1.

BUSINESS MODEL
It is the method by which your business will deliver & receive value from customers. Business model
focuses on operational aspects of business & incorporates short-term and long- term strategic
position. Business model is an outline of how a company plans to make money in a specific market
with its product and customer base. At its core, it describes which product or service a company will
sell, how it wants to market that product or service, what expenses it will face, and how it expects to
make a profit .

Recently Reliance Jio has given a big shock to Indian telecom industry, plans like free Internet, free
calling, 4G network is a serious threat to others. Reliance Jio emerged as a new choice and Other
service providers face a new kind of challenge and find it difficult to face new situations.

Everything Jio has done so far is aimed at earning money. Their tariff plan may seem incredibly
terrible, but they will make more money by giving you free voice calls than what other companies
charge you for it! In India, the average monthly revenue (ARPU) per user to current network
providers is around Rs 150 per month. This is the money they receive on average from each user. If
you spend more than Rs.250 per month, you are considered a high value customer. The reason most
internet providers limit your data is basically because they don't have enough bandwidth to handle
so much data, in the case of jio they already had a terrible fabric optic network to handle 5G and 6G
network.

Essential components of business model :

Value proposition: A feature that makes your product attractive to your customers.

Target market: A specific group of consumers who would be interested in your product.

Competitive advantage: A unique feature of your product or service that can’t easily be copied by
competitors.

Cost structure: A list of the fixed and variable expenses your business requires to function, and how
they affect pricing.

Resources: The physical, financial, and intellectual assets of your company.

Problem and solution: Your target customers’ pain points, and how your company intends to meet
them.

Profit margin: The amount your revenue exceeds your business costs.

2. IMPACT ON ECONOMY DUE TO JIO BUSINESS STRATEGY

Economy suffer-

Reliance Jio distracted telecom industry with its free services, and kept pressure on
competitors by the announcement of low data plans. If 50% of the company's customers stick to Jio,
it will cause serious consequences for competitors. On other hand jio consumers who are also
associated with other companies will reduce usage as a result. Companies will face a decrease in
average revenue per user.

Due to Jio's aggressive pricing, other companies have no option to lower their prices. If other players
don't match Jio's offer,Market share will decrease and if they reduce rates, revenue will decrease.
Economy benefit-

We need companies like Reliance to take such bold steps and invest in India. It is good for everyone.
This is a win-win situation. This will increase the growth rate in India and improve our standard of
living. It will also provide much needed jobs to millions of people.

Its network covers all 22 circles across India. Jio app offers many features like movies, shopping,
chat, cloud, games etc. Also it make people aware regarding online things like banking related
software, online transaction, online study, entertainment etc.