BENNETT UNIVERSITY, SCHOOL OF

MANAGEMENT

Microeconomics
MMBA701L
[Group Assignment]
A Strategic Analysis of Jio’s Telecom Industry Dynamics

Submitted By :-
SAYAK SAHA (M23MBAG0004)
VINESH RATHORE (M23MBAG0039)
ARYAN GOYAL (M23MBAG0006)
EKARTH SHRIVASTABA
(M23MBAG0189)
KANIKA SHARMA (M23MBAG0121)
LOKESH CHAUDHARY
(M23MBAG0196)

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TABLE OF CONTENTS:

1. Introduction
- Industry details,
- Company's details
- The products portfolio they offer,
- Their competitors.

2. Product details
- Product descriptions
- Quantities sold
- Cost price and selling price
- SWOT Analysis of the Company “Jio”

3. Analysis
- Profit margin,
- Relation between the quantity sold, cost price and selling price
- Factors that influence quantity sold and pricing decision making

4. Result
-Overall pricing suggestion to the management

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 INTRODUCTION
INDUSTRY DETAILS:-
The telecommunications industry is a critical sector globally that includes the transmission of
information through voice, and data across long distances through various means such as
wired and wireless communication technologies It is vital to modern society because it
enables global connectivity and facilitates communication between individuals, businesses,
and devices.
This provides an overview of the telecommunications industry, its components, and its
significance in today's world which provides services that allow people to communicate over
long distances. This includes telephone, mobile phone, and internet. This industry is critical
because it allows people to communicate with one another and access data collected all over
the world. It is also important in the global economy because it connects companies and
customers.
The telecommunications industry continues to change as fresh innovations and services are
introduced. The recent invention of 5G technology, for example, is revolutionizing how we
communicate and consume information.
Key infrastructure required for the telecom industry-
1. Network Infrastructure: The telecommunications business is dependent on a huge
network of physical and digital infrastructure. To carry data and voice transportation
involves a combination of wired infrastructure and wireless infrastructure.

2. Service Providers: Telecommunications service providers are businesses that provide

end-users with connectivity and communication services. Landline phone companies,
mobile network operators, internet service providers, and others. They offer a variety
of services, such as phone calls, data services, and broadband internet.

3. Devices and End-User Equipment: To provide telecommunications services, a

variety of devices including smartphones, tablets, laptops, telephone lines phones, and
dedicated equipment such as modems and routers are used. These devices are critical
for connecting people and business networks around the world for versatile work.

4. Regulation and Standards: Government agencies frequently tighten regulations in

the telecom industry to ensure equal competition, data privacy, and service quality.
International standards bodies, such as the International Telecommunication Union,
contribute to the development of global telecom standards..

5. Innovative Technologies: The telecom sector is always evolving. They include new
wireless technology development and breakthroughs in data transmission techniques,

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 and the spread of the Internet which connects numerous devices and sensors to the
network.

Significance of the telecom industry-

1. Connectivity: It enables people to communicate with each other, irrespective of

geographical boundaries, fostering global connectivity and making the world a more
interconnected place.
2. Economic Impact: The telecom sector is a significant contributor to the global
economy. It generates revenue through the provision of various services and the sale
of devices and equipment
3. Technological Advancements: The industry drives technological innovation, pushing
the boundaries of what is possible in terms of data speeds, communication quality,
and the development of smart devices and applications.
4. Social and Cultural Impact: Telecom has transformed how people live, work, and
interact. It has shaped modern society by revolutionizing communication,
entertainment, and the way businesses operate.
5. Emergency Services: Telecommunications infrastructure is crucial for public safety
and emergency services. It ensures that people can call for help during emergencies
and disasters.

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COMPANY'S DETAILS: -
Jio is an Indian telecommunications company operated by Reliance Industries. It was
founded in 2016 and quickly grew to become India's largest mobile network operator. Jio is
well-known for its low-cost data plans and high-speed 4G and 5G networks.
Jio has had a significant impact on India's telecommunications industry. It has compelled
other telecommunications companies to lower their prices and improve their services. Jio has
also increased internet usage in India significantly.

