BMA251 Principles Of Marketing

Introduction and Company background

Reliance Jio limited is the subsidiary organisation of Reliance industries limited that is known as India's largest private sector organisation. Reliance is the first telecoms service that managed to hold pan India Unified Licence. This licence allows the company to offer all telecommunication related service starting from global mobile personal communication.

Reliance Jio has a spectrum of almost 1800 MHZ over nearly 14 circles and 2300 MHZ over 22 circles that has the capability to offer fourth-generation wireless services to the customers. In this context, the organisation has planned to offer seamless 4g services with the help of FDD-LTE on 1800 MHz and TDD on the basis of 2300 MHz through the use of the integrated system of operation (Jio, 2018).

However, Reliance Jio has been planning to set up a pan India telecom service for offering to the high underemployed market in India with a high-speed fourth-generation internet service provided with rich service of communication and various digital services on different domains such as education, healthcare and other media services.

Based on the marketing and management efforts taken by the organisational the study highlights that potential marketing environment of the organisation while presenting the existing competitors of the company such as BSNL, MTNL, Vodafone and Airtel India. In addition to this, the study presents a strength, weakness and opportunities in relevance to the expanding competitive market.

Micro environment

Porter’s five forces

The number of mobile phone users within the Telecom industry has increased at a rate of 5.54% each of the year with increasing number mobile phone subscribers.  As a result of which the bargaining power of the consumer has increased due to the number portability availability. They are able to switch on to any service providers without any required costs (Satyanarayana, Rao & Naidu, 2017).

Competitive rivalry is quite high in the industry as there are several developed brands such as Airtel, Vodafone and Idea that are present within the market for long. The different plans offered by Airtel and Vodafone are similar before Jio entered the market (Chinthala, Madhuri, & Kumar, 2017).

On the contrary to this, the threat from the emerging market and being replaced by substitutes are comparatively lowers as the telecom industry needs the huge amount of capital investment. In this context, Reliance Jio has already invested almost Rs.1.65lakh for pan Indian services (Jose, 2017). Therefore, it will be highly difficult for the emerging companies to service in the developed market.

Macro Environment factors

PESTLE Analysis

From the political perspectives, Jio is currently following the Prime Ministers mission of Digital India campaign. Similar to several application of Jio services, Jio Money allows consumers to pay and transfer money through a digital platform (Gochhait & Tripathy, 2016). The company, therefore, is highly supported by the government that falls under the Make in India programs.

From economic perspectives, after the event of demonetisation, the telecom c0mpany has started offering free data services for a few months. This has helped the company to increase their GDP by 1.38%. Socially the company has invested over Rs. 750 crores for the corporate social responsibility (Haq, 2017). They have offered internet services in areas such as Indore traffic police and are planning to offer service in government schools as well.

In the case of technology, they are using the most advanced technology VoLTE operations that offer them to provide enhanced call quality in comparison to their competitors. Environmentally the company has managed to install safe environment-friendly services restrict electromagnetic radiation (Gawali, 2018).

Competitor Analysis

Indian telecom market is one of the major competitive industry that grew on par with the other industry. However, the industry has a high potential to provide service to the people that are improving each day. Along with the up gradation of the technology and increasing demand made by the consumers, all the major players from all over the world are using their money and efforts to enhance this industry (Dutta, 2018).

Apart from these, along with the liberal industrial and legal policies approached by the government, the company is also facilitating investors to give money in this industry. This industry is a service industry where people are getting increased services from other telecom services. In the earlier period, this service was limited to activities such as SMS, MMS, and internet whereas in the current period technology has changed from 2g to 4g services (Kalyani, 2016). People now are able to use the technology such as smartphone along with internet that has changed the competitive statistics of the market.

There are several competitors in the market existing in the Indian Telecom market like, Airtel, Vodafone, BSNL, Idea, MTNL, Tata that are constantly increasing the entry and exit barriers. In this context, it has been seen that its competitor organisation Airtel is offering a 15 GB data pack for a period of 90 days for a price of 1495 (Gochhait & Tripathy 2016). These services are presently available at the areas of Delhi, where the company is planning to per launch this services in other locations as well.

On the other hand, Vodafone is that is the second largest telecom operator has also made a competitive pitch in comparison to Reliance Jio. The complaint has started a free data plan offer with 10GB mobile with a cost of 1 GB data. Again, Vodafone 4G services have planned to spread the services at different locations of the nation including Kerala, Karnataka at the cheapest price of Rs.29 for 120 MB Data (Prabhudesai, 2014).

Therefore, it can be seen that competition is increasing in the market with the expansion of the location where all the competitive organisation are offering unbeatable offers. These develop competitors like Vodafone, Airtel, BSNL are increasingly taking an effort to restrict the customers from opting for Reliance as the substitute in the market.

SWOT Analysis

Reference

Chinthala, G., Madhuri, H., & Kumar, K. (2017). Customer satisfaction towards telecommunication service provider—A study on reliance JIO [J]. International Journal of Engineering and Management Research, 7(2), 398-402.

Dutta, S. (2018). Economic Development and Growth under the Telecommunication Sector in India–An Empirical Case Study. International Journal of Research, 5(16), 1214-1237.

Gawali, S. (2018). A Study On Advanced Marketing Techniques Adopted By Reliance Jio, Nagpur. International Journal of Research, 5(13), 21-24.

Gochhait, S., & Tripathy, P. C. (2016). The game changer strategy of reliance jio–a case study on predatory pricing. ICTM 2016, 104.

Haq, N. (2017). Impact of Reliance JIO on the Indian Telecom Industry. International Journal of Engineering and Management Research (IJEMR), 7(3), 259-263.

Jio (2018). Home: Digital Life. Retrieved from 2 September 2018. Retrieved from https://www.jio.com/

Jose, C. A. (2017). Effect of introduction of Reliance Jio on the competitive environment in the telecommunication business in India. Economic and Social Development: Book of Proceedings, 241.

Kalyani, P. (2016). An Empirical Study on Reliance JIO Effect, Competitor's Reaction and Customer Perception on the JIM'S Pre-Launch Offer. Journal of management engineering and information technology, 3(5), 18-36.

Prabhudesai. A., (2014). Growth in Indian telecom industry in 10 years. Retrieved on 4 September 2018. Retrieved from https://trak.in/tags/business/2007/06/19/indian-telecommunication-story-from-10-million-to-150-millionmobile-subscribers-in-5-years/

Satyanarayana, D., Rao, K. S., & Naidu, S. K. (2017). The impact of Reliance Jio on the Indian mobile industry-A case study on mergers and acquisitions of the idea–Vodafone and Airtel–Telenor. IJAR, 3(3), 209-12.