Ntt Docomo
Executive Summary
NTT DoCoMo is currently the largest wireless telecommunications services provider in Japan, with 52% of the mobile phone service market share. However the saturation of the Japanese wireless telecommunications market has resulted in the erosion of NTT DoCoMo’s profits, threatening its long-run business sustainability. Therefore, this report seeks to provide insights about the dynamic interaction of NTT DoCoMo’s business strategy with its competitive environment and it also seeks to examine the ways in which this interaction can give NTT DoCoMo sustainability within the Japanese and Asia-Pacific context.
Our research data was gathered through journals and online articles.
NTT DoCoMo’s corporate belief of creating an “Aladdin’s Magic Lamp” for each customer is a key strength of NTT DoCoMo, giving them a competitive edge in technological innovation as modelled by a stronger and more passionate corporate mindset. However with companies closely aligning their technologies with that of NTT DoCoMo,
Furthermore, the dynamic technologies platform in Japan is eroding the profit margin for the telecommunication companies as more investments is needed to be set aside for R&D while maintaining the price plans for customers. In addition, the presence of substitutes makes price-sensitive customers in a stronger bargaining position to demand for more new services due to the low switching cost involved.
However, companies may face several risks when it comes to the issue of rapid innovation. Especially for established companies like NTT DoCoMo, there may be several factors that would hinder their path to greater innovations. These include the cannibalization of its existing products, structural and cultural inertia that is prevalent in overseas ventures, strict or tedious internal policies to abide to and the fear of destroying its existing competencies. Therefore, a different perspective in handling the business based on
NTT DoCoMo is currently the largest wireless telecommunications services provider in Japan, with 52% of the mobile phone service market share. However the saturation of the Japanese wireless telecommunications market has resulted in the erosion of NTT DoCoMo’s profits, threatening its long-run business sustainability. Therefore, this report seeks to provide insights about the dynamic interaction of NTT DoCoMo’s business strategy with its competitive environment and it also seeks to examine the ways in which this interaction can give NTT DoCoMo sustainability within the Japanese and Asia-Pacific context.
Our research data was gathered through journals and online articles.
NTT DoCoMo’s corporate belief of creating an “Aladdin’s Magic Lamp” for each customer is a key strength of NTT DoCoMo, giving them a competitive edge in technological innovation as modelled by a stronger and more passionate corporate mindset. However with companies closely aligning their technologies with that of NTT DoCoMo,
Furthermore, the dynamic technologies platform in Japan is eroding the profit margin for the telecommunication companies as more investments is needed to be set aside for R&D while maintaining the price plans for customers. In addition, the presence of substitutes makes price-sensitive customers in a stronger bargaining position to demand for more new services due to the low switching cost involved.
However, companies may face several risks when it comes to the issue of rapid innovation. Especially for established companies like NTT DoCoMo, there may be several factors that would hinder their path to greater innovations. These include the cannibalization of its existing products, structural and cultural inertia that is prevalent in overseas ventures, strict or tedious internal policies to abide to and the fear of destroying its existing competencies. Therefore, a different perspective in handling the business based on