5C analysis
5C analysis is a framework that helps to understand the market in which a firm runs its
operations. Through 5C analysis, it will be easier for us to understand how Jio can leverage
the current telecom market to introduce a new and improved product in the form of 5G.
Customers:
With the launch of Jio 4G, the challenge of providing internet, along with the calling service,
was met. Now the next challenge is to provide faster data to cope up with the ever-changing
technologies that require an even better connection that we are experiencing today. The
following survey of 100 customers falls in line with what the next consumer trend could be.
As we can see almost everyone has preference towards entertainment and with ever evolving digital
contents, consumers would require high speed data. As of now, consumers stream video in 720 or
1080p but with the introduction of 4k quality videos, high speed data would be a necessity to
experience premium content. Not just entertainment, with evolution, high speed data would
become a must in every field which the current 4G network won’t be able to provide.
Even the sample group readily said yes to switching to 5G even though they believe that their
current 4G data speed is sufficient enough. This shows that consumers are aware of the future and
would want to switch to premium service if given the opportunity. Our customers are mostly the
youth of the nation who evolves with the evolution of technology.
Company:
The core competency of Jio or its parent company Reliance is the availability of resources in
the form of capital. The financial muscle has helped Jio in breaking to any kind of products
and services that it wishes for.
In 2017, there were several competitive advantages that allowed Jio to provide product and
services at a cheaper rate, leading to customer acquisition and forced the other network
providers to cut down their prices if they wanted to compete. Jio used superior technology
and PAN India network reach to make people believe in their product. In 2020, Jio and its
parent company Reliance have become a global brand and it’s the company’s brand
positioning that has created trust in the minds of the customers. An able leadership and the
backing of numerous foreign investments has provided Reliance Jio with unprecedented
competitive advantage over its rival firms. As of March 2021, Jio already has 42.29 Crore
customers out of its 50 Crore ambition for the next 3 years. During 2020, Jio saw a surge in
foreign investments, reassuring the belief in the brand to the customers and stakeholders.
Using these competencies, Reliance Jio can easily enter the 5G mobile network market with
relative ease.
Competitors:
Before Jio, there existed more than 10 Telecom companies in the industry but after its entry, the
whole landscape of the telecom sector changed. Using its cut-throat pricing and modern
technologies, Jio swept most of the telecom industries. Only the strong players like Bharti Airtel,
Vodafone, and Idea survived who are now Jio’s competitors.
However, Vodafone and Idea who have now merged as VI are suffering huge loss, leaving
just Airtel as the true competitor of Jio.
Even in the survey, we can see the tough competition that Airtel is giving a tough
competition to Jio. In fact, Airtel currently has industry-leading usage metrics despite a
lower subscriber base. Airtel has been taking the route of distribution and has claimed more
than 165 Mn users across digital services.
However, focusing specifically on 5G services, Jio is more than ready for 5G spectrum and
the possibilities it brings across ed-tech, agritech and communications. But for Airtel, which
is still coping with massive debts, such investments are out of the picture for now.
Collaborators:
Reliance Jio’s major share are held by Reliance Industries Limited (75.3%) followed by
Facebook (9.98%), Vista Equity partner (2.32%), Public Investment fund (2.32%), KKR
(2.32%), and few other investors, which essentially helps them in brand recognition, funds,
and marketing. There are more than 1700 offline stores named Jio Digital store to facilitate
the sales of SIM cards, Jio Phones, Jio FiberNet, and many additional services. Various sub-
partners are present across the market in form of recharge shops, sim providers, and other
services. Jio has a vision to continuously increase the number of stores across India to
enhance their customer reach and making it more feasible for the customers to use their
services.
With the possibility of 5G, it can partner with other firms to come up with unique product
and services. It can offer digital content subscription once the consumers purchase a
premium plan.
Context:
There are various factors which directly or indirectly affect the business market of Reliance
Jio. With the pandemic hitting operations and shifting of trend from offline market to online
world, Jio already positioned itself as an online service provider.
The pandemic has pushed many people to show their buying preference and a lot of data is
being captured in this way. With most of the population staying indoors, it is very evident that
usage of internet and voice calls is at its peak. Jio 4G is capitalizing on this opportunity and
attracting a large customer base. India is currently the largest country in terms of internet
subscribers. India is one of the biggest consumers of data worldwide. As per TRAI, average
wireless data usage per wireless data subscriber was 11 GB per month in FY20. App
downloads in the country increased from 12.07 billion in 2017 to 19 billion in 2019 and is
expected to reach 37.21 billion by 2022. The total wireless data usage in India grew 1.82%
quarterly to reach 25,227 PB in the third quarter of FY21. This shows that consumption
would only increase from here and introducing 5G could be a great opportunity to utilize the
growing data trend.
https://www.kuwi.news/p/from-oil-to-jio
https://inc42.com/features/airtel-vs-jio-is-airtel-getting-its-digital-strategy-right-finally/
https://www.ibef.org/industry/indian-telecommunications-industry-analysis-presentation
