Assignment Case Study On Reliance V/S Byju'S: Managerial Economics

MANAGERIAL ECONOMICS
ASSIGNMENT
CASE STUDY ON RELIANCE V/S BYJU’S
Reliance Jio: Reliance Jio Infocomm Limited, Jio, is an Indian
telecommunications company and a subsidiary of Jio Platforms, headquartered in Mumbai,
Maharashtra, India. It operates a national LTE network with coverage across all 22 telecom
circles. It does not offer 2G or 3G service, and instead uses only voice over LTE to provide
voice service on its 4G network. Jio soft launched on 27 December 2015 with a beta for
partners and employees, and became publicly available on 5 September 2016. As of 31
December 2019, it is the largest mobile network operator in India and the third largest
mobile network operator in the world with over 387.5 million subscribers.
BYJU’S: Byju’s is now India’s largest Ed-Tech (Learning) company. The idea is to
reinvent how students learn and transform learning into fun by their learning classes and the
learning app.Byju’s classes offer preparation training for different competitive
examinations. It is now India's leading provider of supplemental school curriculum classes
for classes 6-12 and test preparation training for CAT, JEE, IAS, GMAT and GRE. They
target for high quality, engaging and accessible education with fun learning sessions they
provide.
Difference between both the firms

A recent report by Mary Meeker reveals that at present India is the 12% of the world
3.8 billion internet users. Whereas China has 21% US holds a total of 8%. India leads
globally in terms of internet users. The report points out Mukesh Ambani’s RELIANCE Jio
behind unprecedented growth in data use in India. The total number of people using Jio in
India stands around 306.7 million and asperse Telecom Regulatory Authority of India
report this number comes down to nearly 40% of the country’s total subscriber base.
According to the report, in 2018, the annual data usage of Jio was almost 17 EB (exabytes).
Jio’s last quarter result shows per month usage of data by an average consumer to be 11 GB
and this must increase post 5G.The spotlight on the Mary Meeker report falls on education
unicorn Byju’s. The company had earlier reported that as total number of its paid user base
increases to touch 2.4 million, its revenue has also tripled in this financial year, March 2019
and reached₹14.3 billion.The online education according to the report, has been growing
rapidly in the past few years due to the expensive tuitions fees in undergraduate courses and
increasing student loan debt.Byju Raveendran is known to be the founder of this 8-year-old
start-up. Mr. Raveendran founded this company in 2011 and its last report suggests that it
has grown to be the fourth most valuable start-up, having the valuation standing at $5
billion.
Similarities between the two models using the tools of

Managerial Economics
Perfect time to enter in a new business :
Reliance industry: Reliance Industries Limited (RIL) is an Indian multinational
conglomerate company headquartered in Mumbai, Maharashtra, India. Reliance owns
businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail,
and telecommunications. Reliance is one of the most profitable companies in India, the
largest publicly traded company in India by market capitalization, and the largest company
in India.
After a survey Reliance industry found that there is a huge scope in telecom industry
and to have a boom in market they introduced Jio to the Indian market. The key idea is to
make internet accessible and affordable to consumers in all parts of the country. Jio will
significantly up the quantity, quality and coverage of broadband internet while lowering the
cost to the user .Jio will play a key role in the digital development of India – with
applications for everything from education to healthcare, security to financial services,
technology to entertainment.
BYJU’S: The Bangalore based educational technology platform Byju’s is an online

