Future of Jiomart in Harnessing The Value of Kirana Stores in India
Future of Jiomart in Harnessing The Value of Kirana Stores in India
Future of Jiomart in Harnessing The Value of Kirana Stores in India
4 Ps
• Product: Jio is providing telecom products and assistance with high-speed internet services and exclusive offers.
• Price: Jio is the king of pricing strategies. Not only the company offered a satisfying price to their various products for individuals,
but it also leads the telecom market. Rival companies also modified their pricing strategies when Jio introduced premium 4G
services at cheap prices. However, Jio has revised its latest tariff plans.
• Place: By the various broadly spread circulatory channels, Jio products, and other digital items are sold out at various Jio stores
located in several cities in India. Reliance Jio stores have evolved into India’s largest supply chain in a short period of time that
turns out to be an augmented platform for distribution, incorporating a huge number of national and international personal
brands.
• Promotion: Jio has adopted a bit aggressive marketing strategy including launching ad campaigns on television, radio,
newspapers, magazines, and social media platforms like Instagram, Facebook, Twitter, and YouTube. They also have used film
industry stars and celebrities’ power to do acting in their commercials ads and become joined with their brand. At its launch
party celebrities were invited. As part of promotional activities Reliance, Jio offered free internet Wi-Fi services at six cricket
stadiums during ICC World Twenty20 and each and every one of its services free till the end of the financial year 2016.
SWOT
Strengths Weaknesses
• Substantial customer acquisition strategy • Pricing controversies
• Strong customer base • Delayed introduction into the market
• Fast technology for better customer experience • Overabundant free services
• Secure and steady endorsement of parent • The controversial advertisement featuring the
company Reliance Industries PM of India (Narendra Modi)
• Brand management and control
• Rapid and ample network
• Various offerings under a single name
• Augmenting geographical stretch
• Introducing brand new store conceptions and
channels
• Reinforcing and upgrading customer experience
• Leveraging technology
Opportunities Threats
• 5G Technology • Hazards of loss of customers
• Expansion into other countries • Unrelated diversification could be dangerous at
• Cutthroat Pricing Strategies times
• Venturing into other segments • Eradication of unpaid services
PESTLE
Political:
• Reliance Jio is a leading telecom operator in India. There are several instances where its business is governed by the political setup. TRAI has come up with a
new rule of reducing the call ring to 25 seconds.
• India’s Prime Minister featured in a printed advertisement of Reliance Jio with the company claiming that Jio will help in making realize Prime Minister’s plan
of making India digital.
• The next day the same message was very cleverly and subtly shown in the video of connecting 1.2 billion people and making India digital. Also, the
government at the centre is quite strong i.e. less dependent upon coalitions which is a good factor for the company in the middle run.
Economic:
• With competitors like Airtel and Vodafone Idea being present in the Indian market for quite some time, Reliance Jio has done a commendable job by acquiring
more than 31% of the market share in a span of just 3 years.
• As India is a price sensitive market, Jio provides its services at the bare minimum prices. This strategy has worked out in its favor. Reliance Jio has decided to
charge 6 paise/minute for its outgoing calls. Previously
• Since Jio provides its services at a low cost, it has been successful in penetrating the rural markets where the scope of expansion is very high.
PESTLE (Contd.)
Social:
• With currently more than 300 million subscribers, Reliance Jio aims to “Connecting everyone. Connecting everywhere. Connecting everything.”
• These services are introduced keeping in mind the interests of the youth which makes majority of its customer base. Having a diverse brand
portfolio helps Jio in retaining its customers.
• The MyJio application makes it easy for its customers to recharge their phones with a few clicks. Also, Reliance Jio provides with data top ups as
well which benefits the customer as he/she won’t have to take a regular plan for trivial work.
Technological:
• Reliance Jio was the first network provider in India to introduce the Voice over LTE technology. This technology has a huge potential in the
future because it can also support 5G and 6G which means customers will be able to access the data at even better speeds.
• Jio’s competitors Airtel and Vodafone-Idea have also introduced Vo-LTE for their networks.
