The entry of JIO has completely shaken up the Telecom market in India stirring u

Question

The entry of JIO has completely shaken up the Telecom market in India stirring up controversies and forcing the authorities to start looking at providing some relief to the players.  It has eroded margins and depressed top-lines of incumbent players and spawned off mergers and acquisitions.

Discuss JIO’s strategy from the point of view of

What competitive advantages are they exploiting?What internal functional level strategies are they following? Do they have any distinctive competencies (hint: USE VRIO ANALYSIS) ?As a late entrant did they have any other choice?

Explanation / Answer

Reliance deals in many sectors like petrochemicals, refiniers, telecom etc. last year he (Chairman of Reliance ) came with new idea & initiate jio services. In jio service includes " free voice calls, cheap 4G data rates, dirt-cheap 4G device with unlimited internet access". last year jio launched with free one year acess of these services without any restrication. The main purpose behind this is to capature a large amount of telecome market because most of market capatured by "Airtel" (nearly 12000 crore ) and remaining market is capatured by small competitor like Idea cellular,Aircel ,Telenor.

The impact of jio leads to Airtel to make pact with small competitors like Aircel &Telenor to retain it's market capaturing.

As per recent survey of telecom sector 2017 shown that Airtel is still on top, vodafone on second,Idea on third and Jio on fourth. Actually jio is trying to capturing a large part of telecom sector. In 2018 Vodafone and Idea cellular will merges which result (voda+ idea) on top, Airtel on second and jio will be on third. Hope in future Jio will acheive their target by lunching new schemes under jio programme.

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