tutoring and coaching firm that was started in the year 2011 and runs on a freemium model.
Byju’s parent company is ‘Think and Learn Pvt Ltd’. The main aim of Byju's is to provide
coaching through online video lectures for students of class 1 to class 12 and also for people
who prepare for competitive exams like IIT – JEE, NEET, CAT, GRE, and GMAT. The
app helps the students to learn on their own rather than the traditional culture of spoon-
feeding. Their approach combines the reinvention of learning, world-class teachers, proven
pedagogical methods and personalized learning.
Time of expansion
Reliance industry: Jio hit the market offering customers free voice calls and zero roaming
charges. The data plans were so incredibly cheap, they undercut the incumbents by more
than a third. Jio’s impact on India’s digital landscape in the three short years since it
launched has been nothing short of revolutionary. The default network for most of the
country is now 4G, and Jio carried about 70% of the country’s 4G traffic in 2019. The
cheap data plans that Jio offered were lapped up by Indians, and India’s digitization has
galloped. Indians used an average of 12GB of data per month in 2019, up from about 90MB
in 2014. The country is now the second-largest online market in the world. All of this has
happened largely on the back on Jio.
BYJU’S: The app helps the students to learn on their own rather than the traditional
culture of spoon-feeding. Their approach combines the reinvention of learning, world-class
teachers, proven pedagogical methods and personalized learning. BYJU'S mission is to help
students become better and lifelong learners. The addressable market for the K - 12 segment
is around 260 million. India is the largest K-12 education system in the world, but
consistently ranks low in global education. He noticed that there was a huge gap in the way
students learnt and how the concepts could be learnt. Children get trained to solve questions
and not ask questions. In the conventional classroom learning, there is a lack of high quality
education due to limited access to quality teachers. Learning that is not personalised as 1:35
teacher-student ratio vis a vis ratio 1:14 in developed world. It is memory-based learning
driven by fear for exams than love for learning.
Ways to pertain and sustain business

JIO:
 As Jio is providing 4G data and 4G mobile phones at cheaper prices, most of
the unconnected India will join Jio’s customer base. Jio Phone customers
will pay Rs.153/- per month, Other sim users will pay for 4G data. With
more number of customers, Jio will be able to get more profits.
 In many remote parts of India, cable TV and high internet speeds have not
reached yet. Jio took advantage of this and is now providing these benefits
to rural areas. Jio already invested approx Rs.15,000 crores on fiber optical
network. It is highly unlikely that other telecom companies will take this
risk to compete with Jio services. Even if they take the risk, Jio will have the
first-mover advantage.
 For telecom companies, initial investment is high and maintenance costs are
fairly low. Reliance industries already invested a lot on Jio. Hence, it is now
able to draw profits with low maintenance costs.
 Jio’s competitor’s data prices are very high comparatively. Hence people
will choose Jio over other networks.
 Reliance industries have other sources for revenue such as Jio Apps, Lyf
Smart Phones, 4G Broadband services etc.
 As Jio cable can be connected to any TV, people can save money on DTH
connection. Through this step, JioTV will get huge customer base.
 Pre-order of Jio Feature phones will help them to mass produce phones. This
leads to low manufacturing cost per piece, hence high returns.
BYJU’S:
From Tencent and BCCL to General Atlantic and Sequoia Capital, Byju’s has raised
millions in funding and has acquired the companies Math Adventures, Tutor Vista,
Edurite, Vidyartha, and U.S.-based Osmo. Byju’s even caught the eye of self-made
multi-billionaire Mark Zuckerberg and $50 million was invested by the Chan
Zuckerberg Initiative. In 2019, Byju’s valuation crossed the $5 billion mark with a
funding of $25 million from General Atlantic. Before that, Byju’s had raised funds
from Naspers Ventures and the Canadian pension fund CPPIB, which had raised its
valuation to $3.6 billion from the $1 billion valuation in the early fiscal year of
2018.
-It is a long-term sustainable model, Byjus is getting funds from many popular
companies globally and as of now they have been tied up Disney for the early learn
course for 1-3 standard and also they are providing more salaries & high perks and
allowances to employees. They're changing the phase of India's learning standards
and it won't collapse at any cost as they have enough funds to run another 2–3 years
How to improve business

