Reliance Industries Limited

Submitted By:
Kunal Kishore - 401503014
Sophie Kakker - 401503029
Girish Mehru - 401508017

Dhirubhai Ambani returned to India in 1957 after a stint with A. Besse & Co., Aden, Yemen. He started a yarn trading
business from a small 500 sq. ft. office in Masjid Bunder, Mumbai, but dreamt of establishing India’s largest company.
In 1977, Reliance Textile Industries IPO created history by introducing the equity cult in India.
Mukesh Ambani, then, set up a mill in Naroda, Gujarat that lead the establishment of Reliance’s first mega
manufacturing project at Patalganga. The Hazira plant came on stream in 1991 and laid the foundation for Reliance
becoming the world’s largest integrated producer of polyester.
In 2000, Reliance commissioned the world's largest grassroots refinery, Jamnagar petrochemicals, and integrated
refinery complex.
In 2002, Reliance entered the Infocomm business and brought about a revolution in mobile telephony in India. Power
generation and distribution, financial services and telecommunication services then demerged into separate entities.
In 2009, Reliance commenced the production of hydrocarbons in its KGD6 block.
Then, in 2016, Reliance Jio Infocomm Ltd., ushered in a pan-India digital revolution through state-of-the-art wireless
broadband 4G services, promising to bridge the digital divide.
Reliance became the first Indian company to cross Rs 6 trillion market capitalization.

Petrochemicals
The Petrochemical Industry in India is a cyclical industry. This industry, not only in India but also across the world,
is dominated by volatile feedstock prices and sulky demand. India has one of the lowest per capita consumptions of
petrochemical products in the world. The petrochemical industry in India came into existence during the 1970s. The
1980s and 1990s saw some rapid growths for the Indian petrochemical industry. However, the industry suffered
setbacks during 2008 due to a surge in the price of crude oil. Reliance has one of the most integrated petrochemicals
facilities globally, with a wide product portfolio. With global scale and capacities across Petrochemicals, Reliance has
Manufacturing Locations: 10 in India and 3 in Malaysia.
Last year, Reliance entered into Advanced materials & composites with working on incorporating nanomaterials.
Petrochemical EBIT was at a record level in FY 2017-18, at Rs 21,179 crores.
Refining
The 2017 growth of crude oil input to refineries has been driven by Asia – China, India, and South Korea to a lesser
extent – and North America, where crude oil production was on the rise.
Crude oil consumption by refineries slightly increased in Europe, with significant rises in the Czech Republic, Italy,
Norway and Turkey, but remained stable in Russia. Reflecting the willingness of Middle Eastern countries to refine
crude oil locally, refinery inputs continued to increase for the fifth year in a row in the region, especially in Saudi
Arabia and in Iran.
Conversely, lower crude oil production in Mexico and Venezuela reduced refinery inputs in these countries, and they
also continued to decline in Brazil. In addition, higher demand from the petrochemical sector contributed to raise
global oil consumption, especially in China and in the United States, where shale oil is very competitive. Reliance
processes a wide variety of crude oil to produce a range of petroleum products, including transportation fuels, for
domestic as well as export markets. RIL’s refinery at Jamnagar is among the largest and most complex refining assets
globally, with a design capacity for processing 1.24 million barrels of crude per day. Additionally, RIL has significant
flexibility to alter the product mix, to capture higher netbacks with changing product supply-demand dynamics. In FY
2017-18, Refining segment of RIL recorded strong operational performance led by a 9-year high GRM of
US$11.6/bbl. EBIT for the year was at a record level of Rs 25,869 crore. RIL also outperformed the Singapore refining
benchmark.

Oil and Gas

At this time, crude oil is one of the most present and essential resources in everyday life. The oil industry is one of the
most powerful branches in the world economy. More than four billion metric tons of oil is produced worldwide
annually. Nearly one-third of this amount is generated in the Middle East region. Saudi Arabia and the United States
are the world’s leading oil producers, each responsible for around 13 percent of the total global production. Russia is
the third-largest producer, generating over 12 percent of the world's total oil production.
Reliance India operations include conventional on-land, shallow-water and deep-water acreages, as well as
unconventional coal-bed methane block along with an international presence in US shale gas business. The year 2017-
18 marked progress on plans to monetize discovered resources and steps to rationalize the upstream portfolio. EBIT
in FY 2017-18 was at Rs 1536 crores.
Rs 40,000 crore Investment has been planned for the next 3-5 years to develop KG D6 discoveries.

