Docomo’s Ubiquitous Strategy

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. Ubiquity is truly engendered through the use and instant access of Internet email and instant messaging applications in mobile devices. The second driving force of product innovation is affecting competition in the mobile telecom industry. Rivals are racing to be first in introducing new mobile products or product enhancements in order to attract first-time buyers. The third driving force of globalization is providing an alternate avenue of revenue. As the Japanese mobile market becomes saturated, it becomes imperative that the competing firms in the Japanese mobile industry shift from regional or national focus to an international or global focus.

This case study analyzes NTT DoCoMo's ubiquitous strategy through the lens of four strategic perspectives. This case 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 industry.

2. The Need for Strategy