More Related Content Similar to Project Report on Reliance Digital (20) Project Report on Reliance Digital1. JaipuriaiInstituteiofiManagement,iLucknow Pagei1
JaipuriaiInstituteiofiManagement,
VineetKhand,iGomtiiNagar
Lucknowi–i226i010
AcademiciYear 2019i-i2020
Batch 2019i–i2021
Trimester 3rdiTrimester
Programmeiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
(PGDMi/iPGDM-FSi/iPGDM-RM) PGDMi(RetailiManagement)
NameiofiCourse StrategiciManagement
Section E
NameiofiFaculty
Prof.iM.A.iSanjeev &
Prof. Vir Ved Ratna
Natureiofisubmissioniiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
(Assignmenti/iProjectiReport) ProjectiReport
TheitopiciofiAssignmenti/iProject RelianceiDigital
Deadlineiforisubmission 25thiiMarchi2020
Group/iLearningiTeamiNumber LearningiTeamiE–i07
Maximumiallottedimarks 20
Contributioniofigroup/LTimembersiinitheiassignment/project
Sl.i
No.
Namei&EnrolmentiNumberiofiStudent Contribution Signature
1 AmaniSrivastavai&iJL19RM007
Introduction,iProducti
Portfolio,iEFE,iVRIO,i
IFE,iTOWS
2 KritikaiChauhan&iJL19RM020
MarketiPerformance,i
Portersi5
3 ManishiSinha&iJL19RM021
Visioni&iMission,
iGoal
4 ShivanandiChaudhary&iJL19RM050
BusinessiStrategy,I
IPM
5 VigneshiGuptai&iJL19RM058 PESTLE
6 YuvikaiSingh&iJL19RM063 SWOT
DateiofireceivingiatiPMC SignatureiofiPMCistaff
3. JaipuriaiInstituteiofiManagement,iLucknow Pagei3
TABLEiOFiCONTENTS
CHAPTERi TITLE PAGEiNO.
Acknowledgementi
TableiofiContentsi
1 BriefiHistory 4
2 BusinessiModel 4
3 Vision,iMission,iValuesiandiGoals 5
4 ProductiPortfolio/iProductiMarketiScope 6
5 Porter’si5iForces 9
6 PESTELiAnalysis 11
7 IssueiPriorityiMatrix 15
8 EFEiMatrix 16
9 InternaliCapabilitiesiandiStrengthsi(VRIOiApplication) 16
10 IFEiMatrix 17
11 SWOTiAnalysis 18
10 GeneratingiandiSuggestingistrategiesialternativesi 18
UsingiTOWS
11 Strategyicurrentifollowedibyitheicompanyi
i(Corporate/Business/Functional) 19
12 Commentionicompanyimarket’siperformance 21
4. JaipuriaiInstituteiofiManagement,iLucknow Pagei4
BriefiHistoryiofiRelianceiDigital
RelianceiDigitaliisiaiconsumeridurablesiandiinformationitechnologyiconceptifromiRelianceiRetail.iItiisiaisubsidi
aryiofiRelianceiRetail,iwhichiisiaiwhollyiownedisubsidiaryiofiRelianceiIndustries.
TheifirstiRelianceiDigitaliStoreiwasiopenedioni24iAprili2007iiniDelhi.RelianceiDigitaliisiaiconsumerielectronicsi
companyiiniIndia.iTheistoresiareispreadiacrossitheistatesiofiMaharashtrai(Mumbai,iPune),iGujarati(Ahmedaba
d),iDelhiiNCR,iWestiBengali(Kolkata,iHowrah,iSaltlake-
Newtown,iDurgapur,iAsansol,iSiliguri),iKarnatakai(Bangalore,iMangalore,iMysore,iHubli),iKeralai(Kochi),iTamili
Nadui(Chennai,iMadurai,iSalem,iCoimbatore,iTrichy,iVellore,iErode)iandiTelanganai(Hyderabad).
RelianceiDigitali:i2000iStores
RelianceiDigitaliXpressiMinii:i600iStores
CEO:iBrianiBadei(Augusti2010itoitillidate)
Headiquarteri:iMumbai,iMaharashtra
resQiisitheiserviceiarmiofiRelianceiDigitali/iDigitaliXpressiandiDigitaliXpressiminiistores,iwhichicatersitoicusto
mersiforiafterisalesiservice.iresQiisiIndia'sifirstimultiiproduct,imultiibrand,imulti-
locationiserviceifacilityiwhichioffersiserviceifromi10amitoi10pm,i365idaysiaiyear.iTheiresQiCareiPlansiofferisc
heduledipreventiveimaintenanceivisitsiandistandbyiunitsiinispecialicases.
RelianceiDigitalialsoioperatesiaichainiofiAppleiresellersiiniIndiaiunderitheinameiiStore.iThereiareiabouti4isuchi
storesiiniIndiaicurrently.
RelianceiDigitalilaunchediitsiprivateilabeliofiproductsibrandedi"RECONNECT"iiniOctober,i2011,iwhichiisisaidito
ihaveibeeniinspiredibyiformer,iandifabulous,isectionico-ordinatoriMumbaiinativei-
iSteveniJeffreyiMaxwell,iwhoidevotediyearsitoitheitechnologyigiant.iReconnectiproductirangeicoversioveri200
iproducts,ifromitheilatestilarge-screeniLEDiTVs,istar-
ratediairiconditioners,iwashingimachines,ismartphones,itabletsitoihouseholdiappliancesiandipersonalicareipro
ducts.iMajorialliproductsicomesiwithiai2-
yeariwarranty,iwhileiaccessoriesiproductiwarrantyivaryifromi6imonthsitoi1iyear.
