Question

Case Study

RIL is an Indian based multinational company that owns businesses in energy, petrochemicals, textiles, natural resources, retail. In June 2010, Reliance Industries (RIL) bought a 96% stake in Infotel Broadband Services Limited (IBSL) for Rs 4,800cr. Although unlisted, IBSL was the only firm to win broadband spectrum in all 22 zones in India in the 4G auction that took place earlier that year. Later continuing as RIL's telecom subsidiary, Infotel Broadband Services Limited was renamed as Reliance Jio Infocomm Limited (RJIL) in January 2013. Jio is a Mumbai-based provider of 4G internet, mobile telephony, broadband services, and digital services in India. Formerly known as Infotel Broadband Services Limited, Jio provides 4G services on a pan-India level using LTE technology. On September 5, 2016, Jio commercially launched its 4G services and entered into the red oceans of Indian telecom sector.
Understanding the growing opportunity in telecom sector in India, with half a billion young population and increasing technological penetration Reliance created a huge marketing buzz by offering free life time voice calling and promotional free 4G services up to December 2016. Reliance JIO is targeting almost all the age groups of country. But mostly Young population of the country i.e. 15-40yr, who have 4G-LTE smart phone and spend most of their time on social networking sites, surfing net or making unlimited calls.

question 1) What type of diversification is it for RIL? And what are the pros and cons of such diversification. 2)What are the challenges that reliance would face in Red Ocean? How can reliance change this red ocean into Blue Ocean?3)What growth strategies should RIL opt for different businesses keeping in view the present pandemic​

Answer 1

Explanation:

RIL is an Indian based multinational company that owns businesses in energy, petrochemicals, textiles, natural resources, retail. In June 2010, Reliance Industries (RIL) bought a 96% stake in Infotel Broadband Services Limited (IBSL) for Rs 4,800cr. Although unlisted, IBSL was the only firm to win broadband spectrum in all 22 zones in India in the 4G auction that took place earlier that year. Later continuing as RIL's telecom subsidiary, Infotel Broadband Services Limited was renamed as Reliance Jio Infocomm Limited (RJIL) in January 2013. Jio is a Mumbai-based provider of 4G internet, mobile telephony, broadband services, and digital services in India. Formerly known as Infotel Broadband Services Limited, Jio provides 4G services on a pan-India level using LTE technology. On September 5, 2016, Jio commercially launched its 4G services and entered into the red oceans of Indian telecom sector.

Understanding the growing opportunity in telecom sector in India, with half a billion young population and increasing technological penetration Reliance created a huge marketing buzz by offering free life time voice calling and promotional free 4G services up to December 2016. Reliance JIO is targeting almost all the age groups of country. But mostly Young population of the country i.e. 15-40yr, who have 4G-LTE smart phone and spend most of their time on social networking sites, surfing net or making unlimited calls.

question 1) What type of diversification is it for RIL? And what are the pros and cons of such diversification. 2)What are the challenges that reliance would face in Red Ocean? How can reliance change this red ocean into Blue Ocean?3)What growth strategies should RIL opt for different businesses keeping in view the present pandemic