Retail
FY2017-18 witnessed several important reforms taking place in the economy. The Government implemented Goods
and Services Taxes with effect from July 2017. The Maharashtra government permitted shops and retail establishments
in the state to remain open 24 hours a day, seven days a week and also reduced compliance requirements. India’s
consumption story remains strong. India’s nominal GDP per capita income is estimated at Rs 1,27,2921 in 2017- 18
closer to US$2,000 mark2. Favorable macroeconomic parameters, young and aspiring population, growth of
digitization and internet penetration, shift from traditional to modern retail channels including e-commerce are all
likely to drive this consumption boom.
Retail has adopted a multi-retail concept strategy and operates a wide array of store concepts which caters to diverse
needs of the customers across core consumption baskets of Grocery, Consumer Electronics, Connectivity, Fashion &
Lifestyle and Petro Retail.
Reliance recorded its highest ever EBIT of Rs 2,064 crores in FY-2017-18.

Digital Services
Globally, humans are using digital devices and services to augment and enhance their life experience – be this in
communication, entertainment, information, education health, buying/commerce, sharing or streaming events via their
phones, on ever faster mobile networks.
The majority of voice calls have already moved to the next generation mobile network at almost negligible cost
coupled with rich communication services and a plethora of infotainment and commerce applications. FY 2017-18
witnessed several important and transformative changes in the Industry. The industry is going through a major
consolidation phase through mergers or sale of businesses and from earlier 8 plus players is heading towards a 3 to 4
player market.
Reliance Jio has built an all-IP data strong future-proof network with the latest 4G LTE technology; with being the
only network conceived as a Mobile Video Network, supporting Voice over LTE (VoLTE) technology. It has India’s
largest wireless database with 186.6 million subscribers. Reliance Jio recorded EBIT of Rs 3174 crores in FY-2017-
18.

Media & Entertainment

During the first half of FY 2017-18, India’s Media and entertainment (M&E) sector encountered substantial headwinds
due to short-term impact from the implementation of tax reforms. In the second half, the industry gathered momentum
owing to a sharp revival led by robust underlying content-consumption trends. The pullback in advertising spends in
first half dragged down ad-growth for the year to 3%, but the market is well on its way to recovery heading into FY
2018-19. India’s M&E industry is expected to grow at an 11.6% CAGR to reach Rs 2,032 billion by 2020, from its
estimated size of Rs 1,306 billion in 2016.
Reliance’s Network18’s widespread portfolio of media and digital commerce properties are geared towards touching
the daily lives of Indians across geographies, genres and mediums. With over 53 streaming channels, it is India’s 3rd
largest broadcaster, reaching 90% of TV viewers’ largest media and entertainment hub. It recorded a decent EBIT Rs
25 crores.
Porters Five Forces Model

These are Porter’s five forces are as follows:

● Threat of New Entrants

● Bargaining Power of Suppliers
● Bargaining Power of Buyers
● Threat of Substitute Products or Services
● Rivalry Among Existing Firms

1. Threat of New Entrants for RIL

● Economies of scale – The new companies who are willing to enter the market has to think about the cost of
their products/services, economies of scale state that the more you produce the lower is the cost of production.
The economies of scale are extremely hard to achieve in the industry in which Reliance Industries operates.
The companies who produce in bulk have a highly fairer advantage. The cost of production is higher for the
new entrants as compared to the reliance and hence Economies of scale is a weaker force for the new entrants.

● Product differentiation – The reliance industries is known for its range of different products including
Petroleum, Natural gas, Retail, Petrochemicals, Textiles, Telecommunications, Media and Entetainment.
RIL also holds a monopolistic business in many regions of the country. The product differentiation is very
strong within RIL but not standardized. The advertising and customer service is also a big factor for this
product differentiation. All of these factors are very hard to compete for new entry when they are against
Reliance. Hence for a new company to enter the product differentiation is a weaker force.