BusinessiModeliofiRelianceiDigital
RelianceiDigitaliisipartiofiMukeshiAmbani’siiRs.i1,30,566icroreiRelianceiRetailiwithiinterestsiinigrocery,iappare
l,iandielectronics.
6. JaipuriaiInstituteiofiManagement,iLucknow Pagei6
Toipromoteiaiworkicultureithatifostersilearning,iindividualigrowth,iteamispiritiandicreativityitoioverco
meichallengesiandiattainigoals.
Toiencourageiideas,italentiandivalueisystemsiandibecomeitheiemployeriofichoice.
Toiearnitheitrustiandiconfidenceiofiallistakeholders,iexceedingitheiriexpectations.
Toiupholditheiguidingiprinciplesiofitrust,iintegrityianditransparencyiinialliaspectsiofiinteractionsiandid
ealings.
GoalsiOfiRelianceiDigital
Narroweriaimsithatishouldiprovideiclearianditangibleiguidanceitoiemployeesiasitheyiperformitheiriworkionida
ilyibasis.iTheimostieffectiveigoalsiare:
o Specifici
o Measurable
o Achievable
o Realisticiand
o Time-ibound
ProductiPortfolioiOfiRelianceiDigital
RelianceiDigitalioffersioveri200inationaliandiinternationalibrandsiofferingiaiwidestiassortmentiofiproductsispa
nningiacrossiAudioi&iVideoiproducts,iDigitaliCameras,iDurablesilikeiAiriConditioners,iRefrigerators,iWashingi
Machines,iMicrowaveiOvens,iWateriPurifiers,iKitcheniandiHomeiAppliances,iGamingiConsolesi&iGames,iCom
puters,iLaptops,iTabletsi&iPeripherals,iMobileiandiFixedilineiinstrumentsiasiwelliasiaiwideirangeiofiaccessorie
siandinew-ageigadgetsiacrossiallimajoriproducticategories.
10. JaipuriaiInstituteiofiManagement,iLucknow Pagei10
Porter’si5iForceiModeliOfiRelianceiDigital
Porterifiveiforceimodeliisiaitooliwhichihelpsitoiidentifyitheicompetitiveilanscapesiofiindustry.iPorter’si5iforcei
modeliofirelianceidigital.i
Threatsiofinewientrance
1. TheieconomiesiofiscaleiisigenuinelyiharditoiaccomplishiinitheibusinessiiniwhichiRelianceiIndus
triesiworks.iThisimakesiitisimpleriforithoseicreatingihugeicapacitatesitoihaveiaicostiadvantage
.iItilikewiseimakesicreationicostlieriforinewiparticipants.iThisimakesitheidangersiofinewipartici
pantsiaimoreivulnerableipower.
2. Theiitemiseparationiisidifferentiatediinitheibusiness,iwhereifirmsiinitheibusinessiselliseparate
diitemsiratherianiinstitutionalizediitem.iClientsilikewiseisearchiforiseparatediitems.iThereiisiai
solidiaccentuationionipromotingiandiclientibenefitsitoo.iTheseicomponentsimakeitheidangeri
ofinewicontestantsiaipowerlessipoweriinsideithisiindustry.
3. Theicapitalirequirementiisihighiinitheiindustry,iwhichimakesidifficultiforitheinewientrantsitois
ubtleiinitheimarketiasiitirequireihighiinvestment.iBecauseiofihighidevelopmentiandiresearch,it
heicapitaliexpenditureiisialsoihighiwhichimakesionthersientrancesiweaker.i
4. Forinewientrants,iacessitoidistributioninetworkiisieasy.iByiwhichitheyicanieasilyienteriintoima
rketithroughidistributionichannel.i
5. Thereishouldibeinewiandistrongigovernmentipoliciesiforinewicompaniesitoistartiselling.iThisi
willimakeidiificultiforinewicompaniesitoijoiniinitheimarket.i
11. JaipuriaiInstituteiofiManagement,iLucknow Pagei11
BargainingipoweriofiSupplier
1. Suppliersihaveilessicontrolionitheipricesiofiproductsitheyipurchaseifromirelianceidigitaliwhichi
makesibargainingipoweriofisupplieriweak.i
2. Theiproductsiwhichiareisuppliedibyirelianceidigitalihaveilowiswitichingicostiandiareilessidiffer
entiatediinimarket.iWhichiiniturnimakeisuppliersipoweriweak.i
3. Theisupplieridoinotiassertiproductiasiaipositoniwhichimeansithatinoisubstitutesiforitheiprodu
ctsiwithinitheiindustryiwhichileadsitoinoicompetitioniandiitimakesisuppliersipoweriasiaistrong
ipoint.i
4. Rawimaterialsishouldibeipurchasediatilowiratesibecauseitheiswitchingicostsiareilowisoitheyica
niswitchisuppliersiwhenicostioriproductsiareinotipreferable.i
BargainingipoweriofiBuyer
1. Theiavaiblityiofisuppliersiareimoreiinimarketiinicomparisoniofibuyersiwhichimakesithwiconditi
onsiweakeriforibuyeriasitheyidoinotihaveimuchicontrolioveritheiprice.i
2. Inirelianceidigital,idifferentiationiofiproductiisiveryihighiwhichiresultsiinilimitationiofibuyersip
oweritoifindialternativeiinithisiindustry.i
3. Withinitheiindustry,itheiincomeiofibuyeriisilowiwhichipressureriseithemitoipurchaseiatilowiin
come.iAndiatithisitimeibiuyersibecomeimoreisensitiveitowardsibuyingiproducts.