About Jio
Reliance Jio Infocom Limited, also known as Jio, is an Indian telecommunications company
and an affiliate of Jio Platforms based in Mumbai, Maharashtra, India. It runs a national LTE
network that covers all 22 telecom circles. It fails to offer 2G or 3G service, instead relying
solely on voice over LTE to deliver voice communications on its 4G network.
Reliance Jio Infocomm Limited

Jio’s headquarters in RCP, Navi Mumbai

Jio’s headquarters in RCP, Navi Mumbai
Type-Subsidiary of Reliance Industries
Industry-Telecommunications
Founded-15 February 2007; 14 years ago.
Founder-Mukesh Ambani
Headquarters are located at 222 Nariman Point in Mumbai, Maharashtra, India.
Key people-Mukesh Ambani (Chairman) Sandeep Das (Managing Director)
Products-Fixed line telephone, Mobile telephony, Wireless broadband, Internet services,
OTT

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Services
Revenue-Increase ₹90,287 crore (US$13 billion), (FY 2020–21)
Operating income-Increase ₹34,035 crore (US$4.8 billion) (FY 2020–21)
Net income-Increase ₹12,537 crore (US$1.8 billion) (FY 2020–21)
Total assets-Increase ₹305,965 crore (US$43 billion) (FY 2020–21)
Members-Increase 42.62 crore (426.2 million) (31 March)
Parent-Jio Platforms
Subsidiaries-LYF
Website-Jio.com

Network
Spectrum frequency holding summary Jio owns bandwidth in the 850 MHz and 1,800 MHz
bands in India's 22 circles, as well as licenced 2,300 MHz spectrum across the country. The
spectrum is valid until the year 2035.

Partnership
The information is written in a list format, but it may read better in prose. (April 2021)
Jio and Reliance Communications share spectrum. The agreement covers the 800 MHz band
across seven circles, in addition to the ten circles that Jio already owns.
Sep 2014 - Purchased an unidentified share in Airspan Networks for $5 million. Throughout
the network deployment phase, Airspan small cells are deployed.
Sep 2016 - Jio signed an intra-circle roaming agreement with BSNL, allowing users of both
operators to use each other's 4G and 2G spectrum in national roaming mode.
In February 2017- Jio announced a collaboration with Samsung Electronics to work on LTE
Advanced Pro and 5G.
February 2017 - Collaboration with Ciena on implementing transport SDN architecture.
Reliance Jio also partnered with several OSS (Operations Support Systems) & BSS (Business
Support System) companies for the deployment of services, like: SAP, HP, IBM, Ericsson,
Ran core, Estel Technologies, Subex and Intec Telecom Systems. However, the finalized OSS
firms were Ericsson, HP and Friendly Technologies.
Sep 2020 – Collaboration with Cisco Systems, Inc. for 5G deployment.
In September 2020, the company announces a collaboration with HFCL to deploy fiber-optic
communication to facilitate the rollout of FTT'x services.

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Here are some of the key achievements of Jio:
 Jio has the largest mobile network in India, with over 426 million subscribers.
 Jio offers the most affordable data plans in India.
 Jio was the first telecom operator in India to launch a 4G LTE network.
 Jio was the first telecom operator in India to launch a 5G network.
 Jio has played a major role in increasing internet usage in India.
 Jio is an important participant in India's telecommunications sector and is expected to
expand further in the coming years.
Here are some of the ways that Jio has disrupted the telecommunications industry in
India:
 Jio has made data much more affordable. This has led to a significant increase in
internet usage in India.
 Jio has compelled other telecommunications providers to lower their prices and
enhance their services in response.
 Jio has made it possible for people in rural areas to access high-speed internet.
 Jio has introduced a few exciting new services, including Jio TV and Jio Music.
 Jio has helped the Indian telecommunications industry by making it cheaper and more
readily available to people all over the country.