● Distribution Networks – The access to the distribution network is easier for newer entrants. With only a few
retail shops who are willing to sell the products provided even a little higher margin, will lead to a bigger
network growing at an exponential rate. Reliance is in almost every city and the network is very vast because
of the time reliance is dealing with in these regions. Creating the same network as of Reliance will take a lot
of time and will require an immense amount of resources and is not possible for a small company to do. So,
with the help of a few retail stores, a new company can enter the retail market the same as Reliance is much
easier and hence it is relatively a stronger force for the new entry.

● Brand Loyalty – Ever since after the launch of JIO in India, the brand loyalty of a lot of products has
significantly moved to Reliance. With free and faster internet and a retail store in almost every city catering
to all kind of products from electronics to groceries. People from all demographics trusts RIL and their
products. Since the reliance is one of the most established brands, it is very difficult for the new entrants to
get the customers loyalty towards them hence it is a weaker force.

● Switching cost – The reliance company can and have done price reduction to eliminate competition and the
biggest example of this is JIO and RILGAM, where the price reduction completely revolutionizes the
telecommunication sector of the country. Any company who wants to enter has to compete with these highly
de-marginalised products and a new company can’t afford to have so much losses, if it wants to even survive
one fiscal year. RIL can easily lower their prices for few period of time if required i.e. in the case where a
company comes with lower prices than of Reliance. Switching cost is a weak factor for new companies when
they enter the market against RIL.

● Government Regulations – The GOI and Reliance has very good relationships where both are being
benefitted by one another. The policies within the industry requires strict licencing and a huge legal budget
 to get everything passed by the government and the local people. Once these legal affairs are sorted only then
a new company would be allowed to sell their products or their services. Government regulations is a weaker
force for new entries against RIL.

● Absolute cost advantage – It is governed by mainly three things.

o Accumulated Experience - Reliance is a very experienced and old company which has surpassed
recession, economic depressions and never been in any way near to being bankrupt. The R&D of
Reliance is highly funded and is valued at billions. The company has now its root under almost
every sector of the country and have a co-dependent relationship with each sectors. If any company
who wants to enter the market and being a competitor to the Reliance they will lack in experience a
lot.
o Control of Inputs required for productions - Due to the experience in the industry and different
sectors and connection with the local businessman and politicians, the reliance has a disciplined
control over the inputs required for productions. If a new company is entering the same markets as
the Reliance, the competition for the inputs will be high as reliance can pay higher price for the
input and outbid the competitors.
o Lower financial risks – A small company trying to go against RIL will have lower financial risk and
thus will have a stronger force to entry the market. The company, which have relatively larger funds,
will have something greater to loose, and RIL can easily out buy them or bankrupt them by providing
lucrative offers and hence it will be a weaker force for larger companies to enter the same market
as Reliance.
 FACTOR Its Effect on threat of New Entrants

Economies of SCALE Low

Product Differentiation Medium

Distribution Networks Moderately High

Brand Loyalty Low

Switching Costs Low

Government Regulations Medium

Absolute Cost Advantages Low

Strategy against new entries for Reliance

● Reliance Industries has huge advantage in economies of scale and will take advantage of the same while
fighting off new entrants.

● The government and reliance has very good connections and the support of local people has not only been
gain but won by Reliance. The new entrants has to do a lot of CRS and free works before it will be able to
get the same loyalty Reliance has.

● The Reliance industries are opening schools and doing a lot of works for the farmers of India and in return
they get the support and cheap crops and products from the farmer which will be hard for the new entrants.

● Due to already established high functioning R&D, Reliance can focus on innovations and can spend a lot on
building a strong brand identification. It will help in retaining the customers to new entrants.

● Reliance industries has a huge variety of products and dominate majority of sectors responsible for Indian
economy. All these products can be used for promotion or development of any other products and thus
provide a great symbiotic relationship.

