Business Case Studies,Marketing Strategies Case Study, Reliance JIO: Leadership Strategy in the Indian Telecom Sector

Code : MM0075 Year :2019 Industry :Technology & Communications			Region : Asia Teaching Note:Available Structured Assignment :Not Available
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IMPACT OF JIO ON COMPETITION: Jio’s entry affected Airtel’s total revenue earning and subscriber base. In September 2016, Airtel had 363 million subscribers. By the end of December 2016, there was only a marginal rise in the number, which stood at 364 million. In March 2017, Airtel had a registered user base of 372 million compared to the previous quarter’s 379 million. In the quarter ended September 2016, Airtel’s total revenue was $3.4 billion and by the third quarter 2017, it had dropped to $3.2 billion. The total revenue dropped further in the last quarter of the financial year 2017 with Airtel recording a revenue of $3.0 billion..

JIO GROWS UNABATED: On September 5, 2016, Jio crossed the 100 million customer mark – just 170 days after its launch. On an average, it added 7 customers every second, every single day. Users consumed more than 1 billion GB of data on the Jio network in six months after launch. Close to 55 million hours of video were watched daily on its network over 6 months after launch...

CHALLENGES: The major challenges faced by Jio after its launch in 2016 were in the form of poor network, call drop, and low internet speed. The Jio Network showed full strength but once customers tried calling, they weren’t able to connect. Second, Jio users could not call or connect with non Jio users. There were issues with the voice clarity. Third, there was also a call drop issue within the Jio to Jio network. Also, the speed of the internet was not as expected. Live streaming was difficult and YouTube video streaming was slow...

ROAD AHEAD: Jio was likely to face the heat with Airtel also planning to launch a 4G feature phone during the festive Diwali season in 2019. By May 2019, Jio was second in terms of market share of wireless subscribers with 27.8 percent next to Vodafone Idea Limited, which had a 33.36 percent share (Refer to Exhibit III). Jio added 8.26 million mobile phones in June 2019..

EXHIBITS:
Exhibit I: Growth in Jio Subscriber Base
Exhibit II: Highlights of Jio Phone
Exhibit III: Wireless Subscriber Market Share in % (2019)