STRATEGIC

ANALYSIS OF
RELIANCE
INDUSTRIES LTD.

GUIDE Dr. NEERAJ SINGHAL

By GROUP A4 -

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20PGPM022 KUNDAN KUMAR JHA
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CONTENTS

Organization Introduction

Vision and Mission of Reliance Industries Ltd

and Component of -
5

External Environment Analysis .6-

7 Porter's Five Forces Analysis

Internal Environment Analysis

..

9 Value Chain Analysis

10-11

Strategies Identified in Reliance Industries Ltd

Strategy Analysis 13-16

Conclusion 17
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ORGANIZATION INTRODUCTION

Reliance Industries Ltd. is a global business leader based in Mumbai, India. They operate in
different sectors like- petrochemicals, telecommunication, textiles, retail etc. They are our
largest publicly traded conglomerate on the basis of sales and market capitalization and
also are one of the most profitable conglomerates. As on 10th September 2020, they became the 1st
Indian company to surpass the benchmark of $200 Billion in Market Cap.

They are ranked under Fortune Top 500 companies on the rank of 96 th as of 2020. They are one of
s, contributing to more than 8% of exports of India as a whole and having
access to more than 108 markets worldwide. They are also one of the highest private income tax
payers of India. Also, Reliance contributes to more than 5% of the total customs and excise
collected by the Indian government.

The slogan "Growth is Life" perfectly encapsulates Reliance's ever-evolving spirit. They've
expanded from a textiles and polyester business to a multi-billion-dollar conglomerate with
investments in digital services, telecom, oil, retail, etc. They are committed to rapid development
through creativity in both of these fields.

Their ambition has propelled them to global leadership in a number of industries. Reliance's
product and service range has an effect on almost every Indian on a regular basis, covering the
economic and social spectrum. They are now concentrating their efforts on developing networks
that will usher in the Fourth Industrial Revolution by providing resources and pathways for India
and its people to realize their full potential.

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VISION AND MISSION OF RELIANCE

INDUSTRIES LTD.

VISION
A vision is a statement that reflects an organization's aspiration and what it aims to do in the long
term. A positive vision instills a feeling of winning in the company and motivates workers at all
levels to work for the same goal, while also allowing for individual and team contributions. It
expresses what an organization's main objective is; it encapsulates the company's aspiration.

Reliance Industries has the following vision

ures, create value for the nation, enhance quality of life across
the entire socio-economic spectrum and help spearhead India as a global leader in the

The Reliance Industries Company's vision statement is a business strategy for the upcoming
future; it determines when and where the company needs to be. The Reliance Industries mission
statement acts as a guide that identifies the company's priorities in order to help with financial,
administrative, and general decision-making.

MISSION
Building on the vision, companies have a mission statement, which explains what the company
offers in terms of goods and services, as well as the areas in which it can operate. People
sometimes confuse vision and, but they have different meanings in the strategy phase. A mission
statement outlines what a company does, and the offerings that it aims to deliver, as well as the
markets in which it will participate.

Reliance Industries has the following mission -

o Create value for all stakeholders

o Grow through innovation
o Lead in good governance practices
o Use sustainability to drive product development and enhance operational efficiencies
o Ensure energy security of the nation
o Foster rural prosperity

Reliance Industries' mission statement is a document that outlines the company's essence and
priorities. Reliance Industries' mission statement further describes the reason for the company's
presence, emphasizing the programs and goods it provides. In addition, the mission statement
outlines Reliance Industries' organizational targets, the procedures the industry employs to
accomplish those goals, the target client segments, and the area in which the company resides.

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Components of a mission statement:

Customer satisfaction
Reliance Industries' mission, emphasizes the importance of consumer loyalty. Reliance Industries'
mission statement identifies its target client segments, along with their needs. The mission
s contribute towards gaining customer loyalty in
its target market.

Based on core competencies

Reliance Industries' mission is focused on core strengths and its major competencies. This is
relevant for RIL because the mission statement would bring to light about the numerous programs,
procedures, and management strategies that the business implements to accomplish its operational
and strategic objectives. The success of the targets would be determined by Reliance Industries'
ability to leverage its core competencies.