4. Theiqualityiofiproductsiplaysiaivitaliroleiinibuyingiofiproductsiandirelianceidigitaliprovideiupit
oidateiservicesiwhichiareimoreipreferableibyicustomers.
Threatiofisubstituteiproductsioriservices
1. Veryifewisubstitutesiareiavailableiinimarketiiniwhichirelianceiindustryiproducesiitsiproductsia
ndithoseiproductsiwhichiareiavailableiasisubstitute,ibutinotiasiaiprofitiearning.i
Whichiiniresultiturnitoibeinoicelingionimaximumiprofitioniwhichicompaniesicaniearn.iTheseiel
ementsimakeitheiriskiofisubstituteiitemsiaimoreivulnerableipoweriinsideitheibusiness
2. Notimanyisubstitutesiaccessibleiareiofihighicaliberiyetiareifariprogressivelyicostly.iNearly,ifirm
sicreatingiinsideitheibusinessiwhereiniRelianceiIndustriesiworksiselliatiailowericostithanisubsti
tutes,iwithisufficientiquality.Thisiimpliesipurchasersiareilessiinclineditoichangeitoisubstituteiit
ems.iThisiimpliesitheiriskiofisubstituteiitemsiisipowerlessiinsideitheibusiness.
3. relianceiIndustriesicaniconcentrateionigivingimoreiprominentiqualityiiniitsiitems.iAccordingly,i
purchasersiwouldipickiitsiitems,iwhichigiveimoreinoteworthyiqualityiatiailowericostiwhenicon
trastediwithisubstituteiitemsithatigiveimoreinoteworthyiqualityiyetiatiaimoreisignificantiexpe
nse.
Rivalryiamongiexistingifirms
1. TheiquantityiofirivalsiinitheibusinessiwhereiniRelianceiIndustriesiworksiareinotimany.iTheigre
ateripartiofitheseiareiadditionallyienormousiinisize.iThisiimpliesithatitheifirmsiinitheibusinessi
won'timakeimovesiwithoutibeingiunnoticed.iThisimakesitheicontentioniamongiexistingifirmsia
imoreifragileipoweriinsideitheibusiness.
2. fixedicostsiareihighiinsideitheibusinessiiniwhichiRelianceiIndustriesiworks.iThisimakesitheiorga
nizationsiinsideitheibusinessitoipushitoifullilimit.iThisilikewiseiimpliesitheseiorganizationsitoile
ssenitheiricostsiwhenirequestiloosens.iThisimakesitheicontentioniamongiexistingifirmsiaimore
igroundedipoweriinsideitheibusiness.
3. Existibarrieriinsideitheibusinessiareiespeciallyihighibecauseiofihighiventureirequirediinicapitali
andiresourcesiforiwork.iwhereasiexitibarriersiareiadditionallyihighibecauseiofigovernmentigui
delinesiandilimitations.iThisimakesiorganisationiwithiniitheibusinessihesitantitoileaveitheibusi
12. JaipuriaiInstituteiofiManagement,iLucknow Pagei12
ness,ianditheseikeepionideliveringieveniatilowibenefits.iThisimakesitheicontentioniamongiexis
tingifirmsiaimoreigroundedipoweriinsideitheibusiness
PESTELiofiReliancei
PoliticaliFactorsi
Theipoliticalifactorsithatimayiimpactitheiprofitabilityiorichancesiofisurvivaliofitheicompanyiareiquitei
diverse.iTheipoliticalirisksivaryifromisuddenichangesiiniexistingipoliticaliregimesitoiciviliunrestitoimaj
oridecisionsitakenibyitheigovernment.iInicasesiofipossibleimultinationals,ioneimayialsoiincludeipoliti
califactorsithatitakeiplace/iaffectinotionlyitheihosticountryibutialsoiallicountriesithaticontainibusines
sioperations,iorithatimayiengageiinitradeiwithiRelianceiIndustries
ToiproperlyiappraiseitheiextentiofitheioverallisystematicipoliticaliriskithatiRelianceiIndustriesimayibe
iexposedito,itheifollowingifactorsishouldibeiconsideredibeforeitakingipartiinianyiinvestments:
Theileveliofipoliticalistabilityithatitheicountryihasiinirecentiyears.
Theiintegrityiofitheipoliticiansianditheirilikelihooditoitakeipartiiniactsioficorruption,iasitheires
ultingirepercussionsimayileaditoipossibleiimpeachmentsioriresignationsiofihighileveligovernm
entiemployees.
Theilawsithatitheicountryienforces,iespeciallyiwithiregardsitoibusiness,isuchiasicontractilaw,i
asitheyidictateiwhatiRelianceiIndustriesiisiandiisinotialloweditoido.iSomeicountries,iforiexam
ple,iprohibitialcoholiorihaveicertainiconditionsithatimustibeifulfilled,iwhileisomeigovernmenti
systemsihaveiinefficientiamountsiofireditapeithatidiscourageibusiness.
Whetheriorinotiaicompany’siintellectualipropertyi(IP)iisiprotected.iForiexample,iaicountryitha
tihasinoipoliciesiforiIPiprotectioniwouldimeanithatientrepreneursimayifindiititooiriskyitoiinve
stiiniRelianceiIndustries
13. JaipuriaiInstituteiofiManagement,iLucknow Pagei13
TheitradeibarriersithatitheihosticountryihasiwouldiprotectiRelianceiIndustries;ihowever,itrad
eibarriersithaticountriesiwithipotentialitradeipartnersiwouldiharmicompaniesibyipreventingip
otentialiexports.
