Jio and Facebook: Adding Value through an Alliance
(8 pages of text)
In April 2020, Reliance Jio Infocomm Limited (Jio), a subsidiary of Reliance Industries Limited, announced an alliance with social media giant Facebook Inc. (Facebook). This was the biggest foreign direct investment for a technology firm in India. The association between Jio and Facebook offered both firms many opportunities, and the strengths and core competencies of the two organizations promised to create value for Indian consumers and businesses by meeting their technology needs. However, the differences in the two organizations in terms of culture, expertise, business models, and management styles would need to be dealt with effectively to create the desired synergy. How could Jio ensure a co-operative and complementary partnership (despite their differences with Facebook) in order to succeed and set a precedent for future international alliances?
This case is suitable for undergraduate- and graduate-level courses on strategic management or international business. The case helps students to gain an understanding of international strategic alliances as a business growth strategy. This case is also suitable for helping students in management development programs to understand strategy. After working through the case and assignment questions, students will be able to do the following:
- Explain how value is created through strategic alliances.
- Decode strategic alliances between technology. companies operating in developed and emerging economies.
- Describe the intricacies of international growth strategies.
- Outline the significance of international strategic alliances.
- Determine an appropriate framework for international strategic alliances and partnerships.
Information, Media & Telecommunications
India, Large, 2020
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