It is the largest mobile network centre in India. It is the third-largest telecom operator in India with 42.62 crore subscribers. Its net income for the financial year 2020 was 12,537 crores. Thus this makes us keen to know the business model of Reliance Jio.
In this blog, we have discussed the business model of Reliance Jio in detail which includes its price strategy, product segmentation, competitor analysis, etc. But before we start with its business model let us know about Reliance Jio as a company.
About Reliance Jio
It was first started in the year 2007. Its headquarter is located in Mumbai Maharashtra India. Reliance Jio has a national Network which is LTE which covers all 22 Telecom circles. Jio offers a 4G network it also provides LTE voice-overs to provide voice service.
The Reliance business model is run and owned by Mukesh Ambani. The Jio business model is specified that giving free services to the customers will benefit them with more money as compared to the current other networks as charge prices, Jio provides free voice calls to customers.
Reliance Jio was founded in the year 2007 by Mukesh Ambani. It was made publicly available on 5th September 2016 throughout the world.
Let us now see the business model of Reliance Jio step by step.
BUSINESS MODEL OF RELIANCE JIO
The business model is used to determine a company’s plan for generating revenue. It determines the products or services the business plans to sell, its identified target market, and any anticipated expenses.
Reliance Jio used a loss-leading strategy which means it sold its products or services at a price lower than the actual price in the market. Reliance Jio initially started giving its users free of cost data and voice calls for a long period of time which helped them gain a large customer base and a higher market share.
Then later after the free data offer was over it started providing its customers with cheaper recharges which helped them to retain their customers.
Let us now see its business model by starting with its pricing strategy.
1. Price Strategy of Reliance Jio
Jio has adapted the best pricing strategy in the market. Jio modifies its pricing strategies every now and then to provide its customers with the best prices in the market. It provides its customers with the cheapest possible prices for its products and services in the market. This helps them to provide the best offers for their customers.
2. Promotion strategies of Reliance Jio
At a time when it comes to making constructive brand awareness, Reliance Jio has taken on a little bit of a hostile marketing strategy on radio, television, magazines, newspapers, and various social media platforms like YouTube, Twitter, Facebook. This marketing is also used by film industry celebrities, it helps them in doing acting in advertisements and joining their brand to work with them.
Let us now see the product and service segmentation of Reliance Jio.
3. Product and service segmentation of Reliance Jio
- JioPages – a web browser for Android devices
- JioChat – instant messaging app
- JioCinema – online HD movie library
- JioCloud – cloud-based backup services
- JioHealth – health-related services app
- JioNews – Platform which provides the latest news
- JioMeet – video-conferencing platform
- JioMoney – online transaction app
- JioSaavn – app for music streaming in English and Indian languages
- JioSecurity – security app
- JioTV – TV Channels streaming service
- JioVoice – VoLTE phone simulator
- MyJio – manage Jio account and digital services associated with it
- Mobile broadband – Its 4G broadband services started all over India in 2016. It offers vice services, instant messaging, and streaming movies.
- JioFiber – In 2018 it started testing new triple play fiber to the homer services which was known as Jio GigaFiber, which provide an internet speed ranging from 100 – 1,000 Mbit/s. It launched its services officially in the year 2019 as JioFiber for its third anniversary.
- JioPhone Next – On 24 June 2021, Mukesh Ambani announced the launch of JioPhone Next. It is a fully-featured Android smartphone co-developed with Google as part of its long-term partnership. The budget smartphone will be launched in India on 10 September 2021.
Let us now see the competitors of reliance Jio.
Competitors of Reliance Jio
Firstly, before Jio was launched there were more than 10 telecom companies, but when Jio entered the industry everything got changed. Jio with its special features and less-price cleaned away most of the telecom companies .companies which swept out are Aircel, MTS, and many more as their price range was high as compared to Jio. Now, there are company likes Vi, Airtel which are the main competitors in the market for Jio.
Let us now see the social media campaigns of reliance Jio.
Social Media Campaigns of Reliance Jio
The centre of attraction in the last few years has been the Reliance company. As it innovates advertisement campaigns. these campaigns run all over electronic media and swings everyone’s interest to Jio’s brilliant incentives and less prices. Let’s have a glance at some of the best campaigns.
- Digital India, Home Delivered:
Reliance Jio brought up an amazing campaign of giving charge-free home-delivery of SIM Cards to the customers. Customers had no struggle to visit any store to get the SIM Card. With this helpfulness, Jio has crossed 26 million in just 20weeks.
Overall, this campaign has been the biggest hit for Reliance Jio
- Jio Cricket Play-Along:
In India, cricket is one of the famous games. Jio recognizes the distance of the people who invested in financing groups in the IPL. The people who have an interest and craze for cricket Jio help the people who are cricket lovers to respond to the result of every ball player and get prizes
With this, we come to the end of the Business Model of Reliance Jio. Let’s conclude this case study in the upcoming section.
On the study of the business model of Reliance Jio, we have seen that the company has implemented its business model in the best possible way and has captured most of the market share of the telecom industry. It provided its customers with the lowest prices in the market for its products and services creating a loyal customer base. It has a wide range of products and services in the market like myjio app, jiomovies, jiocinema, jionews, etc. With their free data services provided in the market at its initial stage most of its competitors couldn’t survive in the market. The existing main competitors for jio in the market are Airtel and Vi.
If you are still interested in knowing more about Reliance Jio you should read our blog on the Marketing strategy of Reliance Jio. Wasn’t it interesting to know the business model of Reliance Jio? Learn how to grow your business using digital marketing, check out our website for more information.
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