The Jio Effect has taken to the masses in India with lightning speed. In the two years since its inception, this telecom company has revolutionised the entire Industry and sector in numerous ways.The brainchild of Asia’s richest family,the Ambanis, Reliance Jio has made data affordable to the Aam Aadmi of this nation. With data plans reaching as low as Rs.15 per GB, from being 155th on the Data consumption list, India has had a landmark leap to reach the 1st position.
From a highly competitive market, the industry has become one containing just three companies : Bharti Airtel, Vodafone and Jio. The new company was able to garner 215 million users in such a short time and has a wide consumer appeal and base, primarily because of the attractive schemes and plans.What actually helped this telecom giant to raise data consumption from 20 cr GB per month to 370 cr GB per month?
First of all, is the Loss Leading Strategy, that Mukesh Ambani followed. Having been in the industry, experience made him realise that adopting old technology would be cost inefficient and would need a lot of capital investments. Understanding a need to evolve new technology and adhere to consumerism, Jio adopted a technique where it decided to price the commodity (telecom services) lower than the cost of production.
It is like saying that if the good needs to be priced at 100, but other sellers sell it for 150, you would pay 50. Mukesh Ambani was clever enough to realise that data would become the air that people would breathe in the near future and exactly why the plans only charge for data consumption, and nothing for calls and messages. Another reason was the Growth Hacking strategy. This had five stages starting from acquisition which aimed at acquiring customers from other telecom services.
Activation of the customer base after they switched to the new attractive offer launched by Jio, retention of the customers through extension of the free scheme after December 2016 till March and charging nominal rates for data, went a long way to widen the consumer base.The launch of cheap handsets with unlimited data packages also added to the bonus sale for the company. Jio has made using data affordable to the masses, promoting internet inclusivity across the terrain .Referrals which help the consumers become promoters of the service as well as focus on consumer satisfaction and attraction rather than initial revenue scale up also added to the company’s advantage.
Now, to analyse whether the Jio intervention impacted the Indian economy in a good way or not, we look into other aspects as well. The entertainment industry and online marketing and payment forums have gained prominence ever since the common Indian man got the data exposure. Social media boost and online campaigns have led to the spreading of information which has gone on to becoming the new trend.
Tech giants like Amazon, Flipkart, Paytm and Netflix also gained in terms of business in India. However, there has been a serious drop in the competition within the sector. With data rates falling for Jio and effective, attractive newer plans, what happens is that companies like Airtel and Vodafone also necessarily have to revise packages downwards or make schemes attractive by tying up with apps like Amazon prime for free yearly subscriptions.
The reach of data has seriously boosted connectivity across the nation while also implying greater awareness and demands by people.With focussing more on capturing large audiences, building goodwill and living up to the spirit of consumerism and stressing less on profit amalgamation, Reliance Jio has been a very interesting startup which has taken the Indian economy by fire.
Who could have expected that a country with more than 50% of the population under impoverished conditions, would finally be able to cater to data demanded by across the 200 million bench mark? The achievement and galore that Jio has attained goes on to speak of how the central theme of business should be to think Big and get to the market something that could not even be thought of.Innovating and improvising on services plus the excessive pressure of winning consumer hearts has made Reliance Jio reach the pinnacle it currently is at.
Picture Credits : themobileindian.com