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THE PRODUCTS PORTFOLIO THEY OFFER: -
Jio offers a wide range of products and services, including:
 Mobile and broad band: Jio provides 4G and 5G mobile services, as well as high-
speed internet access.
 Jio Fiber: is Jio's high-speed internet service, with speeds reaching 1 Gbps.

 Jio Mart: Jio's online retail platform. It sells a wide variety of goods, such as
groceries, electronics, and clothing.

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  Jio Payments Bank is a payments bank and online wallet that provides a variety of
financial offerings such as bank accounts, debit cards, and money transfers.
 Jio Savan is a music streaming service that provides a diverse selection of Indian and
international music.
 Jio TV is a live television service that streams with over 1000 channels.
 Jio Cinema is a video-on-demand streaming platform that provides movies, TV
shows, and other video content.
 Jio Games is a cloud gaming service that provides a variety of games for
smartphones, tablets, and laptops.
 Jio News is a news app that provides a wide range of news from both Indian and
international sources.
 Jio Meet: is a kind of video meetings app for use in via the internet meetings and
classes.
 Jio Cloud is a cloud storage service that provides users with a safe location to store
their files.
 Jio Security: Jio Security is a security app that safeguards users' computers against
viruses, Trojan horses, and other online threats.

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THEIR COMPETITORS
The major competitors of Jio in the telecommunications industry in India are:

 Bharti Airtel
 Vodafone Idea
 BSNL

These three companies are the other major mobile network operators in India. They offer a
variety of mobile and broadband services, and they compete with Jio on price, coverage, and
quality of service. Jio faces competition from other telecommunications providers, including
Reliance Communications, Tata Teleservices, and Aircel, in addition to these three. These
companies, however, are considerably smaller than Jio and Airtel, and they do not provide the
same level of coverage or service quality.
Jio is also up against internet service providers like ACT Fibernet, Hathway, and Excitel
Broadband. These ISPs provide broadband internet access to both homes and businesses.
Finally, Jio is up against online streaming services like Netflix, Amazon Prime Video, and
Disney+ Hotstar. These services provide films, TV shows, and other video content that can be
viewed online.
Jio is India's largest mobile network operator, but it faces intense rivalry from other
telecommunications providers, ISPs, and online services that stream content. Jio is dedicated
to providing its users with the highest quality goods and services at a reasonable cost to keep
its market dominance spot.

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 PRODUCT DETAILS
Product description
Jio's mobile service is a 4G and 5G mobile service that offers high-speed data and voice
services to its customers. Jio's mobile service is well-known for its low-cost data plans and
extensive coverage. Jio's mobile service is available in each of India's 22 telecom circles. Jio
also provides international roaming in over 200 countries.
Jio's mobile service offers a variety of features, including:
High-speed data: Jio provides 4G and 5G mobile data services with download speeds of up
to 1 Gbps. Customers can now watch films, listen to music, and engage in games online
without buffering.
Unlimited voice calling: Jio provides unlimited voice calling to all Indian networks.
Customers can now send and receive calls to any phone number in India without worrying
about running out of minutes.
Affordable data plans: Jio provides some of India's lowest-cost mobile data plans. This
enables individuals from every walk of life to gain a connection with high-speed internet.
Wide coverage: Jio has the most extensive coverage of any Indian mobile network operator.
Customers can now use Jio's cell phone service even in rural areas.

Here are some of the benefits of using Jio's mobile service:

High-speed data: Jio offers 4G and 5G mobile data services at speeds of up to 1 Gbps. This
allows customers to stream videos, listen to music, and play games online without any
buffering.

