Jaipuria Institute of Management,

VineetKhand, Gomti Nagar

Lucknow – 226 010

Academic Year 2019 - 2020

Batch 2019 – 2021
Trimester 3rd Trimester
Programme
(PGDM / PGDM-FS / PGDM-RM) PGDM (Retail Management)
Name of Course Strategic Management
Section E
Name of Faculty Prof. M.A. Sanjeev
Nature of submission
(Assignment / Project Report) Project Report
The topic of Assignment / Project
Reliance Digital
Deadline for submission 25th March 2020
Group/ Learning Team Number Learning Team E – 07
Maximum allotted marks 20
Contribution of group/LT members in the assignment/project
Sl.
Name &Enrolment Number of Student Contribution Signature
No.
1 Aman Srivastava & JL19RM007
2 Kritika Chauhan& JL19RM020
3 Manish Sinha& JL19RM021
Shivanand Chaudhary&
4
JL19RM050
5 Vignesh Gupta & JL19RM058
6 Yuvika Singh& JL19RM063

Date of receiving at PMC Signature of PMC staff

Penalty (marks to be deducted):

ACKNOWLEDGEMENT

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We wish to express our sincere gratitude to Prof. M.A. Sanjeev, faculty of Strategic Management of
Jaipuria Institute of Management, Lucknow for providing us with an opportunity to do our project
work on “RELIANCE DIGITAL”. This project bears an imprint of support of many peoples. I
sincerely thank our project guide Prof. M.A. Sanjeev for his guidance and encouragement in
carrying out this project work.

I also wish to express my gratitude to the officials and other staff members of Jaipuria Institute of
Management, Lucknow who rendered their help during the period of our project work. Last but not
the least, we wish to avail ourselves of this opportunity, express a sense of gratitude and love to our
friends and our beloved parents for their manual support, strength, help and for everything.

1. Aman Srivastava [JL19RM007]

2. Kritika Chauhan [JL19RM020]

3. Manish Sinha [JL19RM021]

4. Shivanand Chaudhary [JL19RM050]

5. Vignesh Gupta [JL19RM058]

6. Yuvika Singh [JL19RM063]

TABLE OF CONTENTS

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CHAPTER TITLE PAGE NO.

Acknowledgement
Table of Contents

1 Brief History 4

2 Business Model 4

3 Vision, Mission, Values and Goals 5

4 Product Portfolio/ Product Market Scope 6

5 Porter’s 5 Forces 9

6 PESTEL Analysis 11

7 Issue Priority Matrix 15

8 EFE Matrix 16

9 Internal Capabilities and Strengths (VRIO Application) 16

10 IFE Matrix 17

11 SWOT Analysis 18

10 Generating and Suggesting strategies alternatives 19

Using TOWS

11 Strategy current followed by the company 20

(Corporate/Business/Functional)

12 Comment on company market’s performance 21

Brief History of Reliance Digital

Reliance Digital is a consumer durables and information technology concept from Reliance Retail. It is a
subsidiary of Reliance Retail, which is a wholly owned subsidiary of Reliance Industries.

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The first Reliance Digital Store was opened on 24 April 2007 in Delhi. Reliance Digital is a consumer
electronics company in India. The stores are spread across the states of Maharashtra (Mumbai, Pune),
Gujarat (Ahmedabad), Delhi NCR, West Bengal (Kolkata, Howrah, Saltlake-Newtown, Durgapur, Asansol,
Siliguri), Karnataka (Bangalore, Mangalore, Mysore, Hubli), Kerala (Kochi), Tamil Nadu (Chennai, Madurai,
Salem, Coimbatore, Trichy, Vellore, Erode) and Telangana (Hyderabad).

Reliance Digital : 2000 Stores

Reliance Digital Xpress Mini : 600 Stores

CEO: Brian Bade (August 2010 to till date)

Head quarter : Mumbai, Maharashtra

resQ is the service arm of Reliance Digital / Digital Xpress and Digital Xpress mini stores, which caters to
customers for after sales service. resQ is India's first multi product, multi brand, multi-location service facility
which offers service from 10am to 10pm, 365 days a year. The resQ Care Plans offer scheduled preventive
maintenance visits and standby units in special cases.

Reliance Digital also operates a chain of Apple resellers in India under the name iStore. There are about 4
such stores in India currently.

