Project For Management Studies
Project For Management Studies
Project For Management Studies
PROJECT REPORT
ON
By
Mr. Lad Ravindra Nana
UNDER THE GUIDANCE OF
PROF: D.N. GORE
SUBMITED TO
“SAVITRIBAI PHULE PUNE UNIVERSITY”
In Partial Fulfillment for the Award of the Degree
Of
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
In
MARKETTING MANAGEMENT
Through
C.T. BORA COLLEGE,SHIRUR
SAVITRIBAI PHULE UNIVERSITY,PUNE
YEAR 2019-2020
ACKNOWLEDGEMENT
I would like to take this opportunity to convey my heart – full thanks & deep
appreciation for the help rendered to me, Principal DR.K.C. Mohite Sir by all of you
and guidance allowed me to make this invaluable piece of mere hard work. I am
very thankful to the Project Guide Prof. Gore D.N. & Prof. A.P. Pitale of (C.T.Bora
I am highly indebted to Co-ordinater of BBA and BBA(CA) Dr. Prof. S.P Borse For
his continuous support and guidance without which this projct couldn’t have been
reality. I would like to thank Prof. Mr.D.N. Gore Prof. A.P. Pitale for his backing
support in lab thoroughly checking of my project and reports, who also provide
Finally I express my deep regards to all of those who stretch their helping in the
Date :
I hereby declared that all the facts and figures included in the study is a result of my
own research and investigations including formal analysis of entire project work and
the same has not previously submitted to any examination of this University or any
other university. This Declaration will hold and in my wise belief with full
consciousness.
student
Reliance Jio Infocomm Ltd (popularly known as Jio), is an Indian mobile network
tries, the entry of Jio revolutionised the telecommunication sector. In this project the
success story of this recent entrant and management principles adopted by the
company were analysed on the basis of researches and studies conducted in these
fields. The organisational structure, planning and marketing strategy, staffing and
recruitment, SWOT analysis, PEST analysis, promotional strategy, the impact of Jio
1 Introduction 6
1.1 Introduction ........................................................................................................ 6
1.2 Jio logo ............................................................................................................... 7
1.3 Technology ..............................................................................................................7
1.4 Network.............................................................................................................. 7
2 History 8
2.1 Beta launch......................................................................................................... 9
2.2 Commercial launch .......................................................................................... 10
2.3 Non-compete pact ............................................................................................ 10
6 SWOT Analysis 23
6.1 Strengths of Reliance Jio ................................................................................. 23
6.2 Weaknesses of Reliance Jio ............................................................................. 25
6.3 Opportunities of Reliance Jio........................................................................... 26
6.4 Threats of Reliance Jio..................................................................................... 27
7 PEST Analysis 29
10 Government policies 40
10.1 Digital India ......................................................................................................40
10.2 TRAI Regulations .............................................................................................41
11 Controversies Surrounding
Reliance Jio 43
11.1 Issue with incumbents .......................................................................................43
11.2 Alleged subscriber data breach .........................................................................44
11.3 Call Drop ...........................................................................................................44
11.4 Auction for Spectrum ....................................................................................... 44
11.5 PM Modi on Jio Ad Campaign ........................................................................ 45
11.6 Alleged Government Patronising ..................................................................... 46
11.7 Favouritism by TRAI .........................................................................................47
11.8 False Advertisements ........................................................................................47
12 Ventures, Collaborations
and Future Projects 49
12.1 JIO Apps ...........................................................................................................49
12.1.1 Apps owned by JIO ..............................................................................50
13 Conclusion 57
Chapter 1
Introduction
Reliance Jio Infocomm Limited, popularly known as Jio, is an Indian mobile network
operator. Owned by Reliance Industries and headquartered in Mumbai, Maharash- tra, it
operates a national Long-Term Evolution (LTE) network with coverage across all 22
telecom circles. Jio does not offer 2G or 3G service, and instead uses Voice over LTE
(VoLTE) to provide voice service on its network. The launch of Reliance Jio has caused
a revolution in the telecom industry. Now, Jio claims to be the world’s largest data
network, based on mobile data consumption.
