Presented to Prof Tom Brush, Prof of Strategy on Nov, 2018.

1. Jio | Disruptor in Indian Telecom Industry
Presented By:
Iris Gohain
Kaushal Kishore
Mohnish Rajput
Sruthy K M
Competitive
Strategy

2. Market Standpoint*
Jio | Reliance Group of Industries
Jio | Disruptor in Indian Telecom Industry
2
Refinery
Retail
Media
Textiles
Petroleum
Petro-
chemicals
Text
That’s not all:
► Life Sciences
► Logistics
► Clinical Research
Services
► Solar
► Industrial
Infrastructure
► LYF (4G Services)
► Jio Infocomm
► Revenue: USD 60
Billion
► Operating Income:
USD 10 Billion
► Net Income: USD 5
Billion
► Total Assets: USD
110 Billion
► Jio Assets: USD 35
Billion (~ 32% of total
assets)
*As of 2018

3. Jio | Introduction to Indian Telecom Industry
Jio | Disruptor in Indian Telecom Industry
3
The market:
- Subscriber base: 1.05 Billion
- World’s second largest
telecom market
- World’s second largest
smart-phone market
- World’s fourth largest app
economy
- Foreign Direct Investment of
USD 30.07 Billions, between
April, 2000 to September,
2017
By 2020:
- Mobile industry to create an economic
value of USD 190 Billion
- Revenues from the telecom equipment
sector are expected to grow to US$
26.38 billion by 2020
- The number of internet subscribers in
the country is expected to double by
2021 to 829 million
- Overall IP traffic is expected to grow 4-
fold at a CAGR of 30 per cent by 2021
- Total 5 Million jobs to be generated: 3
Million direct and 2 Million indirect
The risks:
- Government regulatory risks:
The Telecom Regulatory
Authority of India regulates
spectrum ownership and
telecom aspects
- Technology obsolescence,
requiring repetitive
investments
- Amongst world’s highest
spectrum costs and lowest
subscription costs

4. Jio | Introduction to Indian Telecom Industry
Jio | Disruptor in Indian Telecom Industry
4
Cost Structure of a typical telecom company
Time
Costs
Fixed Costs
Indication
► Telecom industry typically requires high
initial investments in infrastructure to
set-up network coverage, however,
variable costs are a small percentage of
initial investments
► The assets would depreciate
irrespective of the usage, with
depreciation depending upon company
policy
► Jio started with acquiring Infotel
Broadband Services, for USD 409 M, the
salvage value of the company, instantly
assuring nation-wide coverage

5. Jio | Introduction to Jio Infocomm
Jio | Disruptor in Indian Telecom Industry
5
History
Market
Share
Products
Jio
Infocomm
- Telephone Network Services
- Wireless/ Optical fibre Broadband Services
- Smartphones
- Mobile Wallets
- Mobile Infotainment
- Jio acquired a staggering 19.62% revenue share within just 16 months of public
operations (staring September, 2016)
- Growth aided by the spur of ‘Dual Sim’ smartphones across India, leading to users
subscribing to Airtel/ Vodafone-Idea as primary sim card and Jio as secondary sim card
- Acquired Infotel Broadband services (only company
to own 4G spectrum in all 22 telecom circles across
India) for $670 M in June, 2010
- Telecom services were announced on December
27, 2015
- Went public on September 5, 2016
Subscriber Market Share
Vodafone-Idea
Airtel
Jio
BSNL
Others
35
32
22
11
-
10
20
30
40
Vodafone-Idea Airtel Jio Others
Revenue%
Revenue share in Telecom Market – As of June, 2018
Indian Telecom Industry – Total Revenue $ 4.4 B
38%
10%
20%
30%
2%

6. Jio | Porter’s 5 forces for Indian Telecom Industry
Jio | Disruptor in Indian Telecom Industry
6
The 5
Forces
Buyer Power
Competitive
Rivalry
Threat of
Substitution
Threat of New
Entry(Low)
Supplier Power
Moderate
► Lot of software providers
► Little or no forward integration
High
► Availability of lot of choices &low switching cost
► Demand highly sensitive to economy
Low
► Alternate modes requiring data, a prime service
offered by Jio, reducing substitution threat
Low
► High capital cost for new entrants
► Almost saturated market for voice segment
High
► Existing players with high market penetration
► Deep pockets leading to “price wars”