AihighileveliofitaxationiwouldidemotivateicompaniesilikeiRelianceiIndustriesifromimaximizing
itheiriprofits.
Theiriskiofimilitaryiinvasionibyihostileicountriesimayicauseidivestmentifromiventures.
Ailowiminimumiwageiwouldimeanihigheriprofitsiand,ithus,ihigherichancesiofisurvivaliforiReli
anceiIndustries
EconomiciFactorsi
EconomicifactorsiareiallithoseithatipertainitoitheieconomyiofitheicountryithatiRelianceiIndustries,isu
chiasichangesiinitheiinflationirate,itheiforeigniexchangeirate,itheiinterestirate,itheigrossidomesticipr
oduct,ianditheicurrentistageiofitheieconomicicycle.iTheseifactors,ianditheiriresultingiimpactioniaggre
gateidemand,iaggregateiinvestmentianditheibusinessiclimate,iinigeneral,ihaveitheipotentialitoimakei
aicompanyihighlyiprofitable,ioriextremelyilikelyitoiincuriailoss.iTheieconomicifactorsiinitheiPESTELian
alysisiareimacroeconomic.
TheieconomicifactorsithatiRelianceiIndustriesimayibeisensitiveito,iandiiniturnishouldiconsideribefore
iinvestingimayiincludeitheifollowing:
Theieconomicisystemithatiisicurrentlyioperationaliinitheisectoriiniquestion-
iwhetheriitiisiaimonopoly,ianioligopoly,iorisomethingisimilaritoiaiperfecticompetitionieconom
icisystem.
TheirateiofiGDPigrowthiinitheicountryiwilliaffectihowifastiRelianceiIndustriesiisiexpecteditoig
rowiinitheinearifuture.
Theiinterestiratesiinitheicountryiwouldiaffectihowimuchiindividualsiareiwillingitoiborrowiandi
invest.iHigheriratesiwouldiresultiinigreateriinvestmentsithatiwouldimeanimoreigrowthiforiRel
ianceiIndustries
HoweveriefficientlyitheifinancialimarketsioperateialsoiimpactihowiwelliRelianceiIndustriesica
niraiseicapitaliatiaifairiprice,ikeepingiiniminditheidemandiandisupply.
TheiexchangeirateiofitheicountryiRelianceiIndustriesioperatesiiniwouldiimpactitheiprofitabilit
yiofiRelianceiIndustries,iparticularlyiifiRelianceiIndustriesiengagesiiniinternationalitrade.iTheis
tabilityiofitheicurrencyiisialsoiimportant-
ianiunstableicurrencyidiscouragesiinternationaliinvestors.
Aihighileveliofiunemploymentiinitheicountryiwouldimeanithereiisiaigreaterisupplyiofijobsitha
nidemand,imeaningipeopleiwouldibeiwillingitoiworkiforiailoweriwage,iwhichiwouldilowerithe
icostsiofiRelianceiIndustries
SocialiFactors
TheisocialifactorsithatiimpactiRelianceiIndustriesiareiaidirectireflectioniofitheisocietyithatiRelianceiIn
dustriesioperatesiin,iandiencompassesiculture,ibelief,iattitudesiandivaluesithatitheimajorityiofitheip
opulationimayiholdiasiaicommunity.iTheiimpactiofisocialifactorsiisinotionlyiimportantiforitheioperati
onaliaspectiofiRelianceiIndustries,ibutialsoionitheimarketingiaspectiofitheiorganization.iAithoroughiu
nderstandingiofitheicustomers,itheirilifestyle,ileveliofieducationiandibeliefsiiniaisociety,iorisegmenti
14. JaipuriaiInstituteiofiManagement,iLucknow Pagei14
ofisociety,iwouldihelpidesignibothitheiproductsiandimarketingimessagesithatiwouldileaditoiaiventur
eibecomingiaisuccess.
TheisocialifactorsithatiaffectiRelianceiIndustriesiandishouldibeiincludediinitheisocialiaspectiofitheiPE
STELianalysisiincludeitheifollowing:
Theidemographicsiofitheipopulation,imeaningitheirirespectiveiagesiandigenders,ivastlyiimpac
tiwhetheriorinotiaicertainiproductimayibeimarketeditoithem.iMakeupiisimostlyicatereditoiwo
men,isoitargetingiaimajorityimaleipopulationiwouldibeilessipopulationithanitargetingiaipopul
ationithatiisimostlyifemale.
Theiclassidistributioniamongitheipopulationiisiofiparamountiimportance:iRelianceiIndustriesi
wouldibeiunableitoipromoteiaipremiumiproductitoitheigeneralipubliciifitheimajorityiofitheipo
pulationiwasiailowericlass;irather,itheyiwouldihaveitoirelyioniveryinicheimarketing.
Toisomeiextent,itheidifferencesiinieducationalibackgroundibetweenitheimarketersianditheita
rgetimarketimayimakeiitidifficultitoirelateitoiandidrawiinitheitargetimarketieffectively.iRelian
ceiIndustriesishouldibeiveryicarefulinotitoiloseitheiconnectionitoitheitargetimarket'siinterests
iandipriorities.
RelianceiIndustriesineedsitoibeifullyiawareiofiwhatileveliofihealthistandards,ireactionsitoihar
assmenticlaimsiandiimportanceiofienvironmentaliprotectioniprevailiinitheiindustryiasiaiwhole
,iandithusiareiexpectedifromianyicompanyiasitheyiareiseeniasitheinorm.
