Reliance Industries is as old as the foundation of India, with deep-rooted ties in all base industries of the country – that is why the Business Model of Reliance Industries Limited is a must-learn for all business enthusiasts!
Reliance Commercial Cooperation was formed in 1966 by Dhirubhai Ambani. It later became Reliance Industries in 1973. Over the years, Reliance Industries Limited became a household name through its extensive marketing strategy and is now a multinational conglomerate company. It is the highest-ranking Indian company on Forbes’ Global 2000 List, the 55th largest company in the world.
This case study focuses on the Business Model of Reliance Industries Limited, its top management, market share, product offerings, pricing model, promotional strategy, marketing strategy, and competitor analysis.
First, let us now learn about Reliance Industries in detail.
About Reliance Industries Limited
Reliance Industries Limited is India’s leading multinational conglomerate company. It is headquartered in Mumbai, Maharashtra, and run by the owner, chairman, and managing director, Mukesh Ambani.
Its motto is ‘Growth in life’ which is reflected in the way it has grown from textiles to various sectors like refining and marketing, retail, petrochemicals, digital services, oil and gas, and media.
Reliance Industries Limited is one of the largest employers in India and continues to employ people as it looks into starting new ventures in various fields. Reliance Foundation spends about ₹1022 crores to empower lives through Corporate Social Responsibility (CSR) activities. It dabbles in various philanthropic initiatives such as health, sports, and education.
Now that you know about the company, let us start analyzing the business model of Reliance Industries Limited.
Business Model Of Reliance Industries Limited
A business model is a company that is the blueprint of its core operations strategy in order to earn profit. Models typically include information such as the items or services that the company intends to sell, target markets, and any expected costs. Let’s dissect the business model of Reliance Industries in detail by understanding their product offerings.
Business Model Of Reliance Industries – Product Offerings
A product could be a service, object, or innovation that a company sells. With about 94 subsidiaries, Reliance Industries Limited offers a variety of products in different sectors and under different brands. let us first take a look at the product offerings.
Some of the categories of products are listed below:
- Refining and Marketing
- Petroleum Retail
- Polyester & Fibre Intermediates
- Oil and Gas Exploration and Production
- Media and Entertainment
- TV Channels
- Filmed Entertainment
- Content Asset Monetization
- Digital Content
- Digital Commerce
- Publishing Business
- Allied Business
Let’s now dive into the target audience of Reliance Industries Limited below.
Business Model Of Reliance Industries – Target Audience
With a vast range of items available throughout its retail outlets and services ranging from telecom to gas stations, Reliance Industries as a brand caters to the demands of a diversified range of consumer categories.
The company uses a combination of demographic, geographic, and psychographic segmentation characteristics including occupation, gender, age, economic class, behaviour, and geography, among others.
To reach its target market, the brand uses a differentiated, targeted, and aggressive pricing strategy.
After understanding the target audiences of Reliance Industries, let us take a closer at their market share.
Reliance Industries Limited is India’s largest retailer and mass-market leader. It has about 6.44 billion shares in the market of which approximately 49% is owned by the Ambani family and the remaining are owned by the public shareholders.
In the year 2019-2020, Reliance has seen a 5.4% increase in consolidated revenue from consumer business. It has seen a huge increase in the number of subscribers and consequently higher revenue generated especially in the digital sector.
With this, the target audience of Reliance Industries gets conclude. If you want to learn the marketing strategy of Reliance, read IIDE’s Reliance Marketing Strategy.
Another important aspect of a business model is competitor analysis. Let us understand the business model of Reliance Industries in contrast with its competitors.
Business Model Of Reliance Industries – Competitor Analysis
With a company as large and varied as Reliance Industries Limited, it is only fitting that it has a large number of competitors in all sectors. It is one of India’s largest companies, has a strong brand name that helps it establish a trustworthy reputation among its clients.
The brand’s positive image among investors and many stakeholders is aided by several accolades, an excellent financial position, strong profitability, and a strong focus on holistic expansion, as well as participation in CSR initiatives.
The main competitors are as follows:
- ONGC and Indian Oil for oil and gas
- Vi and airtel for Telecommunication
- Flipkart, Amazon, Big Bazaar for Retail
Reliance Industries is a giant and has its fingers in all industries of the nation, especially the core ones and hence is competing with hundreds of brands and companies on different fronts.
Reliance Industries is leading in the petroleum, oil, and gas sector because of its product quality and efficiency. Reliance Jio has taken over the telecommunication, media, and entertainment industries and continues to grow its customer base with its offers, reliable network, products, and service. However, Reliance Retail is not yet at its maximum potential and has to level up its game with regards to its marketing strategies, customer base, and advertising.
Reliance Industries Limited has grown in leaps and bounds over the years and a lot of credit goes to their hard work, innovation, and marketing strategies. Their use of digital marketing has expanded their customer base and increased their profits.
Digital Marketing has opened up many career opportunities which will only grow in the years to come. If you are interested in learning about a career in digital marketing and the scope of digital marketing, you should most definitely attend the Free MasterClass on Digital Marketing by Karan Shah, CEO & Founder of IIDE.
This concludes the case study. Thank you for reading and if you liked it, please let us know in the comments below.