Reliance Jio: The key idea is to make internet accessible and affordable to
consumers in all parts of the country. Jio will significantly up the quantity, quality and
coverage of broadband internet while lowering the cost to the user. Jio will play a key role
in the digital development of India – with applications for everything from education to
healthcare, security to financial services, technology to entertainment The Reliance
Industries Ltd (RIL) unit plans to bundle this with bandwidth and talk time, in contrast with
rivals that offer data and voice packs. Some companies offer bundled access to social
networks such as WhatsApp and Facebook for a fixed sum and period, the only products
that come close to what Jio is said to be planning. A Jio package will allow a subscriber to
watch, for instance, five movies a month or watch a cricket match live without having to
pay for the data download separately. A transaction on Jio’s payments bank platform will
subsidise the connectivity.
BYJU’S: The biggest advantage of using Byju's is the lower cost. If we compare the
price of courses with metro cities, Byju's courses are cheaper.
It is cheaper than tuition classes.
Students can learn anytime and anywhere.
Students can learn with fun.
Highly qualified teachers and professors.
The primary reason why Byju’s has been so successful is due to the format of its video
lessons. The concepts are explained in a highly visual contextual format with an
amalgamation of animation, gamification, and live-action formats, which make the videos
highly engaging. To make the user experience even better, they even constantly analyze the
effectiveness of content modules for improvement. While content is currently available in
both English and Hindi only, Byju’s is working towards creating content in other regional
languages as well to tap into the large vernacular language audience and deeply penetrate
the Indian market. Another important parameter used by Byju’s to improve the learning
experience is its feature of personalizing the learning content based on students’
proficiency. A rich learning profile is built for each student and the app memorizes the
student’s learning fingerprint, enabling the app to customize and personalize the student’s
learning experience. Byju’s personalization engine mimics the actions of a personal tutor,
helping in tackling students’ weaknesses and enabling the students to learn at their own
pace.
Views on the different sustainable polices in Long run

Jio: According to my point of view, yes Reliance Jio will be a sustainable business
model in a country like India. Reliance jio, the great telecom industry is leaving a great
impact in today's era. Within 1 month of launching jio, it got 500 million subscribers. The
features are not comparable to any of the telecom industry be it Vodaphone, idea or airtel.
The amount of data Jio is providing is amazing. Jio also got many services like jio money,
Jio cinema and many more making our life much more comfortable. Recently they
launched jio Giga fibres which provide huge data with magnificent network speed. They
too got jio fi which is very portable and gives unlimited of data when recharging with a
specific amount. Money can be transferred from one account to another account and vice
versa. What more we want! Just believe me at night time the network speed touches to a
great height. In a nutshell, reliance jio is just taking the power of technology in its palm.
Recently, they also launched 5g that too very early.
BYJU’S: According to my point of view Byju’s is sustainable in long run. It is a

long term sustainable model, byjus is getting funds from many popular companies globally
and as of now they have been tied up Disney for the early learn course for 1_3
standard….and also they are providing more salaries & high perks and allowances to
employees. They're changing the phase of India's learning standards and it won't collapse at
any cost as they have enough funds to run another 2–3 years
Lastly we can see both the firms are in different sector one in telecom and other in
education but both are service provider they gain profit by providing service. Talking about
long run success both the firms can boom in future because as we can see coming
generation is going be fully digital and internet is the basic thing we need and about Byju’s
being a online education platform it’s trying different ways for new learning style
changing the traditional method will surely have boom in market .
Submitted by: Rahul Gupta
BBA (General) 3rd semester

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MANAGERIAL ECONOMICS

Difference between both the firms

Similarities between the two models using the tools of

BYJU’S: The Bangalore based educational technology platform Byju’s is an online

Ways to pertain and sustain business

How to improve business

It is cheaper than tuition classes.

Students can learn anytime and anywhere.

Students can learn with fun.

Highly qualified teachers and professors.

Views on the different sustainable polices in Long run

BYJU’S: According to my point of view Byju’s is sustainable in long run. It is a

Submitted by: Rahul Gupta

BBA (General) 3rd semester

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