phones.

Focused on Subscribers

Where the rivals of Reliance Jio were focusing on gaining more subscribers than generating more and more money.

It was focusing on making 1 rupee from 1000 customers instead of makin whole 1,000 rupees from 1 customers.

Benefits to Other Segments

Due to the revolutionary change in the internet world, many other segments which were relaying on the interment made a very huge profit.

Netflix, amazon, YouTube, and many other industries got too many customers and subscribers due to a huge revolution in internet technology in India.

Conclusion on Reliance Jio Case Study

Reliance Jio attacked on the problem of Indian population directly, the major problem was that the other operators were charging too much for the less voice and data.

Jio predicted the future of India, and according to the prediction, the future would in the digitalization.

It’s not like that it launched the 4G technology and got succeeded, it came to face many chaos during the journey, but Mukesh Ambani dealt will all in a very smart manner.

Today, Jio is unbeatable by any operator, even all other rival operators become together and give the fight to Reliance Jio, they can not win.

Mukesh Ambani has made a very very very strong position in the market for Jio by his futuristic visionary power, the great marketing strategies, and understanding the problems of people.

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