Realistic and clear

Reliance Industries' mission statement is both practical and transparent. This indicates the
Reliance Industries' mission statement was written using plain, concise, and clearly interpreted
terms and phrases. Clarity is critical so that all Reliance Industries Business stakeholders
understand the mission statement. Reliance Industries' mission is also concrete, allowing for
meeting a variety of aims and objectives.

Motivational and inspirational

Reliance Industries' mission statement is empowering in that it inspires staff and employers to give
their utmost in order to accomplish targets. Their mission is also inspiring as it tries to foster an
individual's desire for success and growth, not just for the sake but also their own.

Specific and sharp

Reliance Industries' mission statement is specific and to the point. It is quite easy to grasp and
convey everything that the listener wants to know about their offerings. To effectively articulate
the company's position to customers, the mission statement should be kept concise, sharp, and
accurate, rather than stretching it out over many pages of redundancy and non-essential
information.

An organization's mission should ideally be focused around the goods and services that the
company offers. This means the Reliance Industries' mission statement emphasizes its products
while also ensuring that they are consistent with the company's standards. As a result, Reliance
Industries' mission statement describes the ethical foundations on which the organization operates
to deliver its offering.

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EXTERNAL ENVIRONMENT ANALYSIS

A. Opportunities for Reliance industries limited
E- commerce and Digital space
CMB as unconventional natural gas
New strategic merger and acquisitions.
Diversification from core energy business
Infrastructure development in domestic and off shore operational units
Expansion in untapped rural market

B. Threats to Reliance industries limited

Intense competition
Imitation of counterfeit and low-quality product in emerging markets
Shifting sentiment towards electric vehicle
Litigation may impact business expansion

C. External Factor Evaluation Matrix (EFE):

The External Factor Assessment Matrix is a competitive research framework that assesses a
company's external environment and defines its strengths and weaknesses. This method aids
in the assessment of the firm's external climate, which includes economic, social, technical,
government, political, legal, and competitive data. In the case of Reliance Industries Ltd., we
have measured the opportunities and risks and are now planning a matrix to decide which
aspect has the largest effect on airlines. Scores in the external matrix apply to how well the
new plan of the organization reacts to prospects and risks. The numbers range from 4 to 1,
with 4 denoting superior performance, 3 denoting above average performance, 2 denoting
average performance, and 1 denoting bad performance. Each consideration is given a
subjective rating as well as a weight.

Interpretation of the Matrix

Reliance Industries has been able to look on to the upcoming opportunities and is placed perfect
so as to leverage upon the opportunities. E-commerce and the digital sector are areas where it has
a great future. Creating strategic mergers and acquisitions can bring up future growth for the
group. RIL has been able to counter their competition pretty well over the years. The major threat
which lurks around the corner is of electric vehicles. Electric vehicles can be a disrupter for its
Petrochemical business. Looking at the total score of the external factor evaluation matrix i.e.,
3.04, we can say that RIL is placed pretty well to capitalize on opportunities eliminating almost all
its weakness.

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D. Competitor Profile Matrix (CPM):

Tata Group, Adani Group, Aditya Birla Group, and Mahindra Group have been Reliance
Industries Ltd.'s biggest competitors over the last decade. The Competitive Profile Matrix
(CPM) is a metric that contrasts a company's strengths and weaknesses to those of its
competitors. The matrix describes and contrasts a company's primary rivals based on
industry critical performance factors. The review also shows a company's relative strengths
and limitations in relation to its rivals, allowing a company to assess the ways to develop
and which to defend. The CPM ratings show how well businesses perform in each region.
The scale ratings is done from 1 to 4 with 1 as the major weakness and 4 being a major
strength. Weights and ratings are allocated to every corporation on a subjective basis.

Interpretation of the Matrix

The matrix gives us a clear indication that RIL has been one of the major conglomerates in the
Indian market, all though all other big players are neck on neck and has great potential going
ahead. The results are totally subjective to individual perception and may vary from person to
person. According to the given matrix RIL manages these critical success factors most effectively
followed by Tata Group, Adani group, Mahindra group and Aditya Birla group.

