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  5. Reliance Jio : A Data Company? 2022

Reliance Jio : A Data Company? 2022

#Family business #Startup #Entrepreneurship


Abstract

In April 2022, Reliance Jio observed an increased downfall in the number of its subscribers consecutively for 3 months. Mukesh Ambani is forced to contemplate the recent growth developments of one of his rival companies, Airtel. Although, the total customer base still stood at 402.7 million but it nearly lost 3.6 million users in the last few months making year 2022 rather challenging for the country’s largest network provider. Meanwhile, Airtel’s brand value saw an increase of 28% in 2022. In 2016, the defining year of Indian telecom history Mukesh Ambani announced the debut of Jio after which the lives of consumers were profoundly altered. He introduced 4G services at cheapest price, stripping away the conception of the internet as a luxury in India. After Jio rewrote the rules of the game in the industry experiencing a smooth entry into the market, Jio now faces difficulties to maintain its market position and growth revenue model. Will Jio maintain its leadership in customer acquisition? Should Jio strategies to retain its consumer? Could Jio remain profitable in the long run? Should Jio focus on introducing new products or on improvement of its core services? Could Jio successfully turn the non-active users into active users again? This case study will start by exploring the formation and growth of the telecom giant Reliance Jio. Followed by the revolutionary impact of Jio in the growth of data services and digitization in India. This study will elaborate the aggressive pricing and cost leadership strategies adopted by the company as well as development of its digital ecosystem. The company's strategies over the years will be discussed in order to analyze the competitive advantages of Jio and its market positioning. Lastly, the challenges faced now and predicted would be explored with focus on the alarmingly declining number of consumers.

Detailed information

Case ID 22-1072
Published 2022
Industry TELECOM & IT
Analyzed Area General management
Pages 33
Language English
Teaching Note Attached