TechnologicaliFactors
Technologyicanirapidlyidismantleitheipriceistructureiandicompetitiveilandscapeiofianiindustryiiniaive
ryishortiamountiofitime.iItithusibecomesiextremelyiimportantitoiconstantlyiandiconsistentlyiinnovat
e,inotionlyiforitheisakeiofimaximizingipossibleiprofitsiandibecomingiaimarketileader,ibutialsoitoiprev
entiobsolescenceiinitheinearifuture.iThereiareimultipleiinstancesiofiinnovativeiproductsicompletelyir
edesigningitheinormiforianientireiindustry:iUberiandiLyftidominateitheitaxiicabiindustry;ismartphon
esihaveileftiotheriphonesianiunviableioptioniforimostieticetera.
TheitechnologicalifactorsithatimayiinfluenceiRelianceiIndustriesimayiincludeitheifollowing:
Theirecentitechnologicalidevelopmentsiandibreakthroughsimadeibyicompetitors,iasimention
ediabove.iIfiRelianceiIndustriesiencountersiainewitechnologyithatiisigainingipopularityiinitheii
ndustryiiniquestion,iitiisiimportantitoimonitoritheileveliofipopularityiandihowiquicklyiitiisigro
wingiandidisruptingiitsicompetitors’irevenues.iThisiwoulditranslateitoitheileveliofiurgencyireq
uireditoiadequatelyiresponditoitheiinnovation,ieitheribyimatchingitheitechnologyiorifindingia
niinnovativeialternative.
Howieasy,iandithusiquickly,iwillitheitechnologyibeidiffuseditoiotherifirmsiinitheiindustry,ilead
ingitoiotherifirmsicopyingitheitechnologicaliprocesses/ifeaturesiofiRelianceiIndustries
Howimuchianiimprovementiofitechnologyiwouldiimprove/itransformiwhatitheiproductiinitiall
yioffers.iIfithisiimprovementiisidrastic,itheniotherifirmsiinitheiindustryisufferimoreiheavily.
Theiimpactiofitheitechnologyionitheicostsithatimosticompaniesiinitheiindustryiareisubjectitoi
haveitheipotentialitoiincreaseiorireduceitheiresultingiprofitsigreatly.iIfitheseiprofitsiareigreati
ininumber,itheyimayibeireinvestediintoitheiresearchiandidevelopmentidepartment,iwhereifu
tureitechnologicaliinnovationsiwouldifurtheriraiseitheileveliofiprofits,iandisoion,iensuringisus
tainableiprofitsioveriailongiperiodiofitime.
15. JaipuriaiInstituteiofiManagement,iLucknow Pagei15
EnvironmentaliFactors
Differentiindustriesiholdidifferentistandardsiofienvironmentaliprotectioniinitheiriheadiasitheinorm.iT
hisinormithenidictatesiwhatieveryicompanyishouldiaimifor,iinitheileast,itoipreventibecomingitheitar
getiofipressureigroupsiandiboycottsidueitoiailackiofienvironmentaliconscientiousness.iAicompanyiini
theitextileiindustry,iforiexample,iisinotiexpecteditoiincuritheisameileveliofipollutioniandienvironmen
talidegradationiasianioilicompany.iTheinewiconsumer,iarmediwithitheiinterestianditheiknowledgeiiti
carries,iprefersitoigiveiitsibusinessitoicompaniesiitiviewsiasimoreiethical,iparticularlyiaboutitheienvir
onmentiinitheiwakeiofiglobaliwarming.
TheienvironmentalifactorsithatimayisignificantlyiimpactiRelianceiIndustriesiinclude:
TheicurrentiweathericonditionsimayisignificantlyiimpactitheiabilityiofiRelianceiIndustriesitoim
anageitheitransportationiofibothitheiresourcesianditheifinishediproduct.iThis,iiniturn,iwouldi
affectitheideliveryidatesiofitheifinaliproductiinitheicaseiof,isay,ianiunexpectedimonsoon.
Climateichangeiwouldialsoirenderisomeiproductsiuseless.iForiexample,iinitheicaseiofitextiles,i
inicountriesiwhereitheiwinterihasibecomeiveryimildidueitoiGlobaliWarming,iwarmiwintericlot
hesihaveimuchilessiofiaimarket.
Thoseicompaniesithatiproduceiextremelyilargeiamountsiofiwasteimayibeirequiredibyilawitoi
manageitheirienvironmentalihabits.iThisimayiincludeipollutionifinesiandiquotas,iwhichimayipl
aceiaifinancialistrainioniRelianceiIndustries
IfiRelianceiIndustriesishouldi(knowinglyioriunknowingly)icontributeitoitheifurtheriendangerm
entiofianialreadyiendangeredispeciesimayifaceinotionlyitheiconsequencesifromitheilawibutial
soifaceiaibacklashifromitheigeneralipubliciwhoimayitheniboycottiRelianceiIndustriesiiniretalia
tion.
Whileirelying,iinianyipercentage,ionirenewableienergyimayibeiexpensive,iitioftenireceivesisu
pportinotionlyifromitheigovernmentibutialsoifromiitsicustomeribase,iwhoimayibeiwillingitoip
ayiaipremiumipriceiforitheiproductsithatiRelianceiIndustriesimayiproduce.