According to the Telecom Regulatory Authority of India (TRAI), as of February 2019,
there are 1.17 billion mobile-phone subscriptions in India, an increase of roughly 140
million subscriptions since August 2016—the month before Jio launched. The growth is
especially pronounced in rural areas, where there are now over 500 million wireless
subscriptions, roughly 80 million more than there were before the company formally
began its operations. As more Indians gain phone subscriptions, more are coming
online. A 2017 report by the Internet and Mobile Association of India estimated that
nearly 50 million Indians gained internet access between December 2016 and December
2017, allowing many of them to surf the web, send WhatsApp messages and stream
videos for the first time.
1.1 Jio logo
The logo of Reliance Jio has a hidden symbolism in it. When you flip the Jio logo
around, it is read ’oil’. The Jio logo seems to represent the past and future of Reliance.
Oil is what had propelled Reliance to become India’s biggest company in the 20th
century. When flipped over into the 21st, it’s probably going to be Jio.
1.2 Technology
Jio High Speed Internet service is the fourth generation (4G) mobile technology that
enables the delivery of high-speed internet services. It uses voice over LTE to provide
voice service on its network. LTE refers to Long Term Evolution of telecom technology
that enables High Definition voice and high-speed internet access.
1.3 Network
Jio owns spectrum in 850 MHz and 1,800 MHz bands in India’s 22 circles, and also
owns pan-India licensed 2,300 MHz spectrum. The spectrum is valid until 2035. Jio
shares the spectrum with Reliance Communications. The sharing deal is for 800 MHz
band across seven circles other than the 10 circles for which Jio already owns. In
September 2016, Jio signed a pact with BSNL for intra-circle roaming which would
enable users of the operators to use each other’s 4G and 2G spectrum in national
roaming mode. In February 2017, Jio announced a partnership with Samsung to work
on LTE - Advanced Pro and 5G.
Chapter 2 History
Jio soft launched on 27 December 2015 (the eve of what would have been the 83rd
birthday of Reliance Industries founder Dhirubhai Ambani), with a beta for part- ners
and employees, and became publicly available on 5 September 2016. As of 31 January
2019, it is the third largest mobile network operator in India and the ninth largest mobile
network operator in the world with over 289.44 million subscribers.
The company was registered in Ambawadi, Ahmedabad, Gujarat on 15 February 2007
as Reliance Jio Infocomm Limited. In June 2010, Reliance Industries (RIL) bought a
95% stake in Infotel Broadband Services Limited (IBSL) for Rs. 4,800 crore (US$670
million). Although unlisted, IBSL was the only company that won broadband spectrum
in all 22 circles in India in the 4G auction that took place earlier that year. Later
continuing as RIL’s telecom subsidiary, Infotel Broadband Services Limited was
renamed as Reliance Jio Infocomm Limited (RJIL) in January 2013.
In June 2015, Jio announced that it would start its operations all over the coun- try by
the end of 2015. However, four months later in October, the company’s spokesmen sent
out a press release stating that the launch was postponed to the first quarter of the
financial year 2016–2017.
Later, in July, a PIL filed in the Supreme Court by an NGO called the Centre for Public
Interest Litigation, through Prashant Bhushan, challenged the grant of a pan-India
licence to Jio by the Government of India. The PIL also alleged that Jio was allowed to
provide voice telephony along with its 4G data service, by paying an additional fee of
just Rs 165.8 crore (US $23 million) which was arbitrary and
unreasonable, and contributed to a loss of Rs 2,284.2 crore (US $320 million) to the
exchequer.
The Indian Department of Telecommunications (DoT), however, refuted all of CAG’s
claims. In its statement, DoT explained that the rules for 3G and BWA spectrum didn’t
restrict BWA winners from providing voice telephony. As a result, the PIL was
revoked, and the accusations were dismissed.
Reliance Jio Infocomm Limited revolutionised the telecom sector. The scenario of
Indian telecom market before JIO entered it was:
• There were more than 1 billion mobile users in India, out of which only 34% were
connected to the internet.
1. Step One: Undercut the market price by giving attractive discounts and free
promotional Data.
2. Step Two: Let everyone switch to Jio or at least buy a Jio sim to experience data
for free.