E. Strategy Group Mapping:

Strategic group mapping is a way of showing the various strategic roles that competing
businesses have in the market. It is a significant field in which businesses can clearly
assess where they basically require improvements and, as a result, perform well and win
well. Strategic groups are conceptually established groups of competitors that have
common tactics and therefore deal more closely with one another than other companies in
the same industry. It may come from any form of sector and is classified within a
dimensional construct depending on the industry.

Interpretation of the Matrix

comparison to its competitors with regard to R&D and Brand Image which are very important
factors. We can see that Reliance has a pretty good brand image as compared to its competitors
and Tata being a very close competitor but lags in the department of R&D in which Tata has a
much better position. Aditya Birla Group and Adani are a bit far in the competition on these
factors but they can quickly gain the necessary momentum. As for Mahindra group, they are doing
pretty well in R&D but are lagging a bit on the brand image front.

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PORTER'S FIVE FORCES ANALYSIS Y

Porter's Five Forces analysis is a simple yet a very effective tool for analyzing the market climate
and the possible profitability of your business. Based on this you can change the approach in the
market which is quite important. We know that keeping an eye on competitors is very important
for any business but also Porter emphasized on other important things which also impact your
success.

A. Bargaining Power of Buyers: In the case of reliance

industries, buyers' bargaining power is moderate on
average, but it varies by person. Because of the
various alternatives available, buyer bargaining
power is high in the telecommunications industry, as
well as in the textile industry. However, since it is
India's biggest company, it has a cost advantage and
pricing stability, which means it has more customers
than its competitors.

B. Bargaining Power of Suppliers: In contrast to

customers, the Reliance sector has a wide number of
suppliers. In the event that the cost benefit is not
reached, Reliance Industries' supply chain is very
effective and will switch suppliers. To gain advantages and economies of scales, reliance
companies must work on the contractual relationship with suppliers.

C. Threats of New Entrants: The threat of new competitors for RIL is low because the company
is a giant in India, and it is difficult for a competitor to compete with it. To create a strong
client base for a potential entrant, it takes a lot of money and a lot of marketing campaigns.
RIL, on the other hand, should focus more on establishing a large customer base of committed
customers and improving customer experience management. This would raise the
psychological cost of converting.

D. Threats from the Substitute Products: The threat of alternative goods to the Reliance
industries is medium, but it may vary on an individual basis. The reliance industries must raise
the swapping costs of their goods in order for consumers to avoid switching to alternatives.
Furthermore, replacement goods must not have the same utility in terms of consistency and
price as reliance industries products. By selling more differentiated goods and raising
switching prices, the business will reduce the challenge of alternatives.

E. Rivalry of Existing Players: Rivals are there in the textile, fabrics, and telecommunications
markets. For the company to reinforce its distinction, it is important to focus on tacit desires
and consumer preferences. To open new doors for the group, it must invest more in R&D and
seek out more mergers and acquisitions to reduce market rivalry.

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INTERNAL ENVIRONMENT ANALYSIS Y

A. Strengths of Reliance Industries

First Indian company to cross 10 trillion by market capitalization
Highest quality 5G ready digital platform
Strong brand name
Excellent financial position and strong profitability
Highly automated operations
Vast product portfolio

B. Weaknesses of Reliance Industries

Less Investment on R&D compared to growing sectors
Limited success outside core business
Organizational structure is rigid which is limiting expansion
Inefficient use of shareholder s fund thereby declining ROE

C. Internal Factor Evaluation Matrix (IFE):

The Internal factor evolution matrix, a matrix to evaluate internal factors of a firm or an industry is
a strategic method to analyze some of the major strength weakness in the related internal
factors. In case of Reliance Industries, we have measured its strengths and disadvantages and
are now planning a matrix to decide which aspect has the largest effect on airlines. Scores in
the internal matrix indicate how well the new policy of the organization reacts to the Strengths
and Weaknesses. The scale value ranges from 4to 1 where 4 shows a major strength, 3-minor
strength,2-minor weakness and 1 showing major weakness. subjective to weight and ratings.