7. Jio | Strategy and Commitments
Jio | Disruptor in Indian Telecom Industry
7
Competitive Advantage
Technology:
► With exclusive 4G investments in all 22 telecom circles across India, Jio had a
strong cable network and used mobile data for voice calling
Base Strategies
Prior to launch:
► Invested in new-age technologies: Invested in 4G
and 5G capabilities across all 22 telecom circles of
India prior to launching consumer services.
Through this investment, Jio raised the barrier for
incumbents to compete in 4G segment
Post Launch:
► Growth Hacking Strategy: Focused on
Acquisition, Activation, Retention, Referral and
Revenue rather than break-even
► Blue ocean Strategy: Jio offered complete service
bundles at lowest prices, creating a ‘Blue Ocean’.
Segmentation and customer acquisition:
► Provided premium 4G services at 10 times lower price compared to its
competitors, focusing on data rather than saturated voice-calling segment
► Provided free sim cards with no-cost bundle services for 6 months.
► Reduced SIM activation lead time from 24 hours to 0.25 hours
Other advantages:
► Free services including calling, data, SMS and Jio infotainment, increased
customer’s inclination towards use of Jio services
► Referral bonuses to implement ‘word of mouth’ marketing
► Used ‘Razor and Blade’ model for recurring revenue focusing on increasing
market share and offering bundle services at affordable prices
► Used late movers advantage to understand the industry and cater demand
► Focused on high asset utilization by offering promotional discounts in initial
period and then retaining customers through “Best services at cheapest price
offering”

8. Jio | Competitor Analysis
Jio | Disruptor in Indian Telecom Industry
8
Pros for existing premium segment competitors
► Strategic alliances with top smartphone manufacturers
including, Apple, Sony Ericsson and Nokia – boosting
brand equity and bottom line of the company
► High geographic coverage
► Running market campaigns leading to higher visibility
► International calling privileges
Cons for existing premium segment competitors
► High debt (Airtel)
► After-sale services are dissatisfactory (Vodafone-Idea)
► Higher sim card activation time
► Higher costs of subscription plans for telecom services
► Over-marketing leading to excessive calls received by
users regarding new plans/ promotions
Pros for other existing competitors
► Penetration across rural India
► Backed by Government of India (BSNL and MTNL)
► Subsidized prices to cater to lower income group
segment of population (BSNL and MTNL)
► Bundle package availability (Landline, Internet and
Mobile) reducing overall consumer costs
Cons for other existing competitors
► Poor customer services
► Resistant to technological changes – slow to react on
consumer demands
Competitor Analysis Pros with respect to Jio
Premium Segment
(Airtel and
Vodafone-Idea)
Others
(BSNL, MTNL and
TATA DOCOMO)
Cons with respect to Jio

9. Jio | Strategy Swot Analysis
Jio | Disruptor in Indian Telecom Industry
9
Strength-Opportunity
► Already operating on upgraded technology, hence this
has eliminated upgradation costs substantially
► Strong balance sheet, huge potential in terms of funds
to invest
Strength-Threats
► Focusing on data services improved Jio’s market
penetrations
► Differentiated from incumbents in terms of ‘Bundle
offerings’ at cheaper rates
Weakness-Opportunity
► Huge capital is a threat however, it can be recovered by
recurring revenue from large customer base
Weakness-Threats
► Customer segment highly price sensitive, offering the
cheapest overall bundle to retain customers caps the
risk substantially
Jio’s Strategy’s
SWOT Analysis
Opportunities
► High data requirement by customers
► Poor services by incumbents
Strengths
► Deep Pockets
► Technology
Weaknesses
► Huge investments
in assets
Threats
► Saturated markets in voice segment
► Incumbents in strong position

10. Jio | Industry Impact
Jio | Disruptor in Indian Telecom Industry
10
Impact on
competitors
- Very agile ISP(Internet
Service Portability services)
from competitors
- Industry consolidation
(M&A)
- Bankruptcy of certain
players
Impact on
customers
- Substantial decrease in
average price/ call
- Increased data penetration
and adoption in the
country
Jio proved itself to be
an industry disruptor
with tangible impact
on both customers
and competitors

11. 11
Thank You!