Reliance Group of Reliance Group of CompaniesCompanies

Abhishek Jain

Bhaskar Shrotriya

Jagdeep Kaur

Karanbir Singh

Tushar Sonkusare

Vishesh Bansal

ContentContentHistory

HistoryHistory 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.

HistoryHistory

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?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 SBUCharacteristics of SBU It’s a single business or a collection of

related business, that can be planned separately from the rest of the companies.

It has it’s own set of competitors.

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

BCG MATRIXBCG 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

BCG MATRIXBCG MATRIX

Reliance Industries Ltd.

Petroleum Refining and Marketing business Star

Petrochemicals business Cash Cow

Oil and Gas Exploration & Production business

Star

Others -Vimal-Retail

DogQuestion Mark

BCG MATRIXBCG MATRIX

Reliance Communications Cash Cow

Reliance Capital Question Mark

Reliance Infrastructure Question Mark

Reliance Power Star

Reliance Big Entertainment Question Mark

Reliance Health Question Mark

ADAG

GE MATRIXGE MATRIXThe 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 MATRIXGE MATRIX

GE MATRIXGE MATRIXTypical (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 MATRIXGE MATRIXTypical (external) factors that affect Market Attractiveness:

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

GE MATRIXGE MATRIXTypical (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 MATRIXGE MATRIXTypical (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 MatrixGE Matrix

Reliance Industries Ltd.

Petroleum Refining and Marketing business High-Medium

Oil and Gas Exploration & Production business

High-Medium

Others -Retail Medium-

Medium

GE MATRIXGE MATRIX

Reliance Communications High-Low

Reliance Capital Medium-Medium

Reliance Infrastructure Medium-Medium

Reliance Power High-Low

Reliance Big Entertainment High-Medium

ADAG

SWOTSWOT

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 Example – Reliance InfocomInfocom 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 Example – Reliance InfocomInfocomWeakness:Marketing strategy.Restricted mobility through its

WLL

Reliance Communication Vs Reliance Communication Vs other market playersother market players