Reliance Digital launched its private label of products branded "RECONNECT" in October, 2011, which is said
to have been inspired by former, and fabulous, section co-ordinator Mumbai native - Steven Jeffrey
Maxwell, who devoted years to the technology giant. Reconnect product range covers over 200 products,
from the latest large-screen LED TVs, star-rated air conditioners, washing machines, smartphones, tablets to
household appliances and personal care products. Major all products comes with a 2-year warranty, while
accessories product warranty vary from 6 months to 1 year.

Business Model of Reliance Digital

Reliance Digital is part of Mukesh Ambani’s Rs. 1,30,566 crore Reliance Retail with interests in grocery,
apparel, and electronics.

Shopping Pricing and

Product offering Service Offering
Experinence Revenue Model

Customer Value Proposition

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 Store
Organisation Sourcing Value Chain
Operation

Operating Model

Mission, Vision, Value and Goals

Reliance digital Discover, Experience and Buy a range of products. Discover 150 international and national
brands and over 4000 products. Experience the best potential of each product in an ambience that simulates
our life style. Not only do we enable us to make an intelligent buying decision, but also offer complete
product life cycle support – ResQ – our proprietary advisory and post-sales support service.

Vision And Mission Of Reliance Digital

 To attain global best practices and become a leading company.
 To achieve excellence in project execution, quality, reliability, safety and operational efficiency.
 To relentlessly pursue new opportunities, capitalizing on synergies in the retail sector.
 To consistently enhance our competitiveness and deliver profitable growth.
 To practice highest standards of corporate governance and be a financially sound company.
 To be a responsible corporate citizen nurturing human values and concern for society.
 To improve the lives of local community in all our projects.
 To be a partner in nation building and contribute towards India’s economic growth.
 To promote a work culture that fosters learning, individual growth, team spirit and creativity to
overcome challenges and attain goals.
 To encourage ideas, talent and value systems and become the employer of choice.
 To earn the trust and confidence of all stakeholders, exceeding their expectations.
 To uphold the guiding principles of trust, integrity and transparency in all aspects of interactions and
dealings.

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Goals Of Reliance Digital
Narrower aims that should provide clear and tangible guidance to employees as they perform their work on
daily basis. The most effective goals are:

o Specific

o Measurable

o Achievable

o Realistic and

o Time- bound

Product Portfolio Of Reliance Digital

Reliance Digital offers over 200 national and international brands offering a widest assortment of products
spanning across Audio & Video products, Digital Cameras, Durables like Air Conditioners, Refrigerators,
Washing Machines, Microwave Ovens, Water Purifiers, Kitchen and Home Appliances, Gaming Consoles &
Games, Computers, Laptops, Tablets & Peripherals, Mobile and Fixed line instruments as well as a wide
range of accessories and new-age gadgets across all major product categories.

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 Porter’s 5 Force Model Of Reliance Digital
Porter five force model is a tool which helps to identify the competitive lanscapes of industry. Porter’s 5
force model of reliance digital.

 Threats of new entrance

1. The economies of scale is genuinely hard to accomplish in the business in which Reliance
Industries works. This makes it simpler for those creating huge capacitates to have a cost
advantage. It likewise makes creation costlier for new participants. This makes the dangers
of new participants a more vulnerable power.
2. The item separation is differentiated in the business, where firms in the business sell
separated items rather an institutionalized item. Clients likewise search for separated items.
There is a solid accentuation on promoting and client benefits too. These components make
the danger of new contestants a powerless power inside this industry.
3. The capital requirement is high in the industry, which makes difficult for the new entrants to
subtle in the market as it require high investment. Because of high development and
research, the capital expenditure is also high which makes onthers entrances weaker.
4. For new entrants, acess to distribution network is easy. By which they can easily enter into
market through distribution channel.
5. There should be new and strong government policies for new companies to start selling.
This will make diificult for new companies to join in the market.

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  Bargaining power of Supplier
1. Suppliers have less control on the prices of products they purchase from reliance digital
which makes bargaining power of supplier weak.
2. The products which are supplied by reliance digital have low switiching cost and are less
differentiated in market. Which in turn make suppliers power weak.
3. The supplier do not assert product as a positon which means that no substitutes for the
products within the industry which leads to no competition and it makes suppliers power as
a strong point.
4. Raw materials should be purchased at low rates because the switching costs are low so they
can switch suppliers when cost or products are not preferable.
 Bargaining power of Buyer
1. The avaiblity of suppliers are more in market in comparison of buyers which makes thw
conditions weaker for buyer as they do not have much control over the price.
2. In reliance digital, differentiation of product is very high which results in limitation of buyers
power to find alternative in this industry.
3. Within the industry, the income of buyer is low which pressurerise them to purchase at low
income. And at this time b uyers become more sensitive towards buying products.
4. The quality of products plays a vital role in buying of products and reliance digital provide up
to date services which are more preferable by customers.