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Unlimited voice calling: Jio provides unlimited voice calling to all Indian networks.
Customers can now make and receive calls to any phone number in India without worrying
about running out of minutes.
Affordable data plans: Jio provides some of India's lowest-cost mobile data plans. This
enables individuals who come from all walks of life to gain access to high-speed internet.
Wide coverage: Jio has the most extensive coverage of any Indian mobile network operator.
Customers can now use Jio's mobile service even in rural areas.
International roaming: Jio provides roaming service in over 200 countries. This makes it an
excellent choice for frequent travellers. If you want a high-speed, low-cost, and dependable
mobile service, Jio's mobile service is an excellent choice.

Total
Particulars Wireless Wireline (Wireless+
Wireline)
Broadband Subscribers (Million) 813.08 33.49 846.57
Urban Telephone Subscribers (Million) 627.54 26.16 653.71
Net Addition in March, 2023 (Million) 1.18 0.37 1.54
Monthly Growth Rate 0.19% 1.42% 0.24%
Rural Telephone Subscribers (Million) 516.38 2.25 518.63
Net Addition in March, 2023 (Million) 0.79 0.073 0.86
Monthly Growth Rate 0.15% 3.38% 0.17%
Total Telephone Subscribers (Million) 1143.93 28.41 1172.34
Net Addition in March, 2023 (Million) 1.96 0.44 2.40
Monthly Growth Rate 0.17% 1.58% 0.21%
Overall Tele-density*(%) 82.46% 2.05% 84.51%
Urban Tele-density*(%) 128.45% 5.36% 133.81%
Rural Tele-density*(%) 57.46% 0.25% 57.71%
Share of Urban Subscribers 54.86% 92.09% 55.76%
Share of Rural Subscribers 45.14% 7.91% 44.24%

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QUANTITIES SOLD
In India, Jio's mobile service has sold over 426 million connections, enabling it to become the
country's biggest mobile network operator. Jio was launched in 2016 and quickly gained
popularity due to its low-cost data plans and fast 4G network.
Here is a breakdown of the number of Jio mobile service connections sold in India by year:

Broadband subscribers (in Monthly

million) growth rate
Segment As on 28th As on 31st in the month of
March,
February, March,
2023
2023 2023

Wired subscribers 32.82 33.49 2.04%

Mobile devices users (Phones and
805.38 811.99 0.82%
dongles)
Fixed Wireless subscribers
(Wi-Fi, Wi-Max, Point-to- 1.12 1.09 -2.66%
Point Radio & VSAT)
Total 839.33 846.57 0.86%

Top five service providers constituted 98.37% market share of the total broadband
subscribers at the end of March-23. These service providers were Reliance Jio Infocom Ltd
438.56 million, Bharti Airtel 241.90 million, Vodafone Idea 124.83 million, BSNL 25.37
million and Atria Convergence 2.14 million.
Jio is expected to continue to grow in the coming years. The company is investing heavily in
its 5G network and is also expanding its product portfolio to include new services such as
online shopping and payments.
It should be noted that data on the number of Jio mobile services sold is not publicly
available. The information presented above is based on estimates from a variety of sources.

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COST PRICE AND SELLING PRICE
The cost price and selling price of Jio's mobile service are not publicly available. However,
we can make some educated guesses based on the following data:
Jio's average revenue per user (ARPU) is around ₹145 per month.
 Jio's operating margin is around 30%.
This means that Jio's cost price per user is around ₹101 per month. This includes the cost of
providing mobile service, such as the cost of network infrastructure, spectrum, and
marketing.
Jio's selling price per user is around ₹145 per month. This includes both the cost for offering
mobile service and a markup to cover Jio's operating expenses and generate a profit.
It should be noted that these are only estimates. The actual cost and selling price of Jio's
mobile service could differ based on several factors, including the customer's data plan,
region of residence, and current market conditions.
It's also worth noting that the cost and selling price of a mobile service aren't the same as the
cost and revenue of a mobile network operator (MNO). Other costs for MNOs include
spectrum, network infrastructure, and marketing.
Overall, Jio's mobile service is one of the cheapest in India. The company provides a variety
of data plans, and its prices usually fall lower than those of its competitors.

