Reliance Jio Case Study – Ultimate Success Story – 2002 Onwards

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 a 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 more than 6-8 hours when we were putting on a movie?

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 into 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 ease.

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 a Jio Case Study and will be exploring all the facts about Reliance Jio.

How Reliance Jio was founded, what 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 ahead of 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 few years, the growth of data usage in India has increased by 93%, between 2015 to 2019, and the major reason behind it is the easy availability & consumption of the 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 at 45%.

Now, just think if internet connectivity were available in every corner of India, then where would these figures reach?

According to these states and predictions, we can assume that 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, as the availability of smartphones at very affordable rates, government 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 of 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 Infocomm 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 persons in India Mukesh Ambani.

Again, most people in India who are using Jio, are not aware of the real story of the 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 the Jio establishment is thanks to the daughter of Mukesh Ambani, Isha Ambani.

When she was working on the assignments for her college, she was experiencing too many difficulties submitting the projects, and she shared this thing with her father.

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

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

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

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

4G, 5G, 6G internet data usage

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

Challenges Faced By Jio Pre-Launching

Every new opportunity comes with a bundle of challenges and hurdles, so how can Mukesh Ambani and Jio 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 the 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 an agreement between both brothers, 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 in the same segment to compete with 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 drop by doing such stuff so that he can enter the telecom segment, and the first problem was solved.

The license of 4G Spectrum

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

During the auction of the 4G spectrum and license in 2010, one company got a license over 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 it 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 like Reliance Jio Infocomm.

By doing this very different stuff, the Reliance Jio Infocomm became the first company in India to hold the 4G spectrum license.

Reliance Infocom stack certificate

Now, Mukesh Ambani with Reliance Jio Infocomm 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 many 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 were not developed well, and whatever was available, was too costly, and they were not affordable for the middle-class person.

As a solution to 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 a result of the marketing strategy, the Jio became an emerging brand in people’s eyes, and people started to love the Reliance Jio.

Reliance Jio Marketing Strategies

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

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

But now, there are many rivals of Jio to compete with it, and he has to occupy an audience with Jio if he wants to sustain the business.

To do so, he implemented a very different strategy for marketing, and hopefully, it worked very fantastically.

As I discussed at the beginning of the article, there was a time when we were thinking a hundred times before downloading a single song because it was consuming a lot of data at a very low speed.

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

Youtube  video resolution

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

Free Sim Card of Jio With Unlimited Data Strategy

Mukesh Ambani predicted why India is on the backfoot in the segment of digitalization, and he observed that all the major players in the telecom segment were offering 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 make them aware of the 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 the entire family can utilize their technology.

The word free is very attractive in itself, and he provided all the players with free, data, calls, and SMS per day to each subscriber, and it worked in a very legendary manner.

Reliance Marketing Stragegy

With 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 the first 83 days, and as of January 2021, it has more than 41 Crores Subscribers.

In the beginning, he offered everything unlimited for one year, and after one year, he extended that offer for 3 more 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 the 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 these areas, it was liked by many people due to the affordable prices and affordable phones.

Focused on Subscribers

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

It was focused on making 1 rupee from 1000 customers instead of making a whole 1,000 rupee from 1 customer.

Benefits to Other Segments

Due to the revolutionary change in the internet world, many other segments which were relying on the internet 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 the problem of the 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 be digitalization.

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

Today, Jio is unbeatable by any operator, even if all other rival operators come 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 through his futuristic visionary power, the great marketing strategies, and understanding of the problems of people.

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