Jio and Facebook: Adding Value through an Alliance
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? Prashant Salwan is affiliated with Indian Institute of Management Indore. Shailesh Pandey is affiliated with University of Pune. Srinivasan R Iyengar is affiliated with Jamnalal Bajaj Institute of Management Studies.