SWOT Analysis of the Company “Jio”

To learn the fundamentals of SWOT analysis and other company analytics techniques, we go
with 8 Most Common Business Analysis Strategies Used by Business Analysts.

Strengths:
Strengths are defined as suitable measures or actions that each business takes in its
broad range of activities that can provide its competitors with an edge. Reliance Jio's
advantages are as follows:
 Significant customer acquisition strategy
 Robust base of clients
 Fast technology to deliver better customer experience.
 Secure and consistent endorsement of parent organisation Reliance Industries
 Brand control and management
 Fast and ample network
 Diverse offerings under a single name.

Weakness:
Weaknesses are fields where a company or company needs to improve; some of
Reliance Jio's weaknesses are as follows:
 Pricing disagreements
 Delayed the opening into the market.
 The stimulation issues,

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  Overabundant giveaways
 Poor data connection.

Opportunities:

Opportunities are the thrilling walk in the business the atmosphere that occupies it on
which a company is able to grow its financial rewards. Currently, Jio is preparing for
some forthcoming growth by launching 5G and 6G Technology at affordable rates.

Major opportunities for Reliance Jio include

• Forthcoming consumed science and technology

• Rising prices in various countries,
• Cutthroat Pricing Options, and
• Apps and 5G and 6G technologies.

Threats:
Threats include multiple factors in the business setting that can be detrimental to the
business's expansion. The threats that Reliance Jio are facing:
• Risks of customer loss
• Criticism and negative image
• Eradication of unpaid services
• Unethical business practises and marketing techniques

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 ANALYSIS
PROFIT MARGIN
Let's analyse the profit margins based on the financial data provided for Jio Infocom for the
quarter ended June and compare it with the previous quarter.
1. Net Profit Margin is a key profitability ratio that indicates the proportion of revenue that
translates into net profit after all expenses.
- Net Profit Margin for the quarter ended June: 4,863cr to 24,042cr
- Net Profit Margin for the previous quarter: 4,716cr to 23,394cr
2. Gross Profit Margin is the gross profit to revenue ratio, which reflects the organization's
ability to make a profit from its key business activities.
- Gross Profit Margin for the quarter ended June: To calculate this, we need
information on the cost of goods sold (COGS) or gross profit.
3. Operating Margin is the operating income-to-revenue ratio, which represents the
effectiveness of the operations of a business before interest and taxes.
- Operating Margin for the quarter ended June: 12,278cr to 24,042cr
- Operating Margin for the previous quarter: 12,210cr to 23,394cr
These margins provide insights into the company's performance and profitability for the
specified quarters. For a more comprehensive analysis, additional financial data such as the
cost of goods sold (COGS) would be required to calculate the gross profit margin.
For the Year 2023

CMIE Expr CMIE Expr CMIE Expr

Annual Finance Annual Finance

Annual Finance Standalone Standalone Standalone
Rs. Million Rs. Million Rs. Million
L L L
Profit after tax reported by
company Total income Total expenses
-41510 117430 158940

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For the Year 2022

CMIE Expr CMIE Expr CMIE Expr

Annual Finance Annual Finance

Annual Finance Standalone Standalone Standalone
Rs. Million Rs. Million Rs. Million
L-1 L–1 L-1
Profit after tax reported by
company Total income Total expenses
-52900 76640 129540

For the Year 2021

CMIE Expr CMIE Expr CMIE Expr

Annual Finance Annual Finance

Annual Finance Standalone Standalone Standalone
Rs. Million Rs. Million Rs. Million
L-2 L–2 L-2
Profit after tax reported by
company Total income Total expenses
-51440 61400 112840

For the Year 2020

CMIE Expr CMIE Expr CMIE Expr

Annual Finance Annual Finance

Annual Finance Standalone Standalone Standalone
Rs. Million Rs. Million Rs. Million
L-3 L–3 L-3
Profit after tax reported by
company Total income Total expenses
-170 170