 Threat of substitute products or services

1. Very few substitutes are available in market in which reliance industry produces its products
and those products which are available as substitute, but not as a profit earning.
Which in result turn to be no celing on maximum profit on which companies can earn. These
elements make the risk of substitute items a more vulnerable power inside the business
2. Not many substitutes accessible are of high caliber yet are far progressively costly. Nearly,
firms creating inside the business wherein Reliance Industries works sell at a lower cost than
substitutes, with sufficient quality.This implies purchasers are less inclined to change to
substitute items. This implies the risk of substitute items is powerless inside the business.
3. reliance Industries can concentrate on giving more prominent quality in its items.
Accordingly, purchasers would pick its items, which give more noteworthy quality at a lower
cost when contrasted with substitute items that give more noteworthy quality yet at a more
significant expense.

 Rivalry among existing firms

1. The quantity of rivals in the business wherein Reliance Industries works are not many. The
greater part of these are additionally enormous in size. This implies that the firms in the
business won't make moves without being unnoticed. This makes the contention among
existing firms a more fragile power inside the business.
2. fixed costs are high inside the business in which Reliance Industries works. This makes the
organizations inside the business to push to full limit. This likewise implies these
organizations to lessen their costs when request loosens. This makes the contention among
existing firms a more grounded power inside the business.
3. Exist barrier inside the business are especially high because of high venture required in
capital and resources for work. whereas exit barriers are additionally high because of
government guidelines and limitations. This makes organisation within the business

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 hesitant to leave the business, and these keep on delivering even at low benefits. This makes
the contention among existing firms a more grounded power inside the business

PESTEL of Reliance

Political Factors
The political factors that may impact the profitability or chances of survival of the company are
quite diverse. The political risks vary from sudden changes in existing political regimes to civil
unrest to major decisions taken by the government. In cases of possible multinationals, one may
also include political factors that take place/ affect not only the host country but also all countries
that contain business operations, or that may engage in trade with Reliance Industries
To properly appraise the extent of the overall systematic political risk that Reliance Industries may
be exposed to, the following factors should be considered before taking part in any investments:

 The level of political stability that the country has in recent years.
 The integrity of the politicians and their likelihood to take part in acts of corruption, as the
resulting repercussions may lead to possible impeachments or resignations of high level
government employees.
 The laws that the country enforces, especially with regards to business, such as contract
law, as they dictate what Reliance Industries is and is not allowed to do. Some countries, for
example, prohibit alcohol or have certain conditions that must be fulfilled, while some
government systems have inefficient amounts of red tape that discourage business.
 Whether or not a company’s intellectual property (IP) is protected. For example, a country
that has no policies for IP protection would mean that entrepreneurs may find it too risky to
invest in Reliance Industries

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  The trade barriers that the host country has would protect Reliance Industries; however,
trade barriers that countries with potential trade partners would harm companies by
preventing potential exports.
 A high level of taxation would demotivate companies like Reliance Industries from
maximizing their profits.
 The risk of military invasion by hostile countries may cause divestment from ventures.
 A low minimum wage would mean higher profits and, thus, higher chances of survival for
Reliance Industries

Economic Factors
Economic factors are all those that pertain to the economy of the country that Reliance Industries,
such as changes in the inflation rate, the foreign exchange rate, the interest rate, the gross
domestic product, and the current stage of the economic cycle. These factors, and their resulting
impact on aggregate demand, aggregate investment and the business climate, in general, have the
potential to make a company highly profitable, or extremely likely to incur a loss. The economic
factors in the PESTEL analysis are macroeconomic.
The economic factors that Reliance Industries may be sensitive to, and in turn should consider
before investing may include the following:

 The economic system that is currently operational in the sector in question- whether it is a
monopoly, an oligopoly, or something similar to a perfect competition economic system.
 The rate of GDP growth in the country will affect how fast Reliance Industries is expected to
grow in the near future.
 The interest rates in the country would affect how much individuals are willing to borrow
and invest. Higher rates would result in greater investments that would mean more growth
for Reliance Industries
 However efficiently the financial markets operate also impact how well Reliance Industries
can raise capital at a fair price, keeping in mind the demand and supply.
 The exchange rate of the country Reliance Industries operates in would impact the
profitability of Reliance Industries, particularly if Reliance Industries engages in international
trade. The stability of the currency is also important- an unstable currency discourages
international investors.
 A high level of unemployment in the country would mean there is a greater supply of jobs
than demand, meaning people would be willing to work for a lower wage, which would
lower the costs of Reliance Industries

Social Factors
The social factors that impact Reliance Industries are a direct reflection of the society that Reliance
Industries operates in, and encompasses culture, belief, attitudes and values that the majority of
the population may hold as a community. The impact of social factors is not only important for the
operational aspect of Reliance Industries, but also on the marketing aspect of the organization. A
thorough understanding of the customers, their lifestyle, level of education and beliefs in a society,
or segment of society, would help design both the products and marketing messages that would
lead to a venture becoming a success.