Interpretation of the Matrix

RIL being the first Indian company to cross the landmark of 10 trillion by market capitalization
and also having a strong brand name, is one of the largest conglomerates of India. With its
highest quality 5G ready digital platform it is one of the few players in the market which can
grow even faster rate than at what it is growing right now. The major weaknesses which come
out here are their investment in R&D which comparatively much lower and furthermore RIL
has many business verticals, but it has got limited success outside its core business. In the last
2 years RIL has not be able to efficiently utilize share Its Return on Equity has
been constantly declining. The total score of the IFE matrix which is 3.30 is above the average
and shows that RIL has managed its internal factors very soundly and that being one of the
reasons of its success.

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VALUE CHAIN ANALYSIS Y

Value chain analysis is an effective way to analyze a company's business activities visually to see
how the company can create a competitive advantage for itself. Value chain analysis gives an
analyst to understand how a company adds value to their products and services. Also, from the
perspective they are able to figure out how they can sell their products or services for
more than the cost of adding the value and ultimately getting higher profits and profit margins.
Porter's Value chain model is one of the widely used models throughout the world. However,
Reliance Industries Limited should also incorporate other frameworks also to fully scale up its
value chain.

Value Chain of Reliance Industries

Primary Activities:

Inbound Logistics
It's important to establish good relationships with vendors because they're necessary for
acquiring, storing, and exporting merchandise. Reliance Industries will face a variety of
obstacles during the growth process, despite not evaluating in-bound supplying. In-bound
supplying analysis necessitates a company focusing on each phase of the transformation
from raw material to finished goods.

Operations
With the arrival of material, the value of evaluating operating operations increases, and
Reliance Industries is ready to process the material into the best product and brings it to
the market. It encompasses both manufacturing and maintenance activities. Analysis of
organizational operations is critical for rising competitiveness, increasing potency, and
ensuring Reliance Industries' sustainable performance. Reliance Companies would be able
to achieve a more consistent economic operation, improve profitability, and create a strong
competitive edge thanks to the improved productivity.

Outbound logistics
Outbound supplying refers to the operations that include shipping goods to consumers
through a range of intermediaries. To discover competitive advantage sources and achieve
the market development goals, Reliance Industries will study and maximize outward
supplying. That when outbound operations are handled on schedule, at the right prices, and
product distribution systems have a minimal negative effect on the benchmark, customer
loyalty is maximized, and the firm's growth prospects are increased.

Marketing & Sales

Now at this stage, Reliance industries limited puts forward the benefits and differentiation
points of the offered products to reassure consumers, what is being sold is much superior
than what rivals are providing. Just producing a high-quality commodity at a fair price
with exclusive alternatives would not generate value until Reliance Industries invests in
marketing and distribution. For the sales and operations part, reliance can use selling
funnel strategy. They can adopt either push or pull for selling method, depending upon
RIL goals, competitive conditions and current market positions.

Services
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Reliance Industries' pre-sale and post-sale offerings will help create customerY loyalty.
Customers now regard post-sale facilities to be almost as relevant as selling and
promotional events.

Secondary Activities:

Firm infrastructure
Performance control, regulatory matters managing, accounting, funding, designing, and
strategic management are some of the parts of firm infrastructure. With effective
infrastructure RIL can leverage on whole supply chain. RIL manages infrastructure
operations to improve strategic position.

Human resource management

Reliance Industries can assess various unit of time facets of human resource
administration, such as hiring, choosing, teaching, rewarding, success management, and
alternate staff management practices. Reliance Companies will be able to mitigate external
burden due to the successful unit of time management, which will be backed up by the
motivation, dedication, and expertise of its employees. The fact that Reliance Industries is
so dependent on its employees' abilities may increase the significance of this value chain
support operation.

Technology development
Many supply chain operations depend on technical help in today's chic, technologically
advanced age. Reliance Industries must recognize the role of technology advancement in
the areas of manufacturing, delivery, sales, and human capital management. It can be
categorized into two types of technical growth activities: product development and process
development.

Procurement
The procural phase in the supply chain refers to the steps involved in obtaining the inputs,
which may include instruments, equipment, materials, components, and other items used
to manufacture the final product. Because of its links to various value chain operations,
Reliance Industries should think carefully about its procurement activities in order to
leverage the inbound, operational, and outbound value chains. RIL can put emphasis on
places of value addition, price potency accomplishment, setup of distinction base, stream
lining of the processes through recognition of the relative relevance of value chain
operations.

