Reliance Industries Limited is one of a leading Indian conglomerate company working globally. It is headquartered in Mumbai. The company operates in petrochemicals, energy, natural resources, textile, telecommunications and retail. Reliance is one of the leading companies in terms of profit and revenue. The company’s services and products portfolio touch the Indians on regular basis across the social and economic spectrums. The company is now focused on developing platforms which will herald Fourth Industrial Revolution (RIL, 2020).
The Ansoff matrix helps the company is analyzing the growth strategies in combination of products and market. The matrix helps the company with four combinations of product and market by identifying new opportunities for growth. Many companies understand the risk of growth through this matrix. Here is the detailed Ansoff matrix analysis of Reliance Industries Limited.
Market Penetration
Market penetration suggest the companies to increase the sales of the existing product in the existing market. This will help the company in increasing the market share. This strategy is least risky, as it leverages various existing resources of company and its capabilities. In the growing market, increasing the market share is a growth and opportunities will be there if rivals reach to the capacity limits. The company can increase the market share till it reaches to market saturation. Reliance Company achieve this by growing the technology use in India. The company offered various discounts on the products to increase the market share. After entering in the telecommunication, company announced its alliance with Taiwan mobile phone maker HTC. It increased market awareness through different marketing techniques (Jain, 2010).
Product Development
Product development strategy of the company deals with the new product launch in the existing market of the company. This strategy is effective for the company with strong position in market. The companies can introduce a new version of the existing product or modify the existing product. However, it is riskier for the company like market development. The companies have to understand the need of the customers and then introduce a product to gain recognition. Reliance introduced landline services for the customers with pre-paid and post-paid plans. The company innovate itself and offered domestic and international voice calling services. It also launched voice-based navigation services. Reliance use aggressive advertising to increase the customers and create market awareness. It introduced new services and products in the biopharmaceutical industry for the consumers (Bhasin, 2019).
Market Development
Market development promotes the idea of increasing the sales of the existing products of the company by identifying new markets. New markets mean new customers. This include the options of market expansion by different segments or by geographical regions. The new market target strategy might be the good strategy for the company’s competencies. The company will be serving to new customers in different market segment. This could be efficient strategy but riskier as compare to market penetration. Reliance company expanded itself in geographically and becomes the multinational company. In 2003, the company acquired FLAG telecom to operate in Europe, Asia, USA and Middle East. In 2004, the company took over German polyester manufacturing company “Trevira”. In 2010, the company announced its strategic partnership with BP to enter in USA market. It has multiple joint ventured business to operate all across the globe (Sayantanhitk, 2013).
Diversification
Diversification deals with new products introduced for the new markets. Companies enter in different market than their operations with new products. This is highly risky strategy as both market and product are new. Diversification can be reasonable if high returns are associated with the high risk. This also helps in gaining the foothold in the industry. This strategy also helps in reducing the overall business risk on anyone product. Reliance Industries adopted this strategy. In 2002, the company entered in providing telecom services. This was the major catalyst of the company for changing the life of Indians. In 2007, the company entered in the retail market and launched convenience store under the name of “Reliance Fresh” (Sayantanhitk, 2013).
References
Bhasin, H. 2019. Marketing strategy of Reliance industries limited. [Online], Available at: https://www.marketing91.com/marketing-strategy-of-reliance-industries-limited/, [Accessed on: 23rd January, 2020].
Jain, S. 2010. Ansoff matrix Reliance communication. [Online], Available at: https://www.slideshare.net/siddhantjain/ansoff-matrix-reliance-communication-5647400, [Accessed on: 23rd January, 2020].
RIL, 2020. About the company. [Online], Available at: https://www.ril.com/OurCompany/About.aspx, [Accessed on: 23rd January, 2020].
Sayantanhitk, 2013. Reliance Industries Limited, OEC. [Online], Available at: http://www.authorstream.com/Presentation/sayantanhitk-1538487-reliance-inustries-limited-oec/, [Accessed on: 23rd January, 2020].