Mukesh Ambani : 4th Richest Person of the World

 Hello everyone, as I told you in my previous blog on "Why Wikipedia has started to prompt up a message, asking for donations in India" that I will be coming up with a post on how the tech giants have started to develop a keen interest in Indian companies. If you haven't read my previous post yet, you can Click here to read it. 

At present, we cannot ignore that Mukesh Ambani has become the 4th Richest man in the world having worth of $80.6 billion. But few months back before the coronavirus pandemic this was not the case. Although Mukesh Ambani was already Asia's richest person, but taking this huge leap forward & becoming the 4th richest person in the world is a whole different scenario. This has been the result of his constant observation towards the Indian market, followed by the desire to get indulged in each & every sector where there is opportunity to fill up the empty space that eventually resulted in the expansion & success of his company.

Mukesh Ambani inherited the company after his father's death in 2002 and since then he has diversified his business. Actually the thing which has attracted the western companies like Google, Facebook, Amazon is the strategy according to which he has been managing his business. Let me tell you how...

His company Reliance have subsidiaries which has nearly covered all the sectors of market, divisions of the company includes cloth, retail business, telecommunication & special economic zone (SEZ) developmental projects due to which he has captured the majority of the market share in all these sectors in India. The turning point was marked when Reliance Jio Infocomm Limited (RJIL) gained the license for the 4G network in India. Strategically he gave free access of talktime & internet to the public to gather the huge user-base. Because in any market & specially in India which has a population of about 135 Crore people, the one who has the customer, wins. Through economies of scale  Jio collected low revenue from one single user but in aggregate it made huge revenues. 

The list doesn't ends here & I think his vision is to get indulged in the day-to-day transaction of majority of the population who has access to the internet because as per now he has literally covered all the major things. I am going to explain this with a very good example.

You have got MyJio app if you need to recharge your number or pay bills, you require a music streaming app you can use its native app JioSaavn , you need to buy anything that is related to your household chores Reliance Retail & JioMart is present. What if you want to stream movies & watch tv shows you have got JioCinema & JioTv, JioCloud to store data online. Similarly there is JioNews, Jio Security, Jio Switch etc. 

 

 I would like to give you a very recent example - during this lockdown period, work from home was started & the need for a free video conferencing app arose. At that time Zoom was facing security & privacy issues, google planned to make Google Meet free for all its users and then considering the huge potential, Jio launched its own free video conferencing app i.e. Jio Meet. That was a very fast & effective move.

If you need to buy a very inexpensive phone which does all the basic task there you can get the JioPhone or phone of LYF which is also a subsidiary of Reliance Industries. 

Basically what WeChat does in China. According to me, Jio wants to do the same or even more in India. In China through WeChat you can collaborate, socialize, conduct e-commerce, order dumplings for delivery, make hospital appointments, or simply pay your bills. WeChat also lets its users to order food, book hotels, search, buy brands and enables them to extensively shop online. If Jio succeeds in doing all these things collectively, then it will provide a lot of benefits to the Jio Platforms overall, as the company is basically trying to build up an ecosystem.

 

Mukesh Ambani's main focus is to expand the Jio Platforms as it is generating huge revenues. Besides all this, some of the subsidiaries of Reliance Industries are Reliance Petroleum, Reliance Industrial Infrastructure, TV18 etc. This has been the major reason which has attracted other companies to invest in Reliance Industries. Reliance Industries' Jio Platforms has received several big-ticket investments which are $5.7 billlion from Facebook, Google has invested Rs 33,737 crore for getting 7.73 per cent stake in the digital platform, Qualcomm also invested in Jio. Amazon itself being a e-commerce tech giant has also invested in the Reliance Retail because Amazon also knows that the Reliance Retail is having the biggest market share in this sector in India. Mukesh Ambani is constantly focusing towards diversification and expansion of the business & these tech giants knows exactly that where they should invest their money because there is a massive potential ahead which can give them huge returns on their investment. Mukesh Ambani had a long term vision which made him the 4th richest person of the world and this is a huge example for us and we can learn from this that we should always look out for the opportunities where we can supersede & achieve success.

In my upcoming post, I will be telling you about a very popular music streaming service and how it arose from the ground level while competing with others & also about a useful feature that was not present earlier, which was a deal breaker for many people.

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