3. Step Three: Unleash the power of fibre optic network to give super fast internet
and make people realise that 1GB data is not really much.
4. Step Four: Grow your subscriber base by having good customer care and
awesome plans.
5. Step Five: Recover your investment using the large number of users accu-
mulated
Once the fibre optic network is laid down, the cost of operating is not very huge. On
the contrary, the network can be at minimal cost; therefore the only focus was to get more
internet users. If 60% of the people in India use 1 GB internet per month then Jio can
recover the initial investment in 3 years. The company also plans to rake in profits from
its mobile apps which include a variety of services which are described in subsequent
17
Chapter 5
• Written test (Aptitude): It analyses the skills in topics like ratio, simple logics,
comparisons, analogy etc.
• Technical and HR interview : This being the final step is based on national merit
test. It tests the technical and personality skills of the candidate.
It has been observed by studies in this field that the organisation has to put more
inputs in training and development of every employee for better growth and
productivity of the organisation in an effective manner. There are gaps between the
training sessions organised by the company because of which trainees lose touch with
training.
Recommendations By Various Studies
Responses to surveys conducted by studies in this field are given below[1]:
• Studies suggest that the organization should pay much attention to the train- ing of
employees based on specific departments to enrich their skills and to achieve
organizational goals.
• Studies also suggest that the organization should also emphasize on out bond
trainings for healthy working environment.
• Company should practice modern HR techniques during the recruitment pro- cess
for selecting desired resource for the job.
• Company should give appraisals and motivate employees for achieving indi-
vidual targets.
• Company should enhance its Annual increment policies for Employee Sustain-
ability.
Chapter 6
SWOT Analysis
SWOT Analysis is a well-established technique for the audit and analysis of the overall
strategic position of a business and its environment. Its key purpose is to identify the
strategies that will create a specific business model that will best align an organisation’s
resources and capabilities for the achievement of its objectives in the environment in
which it operates.SWOT is an acronym for Strengths, Weak- nesses, Opportunities and
Threats. By definition, Strengths (S) and Weaknesses
(W) are considered to be internal factors over which there is some measure of con- trol.
Opportunities (O) and Threats (T) are considered to be external factors over which there
can be essentially no control.
The framework of SWOT Analysis is credited to Albert Humphrey, who tested the
approach in the 1960s and 1970s at the Stanford Research Institute. Developed for
business and based on data from Fortune 500 companies, the SWOT analysis has been
adopted by organisations of all types as an aid to making decisions.
• Strongest Customer Acquisition strategy – Reliance Jio probably has the best
customer acquisition strategy till date. The brand offered their services
for free for 3-6 months to all their users. This resulted in millions of users using
Reliance Jio and resulted in one of the best customer acquisition strategy in the
history of telecom.
• Market share-First mover advantage in making data cost more affordable. Forced
other operators to slash charges by winning a huge market share.
• Fast and wide network-Reliance Jio has a presence in all 22 telecom circles in
India and is known to be a robust and fast network with fewer connectivity issues.
• LYF Smartphones-Affordable smartphones will make the brand more pop- ular
among the masses, even in rural areas and pave way for future growth. It would
also boost the brand Reliance Jio.
• Late entry into the market-Reliance Jio has made a late foray into the market
which already had established players like Airtel and Vodafone who had occupied
a place in the minds of the customer. It would be challenging to increase market
share significantly since the competitors are strong MNC’s where cash wouldn’t
be a barrier to keep Jio at check
• Activation Issues-Reliance Jio faced numerous gestation issues owing to not being
able to contain the huge volumes of customers it had acquired. On such was delays
in SIM Card activation during the period that followed its launch.
• High dependency on data- Reliance Jio is highly dependent on data charges since
call charges are free.
• Pricing Controversies - Reliance Jio was criticised for having lowered its prices
beyond what was ethical to penetrate into the market and this stirred allegations
like corruption and money laundering against them.
• Too many freebies-Reliance Jio currently offers many services for free and this
was one reason for share increase in sales. However, the company may not be able
to afford all of them in the long run which may affect the business negatively.
• Poor data connection-The data connection is many times poor from Re- liance
Jio and the range is less, causing slower loading speeds in selected re- gions.
