Docomo Ubiquitous Strategy

Abstract

This case study analyzes NTT DoCoMo through the lens of four strategic perspectives. NTT DoCoMo’s ubiquitous strategy extends the boundaries of the mobile communications including global markets. This study presents current ideas found in literature applying the concepts of strategy as rational thought, strategy as revolution, strategy as resource allocation and accumulation, and strategy as technology leadership in the mobile telecom market.

Table of Contents

1. Introduction 4

2. The Need for Strategy in the Mobile Telecom Industry 5

3. Strategy as Rational Thought 6

3.1 Mobile Industry Analysis 7

3.1.1 Segment Rivalry 8

3.1.2 Substitute Product 9

3.1.3 Buyer Power 10

3.1.4 Supplier Power 10

3.1.5 Entry Barrier 10

4. Strategy as a Revolution 11

5. Strategy as Resource Allocation and Accumulation 13

5.1 SWOT Analysis 14

5.1.1 Strengths 14

5.1.2 Weaknesses 15

5.1.3 Opportunities 15

5.1.4 Threats 15

7. Strategy as a Technology Leader 16

8. Corporate Social Responsibility 17

9. Conclusion 18

1. Introduction

Mobile technology has progressed from the brick size mobile phones from the early 1980s to today’s wallet size mobile phones equipped with smart-card functions, multimedia and internet access capabilities. The convergence of computer and mobile telecom industries has redefined the way people communicate and conduct business. There have been significant strides in mobile services for third generation (3G) services like NTT DoCoMo’s FOMA (Freedom of Mobile Communication Access) and i-Mode (mobile Internet-via-cell phone) in Japan and around the world.

The mobile market in Japan has grown tremendously. One of the major players in the mobile market in Japan is NTT DoCoMo. NTT DoCoMo is a subsidiary of Nippon Telegraph and Telephone (NTT). NTT DoCoMo’s flagship product i-mode, a continuous connected data service, has helped NTT DoCoMo achieve more than 60 percent of the mobile market share in Japan (International Telecommunication Union, 2005). In response to the saturation of the mobile market in Japan, NTT DoCoMo is creating other revenue sources. The forces driving the mobile telecom industry are threefold: emerging new Internet capabilities and applications, product innovation and globalization.

The first driving force of new Internet applications and capabilities is a major driver of change in the mobile telecom industry. More users are using the Internet from online shopping to online gaming.