2. Bargaining Power of Suppliers

It refers to the pressure suppliers can put on companies by raising their prices, lowering their quality or reducing the
availability of their products. It affects the competitive environment and profit potential of the buyers. The buyers are
the companies in hand and the supplier are the those who supply the companies.
This force is responsible for the level of competition in any industry, and suppliers power can be distinguished by
these two things:-

● There are many suppliers and only few substantiate raw materials.
● The cost of switching raw materials is costly.

The business and supplier but get benefitted if their relationship is close and trusting and there is fair pricing among
them. The bargaining power of supplier shapes the landscape of industry and helps in determining the attractiveness
of the company. There are a numerous type of suppliers in the industry such as Manufacturers and Vendors,
Distributors or Wholesalers, Independent Suppliers/ Independent Craftspeople, Importers and Exporters, Drop
Shippers. The RIL is working in different sectors and is taking supplies/ materials from more than 100 suppliers and
this distribution has developed over time. The determining factors for bargaining power of suppliers are :-

1. Number of suppliers relative to Buyers – No of suppliers relative to buyers (companies) are comparative low
and hence supplier power is low.
2. Dependence of a supplier’s sale on a particular buyer – Supplier power is medium on the basis of number of
buyers per supplier.
3. Switching cost (switching costs of supplier) – Supplier power is low.
4. Availability of suppliers for immediate purchase – Supplier power is high
5. Possibility of forward integration by suppliers - Supplier power is low.

For reliance Industries-

● The Number of suppliers in the industry in which Reliance Industries operates is a lot compared to that of
buyers. The companies who requires the services of theses supplies are comparatively low and there is rarely
any bigger client for these suppliers than the Reliance and Reliance has a lot of control over these suppliers.
This means that the suppliers have less control over prices. Suppose in the case of Hannay Reels one of the
hose suppliers of Reliance, Reliance dropped out as a client then major source of revenue for Hannay Reels
will be gone and the company will not be able to pay off the accounts payable. Hence for Reliance company
this force is very low for suppliers.

● Dependence of a Supplier’s sale on a particular buyer – The reliance company has a lot of suppliers for their
different needs. There are multiple suppliers for the same sector or in some cases, there is also a monopoly
by the suppliers. For example in the case of BIOSOL one of the Oilfield suppliers of Reliance, the suppliers
has a large number of buyers including Reliance and hence the dependence of Suppliers sale on buyer is
relatively small and therefore a stronger force for the bargaining power of suppliers. Whereas in the case of
Continental the company responsible for Hydraulic Hoses, Reliance is one of their biggest clients and them
being gone will affects the company revenue by factors and therefore they have a low bargaining power
against reliance. So, for RIL the bargaining power of supplier based on this factor is low for some cases and
high for some cases, Overall becoming medium.

● Switching cost – The competition for being RIL suppliers is huge and all suppliers tries to give a fair price
to make RIL one of their clients. Therefore, the prices at which RIL get their products are fairly standardised
less differentiated and have low switching costs. For e.g. The RIL has multiple suppliers for the same product,
the company providing the best price and quality gets to be the supplier and thus there is a fierce competition
and switching the cost is easier for RIL. RIL will be able to switch their suppliers very easily as there are
many options making this a weaker power for the factor bargaining power of suppliers. Also Suppliers who
don’t have the contract always tries to provide the products at a lower cost and hence providing numerous
options for the company.
 ● Availability of suppliers for Immediate purchase – This factor is very strong as the suppliers control the
whole power in the case. In case of rush orders the Suppliers can ask the price they want and in most of the
cases the buyers has to obey this price. The RIL is no stranger to this, if it comes the time for an immediate
purchase the RIl also pays price and thus giving all the bargaining power in hands of the supplier. In case of
Rush order the buyers cannot move to substitute as making a deal and going through all the quality check
will take a lot of time and thus removing the concept of it being an immediate purchase. This means that
there are no other substitutes for the product other than the ones that the suppliers provide. This makes the
bargaining power of suppliers a stronger force within the industry.