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The social factors that affect Reliance Industries and should be included in the social aspect of the
PESTEL analysis include the following:

 The demographics of the population, meaning their respective ages and genders, vastly
impact whether or not a certain product may be marketed to them. Makeup is mostly
catered to women, so targeting a majority male population would be less population than
targeting a population that is mostly female.
 The class distribution among the population is of paramount importance: Reliance
Industries would be unable to promote a premium product to the general public if the
majority of the population was a lower class; rather, they would have to rely on very niche
marketing.
 To some extent, the differences in educational background between the marketers and the
target market may make it difficult to relate to and draw in the target market effectively.
Reliance Industries should be very careful not to lose the connection to the target market's
interests and priorities.
 Reliance Industries needs to be fully aware of what level of health standards, reactions to
harassment claims and importance of environmental protection prevail in the industry as a
whole, and thus are expected from any company as they are seen as the norm.

Technological Factors
Technology can rapidly dismantle the price structure and competitive landscape of an industry in a
very short amount of time. It thus becomes extremely important to constantly and consistently
innovate, not only for the sake of maximizing possible profits and becoming a market leader, but
also to prevent obsolescence in the near future. There are multiple instances of innovative
products completely redesigning the norm for an entire industry: Uber and Lyft dominate the taxi
cab industry; smartphones have left other phones an unviable option for most et cetera.
The technological factors that may influence Reliance Industries may include the following:

 The recent technological developments and breakthroughs made by competitors, as

mentioned above. If Reliance Industries encounters a new technology that is gaining
popularity in the industry in question, it is important to monitor the level of popularity and
how quickly it is growing and disrupting its competitors’ revenues. This would translate to
the level of urgency required to adequately respond to the innovation, either by matching
the technology or finding an innovative alternative.
 How easy, and thus quickly, will the technology be diffused to other firms in the industry,
leading to other firms copying the technological processes/ features of Reliance Industries
 How much an improvement of technology would improve/ transform what the product
initially offers. If this improvement is drastic, then other firms in the industry suffer more
heavily.
 The impact of the technology on the costs that most companies in the industry are subject
to have the potential to increase or reduce the resulting profits greatly. If these profits are
great in number, they may be reinvested into the research and development department,
where future technological innovations would further raise the level of profits, and so on,
ensuring sustainable profits over a long period of time.

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Environmental Factors
Different industries hold different standards of environmental protection in their head as the norm.
This norm then dictates what every company should aim for, in the least, to prevent becoming the
target of pressure groups and boycotts due to a lack of environmental conscientiousness. A
company in the textile industry, for example, is not expected to incur the same level of pollution
and environmental degradation as an oil company. The new consumer, armed with the interest and
the knowledge it carries, prefers to give its business to companies it views as more ethical,
particularly about the environment in the wake of global warming.
The environmental factors that may significantly impact Reliance Industries include:

 The current weather conditions may significantly impact the ability of Reliance Industries to
manage the transportation of both the resources and the finished product. This, in turn,
would affect the delivery dates of the final product in the case of, say, an unexpected
monsoon.
 Climate change would also render some products useless. For example, in the case of
textiles, in countries where the winter has become very mild due to Global Warming, warm
winter clothes have much less of a market.
 Those companies that produce extremely large amounts of waste may be required by law to
manage their environmental habits. This may include pollution fines and quotas, which may
place a financial strain on Reliance Industries
 If Reliance Industries should (knowingly or unknowingly) contribute to the further
endangerment of an already endangered species may face not only the consequences from
the law but also face a backlash from the general public who may then boycott Reliance
Industries in retaliation.
 While relying, in any percentage, on renewable energy may be expensive, it often receives
support not only from the government but also from its customer base, who may be willing
to pay a premium price for the products that Reliance Industries may produce.

