Reliance Jio is one of the largest telecom companies in India and it acquires Radisys to obtain 5G and IOT technology. Political environment, social factors and technology factors are creating opportunity for the firm. The Indian Government is fully committed towards growth of business. Socially, people are spending more time on mobiles and the internet. Hence, social environment positively affects firm. Reliance Jio have a sound technology base, then rivals. Economically, India condition is not so good and it to some extent may affect mentioned firm. It is difficult for rivals to imitate technology base of the company. The company has well organized structure and rare capability in its business which assists to remain on top of the market.
Reliance Jio is the one of the Indian company that is operating in the telecom sector. Mentioned firm recently acquires Radisys and obtain IOT and 5G technology. In present research study external and internal environment analysis is done (Mumtaz, and et.al., 2018). In the middle part of the report, VRIO analysis of Reliance Jio is done and competitive advantage of the firm is evaluated. At the end of the report, concluding section is prepared.
External and internal environment analysis
Business firm performance is affected by a number of factors like external and internal factors. All these factors affect companies in a number of ways. Components of the external environment are explained below.
• Political environment: It is the component of the environment that greatly affect business firm. Political environment refers to the political parties and their ideologies as well as their actions on varied issues that are matters of concern for any nation. There are many nations where Central and State Government give priority to the business firms and prepare business friendly policies. On the other hand, there are many other nations where due importance is given to the social issues, then business and in those nations Governments prepare less business friendly policies. In such kind of nation high level of red tapism is observed, which is not considered good for the business firms. All these things send a message to the business community, whether the nation is best option to commence business (Osseiran, Monserrat, and Marsch, 2016). It can be seen that in the summit that was organized in the Davos CEO’S commonly believed that in the last three years the Modi Government remove many unnecessary rules and regulations ad due to this reason it’s become very easy to do business in India. Modi Government to great extend reduces red tapism Indian market. In order to promote business in India, Indian Government is consistently focusing on reducing business and trade barriers in India. Reliance Jio is working in telecom industry and intend to develop leadership in the industry in terms of technology at the global level. Reliance Jio acquire Radisys so that Jio Global innovation and technology leadership plan can be implemented effectively in areas of 5G and IOT. The Indian Government is fully committed towards the growth of the telecom industry in India and in this regard it is also providing as much as support to the business firms. In upcoming time period, it will surely issue license for 5G in India. Acquisition of the Radisys lead to acquisition of 5G technology and by the time Government of India will issue licenses for 5G Reliance Jio will already have such kind of technology. This will assist firm is increasing its business at a rapid pace in the Indian market. It can be said that the political environment is creating opportunity for the Reliance Jio.
On the basis of the above discussion, it is concluded that business environment greatly affects business firms. Internal and external factors to large extent impact company profitability in multiple ways. External environment factors are in favor of the company and due to this reason on this front there is no problem. However, economic environment to some extent is not business favorable but capabilities that Reliance Jio have will assist it remain at top position in the market. It is also concluded that firm must expand its business in the international market because it have sufficient resources in its business. Hence, by going in international market firm will earn huge amount of revenue and profit in the business.
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Reliance industries acquire Radisys to push Reliance Jio’s 5G, IOT efforts, 2018. [Online] Accessed through < https://telecom.economictimes.indiatimes.com/news/reliance-to-acquire-radisys-drive-jios-5g-iot-efforts/64802762>
Reliance Industries to acquire Radisys, 2018. [Online] Accessed through < https://www.radisys.com/press-releases/reliance-industries-acquire-radisys>
Reliance acquires Radisys for 5G and IoT, 2018. [Online] Accessed through