• The ad campaign of Reliance Jio showing the PM was controversial- Jio used
the photograph of the Prime Minister in their full page advertise- ments
contravening the ‘prior permission’ stipulated under the Emblems and Names
(Prevention of Improper Use) Act of 1950, which bars use of Prime Minister’s
name and picture for commercial use. They have apologised for their “inadvertent
mistake”
• Issues in calls- There were several issues with calls from and to jio sims and lyf
smartphones. This had influenced customers to consider other service providers as
more reliable.
• Will not support 3G- 3G was in common use during the launch of Reliance Jio. It
did not support 3G.
• Apps- Reliance Jio has VoLTE which has a lot of scope in terms of band-
width.Thus they can offer apps to customers which are chargeable or even free
initially and pay per use later.
• Data for billion people-The core opportunity is data and speed of data.
Millennials are hugely involved in various platforms. The government push for
digitisation is making data a necessity rather than privilege.
• Loyal customer base of existing players- The existing competitors have a strong
presence in the market. A late entrant like Jio will have a challenge in convincing
loyal customers of other operators since people prefer more stable and reliable
operators.
• Criticism and negative image -Reliance Jio has been embroiled in a lot of
controversies from the time it was started. These have resulted in a negative brand
image for the company.
• Poor Code of ethics -Many of the strategies adopted by Reliance Jio such as the low
pricing, free bandwidth and market penetration strategies have been showcased as
unethical and this may affect the goodwill of the business in the long run.
PEST Analysis
Strategy
Jio had appointed 50 customer acquisition and relationship managers who are hiring teams
to target to sign up 1 million users each in the first two months. Mukesh Ambani
thought ”globally consumers pay for either calls and texts, or data- they do not pay for
both” Based on this promotional strategies adopted by Jio are given below:
• With every Reliance Jio sim, regardless of the package, the following are ab-
solutely free:
1. Unlimited free voice calling to any other network, any other number (local and STD)
3. Jio applications will provide Internet surfing, music, movies, programs free of
cost.
• Jio targets customers ranging from high end to mid and low range segments by
offering all services at reasonable prices
• LYF smartphones are priced between Rs. 4000 to Rs.19000 which provides
maximum off take, therefore helping JIO derive high returns
• If you buy a monthly plan worth Rs. 500 or more, you will get the following
additional benefits:
3. If you have a student registered SIM ID, you will receive 25% extra data usage
Over a very short span of time, Reliance Jio became a phenomenon in India. Re-
liance’s shares, having languished for several years, took off in early 2017 after it said Jio
would emerge from its trial period and begin charging for service. The shares have
almost doubled since then (Fig. 9.1) [6].
Figure 9.1: Reliance’s shares have have almost doubled since early 2017.
A price war arose between telecommunication operators and people were able to
access services at very cheap rates. The impacts of the Jio launch are described below.
9.1 Impact on Citizens
1. People suddenly had access to unlimited free voice call, 4G data, messaging and
related services. Jio spread out like a phenomenon in the nation, acquiring about
1000 customers per minute. Within 83 days of its launch, it crossed the 50-million
subscriber milestone, which had taken Airtel 12 years, and Vodafone and Idea 13
years [5].
2. 77% of the population of upper triangle of the country use Jio services of which 83%
belongs to youth (20-40 age groups).
3. Data consumption has increased drastically after Jio and people are more aware
about services like entertainment, education, shopping, payment and booking, etc.
4. From a nationwide survey, the result showed that 86.3% people consumed mobile
data up to 10 GB only, before Jio came into the Indian market whereas the
contribution of people with more than 10+ GB data consumption was only 13.7%.
After Jio entrance, the mobile data consumption of more than 10 GB, increased
drastically by 383% with market share increased from 13.7% to 65.9% clearly
showing the effect of Jio towards the usage of the internet services [9].
5. India is now the top country in data consumption compared to 155th before Jio
launch.
7. There has been accusations of data breach due to increased AADHAR usage.
8. Aggressive ad campaign of reliance Jio may also affect the industry’s scenario. It
will difficult for otherplayer to grow their consumer base and it will lead to high
promotional expenses.