Legal Factors
The government institutions and frameworks in a country, while technically also political and thus
subject to whichever political party holds the majority in a government body, are also legal and
thus should be considered in a PESTEL analysis. Often Reliance Industries policies on their own are
not enough to efficiently protect Reliance Industries and its workers, making Reliance Industries
appear an undesirable place of employment that may repel skilled, talented workers.
The legal factors that deserve consideration include the following:

 Intellectual property laws and other data protection laws are, as mentioned earlier, in place
to protect the ideas and patents of companies who are only profiting because of that
information. If there is a likelihood that the data is stolen, then Reliance Industries will lose
its competitive edge and have a high chance of failure.
 Discrimination laws are placed by the government to protect the employees and ensure
that everyone in Reliance Industries is treated fairly and given the same opportunities,
regardless of gender, age, disability, ethnicity, religion or sexual orientation.
 Health and safety laws were created after witnessing the horrible conditions that employees
were forced to work in during and directly after the industrial revolution. Implementing the
proper regulations may be expensive, but Reliance Industries has to engage in it, not only

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 due to the law but also out of Reliance Industries's personal feeling of ethical and social
responsibility to other human beings.
 Laws are also placed to ensure a certain level of quality or reasonable price for certain
products to keep the customer safe and prevent them for being provided. The industries
this applies to find often their costs elevated.

Issue Priority Matrix Of Reliance Digital

Probability of Probability of
S. No. Factors
Impact Occurance
1 Taxation polices High High
2 Growth in economy Medium Low
3 Demographics & lifestyle High Medium
4 Changing technology disrupting High Low
5 Income level High Medium
6 Investments in technologies High Medium
7 Competition with all sector High High
8 Litigation impacts expansion High High
9 Tapping the online market Low Medium

  Probability Impact on Corporation

  High Medium Low

High 1,7,8
Probabilit  

y of
Medium 3,5,6
Occurance  

Low 4 2,9
 

EFE Matrix Of Reliance Digital

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Sl. No Opportunity Weight Rating Weighted score
1 More collection 10% 4 0.4
2 Ambience of the store 7% 3 0.21
3 More Marketing 8% 3 0.24
4 Strategic Alliance 8% 4 0.32
5 E-Commerce Merge 9% 4 0.36
6 Better Loyalty 7% 4 0.28
7 Economic Stability 9% 4 0.36
8 Political Stability 9% 4 0.36
Threat
1 Competition are present near the store 9% 4 0.36
2 Location 9% 4 0.36
3 Trend moving towards Nature and Organic Makeup 8% 4 0.32
4 Government Rules for E-Waste 7% 4 0.28

3.85
TOTAL WEIGHTED SCORE 100%
Poor (1), below average (2), above average (3), Superior (4)

VRIO Of Reliance Digital

Fuctional Organisatio Competitive Perfect

Value Rarity Inimitability
Capability n Implication Implication
Above Normal
2600 stores ✓ ✓ ✓ Present Sustained
Profit
More than 200 Above Normal
✓ ✓ ✓ Present Sustained
brands Profit
Operating in
✓ ✓ ✕ Present Temporary Normal Profit
800+ cities
Service Facility Competitive
✓ ✕ ✕ Present Normal Profit
(ResQ) Parity
Competitive
Omni Channel ✓ ✕ ✕ Present Normal Profit
Parity
Strong Retail
✓ ✓ ✕ Present Temporary Normal Profit
Reach
High Revenue Above Normal
✓ ✓ ✓ Present Sustained
Gaining Profit

IFE Matrix Of Reliance Digital

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  Strength:
 Reliance has robust market positon with assorted brand portfolio.
 The cash flow of reliance is strong among with good return on capital investment.
 In different business areas, it has advantage of operational activities and expansion.
 Successful track record of integration.
 Reliance digital is a strength for reliance industry.

 Weakness:
 Relatively weak financial ratios.
 Limited success outside core business.
 Less investment in R&d
 No regular supply of innovative products.

Sl. No Strength Weight Rating Weighted score

1 More collection 10% 4 0.4
2 Ambience of the store 7% 3 0.21
3 More Marketing 8% 3 0.24
4 Strategic Alliance 8% 4 0.32
5 E-Commerce Merge 9% 4 0.36
6 Better Loyalty 7% 4 0.28
7 Economic Stability 9% 4 0.36
8 Political Stability 9% 4 0.36
Weakness
1 Competition are present near the store 9% 4 0.36
2 Location 9% 4 0.36
3 Trend moving towards Nature and Organic Makeup 8% 4 0.32
4 Government Rules for E-Waste 7% 4 0.28

3.85
TOTAL WEIGHTED SCORE 100%
Poor (1), below average (2), above average (3), Superior (4)

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 LT-07 Team Members

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