• Reliance Jio has also come up with a new service, JioFiber which is a dedicated setup focused on providing high speed internet. With Vodafone
aiming to revolutionize the Sports Industry through 5G, Jio should also keep in pace with the current trends in the market.
PESTLE (Contd.)
Legal:
• Since the arrival of Reliance Jio into the Telecom Sector, it has been in many controversies and has received allegations from its
competitors.
• But, apart from the allegations Reliance Jio didn’t receive any legal notice because of the absence of any such rule regarding the
number of days of testing of the service.
• Recently, Jio faced opposition from Airtel and Vodafone-Idea over the call ringing time of Jio. Reliance Jio till now has been able to
overcome these hurdles. But, since Jio has caused disruption in the telecom market, its legal department should always be on its toes.
Environmental:
• Reliance Jio has come up with various measures to contribute towards company’s Corporate Social Activities.
• Jio has contributed more than Rs 750 Crore for CSR activities. In one of its CSR activities, Reliance Jio provided free Internet
Services to the Indore Police. One of the major sustainable steps taken up by Jio is the setting up of network towers which do not emit
any harmful electromagnetic radiations.
• Competitive Rivalry- High Competition from
existing retails giants, which is benefitting to the
customers because switching cost is low
• Bargaining Power of Suppliers- The
bargaining power of suppliers is low to medium
Porter’s • Bargaining Power of Buyers- The bargaining
Five Forces power of buyers is medium and the buyers will
be beneficials
Model • Threat from New Entrants- Huge capital is
required and creating this whole delivery chain
model will be difficult
• Threat of Substitutes- High threat but can
overcome this by keeping competitive pricing
• Point of sale system is the place where the
customer makes a payment for products or
services at stores.
• Every time a customer makes a purchase, they
are completing a point of sale transaction.
Point on Sale
Two Types of POS
System • On Premise – Jio has partnered with
WhatsApp for the onsite infrastructure in the
Jio mart app
• Cloud – it is based on the offsite housing with
someone else responsible for monitoring and
maintaining it
Strategic Flexibility
• Strategic flexibility is an organization’s capability to identify the major
changes in the external environment and able to adapt by quickly
committing to the change.
• Jio was launched in 2016 and it turned into the largest mobile network
in India within three years of launch. With the success and the
functionality of this network, Ambani has taken a strategic move to
enter online grocery market.
• This is well assessed move with a sole motive of capturing the e-
commerce segment which is projected to grow up to $1.2 Trillion by
2021.
Strategic Alliance- Jio-Facebook Deal
• Facebook will invest Rs.43574 crore ($5.7 billion) in Jio platforms,
will make lives easier for consumers and retailers associated with
Jiomart.
• Win-Win Situation for both the companies
• The companies will work closely to ensure that consumers are able to
access the nearest kiranas who can provide products and services to
their homes by transacting quickly with JioMart using WhatsApp.
Strategic Moves
• Acquisition of Grab A grub
• Acquisition of C -square
• Improving the JioMart App efficiently as the
Execution holds the key in success of Jiomart
• Mutual relationship with Kirana stores and
providing offers to encourage them
• RRL would require significant efforts like Micro
Recommendation Market strategy, feet on ground, customer
centric approach.
and Conclusion
• Expanding into different cities to flourish in the
industry
• Considering that 80 percent of consumers
research items online before making a purchase,
one can see that the future lies in a convergence
between online and offline sales.
Thank You
• https://startuptalky.com/jiomart-case-study/
• https://www.business-standard.com/article/
companies/ril-arm-to-acquire-stake-in-grab-
References a-grub-and-c-square-for-rs-228-crore-11903
0400844_1.html
• https://www.fibre2fashion.com/news/e-com
merce-industry/reliance-to-acquire-c-square
-to-augment-e-com-services-247815-newsde
tails.htm#:~:text=Reliance%20Industrial%20I
nvestments%20and%20Holdings,Rs%2022%
2C04%2C17%2C318
.