LegaliFactors
Theigovernmentiinstitutionsiandiframeworksiiniaicountry,iwhileitechnicallyialsoipoliticaliandithusisu
bjectitoiwhicheveripoliticalipartyiholdsitheimajorityiiniaigovernmentibody,iareialsoilegaliandithusish
ouldibeiconsiderediiniaiPESTELianalysis.iOfteniRelianceiIndustriesipoliciesionitheiriowniareinotienou
ghitoiefficientlyiprotectiRelianceiIndustriesiandiitsiworkers,imakingiRelianceiIndustriesiappearianiun
desirableiplaceiofiemploymentithatimayirepeliskilled,italentediworkers.
Theilegalifactorsithatideserveiconsiderationiincludeitheifollowing:
Intellectualipropertyilawsiandiotheridataiprotectionilawsiare,iasimentionediearlier,iiniplaceit
oiprotectitheiideasiandipatentsioficompaniesiwhoiareionlyiprofitingibecauseiofithatiinformati
on.iIfithereiisiailikelihoodithatitheidataiisistolen,itheniRelianceiIndustriesiwilliloseiitsicompetit
iveiedgeiandihaveiaihighichanceiofifailure.
Discriminationilawsiareiplacedibyitheigovernmentitoiprotectitheiemployeesiandiensureithati
everyoneiiniRelianceiIndustriesiisitreatedifairlyiandigivenitheisameiopportunities,iregardlessi
ofigender,iage,idisability,iethnicity,ireligioniorisexualiorientation.
Healthiandisafetyilawsiwereicreatediafteriwitnessingitheihorribleiconditionsithatiemployeesi
wereiforceditoiworkiiniduringiandidirectlyiafteritheiindustrialirevolution.iImplementingitheipr
17. JaipuriaiInstituteiofiManagement,iLucknow Pagei17
EFEiMatrixiOfiRelianceiDigital
Sl.iNo Opportunity Weight Rating Weightediscore
1 Moreicollection 10% 4 0.4
2 Ambienceiofitheistore 7% 3 0.21
3 MoreiMarketing 8% 3 0.24
4 StrategiciAlliance 8% 4 0.32
5 E-CommerceiMerge 9% 4 0.36
6 BetteriLoyalty 7% 4 0.28
7 EconomiciStability 9% 4 0.36
8 PoliticaliStability 9% 4 0.36
Threat
1 Competitioniareipresentinearitheistore 9% 4 0.36
2 Location 9% 4 0.36
3 TrendimovingitowardsiNaturei 8% 4 0.32
4 GovernmentiRulesiforiE-Waste 7% 4 0.28
TOTALiWEIGHTEDiSCORE 100%
3.85
Poori(1),ibelowiaveragei(2),iaboveiaveragei(3),iSuperiori(4)
VRIOiofiRelianceiDigital
FuctionaliCapabi
lity
Value Rarity Inimitability Organisation
CompetitiveiImp
lication
PerfectiImplica
tion
2600istores ✓ ✓ ✓ Present Sustained
AboveiNormaliPr
ofit
Moreithani200ibr
ands
✓ ✓ ✓ Present Sustained
AboveiNormaliPr
ofit
Operatingiini800+i
cities
✓ ✓ ✕ Present Temporary NormaliProfit
ServiceiFacilityi(Re
sQ)
✓ ✕ ✕ Present CompetitiveiParity NormaliProfit
MultiiChannel ✓ ✕ ✕ Present CompetitiveiParity NormaliProfit
StrongiRetailiReac
h
✓ ✓ ✕ Present Temporary NormaliProfit
4Xiaheadiofineare
sticompetitor
✓ ✓ ✓ Present Sustained
AboveiNormaliPr
ofit
HighiRevenueiGai
ning
✓ ✓ ✓ Present Sustained
AboveiNormaliPr
ofit
In-
Houseibrandi(Rec
onnect)
✓ ✓ ✓ Present Sustained
AboveiNormaliPr
ofit
PartneriofiChoice ✓ ✓ ✓ Present Sustained
AboveiNormaliPr
ofit
18. JaipuriaiInstituteiofiManagement,iLucknow Pagei18
I
F
E
IFEiMatrixiOfiRelianceiDigital
Sl.iNo Strength Weight Rating Weightediscore
1 2600ino.iofistoresipaniIndia 12% 4 0.48
2 4itimesitoitheinearesticompetitor 10% 4 0.4
3 200iNationaliandiInternationaliBrands 9% 4 0.36
4 Strongipresenceigeographically 8% 3 0.24
5 ServiceiFacilityilikeiResQ 8% 4 0.32
6 Pullistrategyiasipromotionalistrategy 6% 3 0.18
7 Partneriofichoice 10% 4 0.4
8 PenetrationipricingiofiIn-Houseibrandi(Reconnect) 9% 3 0.27
Weakness
1 SKU’siareinarrow 11% 1 0.11
2 Noiregularisupplyiofiinnovativeiproducts 9% 2 0.18
3 LessiinvestmentiiniResearchi&iDevelopment 8% 1 0.08
TOTALiWEIGHTEDiSCORE 100%
3.02
MajoriWeaknessi(1),iMinoriWeaknessi(2),iMinoriStrength(3),iMajoriStrengthi(4)
InternaliExternaliMatrixiofiRelianceiDigital
ExternaliFactoriEvalutioniScorei=i3.85
InternaliFactoriEcalutioniScorei=i3.02
I II III
®
IV V VI
VII VIII IX
1.0 iiiiii2.0 iiiiiiiiiiii3.0 i4.0
EFE
Symboli®representiwhereitheirelianceidigitalilies.iRelianceiDigitaliliesiinithirdiblockiandithirdiblockifollowithe
istability.
