Reliance Jio is a telecommunication company performing its business operations in India as a subsidiary of Jio Platforms. It is headquartered in Mumbai, India. The company operates national LTE network and provide voice over LTE for the first time in India. It has 22 telecom circles (Jio, 2021). Here is the PESTEL analysis of Jio.

Jio – Political Factors

Reliance Jio is known to be a leading operator and service provider in telecom industry across India. There are many examples where it is clearly seen that its business operations are impacted by political setup. For example, TRAI has announced the rule of reducing call ring to maximum 25 seconds. But Reliance Jio was not in favour of this decision, and it is suggested that the ringing tone should be left on the regulator. It is also seen that Jio has government support as it is a part of “Make in India” program. Jio makes sure to lead the industry and for this political stability is necessary with the support so that Jio does not need to rely on coalitions (Mhabde, and Dhamani, 2018).

Jio – Economic Factors

Economic factors greatly affect the company operations. Competitors like Vodafone and Airtel in the telecom industry, Jio has to work hard to gain the market share and maintain its leading position. It did a good job and acquired 31% of the market share only within 3 years. Indian is very price sensitive market, people have limited incomes and so spending power is not high. Jio offers its services in minimum prices to attract majority. It believes in playing in volume rather than high prices. It successfully penetrated itself in rural market where the exposure is quite high (MBA Skool, 2019).

Jio – Social Factors

The main aim of telecom company is to connect its consumers with each other everywhere and anywhere. Reliance Jio has more than 300 million subscribers who connect with each other in low prices every day. Other than providing low-cost services and network rates, it has indulge itself in other businesses too like Jio news, Jio TV, Jio clouds, Jio cinema etc. These businesses are started by observing the young generation interest as they make most of the customer base. Moreover, diverse product portfolio will help the company too in diversifying the profit and loss risk and also retained the customer base. Moreover, it also contributes to society improvement causes like in education, health, and safety of employees etc (MBA skool, 2019).

Jio – Technological Factors

Technological advancement is increasing day by day and it becomes necessary for the companies to adopt it. Reliance Jio is known to be a first network operator and service provider in India who introduced the technology of voice over LTE. This technology supports 5G and 6G which means internet can be accessible in higher speed. It also improves the call quality. After Jio, its competitors also adopted this technology. Moreover, Jio Fibreis a new technology introduced by the company to provide high speed internet to its consumers (Dasgupta, 2019).

Jio – Environmental Factors

Jio believes in helping environment and society and played a vital role in performing its corporate social activities. It has contributed over 750 Crores in India as CSR activity. It also provides free internet access to the Indore Police. It also setup network towers which are not harmful as it will emit electromagnetic radiations. The company has also initiated many energy saving sites. It also played its role in planting trees and vegetations (Mhabde, and Dhamani, 2018).

Jio – Legal Factors

Jio’s legal department is always on its toes as it has entered in a telecom industry where Airtel and Vodafone were already present, and it acquired a huge market share in short span of time. The company has faced several legal allegations from its competitors, but it always handles the situation well. Moreover, Jio makes sure not to perform any activity which is against the laws and policies. This saves it from going into legal punishments (Dasgupta, 2019).

Conclusion

To conclude the PESTEL analysis of Jio, it represents the digital vision of Prime Minister of India, which helps it in gaining the support of government. It provides the services in low rates and capture huge market share. It tries hard to operate with legal rules and regulations to avoid any inconvenience.

References

Dasgupta, S. 2019. Jio Analysis. [Online], Available at: https://www.slideshare.net/SubhadeepDasgupta7/jio-178852745, [Accessed on: 30th June, 2021].
Jio, 2021. Jio Life [Online], Available at: https://www.jio.com/en-in/jio-life, [Accessed on: 30th June, 2021].
MBA skool, 2019. PESTEL analysis of Reliance Jio. [Online], Available at: https://www.mbaskool.com/pestle-analysis/companies/17989-reliance-jio.html, [Accessed on: 30th June, 2021].
Mhabde, R. and Dhamani, A. 2018. Internal and External analysis of Jio. [Online], Available at: http://ijariie.com/AdminUploadPdf/INTERNAL_AND_EXTERNAL_ANALYSIS_OF_JIO_ijariie7686.pdf, [Accessed on: 30th June, 2021].

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