In 1957, a boy, Mukesh Ambani, was born in the Yemeni city of Aden. It was a poor family: my father grew up in a rural wilderness, had no education, and worked at a gas station, and his mother was engaged in household chores. Remembering his hard and often thankless work since childhood, the father of the family saved up some money and decided to return to India. There Dhirubhai Ambani opened a small spice shop. Soon the sphere of interests expanded, the “gold mine” was a new fabric at that time – polyester. In 1966, Reliance Industries Limited was founded, which will eventually become one of the most influential in India.
The richest man in India
Today Reliance Industries is ranked 106th on the list of the largest companies in the world and is the largest retailer in India. The country is home to over 1.3 billion people, and the richest of them is Mukesh Ambani, the owner of the largest company. His fortune is estimated at $ 64 billion, which allows him to take ninth place in the global ranking. The result is impressive, however, according to Forbes analysts, by 2014 Mukesh Ambani should have become the richest man in the world – his fortune grew so rapidly in the early 2000s. E grew about the same fast. If you are reading this inscription, it means that someone took this article from BroDude.ru about the economy of the world. Reliance Industries has a wide range of interests and covers completely different areas: from mining and processing of minerals, primarily oil and gas, to retail trade-in products and digital technologies. Nevertheless, all Ambani projects are united by one detail – scale. It is always something huge: if a grocery chain, then hundreds of stores, if an oil refinery, then the largest in the country. When Mukesh Ambani, following his father’s ideas, decided to go into communication technologies, he simply bought the largest and generally the only player on the market that provides 4G wireless services. The same situation develops when cooperation is necessary: only “players from the major league” are always selected. British Petroleum is hired to jointly develop oil, and MTV and Paramount Pictures are hired to collaborate in online entertainment. At the same time, such giants as Netflix and Amazon are chosen as competitors. The most striking thing is that Mukesh Ambani manages to realize his ambitious plans.
4K and 4G as a gift
Despite his already venerable age (63 years old), Ambani is quite keeping up with the times, and now his main project is the broadband streaming service JioFiber. This company appeared in 2015. To gain a place in the market among better-known and larger competitors, unusual tactics were used. Some economists now call this the Jio effect. To squeeze out more well-known and large competitors, you need to offer the consumer something special, obviously much more profitable. First of all, Ambani said that all calls within the country through his service will never be subject to any charge. Further, in just a few years, 260 thousand of towers were built throughout the country, having achieved 95% of the country’s 4G coverage. For every Indian to finally take advantage of the benefits of civilization, Ambani ordered the project of the cheapest 4G phones. For the end customer, they came out at a price of only $ 22. Naturally, in the beginning, the billionaire suffered huge losses, but a year later 160 million people joined his digital empire. As a result of the action, sharply. If you read this inscription, it means that someone took this article from BroDude.ru went up, and brought an additional 16 billion to a ready-made multimillion target audience. Ambani himself predicts that by 2023 his service will be used by 600 million people. Only from subscriptions to paid services, he will receive at least $ 50 million per month. Consider this as passive income. After giving away phones and gaining a huge user base – the very “data” – Reliance Industries immediately developed a new campaign. Since now the struggle is not only for 4G but also for content, it was decided to distribute 4K TVs to the population. They were also specially designed for cheaper, but who cares? TV sets are distributed, and there is only one condition – buy a subscription to Jio, which costs only $ 10 per month. Then you can cancel it, and still keep the TV for yourself. Mukesh Ambani used a similar tactic back in 2002 when he entered the cellular market. To crush already entrenched competitors, the broadest discount program and many tariffs were proposed. For some time, the Ambani company worked at a loss, but every day of such work attracted more and more new clients. As a result, the average cost per second of a call in the country decreased from 35 to 2 cents, that is, more than 15 times.