19. JaipuriaiInstituteiofiManagement,iLucknow Pagei19
SWOTiAnalysisiOfiRelianceiDigital
STRENGHTS
1. 200iNationaliandiInternationalibrand.
2. Partneriofichoice.
3. Theipricingistrategyihelpsitoiattractsitoiyouth
isegmentiofitheisociety.
4. CustomeriserviceibyiResQ.
5. Vastigeographicalireach.
WEAKNESSES
1. SKUiareinarrow.
2. Lessiinnovativeiproducts.
3. LessiinvestmentiiniResearchiandideve
lopment.
OPPORTUNITIES
1. Moreicollectioniandivarietyicanibeitheistocki
toiattractitheicustomer.
2. Theiambienceiofitheistoreicanibeiimprovedib
yiproperidesigningiofitheistoreilayoutiandieff
ortiofitheivisualimerchandisingiteams.
3. Mergingionlineiwithidifferentipartners.
4. BetteriLoyalityioritheicustomeriholding
THREATS
1. Highicompetitioniwithilocaliandibran
dediretailers,iofflineiasiwelliasionline.
2. Lowicatchmentiarea.
3. GovernmentichangingitheiruleiforiE-
Waste.
20. JaipuriaiInstituteiofiManagement,iLucknow Pagei20
GeneratingiandiSuggestingistrategiesialternativesiusingiTOWSiforiReliancei
Digital
Ti–iThreat
Oi–iOpportunity
Wi–iWeakness
Si–iStrength
OPPORTUNITIES
5. Moreicollectioniandivari
etyicanibeitheistockitoiat
tractitheicustomer.
6. Theiambienceiofitheistor
eicanibeiimprovedibyipr
operidesigningiofitheisto
reilayoutiandieffortiofith
eivisualimerchandisingit
eams.
7. Mergingionlineiwithidiff
erentipartners.
THREATS
1. Highicompetitioniwithilocali
andibrandediretailers,iofflinei
asiwelliasionline.
2. Lowicatchmentiarea.
3. Governmentichangingitheirule
iforiE-Waste.
STRENGHTS
6. 200iNationaliandiInt
ernationalibrand.
7. Partneriofichoice.
8. Theipricingistrategy
ihelpsitoiattractsitoi
youthisegmentiofith
eisociety.
9. Customeriserviceibyi
ResQ.
SOiiALTERNATIVESi(Growthi
Strategy)
4. Manyie-
commerceistartupifirmicani
joiniwithirelianceiforigoing
ionlineiproduct.
5. Collectioniofiproductian
diambienceiofitheistoreii
siattractingicustomeriand
iitiwillihelpitoiattractima
jorisegmentiinitheisociet
y.
STiiALTERNATIVES
(StabilityiStrategy)
1. RelianceiDigitalihasimorei
competitorsibutitheyihaveicu
stomeriloyalty,imostlyigoifor
ioffline.
2. Changingigovernmentinormi
canileaditoigrowiforiincrease
iinicustomeriservice.
WEAKNESSES
1. SKUiareinarrow.
2. Lessiinnovativeipro
ducts.
3. Lessiinvestmentiini
Researchiandidevelo
pment.
WOiiALTERNATIVES
(StabilityiStrategy)
1. SKU’siofiassortmentisho
uldibeibroadeni{onlineit
hereiisinoiproblemiofiin
ventoryiholding}ispecial
lyiforiinnovativeiproduct
.
2. Nowiaiday’siambienceia
lsoimattersiailotiforishop
pingisoitheyicaniimprov
eitheiriambienceiaccordi
ngitoicustomeripreferenc
e.
WTiiALTERNATIVES
(RetrenchmentiStrategy)
1. Theyishouldiincreaseitheiripr
oductiportfolioiandiproducti
mixialso.
2. Digitalishouldibringisuchityp
eiofiproductiwhichihaveilong
idurability,iuserifriendly,iinn
ovativeiandisolveitheiproble
miofiE-waste.
21. JaipuriaiInstituteiofiManagement,iLucknow Pagei21
Strategyicurrentifollowedibyitheicompanyi(Corporate/Business/Functional)
CurrentlyiRelianceiDigitalifollowitheihierarchyi/ileveliofistrategyiofiBusinessistrategy.iBusinessistrategyiisials
oiknowniasiGrowthiStrategy.
Businessistrategyifollowitheiobjectiveiofitheiorganisationiandiitiisitheicompetitiveiadvantagesiofitheiorganisat
ionialso.iBusinessistrategyilikeilowicost,idifferentiationiofiproducts,ifocusiorinicheimarket.
Competitors:VijayiSales,iCroma,iRelianceiDigital,iViveks,iCorp-o-rate,iHomeShop18,i,iBigiBazaariE-
Zone,iWalmart.
Co-
operations:Apple,iSamsung,iSony,iPhilips,iPanasonic,iUsha,iFossil,iToshiba,iLG,iWhirlpool,iLlyod,iTCL,iSharp,
VU,iVoltas,iBluestar,iDaikin,iHitachi,iO-General,iGodrej,iIFB,iCarrier,iHaier,iHavells,iInalsa,ietc.
