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ISSN : 2348-6503 (Online) International Journal of Research in Management &

Vol. 4 Issue 3 Jul. - Sept. 2017


ISSN : 2348-893X (Print) Business Studies (IJRMBS 2017)

Entry of Jio in Telecommunication Sector in


a Competitive Environment
I
S Salomi, IIDr K G Selvan
M Phil Research Scholar, PRIST University, Thanjavur, Tamil nadu, India
I

II
Associate Dean, PRIST School of Business, PRIST University, Thanjavur, Tamil nadu, India

Abstract:
Indian telecom industry has been facing a tremendous growth by the entry of JIO (4G). Its play a Master role in the telecom industry,
so customers experiencing the new offers and competitors facing the new challenges how to overcome the challenges given by the
JIO in order to retain their revenue making customers or on the other hand, how to make them to use their offers like top-up for voice
calls and data usage etc… In this case, the only way is to provide data offers or services equal to that of JIO’s offers. Indians are
very price sensitive customers and JIO’s strategy is to focus the price sensitive market segment, still now the customers are satisfied
but in future!

Keywords:
Data War, Service War, Price Sensitive, Bench Mark, Pricing Strategy, Competitors Kill Strategy.

Introduction: In the current generation Data service plays an important role


Now a day’s countries like India, telecom industry focusing on in all over the world.
penetration pricing strategy, because of the customer’s perception
towards the pricing. Communication connects the people, person, Evolution of Mobile Network Technology:
country and the world. The term Globalization shrinks the whole 1G:
world in one hand that is because of telecom industry. The telecom These systems are referred to as a “cellular” which was later
plays a vital role in economic growth of our country such as shortened to “cell”.
GDP, employment generation, trade & investment. India is the 2G:
second largest telecommunication market and as the third highest 2G carriers continue to improve to transmission quality and
internet user in the world. JIO adopted latest technology 4G – 4th coverage.
generation so it set a bench mark to other networks, that’s why 3G:
JIO stands in the leadership position while other networks are The 3G evolution allowed telephone customer to use audio,
considering as a followers. Mean while Telecom industries facing graphics and video application.
huge number of challenges for providing service to the customers. 4G:
The operators need to transform to attract customer to gain the As developed with the aim of providing the quality service in
reputation in the market. In this situation mobile data and service data network.
war starts. So in this study we are going to analyze about the data 5G:
and service war. 5G stands for 5th generation is the newest mobile wireless is yet
to be set.
Objectives of the Study:
• To identify the data war and service war between the telecom Pricing Evolution in Mobile Network:
networks.
• To study the pricing strategies of JIO and other networks.

Evolution of Network Services:


1. Telephone :
In this telephonic network process optical fiber cable takes
place, a person can communicate a message from one to
other person through telephone.
2. Internet :
With the use of internet a person can send a message from
one E-mail Id to other Id.
3. Pager communication :
Pagers were just like a device which was popular around the
business people it helps to get a message only.
4. Mobile service :
In a wireless network a person who delivers a voice message
from one person to another person.
5. SMS service:
With the uses of mobile, a person types a text message to
other.
6. Data service :

www.ijrmbs.com 27 © All Rights Reserved, IJRMBS 2014


International Journal of Research in Management & ISSN : 2348-6503 (Online)
Vol. 4 Issue 3 Jul. - Sept. 2017
Business Studies (IJRMBS 2017) ISSN : 2348-893X (Print)

The last evolution in pricing flow chart gets highly focused by the companies as well as the customer. And so the reliance JIO adopts
“Competitive Kills Strategy” in pricing to acquire the leadership in the market.

Service and Data war of JIO and its competitors:


In this battle to capture the customer, company uses a wide range of tactics to ward of competitors. Increasingly price is the weapon

of choice for them.



 



  
 
  
  

  
 

  
   
 
 
  
 

   
 

  
 

  
 


  
 
 
  
 
 
  
 
  

 
 


 

 

 
 


 
 


Now, the trend is going to be service and data war between the JIO and the competitors.

Leadership of JIO in Pricing:

The dictionary defines predator as an animal that naturally preys on other. When a firm cuts the price its services it focuses its
competitors to lower price. This result leads to falling in price and market share of the competitors. The penetration pricing is the
practice charging a low price in order to quickly gain market share.
The above said strategy followed by the JIO to acquire the market share and leadership by giving following offers.

Introduction Stage of Reliance JIO - First level offer:
Launch of JIO into the Provide free SIM with registration of identity proof (only AADHAR) and mobile’s bar code scanning
market of the user.
Offers Unlimited voice calls; free SMS, unlimited data and free roaming.
Validity of offers 5 months.

© 2014, IJRMBS All Rights Reserved www.ijrmbs.com


28
ISSN : 2348-6503 (Online) International Journal of Research in Management &
Vol. 4 Issue 3 Jul. - Sept. 2017
ISSN : 2348-893X (Print) Business Studies (IJRMBS 2017)

JIO’s Second level offer:


Availability of SIM in the market Provide free SIM with registration of identity proof (only AADHAR).

Offers Unlimited voice calls; free SMS, 4GB per day data and free roaming.
Validity of offers 3 months.