● Possibility of forward integration by the suppliers –The suppliers do not provide a credible threat for forward
integration into the industry in which Reliance Industries operates. Forward integration is a business strategy
that involves a form of vertical integration whereby business activities are expanded to include control of the
direct distribution or supply of a company's products. Since The RIL is advancing along the supply chain it
uses a vertical interation i.e forward integration. In some of the retail sector of RIL, the products they sell are
not their own but they act as a distributor for the clothing company, but slowly they are trying to form a brand
to sell their own manufactured products. The brands which are actually selling at these stores have their own
shops but availability of all type of brands under one roof provides a lot of options for the customers. For eg.
Levis make and sold their jeans in Reliance trends and also in their own stores, but the fact is In levis you
will not find Tommy Hilfiger but in Reliance Trends you will and that’s why there is marginally very less
impact if the suppliers just try to sell the products on their own without using Reliance as a distributor. This
makes the bargaining power of suppliers a weaker force within the industry.

● Buyer Importance – Reliance industries is not only a big retailer but one of the largest services and products
provider in India. As such as it has a lot to offers to its suppliers. It buys in bulk which means major business for
its suppliers. Now since, it makes large purchases, it gives Reliance significant buying power. This makes the
bargaining power of supplier comparatively a weaker force.

Factors Its effect on Bargaining power of suppliers

Number of suppliers Low

Dependence of suppliers on particular buyer Moderately low

Switching Cost Medium

Availability of suppliers for immediate productions High

Forward Integration Medium

Buyer Importance Low

Strategies to tackle Bargaining power of Suppliers for RIL

● Reliance Industries can purchase raw materials from its suppliers at a low cost. If the costs of products are
not suitable for Reliance Industries, it can then switch its suppliers because switching costs are low.
● It can have multiple suppliers within its supply chain. For example, Reliance Industries can have different
suppliers for its different geographic locations. This way it can ensure efficiency within its supply chain.
● As the industry is an important customer for its suppliers, Reliance Industries can benefit from developing
close relationships with its suppliers where both of them benefit.
3. Bargaining power of Buyers

It refers to the pressure consumers can exert on businesses to get them to provide higher quality products,
better customer service, and lower prices. The idea is that the bargaining power of buyers in an industry affects
the competitive environment for the seller and influences the seller’s ability to achieve profitability. Strong buyers
can pressure sellers to lower prices, improve product quality, and offer more and better services. A strong buyer
has the capacity to make an industry more competitive and decrease the profit potential for the seller.

The determining factors for Bargaining power of Buyers are –

Number of buyers (whether it is large or small), Purchasing capacity of buyers (How much a buyer can buy),
Importance of price, Customer Services, Community Building, Switching costs, Vertical Integration.

● Number of buyers – For RIL the numbers of buyers in India is over 500 Million including the customers
from a number of products and services they provide. Reliance JIo has eliminates competition by providing
the buyers free of cost internet in the first few months and this forces other telecommunication companies to
decrease their prices by factors. Since the number of buyers is highly dense for RIL and if all start switching
their buying pattern if provided with good enough cheaper options then the customer base it has developed
will change significantly. Thus since the concentration is very high the number of buyers is a stronger force.

● Purchasing capacity of buyers – Since the number of buyers are significantly high for RIL, the purchasing
capacity of a single consumer will not affect the company. Suppose a industry buys in bulk of Reliance
products then still the production is very high and the RIL will be able to have enough for any other industry
except in the case of Petroleum and Natural reserves of RIL as the resources are limited. So this factor has a
medium force.

● Importance of Price – RIL offers attractive prices and probably the best pricing in Media and
Telecommunication sector or even in the electricity sector for some parts of India. RIL has many sectors and
the sectors do inter-sector advertising and thus reducing the cost of advertising by a lot. RIL has been hghly
successful in getting customer attention by giving them 1 dollar value at cost of pennys. So the importance
of price to buyers is now eliminated and consist a very low force. Buyers in the industry are less price
sensitive.