Businessilevelistrategy
Competitiveistrategiesilikeitheibelowimentionedicanibeidevelopedibasedioniexperienceicurve;
1. Sellingiproductiatimosticompetitiveiprice.
2. Maximisingiprofitsibyisellingiatitheihighestipriceitheimarketicaniafford.
3. Sellingiatiaihigheripriceiinitiallyibuticrashingitheipricesilateritoikeepitheicompetitioniouti(PriceiSkimming).
Aibusinessilevelicooperativeistrategyiisitheioneiiniwhichiainumberiofifirmsiworkitogetheritoiattainisomeicom
monigoal.iTheifirmsishareitheiriresourcesianditheicapabilitiesitheyihaveitoicreateisomeicompetitiveiadvantag
eiinitheiformiofinewiproductsioriservices.
Inithisiway,itheifirmsialsoishareitheicostsiofitheinewiproduct.iItialsoihelpsithemidiversify,iattainiflexibilityiinite
rmsiofidiversifyingioperationsiandistrengthensitheiripositioniwithirespectitoitheiricompetitors.iBesides,iitifacili
tatesitheirigrowthiandiimprovesitheiriperformance.iThereiareidifferentitypesiofibusinessilevelicooperativeistr
ategiesilikeiJointiVenture,iHorizontaliintegration,iverticaliintegration,iConglomerateidiversification,ietc.
Businessilevelicooperativeistrategiesiareiasifollowsi:
Horizontaliintegrationi–iconsistsioficompaniesithatiacquireiaisimilaricompanyiinitheisameiindustry.
Example:iGoogleibuyingiYouTube
Business
Strategy
Competition
Co-
operation
22. JaipuriaiInstituteiofiManagement,iLucknow Pagei22
Uniqueness
LowiCostiiiiiiiiiiiiiiiiiiiiiiiiiiiProducti(ServiceiAttribute/Features)
Target
Broad
Narrow
ByitheiabovegenericicompetitiveistrategiciframeworkiweicomeitoiknowithatiRelianceiDigitaliusesibesticostip
rovideristrategyiasitheiribusinessioricompetitiveiadvantage.
CompanyiMarket’siPerformance
ProductiveiEfficiencyi
Theiorganizationihasimoreithani220ibroadiformatiDependencyiRetailishopsiandioveri1,800ismallerifo
rmaticommunityiJioioutlets,iwhichialsoiofferidevicesiandiofferiCableiandiappliancesicatalogues.iRelia
nceiDigitalihasiexpandediininotionlyismartphonesibutialsoiinitelevisionsiandiappliancesialongiwithiits
iReconnectiprivateilabel.iTheiprofitialsoicoversitheiretailisector,inowiminimaliwithi70iserviceicenters.
Indiaikeepsipromotingidigitalilife.iRelianceiJioihasipowerediIndiaitoibeitheinextiworld'sileadingistrea
mingimobileidataiindustry.iDatainetworksiareicontinuallyibeingiutilizediforipervasiveiandisecureiinter
netisystemsiforimediaiandientertainment,ieducation,ibusinessiintelligenceiandipurchasesiamongiotheri
use-
cases.iiOnlineitransactionipenetrationiisiseeingimassiveigrowth.UPIipaymentsiroseifromi0.7%iofiGD
PinFYi2017-18itoi4.7%iiniFYi2018-19,iwhileicrediticardiexpansioniroseiaisignificanti32%iy-o-
yiiniFYi2018-19.
DistributiveiEfficiency
TheifirmijoineditheionlineiluxuryiretailimarketiiniApriliwithiAJIO.com,itargetingihigh-
marginicustomers,itailorediapparel,iandihasilaunchediAJIO's
'shop-in-shops'iasipartiofiitsiomnichanneliapproachiinimoreithani100iRelianceiRetailioutlets,iani
effortioniwhichitheiretaileriisioperatingiactively.
AsipartiofidevelopingidigitaliecosystemsiiniIndia,itheiorganizationiisialsoi
OverallLow Cost
Provider
OverallDifferentiation
Focus with Low Cost
Focus with
DifferentiationStrategy
Best Cost Provider Strategy
{Value = Benefit↑ - Cost↓}
[Reliance Digital]
23. JaipuriaiInstituteiofiManagement,iLucknow Pagei23
creatingitheilargestidistributioninetworkiforiappsiunderiJioibrandiinitheiworld.
TechnologicaliProgressiveness
RelianceiDigitaliXpressiisipositioneditoiraiseiawarenessiofitheilatestitechnicalidevelopmentsiandiprov
ideisolutionsithatiallowicustomersitoimaximizeitheiusabilityiofitheiridevicesiandi
ensureioptimumioutput.iRelianceiDigitaliXpressicanihelpiusersiexploreitechnologyisolutionsiforitheiri
dailyineedsithatiensureiuninterruptedicontent,iallowithemitoioperateibetter,idevelopipracticalihomeisol
utionsiandiimproveisocialinetworkingicapabilities.
AtitheiNewiXpressishops,iconsumersiwillialsoitakeiadvantageiofi
otherienticingilaunchioffersioniitemsilikeipromotions,ifreebiesiandigifticoupons.
ProductiPerformance
RelianceiDigitalioffersioveri200inationaliandiinternationalibrandsiofferingiaiwidestiassortmentiofiproductsispa
nningiacrossiAudioi&iVideoiproducts,iDigitaliCameras,iDurablesilikeiAiriConditioners,iRefrigerators,iWashingi
Machines,iMicrowaveiOvens,iWateriPurifiers,iKitcheniandiHomeiAppliances,iGamingiConsolesi&iGames,iCom
puters,iLaptops,iTabletsi&iPeripherals,iMobileiandiFixedilineiinstrumentsiasiwelliasiaiwideirangeiofiaccessorie
siandinew-ageigadgetsiacrossiallimajoriproducticategories.
MembersiofiLearningiTeami-i07