JIO’s Third level offer:


Availability of SIM in the market Provide free SIM with registration of identity proof (only AADHAR).
Offers Unlimited voice calls; free SMS, 1GB per day data and free roaming.
Validity of offers 4 months.

Fourth level – JIO Prime Membership offer:




         
   
 

                 

       
 
  
             

            
       



 


Current offers of JIO:

 Prepaid offers: Rs. 19(200 MB for one day) up to Rs. 9,999 (780 GB for 390 days) with unlimited
 
SMS, free roaming and voice call to all operators also.

             
 Postpaid
offers: Rs. 309 (60 GB for two months) to Rs.999 (90GB for 2 months) with unlimited SMS,

free roaming
and voice call to all operators also.

Pricing Strategy           
Definition:
“A pricing strategy takes
 into account
 segments, ability
 to pay, market
 conditions,
 competitor
  actions, trade margins
    and input costs,
 
amongst others.
It is targeted at the defined customers and against competitors.”


SWOT Analysis of JIO:

Strength: 
1. JIO gets strength through providing various advanced services to the user such as,
• No charges  for

voice calls and unlimited calling it’s highly benefits to customer which leads to get more attention towards
                 
JIO.

• They introduced 4G with high speed it highly attracted towards net user.
 
• Low tariff plans rate.
 
• Free SMS and national roaming service.
 
• Free one and two GB of 4G data per day for the JIO user and free subscription to Apps.
 
2. These above benefits highly attracted towards the people is the biggest strength of JIO.
3. Now in the market JIO stands in the leadership position.



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International Journal of Research in Management & ISSN : 2348-6503 (Online)
Vol. 4 Issue 3 Jul. - Sept. 2017
Business Studies (IJRMBS 2017) ISSN : 2348-893X (Print)

4. In very short period JIO attracts more customers. Social:


5. Highly target oriented in its upcoming projects. To satisfy the whole society is impossible, if the company
6. Its holds highest technology in the market and create new concentrate in the term of society it should covers all type of
trend. people like youngster, middle age people and old person. At the
same time expectation, preference will differs from one segment
Weakness: to another segment in the society. JIO creates social group which
1. JIO’s user faced connectivity problem like call drops while in connects the people in one end it helps the nation to be connected
the time of calling, so it creates negative impression towards in all means.
user.
2. This system will not support 3G, because JIO preferred only Technology:
for LTE (4G) and voLTE. The advanced 4G technology has been adopted by JIO with
3. They delayed to entry in the market because already various cheaper rate. They are the leader in the 4G market. But the fact
kinds of network available in the market and they have lot is technology is always depends upon the growth. So, there is some
of customers. requirements and technological research need for the next level.
4. Everything new to the user regarding JIO apps so it may
difficult to use. Conclusion:
5. Other networks most of the time deny the calls while calling The growth of the Reliance JIO Company depends upon the
from JIO. consumer behavior towards the pricing. As already mention in
this study about price sensitive customers, they expecting with the
Opportunity: minimum investment to gain maximum benefits. The study reveals
1. They look to partner with digital entrepreneur; this will not the new strategy adopted by the JIO to overcome the challenges
only accelerate their growth but also give them opportunity in the past Reliance communication lost their market but now,
to form strategic partnership. the entry of Reliance changes the past situation in the market
2. Users of smart phones are high. environment. But always there will be a competition between the
3. Trade and market through globally. mobile operators; the one who exceeds the customer’s satisfaction
4. Consumption of data is high. level will be the king of market.
5. Now, JIO benefits for 4G users only, so they have opportunity
to concentrate for 3G users also to increase number of Recommendations:
customers. They should have their own network to provide coverage of
6. Opportunity in related segment like television. network.
They should provide transparency in their services, polices,
Threat: programs.
1. Competitors are high in the market already they have lot of They should have a consistency in their pricing strategy.
customers like (Airtel, Idea, Vodafone etc…) Customer oriented service is to be recommended for the good
2. Rapid development in technology. (i.e., 2G to 3G, 3G to 4G, customer friendly services.
4G to 5G). More advertisements (ad campaign) to gain other network
3. Maintaining of quality service is difficult like speed, tower customer.
range etc… To elaborate postpaid services in order to attract the different types
4. Government policies (i.e., TRAI). of customers like business people.
5. Perception of customer: Once free services are over, people
will not want to continue. References: [Net Source]
6. Requirements of huge investments for up gradation. [1] Vodafone- Idea merger – Forbes India.
7. Existing competitors have a strong and loyal customer base [2] http://economictimes.indiatimes.com/news/company/
so it is difficult to change the mindset of the customer. corporate-trends/
[3] Telecom from The Economic Times.
PEST Analysis of JIO: [4] Strategy Tools from MindTools .com.

Political:
“TRAI” is frames the rules and regulations for telecom industries.
The rapid growth of JIO made the competitor to disturb the
schemes and offers of JIO. The competitors appeal their rights
in “TRAI”.

Economic:
In this current economic situation it is very difficult task to run the
business at the same time while taking telecom industry already
there is large number of network operators but JIO is providing
free services with minimum charges to its service like call rate,
minimum price of their products. It feels the people more economic
in developing country like India; where the pricing is focused.

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