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    SWOT RelianceJIo

    Uploaded by

    Raj Gupta
    The document analyzes the strengths, weaknesses, opportunities, and threats for a telecom company. The company has strengths like low tariffs, a wide network coverage, and a strong brand name. However, it also faces weaknesses such as late entry into the market and high dependence on data consumption. Opportunities exist through increased smartphone and data usage, while threats include a saturated market, strong competition, and changing government policies. The suggestion is that while competitive pricing is important, excellent customer satisfaction is also key to long-term success.

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    SWOT RelianceJIo

    Uploaded by

    Raj Gupta
    887 views5 pages
    The document analyzes the strengths, weaknesses, opportunities, and threats for a telecom company. The company has strengths like low tariffs, a wide network coverage, and a strong brand name. However, it also faces weaknesses such as late entry into the market and high dependence on data consumption. Opportunities exist through increased smartphone and data usage, while threats include a saturated market, strong competition, and changing government policies. The suggestion is that while competitive pricing is important, excellent customer satisfaction is also key to long-term success.

    Original Description:

    Swot Analysis of reliance

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    The document analyzes the strengths, weaknesses, opportunities, and threats for a telecom company. The company has strengths like low tariffs, a wide network coverage, and a strong brand name. However, it also faces weaknesses such as late entry into the market and high dependence on data consumption. Opportunities exist through increased smartphone and data usage, while threats include a saturated market, strong competition, and changing government policies. The suggestion is that while competitive pricing is important, excellent customer satisfaction is also key to long-term success.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    887 views5 pages

    SWOT RelianceJIo

    Uploaded by

    Raj Gupta
    The document analyzes the strengths, weaknesses, opportunities, and threats for a telecom company. The company has strengths like low tariffs, a wide network coverage, and a strong brand name. However, it also faces weaknesses such as late entry into the market and high dependence on data consumption. Opportunities exist through increased smartphone and data usage, while threats include a saturated market, strong competition, and changing government policies. The suggestion is that while competitive pricing is important, excellent customer satisfaction is also key to long-term success.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    Strength

    1. Low tariff: - Company has launched its 4G service with highly


    competitive or rather very low tariff. Company has strong financial
    capacity to withstand initial losses
    2. Very wide network:-Company has created wide national network
    with a huge investment of around $20 billon. The company has
    used latest technology and hence capable to give quality service.
    3. Brand Name: - Brand Value of company is very high.

    Weakness

    1. Late entry into telecommunication sector: - The telecom sector


    had grown exponencially in its initial phases which started around
    two decades earlier. Presently market has seen only modest growth
    and it has become highly competitive due to entry big players such
    as Vodafone, Idea etc.
    2. Operation of Mobile Number Portability Still not
    smooth:- Nowadays mobile number has become identity of a
    person and hence it is difficult for anyone to change his mobile
    number.MNP takes many days for its implementation and it is hard
    to manage this transition period. MNP is crucial for Jio as a large
    number of customer is expected through migration from existing
    service providers.
    3. Highly dependent upon data consumption: - As per the current
    trend around 60 to 70 percent of revenue comes from voice calling
    and hence there is a huge potential loss for making voice calling
    free. This loss can be offset only when consumption of data
    increases manifold.

    Opportunity

    1. Large scale availability of smart phones: In last 2 decades the


    number of people using Smartphone has increased manifolds. If
    company is able to provide quality service at competitive rate it
    can quickly grab large number of customers.
    2. Increasing rate of data consumption: In its earlier phase almost
    entire revenue of the mobile service provider was from voice
    calling. However since last two years the proportion of revenue
    from data users is increasing exponentially which has resulted in
    almost 30-40% of the total revenue. Lower data tariff may further
    increase data consumption and thus contribute more to the revenue
    of company.
    3. International market:-There is huge opportunity in many
    developing countries

    Threat

    1. Saturated market:- The initial phase of rapid increase in


    subscriber is now over. A new entrant like Jio needs a large
    customer base to cross breakeven point.
    2. Highly competitive market:- After the entry of big players like
    Vodafone,Idea etc the market has become highly competitive.
    3. Changing Government Policy: The changing government policy
    like cancelling of 2G licences ,imposition of tax with retrospective
    effect(on Vodafone), refund for call drop etc, has created
    uncertainty in the market causing adverse impact on the investment
    sentiment.
    4. Rapid upgradation in Technology:- From 2G to 3G and 3G to
    4G changes have occurred in very short span of time. Even next
    generation 5G is approaching shortly. Each upgradation requires
    huge investment and it is not possible to remain in market without
    it.

    Suggestion

    Though competitive tariff is very important to become an important


    player in the market, the customer satisfaction is equally or even more
    important for long term perspective. Handling customer grievances in
    effective way and continuous improvement based on customers
    feedback are key priority areas to become a dominant player in the
    market. For eg. BSNL could not be a dominant player in market due to
    poor customer satisfaction even though tariff is highly competitive.

    Part 2 SWOT
    Strengths

    1. Strong backing of parent company ie Reliance Industries backed up Mukesh Ambani


    2. Excellent advertising and marketing of Jio helped the brand have a strong launch
    3. Jio has brand ambassadors like Shahrukh Khan, Amitabh Bachchan which has helped reach
    out to masses
    4. Innovative technology i.e. 4G LTE services along with VoLTE
    5. Has a strong pan India presence with its operations in more than 22 cirles
    6. Jio apps are a unique feature offering movies, games, shopping, messenger, chat, news etc
    under one roof
    7. LYF smartphones at affordable costs would also boost the brand Reliance Jio

    Weakness

    1. The ad campaign of Reliance Jio showing the PM was controversial


    2. Late entrant in the India market, i.e. it would be challenging to increase market share
    significantly

    Opportunities

    1. The company can offer telecom, call, data services at competitive prices
    2. Reliance Jio can promote exclusive services like apps to attract consumers
    3. Focus on customer service and MNP can help the brand overcome competition

    Threats

    1. Once free services are over, people would not want to continue using Jio
    2. Existing competitors have a strong presence, and a loyal customer base, which would be
    difficult to address to.

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