Strength

1. Low tariff: - Company has launched its 4G service with highly

competitive or rather very low tariff. Company has strong financial
capacity to withstand initial losses
2. Very wide network:-Company has created wide national network
with a huge investment of around $20 billon. The company has
used latest technology and hence capable to give quality service.
3. Brand Name: - Brand Value of company is very high.

Weakness

1. Late entry into telecommunication sector: - The telecom sector

had grown exponencially in its initial phases which started around
two decades earlier. Presently market has seen only modest growth
and it has become highly competitive due to entry big players such
as Vodafone, Idea etc.
2. Operation of Mobile Number Portability Still not
smooth:- Nowadays mobile number has become identity of a
person and hence it is difficult for anyone to change his mobile
number.MNP takes many days for its implementation and it is hard
to manage this transition period. MNP is crucial for Jio as a large
number of customer is expected through migration from existing
service providers.
3. Highly dependent upon data consumption: - As per the current
trend around 60 to 70 percent of revenue comes from voice calling
and hence there is a huge potential loss for making voice calling
 free. This loss can be offset only when consumption of data
increases manifold.

Opportunity

1. Large scale availability of smart phones: In last 2 decades the

number of people using Smartphone has increased manifolds. If
company is able to provide quality service at competitive rate it
can quickly grab large number of customers.
2. Increasing rate of data consumption: In its earlier phase almost
entire revenue of the mobile service provider was from voice
calling. However since last two years the proportion of revenue
from data users is increasing exponentially which has resulted in
almost 30-40% of the total revenue. Lower data tariff may further
increase data consumption and thus contribute more to the revenue
of company.
3. International market:-There is huge opportunity in many
developing countries

Threat

1. Saturated market:- The initial phase of rapid increase in

subscriber is now over. A new entrant like Jio needs a large
customer base to cross breakeven point.
2. Highly competitive market:- After the entry of big players like
Vodafone,Idea etc the market has become highly competitive.
3. Changing Government Policy: The changing government policy
like cancelling of 2G licences ,imposition of tax with retrospective
 effect(on Vodafone), refund for call drop etc, has created
uncertainty in the market causing adverse impact on the investment
sentiment.
4. Rapid upgradation in Technology:- From 2G to 3G and 3G to
4G changes have occurred in very short span of time. Even next
generation 5G is approaching shortly. Each upgradation requires
huge investment and it is not possible to remain in market without
it.

Suggestion

Though competitive tariff is very important to become an important

player in the market, the customer satisfaction is equally or even more
important for long term perspective. Handling customer grievances in
effective way and continuous improvement based on customers
feedback are key priority areas to become a dominant player in the
market. For eg. BSNL could not be a dominant player in market due to
poor customer satisfaction even though tariff is highly competitive.

Part 2 SWOT
Strengths

1. Strong backing of parent company ie Reliance Industries backed up Mukesh Ambani

2. Excellent advertising and marketing of Jio helped the brand have a strong launch
3. Jio has brand ambassadors like Shahrukh Khan, Amitabh Bachchan which has helped reach
out to masses
4. Innovative technology i.e. 4G LTE services along with VoLTE
5. Has a strong pan India presence with its operations in more than 22 cirles
6. Jio apps are a unique feature offering movies, games, shopping, messenger, chat, news etc
under one roof
7. LYF smartphones at affordable costs would also boost the brand Reliance Jio

Weakness

1. The ad campaign of Reliance Jio showing the PM was controversial

2. Late entrant in the India market, i.e. it would be challenging to increase market share
significantly

Opportunities

1. The company can offer telecom, call, data services at competitive prices
2. Reliance Jio can promote exclusive services like apps to attract consumers
3. Focus on customer service and MNP can help the brand overcome competition

Threats

1. Once free services are over, people would not want to continue using Jio
2. Existing competitors have a strong presence, and a loyal customer base, which would be
difficult to address to.