● Customer Service – The RIL has setup multiple service centers and customer support center across every
town and relative places. This support centers has been very successful in maintaining the customer’s trust
and the retention of these customers. The quality of products is important for buyers and the buyers make
frequent purchases. The quality of customer Service is also very high and customers are satisfied. The force
is very low for bargaining power for buyer.

● Community Building – RIL has done a lot of CSR and build up a lot of houses and provided equipment to
the farmers. RIL also helped in building up schools and providing education to orphans and taking them to
events. The people is seeing the face of the CSR Mrs. Neeta Ambani for years now and loved and adore her
for doing what she do. The consumers has an immense trust on RIL now and so Community building is doing
very well for Reliance so there is almost no effect of this on bargaining power of the buyers.

● Switching costs – Switching costs are not very high for the customers except that they may not find the same
lower prices and conveniences of shopping with other brands that they can get with RIL.

● Vertical Integration – The buyers do not provide a credible threat for forward integration into the industry in
which Reliance Industries operates. RIl is following vertical integration for a long time as now it is getting
 in the retail manufacturing too. The buyers will not be able to match the production as of reliance and start
selling , the threat will be minimal if there is any by buyers entering in the market as a supplier and hence
making it a weaker force.

The effects of each factor for the supplier and its bargaining power.

Factors Effect on bargaining power of buyers

Concentration of buyers Medium

Buying capacity Low

Importance of price Low

Customer service Low

Community building Low

Switching costs Low

Vertical Integration Medium

Strategies to tackle Bargaining power of Buyers for RIL:-

● The R&D department can be very useful it can be used for innovation and differentiation to attract more
buyers.
● The service system can reach to even remoter location where no other service sector has reached and as the
fund is surplus in RIL it can be done easily.
● Reliance Industries can attract a large number of customers by focusing on these.
● RIL needs to build a large customer base, as the bargaining power of buyers is weak. It can do this through
marketing efforts aimed at building brand loyalty.
● RIL can take advantage of its economies of scale to develop a cost advantage and sell at low prices to the
low-income buyers of the industry.

4. Threat of Substitute Products or Services

● There are very few substitutes available for the products that are produced in the industry in which Reliance
Industries operates. The very few substitutes that are available are also produced by low profit-earning
industries. This means that there is no ceiling on the maximum profit that firms can earn in the industry in
which Reliance Industries operates. All of these factors make the threat of substitute products a weaker force
within the industry.
● The very few substitutes available are of high quality but are way more expensive. Comparatively, firms
producing within the industry in which Reliance Industries operates sell at a lower price than substitutes,
with adequate quality. This means that buyers are less likely to switch to substitute products. This means that
the threat of substitute products is weak within the industry.

Existence of close Substitutes:

● IndianOil is one of Reliance's top competitors. IndianOil was founded in 1959 in New Delhi, Delhi. IndianOil
operates in the Oil & Gas Storage & Transportation industry. IndianOil generates $2.2B more revenue than
Reliance.
● Bharat Petroleum is a top competitor of Reliance. Bharat Petroleum was founded in 1952, and is
headquartered in Mumbai, Maharashtra. Bharat Petroleum is in the Consumable Fuels industry. Bharat
Petroleum generates $38.7B less revenue vs. Reliance.
● Future Consumer Enterprise is seen as one of Reliance's top competitors. Future Consumer Enterprise is
headquartered in Mumbai, Maharashtra, and was founded in 2007. Future Consumer Enterprise is in the
Agricultural Products field. Future Consumer Enterprise generates 0.65% of the revenue of Reliance.
How Reliance Industries can tackle the Threat of Substitute Products?

● Reliance Industries can focus on providing greater quality in its products. As a result, buyers would choose
its products, which provide greater quality at a lower price as compared to substitute products that provide
greater quality but at a higher price.
● Reliance Industries can focus on differentiating its products. This will ensure that buyers see its products as
unique and do not shift easily to substitute products that do not provide these unique benefits. It can provide
such unique benefits to its customers by better understanding their needs through market research, and
providing what the customer wants.

