Reliance Group of Companies

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

Content
History

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.

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).

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

Characteristics of SBU
Its

a single business or a collection of related business, that can be planned separately from the rest of the companies. has its own set of competitors.

It It

has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit.

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.

BCG MATRIX

BCG MATRIX
Reliance Industries Ltd.

Petroleum Refining and Marketing business Petrochemicals business

Star

Cash Cow

Oil and Gas Exploration & Production Star business Others -Vimal -Retail

Dog Question Mark

BCG MATRIX
ADAG

Reliance Communications Reliance Capital Reliance Infrastructure Reliance Power Reliance Big Entertainment Reliance Health

Cash Cow Question Mark Question Mark Star Question Mark Question Mark

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.

GE MATRIX

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

GE MATRIX
Typical

(external) factors that affect Market Attractiveness:

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

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)

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

GE Matrix
Reliance Industries Ltd.

Petroleum Refining and Marketing business

High-Medium

Oil and Gas Exploration & Production High-Medium business Others -Retail

MediumMedium

GE MATRIX
ADAG

Reliance Communications Reliance Capital Reliance Infrastructure Reliance Power Reliance Big Entertainment

High-Low Medium-Medium Medium-Medium High-Low High-Medium

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.

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

Example Reliance Infocom

Weakness:
Marketing

strategy. Restricted mobility through its WLL

Reliance Communication Vs other market players