Why does Mukesh Ambani creates always creates a sort of monopoly in every sectors he enters?
He has almost creates a monopoly in retail market segment by acquiring future group,lets know how?
7 Reasons why, Mukesh Ambani , the richest man of Asia, is set to create a complete monopoly in every sector he is getting into .
1.WIDE AND EASILY ACCESSIBLE CUSTOMERS : Mukesh Ambani business empire get onto success curve after jio success and added to its customers base around 35 million customers, which are easily accessible by reliance (owing to accessability via its most used app -jio) and can be used by it solely to substitute new reliance products over other products available in market. It has been prediction that now whatsap pay ( will be operation soon ) will be strategically integrated with jio platform so it will add up more to customer base .
2.Huge funds : Ambani has huge funds at his disposal in forms of revenue from petrochemical and jio business to invest in others and sustain losses in other to capture market share .
(He is following strategy of Jeff Bezos who invest his web services revenue in e-business to kill competitors and capture market share)
3.Adoption of huge discount and free model : Usually this model is adopted by newly incubated startup with new idea to catch-up market share but eventually most of them failed , owing to lack of fund BUT reliance ,at present time , have ample of funds and sources of funds at his disposal so at first he is incurring losses and catch-up market share and thus make loyal customer base by quality services and products . This strategy can be used by others also but if reliance come into any field, the competitors of that fields know that they can’t compete them in incurring losses and retaining customer base and hence incurs losses in limit only to just retain theirs loyal customers
4.Political support : The fact can’t be denied that any business is affected by political situation and it is undeniable that
1)Reliance has the support of NDA government , owing to the big bill they pay for election of this government.
2 ) other party government is not coming in next term so atleast reliance have a unstoppable next 8 years.
( eg . Refer the case of telecom industry , where the regulation has been changed or rather say manipulated just to benefit jio industry )
5.Customer mindset : After the revolution that ambani brings via his jio in telecommunication sector the customer mindset for reliance has completely changed and they think
“jaha ambani hongaa waha bahut discount hin discount honga ” – means where there will be ambani there will be rain of discount .
6.Confidence in market : By market I mean , security market.
Since reliance has raised fund of around 1.50 lakh crore in just one month and clear all debt , it has created a huge confidence among investors in the market and reliance can easily raise thousands crores of money in one go for pumping in any business its wants
7.MEDIA POWER : VIACOM -18 and tv-18 ,the media houses that covers colors, CNBC, tv-18 , mtv and etv network ,where ambani has majority holdings helps them to strategically manipulate the customer preferences and thought processes.
MAY BE AMBANI IS GOD FOR CUSTOMER , COMPETITORS FOR BIG PLAYERS IN MARKET BUT IS A KILLER OF SMALL PLAYERs WHO ARE ALSO A GOD FOR THOUSANDS OF WORKERS.
Recently , from past few months reliance mart is focusing on retail businesses and its extension plans, Amazon , its ultimate competitors has started taking some action and planned to extend into medicine field also so it started pilot project in Bengaluru , in return very strategically ambani has acquired majority stock of 60 percent in NETMEDS for around 620 cr
In action of both two giants has increased the tensions level of local medicines sellers and thus theirs association has plead government for some action aginst reliance and they also stated that reliance move as a killer move for them
The competition between giants will never going to end . Giant will become more giant by eating competitors and will become monster one day and will start eating customer , so be responsible .
Hope we have heard the term caveat emptor – let the buyer beaware .
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