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STRATEGIES IDENTIFIED IN RIL Y

Some of the identified strategies are

Product Strategy: Reliance Industries is one of India's most dominant conglomerates.

Reliance Industry has invested in a number of industries and accounts for 20% of India's
exports. Its activities cover a variety of markets, and can be researched to learn more about
Reliance's product policy and marketing mix. Reliance New, Big Bazaar, Reliance Mart,
Reliance Market, Reliance Home Kitchen, Reliance iStore, among others are part of the retail
industry. It launched Reliance Solar to produce and sell solar energy in rural areas.
Transportation, distribution, logistics, supply chain operations, and telemetry applications are
also fields of specialization for Dependency Logistics. Reliance Jio Infocomm ltd. is a
broadband service provider that offers 4G connectivity. Reliance Life Sciences owns Relicord,
which operates cord blood banking facilities. Reliance Industrial Infrastructure Limited is a
company that specializes in the development and maintenance of petroleum pipelines. As a
result, this provides an analysis of Reliance Industries' services.

Distribution strategy: RIL has the largest and biggest distribution and utility network in the
world, with across India distribution system of more than 10 lakhs retailers and rapidly
increasing (Reliance Jio) points and (Reliance Retail Digital) outlets, as well as establishment
of new distribution networks across new platforms and services. More than 140 lakhs feet of
retail space and more than 3,300 stores pan India, the company is rapidly expanding.

Price/Pricing Strategy: For various markets, Reliance Industries uses a different pricing
policy. As a result, Reliance Industries' marketing mix pricing approach is complex, focused
on competitiveness and market share in certain markets. It is focused on retail,
telecommunications, and health penetration pricing. The retail and telecommunications
markets, on the other hand, are losing revenue, but the company is giving consumers exclusive
incentives in order to expand its client base. Pricing decisions in the petroleum sector are
heavily influenced by macroeconomic conditions and the global demand scenario

Promotional Strategy: When opposed to other firms, Reliance spends less on advertising and
also trusts in lowering costs to attract buyers. It prefers BTL ads over ATL because it is less
expensive for the firm, which it uses mostly in the retail sector and for new product launches
to generate initial buzz among consumers. RIL also aims to establish a social bond as wellas
emotional bond with its consumers through numerous recovery services and initiatives, such
as EFA (School for All), one of the Reliance Foundation social project, with which RIL has
provided education to more than 70,000 children who are underprivileged in the last few
years.

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STRATEGY ANALYSIS Y

STAGE 2

Stage 2 of the strategy analysis of the company includes techniques like TOWS or SWOT
Analysis, BCG Matrix, SPACE Matrix and IE Matrix. Techniques like TOWS or SWOT
Analysis, BCG Matrix, SPACE Matrix, and IE Matrix are used in stage 2 of the company's
strategy analysis. To arrive at the best possible approach for the firm, we reach the third stage
using the QSPM Tool to aid arrive at a collaborative and cohesive strategy. In Stage 2, we will
examine the strategies mentioned below in depth in relation to Reliance Industries in order to
assist in the development of the best possible strategy adaptation for the business.

A. SWOT or TOWS Matrix

SWOT Analysis (also known as SWOT Matrix) is a market framework that aids in the
assessment of a broad range of variables that can have a direct effect on a company's results.
These influences may be internal or external to an organization. Furthermore, these can be
beneficial/helpful to an organization or harmful/unfavorable. When these two dimensions are
merged, a 22-matrix of four quadrants can be drawn: Strengths, Vulnerabilities, Openings, and
Challenges.
A TOWS analysis is just similar to SWOT, defines strengths, weakness, opportunities and
treats. And eventually tries to give the best solutions capitalizing on the given SWOT factors.
It's a perfect next move after finishing your SWOT and it helps you to take steps based on
your results. TOWS is a much more useful matrix than a standalone SWOT since it
incorporates the relationship between internal and external variables.

