Reliance Jio

Today’s brew is for Reliance Jio,
Brew Date: 15th June 2015
Type: Espresso – Served Quick, to be consumed Hot (a.s.a.p.)

To understand the business model of Reliance Jio, check out the following links:

The Brew intends to offer Reliance Jio, some insights and thoughts to rejuvenate and pre-empt improvisations in to be launched consumer and business model of Jio.
a)    The Reliance Jio model sounds to be a complete transformation of Indian chapter of consumerism (in varied fields) with its foundation built on speedy next gen telecom wave, but to make it a resounding success, the company needs to dig deep in the markets, Cos Telecom offerings are going to be the essential pivot of the digital and virtual life led by the consumers. If charted with proper thoughts and conviction, the current opportunity presents Reliance to transform the landscape of country with a challenge to transform itself. The Former is possible only if the latter is done, sustained and repeated. To transform itself, Reliance needs to understand the gravity of its fitment in Country’s present and transformed future, which is highlighted in the points below, and if followed to the tee, The Brew assures Reliance to be a leading contributor of growth and development of the country (effectively, Reliance then leads the Market Cap by a mile in the pack), but it as well warns that this new trajectory will require Reliance to break the stereotype and pursue the path of Innovation. Its Innovation quotient has been low given the industry its coming from and its origins, but if it aspires to be the next growth engine, then it will have to actively pursue the path of Innovation, build the competence and then serve the market (unlike its philosophy of ruling the market).

b)   Reliance Jio is a first of a kind of model with full Online and Offline presence, in a way representing the pull and push methods to reach out. In the Consumer Offerings, its going to be Hardware + Services + Software presence, and in the market offerings, its having a Physical + Virtual setup. Playing with the combined model to connect, reach and engage the consumers is going to be a huge differentiator and can certainly leverage Reliance’s brand perception to a higher cognition leading even to unrelated products and markets, where it has neither a competence, nor presence.  This allows Reliance to be a part of Consumer evolution and adaptation cycle, thus humanizing the acceptance and engagement with the firm to look out for the ground level insights in the diverseness of the country to more relevant, purposeful and utility driven.

Vis – a – Vis competition, it itself is a good differentiation strategy on the assumption that the engagement model will be Consumer friendly and solution oriented driving high positive differential consumer experience when it comes to solving Consumer’s problem, and not just serving as a Point of Sales node.

c)    Its important for Reliance to be mindful of 2 things,
i) That the Telecom wave is different from the High Speed  - High Connectedness enabling Telecom need, effecting that Company is not only offering solutions for higher consumption but as well bound to change the behavior of consumers to a larger extent in how they go about doing things in life. Effecting that Reliance has to leverage this channel and offer Consumption elements as well in it ecosystem, helping leverage the group’s spread and reach, but as well built solutions in the areas where it is not present.  Developing a Complete Ecosystem where Consumer’s Consumption of all the needs remains within its Ecosystem will be a key to success, though its equally challenging as well. But using the Telecom, not just as a Service offering, but as an enabler to extend and increase the reach to the consumer will be the key pivot of this business model.
ii) The model aims to cover and serve to the last mile and at the grassroots level of the economic value chain, and hence along with expanding the offerings to cater all the needs of a digital life, it will as well be important to keep them at High Utility – Low Cost Model, aiming to enhance the lives of the consumers at the grassroots level. Importantly, it will help Reliance to build a competence of utility offerings and high acceptance in the Consumer value chain. It needs to add value (and enable them to create further value) along with adding to the interest levels of the populace.

The Vision is to enable Grassroots level change, including all the factors where things can be enhanced with technology. Solving the problems at the grassroots level cos there is real opportunity to do that, and though this opportunity is open to all, Reliance has the scale of resources, reach and spread to realize this opportunity.

d)   Though covered in Point 1c, an iteration to serve the purpose and context will do good. Leveraging the High Speed Telecom wave as an Enabler (and not as an offering) to create a Snowball effect to satisfy all the digital needs, solutions and influence the behaviors of consumers will be the key.

Joining the dots, Reliance with its Payments Bank Solutions can reach out for an overall financial inclusion of folks along with offering services for consumptions on its platform. Leveraging its spread in Energy sector to add Energy Management solutions for consumers, leveraging the group spread of Retail, Electronics, etc.
Incorporating Education, Sports, and Entertainment along with its current offerings on this platform to develop an end-to-end platform to serve the digital needs of the daily lives, enhancements to add value to the consumers.

Having it as a platform offering will be critical, and as well, more critical will be to promote its acceptance and spread to non – Reliance users. There will have to be a segregation of Virtual Offerings Platform, Hardware Platform and Connectivity Solutions thus enabling consumers to go for either of it for an increased Monetisation for Reliance and as well better each of these segments at the individual level to be competitive on a standalone basis.

e)    Convergence of its Existing capabilities to the digital model will be a criteria to test its transformational capabilities, where all its business models will have to made more consumer oriented, and driven the digital way. The platform offerings of Reliance can as well be a competition to these, but that the need of hour, to be competitive and super ceding in providing value to the consumers in line with business constraints.

f)     Given that there are majorly 3 drivers of Reliance Jio’s offerings (elaborated above), namely Virtual Offerings Platform, Hardware Platform and Connectivity Solutions, The Brew recommends Jio to initiate these offerings to market on a standalone basis and in the Startup approach. The reason being, to increase the spread, acceptance and improvisation of these offerings to the market (and then getting the influence effect to others, while delinking them to reduce the dependency of risk and success), and having a leaner cycle with speedy improvisation in Consumer Reaction – Improvisation – Offerings cycle. 
The thought is here approach of build a robust competitive offering which increase the usage rate and acceptance to 3rd party along with building synergic possibilities to drive Consumers to Reliance’s ecosystem (in all 3 segments), with the value prop that sum of whole is far larger than the individual values, both in long and short run.

Adopting the Startup methodology will put minimal strain on the resources given that resources require to effect this entire change will be huge and might have draining effect on the group commercials, but as well it will get continually tested, as against the market and consumer needs.

g)    At a framework level, Reliance will have to keep 2 things in mind,
i) As the Country’s progress strengthens and paces, its base and primarily model of Oil, Gas, Petrochem and Energy will as well need a massive scale up, and given that it has a capable competence to deliver on this model, Reliance should actively focus on capacity building, driving core efficiencies and disruptive innovation in this mature segment

ii) To extend the segment offerings of Telecom with the interplay of technology to drive higher utility and value enhancing solutions like Smart Cities, Energy Management, and Consumer Consumptions etc.  enabling the leverage and convergence of new and existing business models.

h)   With all this, The Brew’s last word of wisdom to Reliance Jio is to not focus on the business cases of the above points. Business cases are for short term, though they seldom hold the intactness even in that period, however this is long term and much more than the business case, it’s building and enabling the Country’s development case, which will take care of business and its stakeholders.

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