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RELATION BETWEEN THE QUANTITY SOLD, COST PRICE AND
SELLING PRICE
The relationship between a product's quantity sold, cost price, and selling price is a
fundamental economic concept. The number of units offered of a product or service is
referred to as the quantity sold. The cost price is the amount that the company spends on
producing the product or service. The selling price is the price that is charged by the company
to customers for the product or service. The quantity sold, cost price, and selling price in Jio's
telecommunications industry are related in the following ways:
Quantity sold: Jio's telecommunications services are sold in direct proportion to the selling
price. This means that if Jio raises its selling price, the number of services sold will fall. The
quantity of offerings sold will go up if Jio decreases its selling price. This is known as price
elasticity of demand.
Cost price: Jio's telecommunications services are sold in inverse proportion to their cost
price. This means that as Jio's cost price rises, so will the quantity of services sold. In
contrast, as Jio's cost price decreases, so will the number of services sold. This is known as
supply price elasticity.
Selling price: To be profitable, Jio's telecommunications offerings must have a selling price
that is higher or equal to the cost price. If the selling price is less than the cost price, Jio is
going to lose money on each unit sold. This relationship is known as the profit margin.
Jio can make pricing and production decisions based on the relationship between quantity
sold, cost price, and selling price. If Jio wants to boost sales, it can lower its selling price or
increase its marketing and advertising efforts. Jio's profits can be increased by growing its
selling price or lowering its cost price. Jio, on the other hand, must consider how its decisions
will affect its customers and rivals.
It must be noted that there isn't always a clear relationship between quantity sold, cost price,
and selling price. The competitive environment, the economic climate, and consumer
preferences are all factors that may impact these variables. Nonetheless, Jio will be able to
make more informed pricing and production decisions if it understands the connection
between these variables.

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Category-wise Growth in subscriber base

Circle Category-wise Net Additions in Telephone Subscribers in the

month of March 2023

Net additions in the month Telephone Subscriber base as

Circle of March, 2023 on 31st March, 2023
Category Wireline Wireless Wireline
Wireless segment
segment segment segment
Circle A 1,78,533 2,25,861 1,08,67,868 38,47,13,764

Circle B 1,78,655 7,90,594 72,41,404 46,38,01,994

Circle C 47,993 10,40,506 20,84,553 18,25,46,222
Metro 35,772 -93,587 82,15,951 11,28,65,963

All India 4,40,953 19,63,374 2,84,09,776 1,14,39,27,943

Circle Category-wise monthly and yearly Growth Rates in Telephone

Subscribers in the month of March 2023

Monthly growth rate (%) Yearly

growth rate
(%)
Circle (February (March-
-23 to 22 to
March-23) March-
23)
Category Wireline Wireless Wireline Wireless
Segment Segment Segment Segment
Circle A 1.67% 0.06% 14.42% -0.40%
Circle B 2.53% 0.17% 23.52% -1.03%
Circle C 2.36% 0.57% 35.16% 3.17%
Metro 0.44% -0.08% 3.52% 2.32%

All India 1.58% 0.17% 14.37% 0.16%

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  Details of Demand and Supply of JIO 1GB plans

Average Average
Service Price Service Price
Supplied Demanded

25 149 80 149
50 179 50 179
75 209 20 209

Bar GraphFor 1 GB Per Day(Average)

Series1 Series2 Series3

250

200

150

100

50

0
Average Service Price Average Service Price
Supplied Demanded

Demand Curve Price For 1 GB Per Day(Average)

250

200

150
Price

100

50

0
10 20 30 40 50 60 70 80 90
Service Supplied

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  Details of Demand and Supply of JIO 1.5GB plans

Average Average
Service Price Service Price
Supplied Demanded
6 195 60 195
12 199 55 199
18 239 50 239
24 259 45 259
30 269 40 269
36 328 35 328
42 479 30 479
48 529 25 529
54 666 20 666
60 739 15 739
66 758 10 758
72 2545 5 2545

Bar Graph Price for 1.5 GB Per Day

(Average)
3000
2500
2000
1500
1000
500
0
1 2 3 4 5 6 7 8 9 10 11 12

Quantity Supply Price #REF!