Factor It’s effect on threat of substitute

Number of alternatives Medium

Cost effectiveness Low

Switching costs Low

Price sensitivity Medium

5. Rivalry Among Existing Firms

● The number of competitors in the industry in which Reliance Industries operates are very few. Most of these
are also large in size. This means that firms in the industry will not make moves without being unnoticed.
This makes the rivalry among existing firms a weaker force within the industry.
● The very few competitors have a large market share. This means that these will engage in competitive actions
to gain position and become market leaders. This makes the rivalry among existing firms a stronger force
within the industry.
● The industry in which Reliance Industries is growing every year and is expected to continue to do this for a
few years ahead. A positive Industry growth means that competitors are less likely to engage in completive
actions because they do not need to capture market share from each other. This makes the rivalry among
existing firms a weaker force within the industry.
● The fixed costs are high within the industry in which Reliance Industries operates. This makes the companies
within the industry to push to full capacity. This also means these companies to reduce their prices when
demand slackens. This makes the rivalry among existing firms a stronger force within the industry.
● The products produced within the industry in which Reliance Industries operates are highly differentiated.
As a result, it is difficult for competing firms to win the customers of each other because of each of their
products in unique. This makes the rivalry among existing firms a weaker force within the industry.
● The production of products within the industry requires an increase in capacity by large increments. This
makes the industry prone to disruptions in the supply-demand balance, often leading to overproduction.
Overproduction means that companies have to cut down prices to ensure that its products sell. This makes
the rivalry among existing firms a stronger force within the industry.
● The exit barriers within the industry are particularly high due to high investment required in capital and assets
to operate. The exit barriers are also high due to government regulations and restrictions. This makes firms
within the industry reluctant to leave the business, and these continue to produce even at low profits. This
makes the rivalry among existing firms a stronger force within the industry.
 ● The strategies of the firms within the industry are diverse, which means they are unique to each other in terms
of strategy. This results in them running head-on into each other regarding strategy. This makes the rivalry
among existing firms a strong force within the industry

Industry Competitive Structure:

IndianOil is one of Reliance's top competitors. IndianOil was founded in 1959 in New Delhi, Delhi. IndianOil operates
in the Oil & Gas Storage & Transportation industry. IndianOil generates $2.2B more revenue than Reliance.

Bharat Petroleum is a top competitor of Reliance. Bharat Petroleum was founded in 1952, and is headquartered in
Mumbai, Maharashtra. Bharat Petroleum is in the Consumable Fuels industry. Bharat Petroleum generates $38.7B
less revenue vs. Reliance.

Future Consumer Enterprise is seen as one of Reliance's top competitors. Future Consumer Enterprise is headquartered
in Mumbai, Maharashtra, and was founded in 2007. Future Consumer Enterprise is in the Agricultural Products field.
Future Consumer Enterprise generates 0.65% of the revenue of Reliance.

Demand Conditions :

The industry in which Reliance Industries is growing every year and is expected to continue to do this for a few years
ahead. A positive Industry growth means that competitors are less likely to engage in completive actions because they
do not need to capture market share from each other. This makes the rivalry among existing firms a weaker force
within the industry.

Cost Conditions:

All the Reliance products exist in the market for their Low Costs. So that everyone can afford these products. All other
competitors have to change their prices according to the reliance pricing, just because due to their low price, they
capturing the whole market.

Height of exit Barriers:

The exit barriers within the industry are particularly high due to high investment required in capital and assets to
operate. The exit barriers are also high due to government regulations and restrictions. This makes firms within the
industry reluctant to leave the business, and these continue to produce even at low profits. This makes the rivalry
among existing firms a stronger force within the industry.

Factor Its effect on Rivalry among existing firms

Number of main competitors Medium

Pricing strategy Low

Market growth rate Medium

 Degree of differentiation Medium

Cost structure Low

How Reliance Industries can tackle the Rivalry Among Existing Firms?

Reliance Industries needs to focus on differentiating its products so that the actions of competitors will have less effect
on its customers that seek its unique products.

As the industry is growing, Reliance Industries can focus on new customers rather than winning the ones from existing
companies.

Reliance Industries can conduct market research to understand the supply-demand situation within the industry and
prevent overproduction.