Interpretation of the Matrix

With the incorporation of tows matrix, we have come up with possibilities which can be created
with the help of EFE and IFE. For the MAX MAX Strategy (SO) we came across that with its
highest quality 5G ready platform RIL can leverage in Ecommerce and digital space. Also, it
makes some innovation by using CBM as unconventional natural gas, with the help of its strong
financial position and highly automated operations. For the max mini strategy (ST) we can say
that competition can be tackled with the help of its strong brand name, vast product portfolio. Mini
Max Strategy (WO) provides with possible options of diversifying its business into more verticals,
which can eventually eliminate its one of the weakness of limited success outside the core
business. The MINI MIN Strategy (WT) brings up how the major concerns that RIL should have a
closer look at. Less investment in R&D can turn out to be edge provider for its competitors. Also,
some bit of organizational transformation is needed in terms of rigid organizational structure.

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A. BCG (Boston Consulting Group) Matrix:

a four-celled (two-by-two) matrix generated by BCG in the United States, and thus also known
as Boston Consulting Group matrix. When we talk about analyzing corporate portfolio, it is
one of the widely used [Link] provides a visual representation of a portfolio
based on their market share and growth in their respective industry. Relative to their
performance in terms growth rate and market share these are placed in one of the cells named
Stars, Cash cows, Dogs and Question mark whose explanation has been provided below.

o Stars- significant market share and belonging to a fast growing sector are some of the
characteristics required for the unit to be a part of star cell. They can make
money, but in order to retain their place in the market, celebrities must make
substantial investments. When the industry matures, a celebrity can become a cash cow
if they are good.

o Cash Cows- A unit which has a substantially large market share belonging to a
developed, slow growing sector, can be a part of cash cell. Cash cows are low-
cost assets that produce cash that can be used to finance other business units. A
retrenchment strategy can be followed as cash cows lose their attraction and continue
to deteriorate.

o Question Marks- Company units with a low relative market share that are situated in a
high-growth sector are represented by question marks. To retain or win market share,
they need a lot of money. They necessitate consideration in order to decide if the
enterprise is feasible. Question marks are usually emerging products or services with a
promising commercial future. Question marks can become puppies if overlooked, but
they have the ability to become stars if a significant investment is made.

o Dogs- Dogs symbolize companies with poor market share in slow-growing economies.
They don't produce revenue and don't need a lot of it. These company units face cost
limitations as a result of their poor market share. When there are less opportunities for
a dog to win market share, it can be liquidated because it has any other competitive
goal. In a company, the number of dogs should be avoided and kept to a minimum.

Interpretation of the Matrix

Looking at criteria under the BCG matrix, overall, we can place RIL into the star cell, as RIL
having one of the largest market-share in the Indian market. They are the undisputed leaders who
can grow more and more. But if we look into the sector wise, Reliance Jio, Reliance Fresh,
Reliance Trends, Jamnagar Refinery, Reliance Global Management Service, Reliance Engineering
Associates come under the star category; Reliance Petroleum under question mark; Reliance Oil
& Gas, Reliance Biopharmaceuticals and Rangers Farm Ltd. under cash cows and Reliance
Petrochemicals, Reliance Broadband and Reliance Digital under the dog category.

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B. IE Matrix
The Internal-External (IE) Matrix which is a nine-cell matrix dedicated to bringing best
possible ways to organize an organization different division. It is a strategic strategy
instrument that is used to assess the existing state of departments and recommended plan. The
IE matrix is an outcome of many internal and external factors related to the company. It is
combination of EFE and IFE matrix.

The Internal-External (IE) Matrix is split into three major areas, each with its own collection
of geopolitical consequences. For starts, expand and develop is the prescription for divisions
that collapse into cells I, II, or IV. These divisions can benefit from intensive or integrative
strategies. Second, divisions in cells III, V, or VII are best managed using hold and maintain
strategies; market penetration and product development are two common strategies for these
divisions. Harvest or divest is a popular prescription for divisions that collapse into cells VI,
VIII, or IX. Efficient corporations should create a portfolio of businesses that are located in or
close cell I of the IE Matrix.

Interpretation of the Matrix

As the matrix shows that the value lies in the 1s cell we can say RIL should move ahead with
Grow and build Strategy. Incorporating intensive and aggressive tactical Strategy. RIL should
focus on penetrating the market furthermore and develop the existing market.

