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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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