SWOT Analysis of Reliance Jio focuses on Strength, Weakness, Opportunity, and Threats. Strength and Weakness are internal factors and Opportunities and Threats are external factors.
Jio is the another name of Reliance Jio Infocomm Limited, as it is known today as a mobile network service based on LTE Technology and owned by Reliance Industries Limited. Jio has its headquarters in Mumbai provides 4G network services and has the distinction of being officially the only VoLTE operator in India.
The network spans 22 telecom circles in India, and is the country’s largest provider for Fast Fiber Optic Internet access. In December, 2015 Reliance Jio launched its services for the first time for its employees and partners and in September 2016 became operational. Currently the company has revenue of 2.6 Billion US Dollars net income of 160 Million US Dollars and Total Assets of 26 Billion US Dollars.
Strength in the SWOT Analysis of Reliance Jio – Reliance Jio SWOT Analysis
Strengths are described as what each Reliance Jio does best in its field of operations that can give its cutting edge over its competitors. Here are Strengths of Reliance Jio:
- Strongest strategy for customer acquisition-Dependence Jio is expected to have the best strategy for customer acquisition to date. The company offered all its customers their services free for 3-6 months. This resulted in millions of consumers using Dependency Jio and has resulted in one of the best strategy to acquire customers in telecom history.
- Huge customer base – In 170 days of its launch Reliance Jio has reached to a subscriber base of 100 million customers this was a record that no other company has been able to reach. This has also made it the most preferred 4G Internet service provider for Reliance Jio India.
- Technology – Jio is now using the new 4 G LTE technology and is one of the best technologies for the future in the world. Voice over LTE embraces this, making it flexible and inclusive of 5 G and 6 G technologies which are considered to be the future of wireless communication.
- Reliance Industries parent company’s strong backing: Reliance Industries is a reputable brand that reflects Indian feelings and has high consumer trust. Jio’s connexion with Dependency is serving as a core power.
- Brand Management – The main reason for Reliance Jio’s massive customer base is the marketing strategy and brand management techniques Reliance Jio has implemented. The right promotion backed by lucrative offers, and trustworthy brand ambassadors such as ShahRukh Khan and Amitabh Bachchan have helped create consumer connexion.
- Quick and large network: Reliance Jio is considered to be a stable and efficient network with zero connectivity issues in all 22 telecom circles in India.
- Attractive Offers: Reliance Jio offers a wide range of facilities such as movies, shopping, sports, messenger and chats etc. that give the a lot of choices to customers.
- Lightening Fast Internet Access: Reliance Jio offers Lightening fast internet access. It is the first telecom service provider to offer free voice calling over high speed internet in India.
- Jio Set top Box : Free Reliance Jio Set top Box along with the Jio Giga Fiber is very good it offers Hotstar, Amazon Prime, Zee, SonyLiv and other Android based entertainment apps including JioTV+.
- Reliance Jio is taking each and every possible step to increase its revenue and increasing the market.
- Reliance has wiped other telecom operators subscribers.
- Attractive Free Data Offers: Reliance Offers free data for its customers.
- SIM Activation: Reliance is improved the way of SIM Activation and Aadhar based SIM Activation is a very good feature in Reliance Jio.
- Free Apps: Free Apps with Reliance Jio are JioBrowser, JioChat, JioCinema, JioCloud, JioHealth, JioNews, JioMeet, JioMoney, JioSaavn, JioSecurity, JioTV, JioVoice and MyJio app. JioTV is the most popular app of Reliance Jio because it offers free TV Channels.
- Return on Capital Expenditure: Reliance Jio has in the past been able to successfully earn good returns on the capital investment it invested on various projects.
- Trained labour force: Reliance Jio has invested heavily in educating its employees, which has resulted in recruiting a large amount of inspired and skilled staff.
- Has a diverse workforce, including employees of many political , religious, cultural and educational backgrounds who help the company carry together new ideas and approaches to do stuff.
- Social Media: Reliance Jio has a strong social media presence on the three most popular social networking sites, with over millions of followers: Facebook, Twitter and Instagram. It has a high level of customer engagement on those platforms, with low customer response time.
- Website: Reliance Jio has a well-functioning and entertaining website that receives a massive volume of internet traffic and revenues.
- Reliance Jio has a well-established IT framework which ensures the performance of both its internal and external operations.
Weaknesses in the SWOT Analysis of Reliance Jio – Reliance Jio SWOT Analysis
Weaknesses are used to refer to places where change is required in the company or brand. Some of Weakness of Reliance Jio are:
- Pricing controversies – Reliance Jio was criticised for lowering its rates beyond what was acceptable to enter the market and this sparked charges against them such as collusion and money laundering.
- Too many freebies – Reliance Jio currently provides many services free of charge and that was one of the reasons for increased market share. However, the company might not be able to afford them all in the long run which could have a negative effect on the sector.
- Blocking Installation of Apps in the JioGiga Fiber Set Top Box is the major weakness of the company.
Opportunities in the SWOT Analysis of Reliance Jio – Reliance Jio SWOT Analysis
Opportunities apply to those environmental avenues that surround the company on which it can focus to raise its profits. Among the opportunities are:
- Future powered technology: Dependence Jio uses VoLTE 4 G network that can be adapted
- 5G and 6G technologies: This gives Jio various avenues or potential bandwidth expansion.
- Apps: Reliance Jio has VoLTE that has a lot of flexibility in terms of bandwidth. This means they can sell apps to consumers that are initially chargeable or even free and pay later for use.
- Competitive strategy for pricing: Reliance Jio takes pride in becoming a low-cost Internet service provider and mobile operator. This can be seen as a strategy for targeting more customers and growing their market share because most of their rivals are unable to afford rates.
- Expansion to other countries: Dependency Jio currently only operates in India. But at least in the surrounding regions there is plenty of space for expansion to foreign countries.
Threats in the SWOT Analysis of Reliance Jio – Reliance Jio SWOT Analysis
Threats are those environmental factors which can be detrimental to business development. Some of the threats are:
- Customer loss risk: Consumers choose Jio largely due to the low prices they deliver. A loss of customers may occur at a point where the company is increasing its price.
- Removal of Free Services: Jio is currently associated with lots of Freebies. If these are withdrawn, the business will experience a drop in revenue.
- Criticism and negative image – From the time it was launched, Reliance Jio has been entangled in many controversies. This led the company to have a negative brand picture.
- Weak Code of Ethics – Many of Reliance Jio’s tactics such as low pricing, free bandwidth, and market expansion strategies have been found to be unethical, and this could have an effect on the long-term credibility of the company.
- TRAI Regulations: TRAI Regulations for Mobile Networks and Tariffs may directly affect the business of Reliance Jio.
- Government Policies and Health policies regarding Radio Frequencies can also affect the business of Reliance Jio.
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