DO COMO Strategic Analysis

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DOCOMO

Case # 02

Jul 05, 2009


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DOCOMO is a Telecommunication Japanese company

Major Products/ Line of Operations

Network & Media Laboratory

Mobile Device Laboratory

Wireless access Laboratory

Raku Raku Sign Up service

Reseller of BlackBerry 8707g device

Mobile enables software (Namimail) to translate Engligh

to Japanese

Introduction


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Quick Facts

President and CEO: Ryuji Yamada

Headquarters: 2-11-1 Nagata-cho, Chiyoda-ku, Tokyo,

Japan 100-6150

Capital: 949.68 billion yen

Employees: 21,831 (NTT DOCOMO Group)

Customers: 54 million in December 2008


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DCOMO was formed in 2000 with 67% shares held byNTT(Nippon Telegraph & Telephone)

Earlier NTT was having a monopoly in JapaneseTelecommunication.

Later Japanese Govt. opened the Japanese Market toforeign players

History


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In year 2002 entity DOCOMO suffered a loss(116.2billion yen) and goodwill write off (624.6 billion yen).

Increase in operating revenues by 10.6 % well belowexpectation

Decline in Average Revenue Per User( APRU) for voiceservices & slower growth in cellular subscriber

Faster penetration of market vs US based AOL

Losses incurred due aggressive overseas expansion

Situation Analysis-2002


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General Environment Analysis

According to analysts the losses incurred due to Decline in value of foreign investment

Slump in global telecommunication Market

Analyst suggested the Docomo should revamp its global strategy

keeping in view global economic environment Others View point was to increase ARPU

Japanese Market already reached to maturity i.e. 100million subscription

New Foreign Players are entering into Japanese Market


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Industry Environment Analysis


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SWOT

Strength: Rich heritage in Telecommunication Market

Strong Technological Infrastructure

Innovative Products with strong Customer support services

Weakness Increase Operating Expenses without realizing for the real growth

parameters

Opportunity:

Next generation of Mobile services Rich & Dynamic Society


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Meeting future Challenges/ Opportunities


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Opportunities


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SWOT

Threats:

Regulatory and Policy related issues in US wireless & IT industries

Competitors entering into Japanese Markets with New Technologyrin

Japanese Market reaching maturity Phase.


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Company Strategy

Vision: Transformation & Globalization

Corporate Strategy

Change & challenge thru latest technologies & meet precisecustomer needs in terms of design, network quality, rates &

customer service

Reduce cost and expense to solidify the companys financial

standing for sustained growth by nationwide optamisation of

operations and reduction of cost related to network & sales.


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Company Strategy

Mission: Maximize value and gain confidence from customers &

shareholders

Expand the business while contributing to the realising of a rich

& dynamic society.

Emphasize & Strengthen core business of Voice

Communications

Promote Mobile Multimedia Services


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Corporate Philosophy


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Strategic Intent & Mission


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Strategic Intent & Mission


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Implementation


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Implementation


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Implementation


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DOCOMOS Leading Product


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Conclusion & Recommendation

Revamping of brands

Innovation and explore newMarkets

Meet & Exceed expectations

Consistently earning trust &loyalty of customers

Overcoming all challenges to

pursuit the corporate vision


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DO COMO Strategic Analysis

Documents

Transcript of DO COMO Strategic Analysis