2. Bharti Airtel, Vodafone and Idea Cellular petitioned a plea to TRAI regarding the
tariff rates set by Jio. TRAI dismissed the motion.
3. The state-run telecom operator, Bharat Sanchar Nigam Limited (BSNL) also cut
down their rates in an unprecedented move. They also started to use their
underutilised 7 lakh kilometres of fibre network and reduced internet usage
charges [5].
4. As the rivals were forced to lower their prices, the industry-wide monthly average
revenue per user (ARPU) fell by roughly a third. This had a negative
6. To keep up with the competition, mergers and consolidations took place among
players. The major shareholders reduced from about twelve into three large
private players — Reliance Jio, Bharti Airtel and Vodafone Idea — accounting for
more than 90% of revenue and 80% of spectrum holding [8].
7. Apart from declining financial health of incumbents, there have been massive job
losses owing to mergers and sector consolidation. Experts estimate the number of
job losses to be around 12,000-15,000 in the last two years, with a major shedding
from Vodafone and Idea Cellular duo.
8. There has been declining average revenue per user (ARPU) and margins with high
debt levels. Together, the telecom industry has a cumulative debt of Rs
3.6 lakh crore.
11. There has been a increase in investment and revenue for video-streaming web- sites
such as Hotstar and Netflix.
12. Jio will help expand India’s per capita GDP by about 5.65%, if everything else is
kept constant in the economy. Jio’s entry has led to $ 10 billion savings for India.
Chapter 10
Government policies
During the launch of the government’s Digital India initiative, Ambani promised to
partner with the government and invest over Rs 250,000 crore, or $39.29 billion, in its
projects. He pledged to lay out a next-generation wireless network across all
number portability, he added, ”The number belongs to the consumer. No opera- tor can
cause trouble if they want to change operators.” However, on 12 September 2016, Idea
Cellular agreed to allow Jio to use 196 of its interconnection access points [10].
Later on the day, a ninety-second clip also featuring the PM was released on
television and other platforms. The final portion of the video links Reliance Jio’s aims
specifically with Digital India, and talks of how the service will connect India’s
1.2 billion people with free voice calls. The ad campaign was accused to be a clever play,
endorsing the product as a blessing to the nation.
A debate rose online and otherwise on the legality of using the PM on a private
product campaign. According to the National Emblems and Names (Prevention of
Improper Use) 1950 - No person shall, except in such cases and under such conditions as
may be prescribed by the Central Government use, or continue to use, for the purpose of
any trade, business, calling or profession, or in the title of any patent, or in any trade
mark or design, any name or emblem specified in the Schedule or, any colourable
imitation thereof without the previous permission of the Central Government or of such
officer of Government as may be authorised in this behalf by the Central Government.
This law suggests that written permission is required. In December 2016, the information
and broadcasting minister, Rajyavardhan Singh Rathore, told the parliament in a written
reply that the government was aware that RIL had used Modi’s image, but that it had not
granted the company permission to do so. In March 2017, RIL apologised for putting
the prime minister’s face in its ads. In an editorial, the Economic and Political Weekly
suggested that beyond legality, “the question to be asked is why it suits both—Reliance
and Modi—to be seen as sharing a vision and what implications that has for RJIO’s
future.” [13, 14]
Jio is a company which has launched and continues to launch new ventures every time
into the market and be in the nascence of the market and thus extract the initial boom of
consumer response at the most all the time. This chapter deals the present running
projects, services, collaborations and future projects to be launched.
6. JioTv (Formerly Known as JioPlay) - Jio users can watch 642 Tv channels free with
JioTv.
11. JioSaavn (earlier, JioMusic) - For online and offline music streaming in English
and Indian languages.
14. MyJio - Manage Jio account and digital services associated with it.
12.2.2 Jiophone
On 21 July 2017, Jio introduced its first affordable 4G feature phone, powered by
KaiOS, named as JioPhone. The price announced for it is Rs. 0 with a security deposit
of Rs. 1500 which can be withdrawn back by the user by returning the JioPhone at Jio
stores only after three years. This phone was released for beta users on 15 August 2017
and pre-booking for regular users started on 24 August 2017.
JioPhone 2: A second model with a QWERTY keyboard, as well as Facebook,
WhatsApp and YouTube applications, was released in July 2018 for Rs:2,999.