Quantity Demanded Price

Demand Curve Price for 1.5 GB Per Day

(Average)
700
600
500
400
Price

300
200
100
0
0 10 20 30 40 50 60 70
Quantity Supplied

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  Details of Demand and Supply of JIO 2GB plans

Average Average
Service Price Service Price
Supplied Demanded

25 249 50 3226
50 299 75 3225
75 388 86 3178
100 533 123 1099
125 589 145 909
150 598 167 808
175 719 175 806
200 749 200 805
225 789 225 789
250 805 250 749
275 806 275 719
300 808 300 598
325 909 325 589
350 1099 350 533
375 3178 375 388
400 3225 400 299
425 3226 425 249

Demand Curve Price for 2 GB Per Day (Average)

Average Service Supplied Price #REF!
Average Service Demanded Price
3500

3000

2500

2000

1500

1000

500

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

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 Bar Graph Price for 2 GB Per Day (Average)
3500

3000

2500

2000

1500

1000

500

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Average Service Supplied Price #REF!

Average Service Demanded Price

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  Details of Demand and Supply of JIO 2.5GB plans

Average Average
Service Price Service Price
Supplied Demanded

34 349 69 349
72 2999 40 2999
106 3662 30 3662

Demand Curve Price for 2.5 GB Per Day

(Average)
4000
3500
3000
2500
2000
Price

1500
1000
500
0
20 30 40 50 60 70 80 90 100 110 120
Quantity Supplied

Bar Graph Price for 2.5 GB Per Day

(Average)
4000
3500
3000
2500
2000
1500
1000
500
0
Average Service Price Average Service Price
Supplied Demanded

Series1 Series2 Series3 Series4

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Factors that influence Quantity Sold and Pricing decision making.
Demand: Jio Telecom needs to consider the demand for its services from its target
customers. This demand is influenced by a number of factors, including the price of Jio
Telecom's services, the price of similar services from competitors, the quality of Jio
Telecom's services, the disposable income of customers, and the overall state of the economy.
Cost: Jio Telecom also needs to consider its costs, both variable and fixed. Variable costs,
such as the cost of data and network maintenance, increase as Jio Telecom sells more
services. Fixed costs, such as the cost of network infrastructure and marketing and
advertising, do not change significantly as Jio Telecom sells more services.
Competition: Jio Telecom also needs to consider the competitive landscape. The prices of
similar services from competitors set a ceiling on the prices that Jio Telecom can charge.
However, if Jio Telecom's services are differentiated from those of its competitors, it may be
able to charge higher prices. Jio Telecom also needs to consider the market share of its
competitors. If a competitor has a large market share, Jio Telecom may need to be more
aggressive with its pricing in order to gain market share.
Government regulations: Jio Telecom also needs to comply with all applicable telecom
regulations. These regulations may impose restrictions on Jio Telecom's pricing and
marketing strategies.
Other factors: Other factors that Jio Telecom may need to consider when making pricing
decisions include seasonality and new product launches. For example, Jio Telecom may offer
discounts during the holiday season to attract customers. Or, Jio Telecom may offer discounts
on its existing services when it launches a new service.
Jio Telecom uses a variety of data and analytics tools to gather information about the factors
listed above. This information helps Jio Telecom to make informed pricing decisions that
maximize its profits.
Here are some specific examples of how Jio Telecom has used the factors listed above to
make pricing decisions:
When Jio Telecom first launched in 2016, it offered free data and voice calls for a limited
period of time. This helped Jio Telecom to attract a large number of customers.
Jio Telecom also offers a variety of prepaid and postpaid plans that are tailored to the needs
of different customer segments. For example, Jio Telecom offers a special plan for students
that offers a discount on data and voice calls.
Jio Telecom also offers discounts to customers who switch to its services from other telecom
operators.
Jio Telecom's pricing decisions have been very successful in helping the company to become
the largest telecom operator in India by number of subscribers.

