reliance

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Reliance Group of Companies

• Abhishek Jain
• Bhaskar Shrotriya
• Jagdeep Kaur
• Karanbir Singh
• Tushar Sonkusare
• Vishesh Bansal

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Content

• History

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History

• Reliance Commercial Corporation (RCC) was formed
  in December 1958, which dealt in exporting
  spices.
• In 1966, a spinning mill was set up for import
  of polyester export of nylon and it was named
  Reliance Textile Industries.
• Keeping its core in petrochemicals, Reliance soon
  diversified its activities to telecommunications,
  information technology, energy, power, retail,
  textiles, infrastructure services, capital
  markets and logistics.

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History

• After the death of Dhirubhai Ambani, Mukesh was
  awarded Reliance Industries IPCL and this group
  came to be known, as Reliance Industries Ltd.
• Anil became head of Infocomm, Reliance Energy and
  Reliance Capital known as the Anil Dhirubhai
  Ambani Group (ADAG).

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What is a SBU?

• A Strategic Business Unit is a concept of
  grouping the related business which helps the
  firm in strategic planning.

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Characteristics of SBU

• Its a single business or a collection of related
  business, that can be planned separately from the
  rest of the companies.
• It has its own set of competitors.
• It has a manager responsible for strategic
  planning and profit performance, who controls
  most of the factors affecting profit.

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BCG MATRIX

• The BCG matrix is a chart that helps
  corporations with analyzing their business units
  or product lines. This helps the company allocate
  resources and is used as an analytical tool in
  brand marketing, product management, strategic
  management, and portfolio analysis.

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BCG MATRIX
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BCG MATRIX

• Reliance Industries Ltd. ?

Petroleum Refining and Marketing business Star
Petrochemicals business Cash Cow
Oil and Gas Exploration Production business Star
Others Vimal -Retail Dog Question Mark
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BCG MATRIX
ADAG ?

Reliance Communications Cash Cow
Reliance Capital Question Mark
Reliance Infrastructure Question Mark
Reliance Power Star
Reliance Big Entertainment Question Mark
Reliance Health Question Mark
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GE MATRIX

• The GE Matrix is a model to perform a business
  portfolio analysis on the Strategic Business
  Units of a corporation.
• The GE Matrix overcomes a number of the
  disadvantages of the BCG Box. Firstly, market
  attractiveness replaces market growth as the
  dimension of industry attractiveness, and
  includes a broader range of factors other than
  just the market growth rate. Secondly,
  competitive strength replaces market share as the
  dimension by which the competitive position of
  each SBU is assessed.

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GE MATRIX
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GE MATRIX

• Typical (external) factors that affect Market
  Attractiveness
• - Market size- Market growth rate- Market
  profitability - Pricing trends - Competitive
  intensity / rivalry - Overall risk of returns in
  the industry

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GE MATRIX

• Typical (external) factors that affect Market
  Attractiveness

• - Entry barriers - Opportunity to differentiate
  products and services
• - Demand variability- Segmentation -
  Distribution structure
• - Technology development

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GE MATRIX

• Typical (internal) factors that affect
  Competitive Strength of a Strategic Business
  Unit
• - Strength of assets and competencies- Relative
  brand strength (marketing)- Market share
• - Market share growth- Customer loyalty-
  Relative cost position (cost structure compared
  with competitors)

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GE MATRIX

• Typical (internal) factors that affect
  Competitive Strength of a Strategic Business
  Unit
• - Relative profit margins (compared to
  competitors)- Distribution strength and
  production capacity- Record of technological or
  other innovation
• - Quality- Access to financial and other
  investment resources
• - Management strength

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GE Matrix
Reliance Industries Ltd. ?

Petroleum Refining and Marketing business High-Medium
Oil and Gas Exploration Production business High-Medium
Others -Retail Medium-Medium
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GE MATRIX
ADAG ?

Reliance Communications High-Low
Reliance Capital Medium-Medium
Reliance Infrastructure Medium-Medium
Reliance Power High-Low
Reliance Big Entertainment High-Medium
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SWOT

• SWOT Analysis is a strategic planning method used
  to evaluate the Strengths, Weaknesses,
  Opportunities, and Threats involved in a project
  or in a business venture. It involves specifying
  the objective of the business venture or project
  and identifying the internal and external factors
  that are favourable and unfavourable to achieving
  that objective.

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Example Reliance Infocom

• The strong subscriber base over 10million
  subscriber's in their kitty.
• Mobile with in the reach of common man.
  Affordable schemes.
• Comprehensive Network-The strong back bone high
  capacity network(terabit capacity) supported by
  fiber optic cables laid all over the
  country(60,000km)
• Offering Value Added services to it's customer's
  almost free of cost or with nominal charges.
• Reliance Infocomm was the first service provider
  to introduce finance option on handsets.
• Value Added Services First Call Center of 2,000
  seats in Mumbai
• Aggressive roll out to capture dominant market
  share and create an entry barrier
• CDMA 1x Technology

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Example Reliance Infocom

• Weakness
• Marketing strategy.
• Restricted mobility through its WLL

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Reliance Communication Vs other market players