12.3 Other services
Various services are also put up by Jio. Following are them.
12.3.2 Jionet
Prior to its pan-India launch of 4G data and telephony services, Jio has started providing
free Wi-Fi hotspot services in cities throughout India including Surat, Ahmedabad in
Gujarat, and Visakhapatnam in Andhra Pradesh, Indore, Jabalpur, Dewas and Ujjain in
Madhya Pradesh, select locations of Mumbai in Maharash- tra, Kolkata in West Bengal,
Lucknow in Uttar Pradesh, Bhubaneswar in Odisha, Mussoorie in Uttarakhand,
Collectorate’s Office in Meerut, and at MG Road in Vijayawada among others.
In March 2016, Jio started providing free Wi-Fi internet to spectators at six cricket
stadiums hosting the 2016 ICC World Twenty20 matches. Jionet was made available in
Wankhede Stadium (Mumbai), Punjab Cricket Association IS Bindra Stadium (Mohali),
Himachal Pradesh Cricket Association Stadium (Dharamshala), Chinnaswamy Stadium
(Bengaluru), Feroz Shah Kotla (Delhi), and Eden Gardens (Kolkata) in India.
12.3.3 Jio Giga Fiber
Jio launched Jio Giga Fibre on 15 August 2018 which offers high speed broadband,
landline and DTH services at reasonable prices.
12.3.4 Jiofi
Jio has also launched Wi-Fi routers by the name JioFi.
This deal will finally enable Jio to telecast cricket content on its platform after it failed
to secure the TV broadcast and digital rights for all international and domestic cricket
played in India. At that auction held in April, Star India outbid Jio and Sony to secure
these media rights for a whopping Rs 6,138.1 crore for five years.
12.4.2 Google
Reliance Jio has partnered with Google to manufacture affordable 4G handsets. These
phones will run exclusively on Jio network. The two companies are also working on
developing software for smart-TV services.
12.4.3 Cisco
Jio has embraced mass-scale automation during the build phase of the network using a
robust, scalable, microservices-based purpose-built platform by Cisco for network
rollout. By further building a complete automation stack for full lifecycle management
using various best-in-class tools and integrating the same with the
build platform as well as OSS/BSS, Jio and Cisco have together achieved the desired
outcomes. The framework also became a proof point of how mass-scale automation can
help service providers stay competitive, while profitably adding new services and
subscribers, thus leading the curve in a rapidly changing technology landscape.
12.4.4 Alliance
In February 2016 Jio announced a global alliance of Mobile Network Operators which
include:
1. BT Group
2. Deutsche Telekom
3. Millicom
4. Orange S.A.
5. Rogers Communications
6. MTS
7. Telia Company
8. Telecom Italia
Conclusion
Reliance Jio Infocomm Limited, known as Jio, is an Indian mobile network oper- ator.
Owned by Reliance Industries and headquartered in Mumbai, Maharashtra, it operates a
national LTE network with coverage across all 22 telecom circles. Jiodoes not offer 2G or
3G service, and instead uses voice over LTE to provide voiceservice on its network. The
launch of Reliance Jio has caused a revolution in thetelecom industry. Now, Jio claims
to be the world’s largest data network, based onmobile data consumption.
In this project, a complete analysis of the upcoming of Jio and its sudden suc- cess
story was looked into. The organizational structure, planning and marketing strategy,
staffing and recruitment, SWOT analysis, PEST analysis, promotional strategy, the
impact of coming of Jio, Government policies, controversies surround- ing Reliance JIO,
its ventures and collaborations and future projects were discussed in detail. In this
process efforts were made to bring in data and informations from various researches and
studies conducted in these fields. The management principles adopted by the company
were also analysed and studied in this project.
Bibliography
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students”, https:// digitalwale.com/jio-swot-analysis/
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www.slideshare.net
6. Greg Farrell, Matt Robinson and Bhuma Shrivastava, 23 April 2018, ”Is Jio Really
Profitable? Audit To Answer Doubts And Controversies”, www.ndtv.com
7. Tanya Daga et. al., ”Effect of Reliance Jio on Digital India”,