C. SPACE Matrix
The strategic role and action evaluation matrix in short known as SPACE matrix is a strategic
management technique, which is centralized towards strategy formulation in relation to
organizations competitive position.

The external environment has the following:

o Environmental Stability (ES)
o Industry Attractiveness (IA)

The internal environment has the following:

o Competitive advantage (CA)

o Financial strength (FS)

Interpretation of the Matrix

The pace matrix X axis and Y axis values provides us that RIL has adopted an Aggressive
Strategy and is looking to expand further more. As it holds a good position internally as well as
externally, we can see more aggressive business strategy coming up in future.

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STAGE 3 Y

D. QSPM Matrix

The Quantitative Strategic Planning Matrix (QSPM) is a high-level strategic management

method for analyzing future plans. The Quantitative Strategic Planning Matrix, or QSPM, is
an empirical instrument for evaluating the pros and cons of different alternatives.

As corporate leaders decide what to do and which direction to take, they typically have a
prioritized list of choices. They pass one technique up the list if they prefer it to [Link]
QSPM approach applies several numbers to this method, making it a bit more "expert" in
nature.

The QSPM is part of the strategy development process's third stage, nicknamed "The
Judgment Stage," which is also the process's final stage. The best thing about QSPM is that it
never requires the strategist to enter data on assumptions; instead, it extracts data from stage 1
(input) and stage 2 (matching). The EFE Matrix, IFE Matrix, and CPM are used in the input
stage, while the TOWS Matrix, SPACE Matrix, BCG Matrix, IE Matrix, and Grand Strategy
Matrix are used in stage 2. To determine the right approach for the organization's performance,
the QSPM combines managers' intuitive thinking with the empirical process.

Interpretation of the Matrix

By looking at the QSPM and all other matrix discussed earlier RIL should go ahead to operate
in more no. of business vertical, a more diversification is an apt strategy for RIL in the
prevailing scenario. The QSPM score for expansion in business verticals is 4.33 which is more
than 3.39 for use of CMB as unconventional natural gas. thus, the present moment it would be
much more efficient for RIL to diversify as it would be using all its strengths to coup up with
the underlying opportunities and removing all its Threats and weakness.

E. Strategy Canvas

The Strategy Canvas is an important method in terms of diagnostic [Link] graphically

captures the current competitive context and upcoming opportunities for a firm in single graph
plot. The strategy canvas helps your company to see all of the aspects that a market competes
on and participates in, as well as what investors receive and the competitive profiles of the key
players, in one clear frame. It shows how close the players' tactics seem to consumers and how
they are pushing the market into the red ocean. Importantly, it provides a mutual baseline for
progress.

Interpretation of the Matrix

By looking at the Strategy canvas we can clearly make out which sectors Reliance needs to work
upon and in which it has an advantage over the others. As shown in the canvas we can say that
Reliance is doing well if not better on most factors. But it lags behind in one major factor i.e.,
R&D. Also, Reliance has been able to build a very strong financial position which can be clearly
seen making it stand out from its competitors.

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CONCLUSION Y

Reliance Industries Limited has been one of the biggest conglomerates of India which enjoys a
very large share in the Indian market and is one of the market leaders. By going through the
various matrices used in this report we have seen that it has covered all its internal as well as
external factors pretty well and enjoys a very good strategic position. it has created competitive
advantage over it big and small competitor. RIL has been able to leverage on its opportunities
pretty well and is in good position to grab all the opportunities which are in front. all though they
have certain threats, but with a good and sound strategic planning these can be eliminated. The
shifting sentiment towards EV can be a major threat to RIL. The stage two matrices suggest RIL
uses an aggressive strategy and should try to diversify its core businesses furthermore as it can
have a good advantage of its brand name and current excellent financial position. From the IE
matrix we came to know that RIL is in good position to move ahead with Grow and build
Strategy, intensive and aggressive tactical Strategy. Further these are confirmed with the help of
BCG and SPACE matrix, finally after the implementation of QSPM we came to the point that
diversifying its business vertical can be a better option compared to use of CBM as conventional
natural gas.

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