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Jio business strategy analysis
Reliance is a massive company, and so are the scales of business strategies employed by the
company. We have conducted further research and identified where Reliance could have
improved Jio’s business strategy. So let’s go through the business strategy of Jio.

Market entry:
The market entry “strategy” did not work out well, as expectations were high for Reliance Jio
due to its late entry and on the other hand Breaking established and strong opponents like
Airtel and Vodafone with descriptive technology grounded into the hearts of customers was
not less than a “herculean task”.

Consumer loss:
Withdrawal of free services brought a downfall in its users. The decline of the customer base
for Reliance Jio in 2019 was mainly due to the start of charging customers for voice calls.
According to TRAI, there were almost 87 million inactive users. Anyhow now it has offered
a free voice call around domestic places.

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 RESULT
Overall pricing suggestion to the management
I would like to take few of the initiatives that could help my company to grow and to give
more surplus to the company. These will be the few initiatives that I would like to take for the
betterment of the company.
The points are as follows:
Competitive Pricing Strategies: Given the intense competition in the telecommunications
sector, Jio should continue to focus on competitive pricing. Regular market analysis should
be conducted to ensure Jio's prices are in line with or lower than those of its key competitors.
Pricing should not only be competitive but also offer superior value to customers in terms of
data allowances, call quality, and additional services.
Tiered Pricing Plans: Jio might consider offering tiered pricing plans serving various
customer segments. This could include plans for light users, heavy data users, business users,
and rural customers. Jio can attract a broader customer base and meet a wide range of needs
by offering a variety of plans.
Retention Strategies: Implement customer retention strategies such as loyalty programmes
or long-term customer discounts. Retaining current customers is just as important as gaining
new ones. Giving customers incentives to stay with Jio, such as exclusive content or
discounts on additional services, can boost customer loyalty.
Market Research: Conduct market research and customer surveys on a regular basis to
understand changing customer preferences and willingness to pay. Customer feedback
analysis can provide helpful insights into what customers perceive to be valuable services,
assisting Jio in aligning its pricing with customer expectations.
Promotional Pricing for New Services: Consider offering promotional pricing for a limited
time when launching new services or products. This can generate enthusiasm and attract early
adopters. However, make certain that the promotional pricing is long-term and does not cause
financial strain.
Transparency: Maintain pricing structure transparency. Customers should understand
exactly what they are paying for and what services are included in their plans. Customer
dissatisfaction can be caused by hidden fees or complex pricing structures.
Regular Evaluation: Continuously evaluate the efficacy of pricing strategies. Assess
customer feedback, market trends, and financial performance on a regular basis to make data-
driven pricing adjustments.
Jio can maintain a competitive edge while providing value to its customers by considering
these strategies and staying tuned in to market dynamics. In the volatile telecommunications
industry, regular adaptation and flexibility in pricing strategies are critical.

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REFERENCES
https://www.analyticssteps.com/blogs/reliance-jio-and-jiomart-marketing-strategy-swot-
analysis-and-working-ecosystem
https://en.wikipedia.org/wiki/Jio
https://www.studocu.com/in/document/annamalai-university/digital-innovation-and-
transformation/a-comparative-study-on-jio-and-airtel/34845015/
https://www.customer-care-number.in/jio-india/
https://www.perplexity.ai/search/82f02668-d6c7-426d-b5bd-cd7260eb3bd1?s=u
https://www.trai.gov.in/sites/default/files/PR_No.46of2023_0.pdf
CMIE Database
https://www.jio.com/
https://www.jio.com/selfcare/recharge/mobility/

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