DOCOMO Final Ppt

8/4/2019 DOCOMO Final Ppt

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STRATEGIC MANAGEMENT

PRESENTING TO

MISS. ANJU


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DOCOMOTHE JAPANESE WIRELESS TELECOM LEADER


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Back Ground Note..

Started in 1949

Was known as Ministry of

Telecommunications

Later Renamed as NTT-Nippon Telegraph

and Telephone

Market Leaders-Monopoly over market

Rebuilted Japans telecom Infrastructure


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Management Policies

Expanding its Business while contributingto the realizing of a rich and dynamic

society

Emphasizing and StrengtheningDOCOMOs existing core business of

voice communication services

Assertively promoting mobile multimediaservice to public


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FUNCTION OF I-MODE

The i button connected the phone directly to the

internet with help of an i-mode gateway

Menu was display among with an option to choosebetween Japanese or English language to proceed further

Type in urls to access various websites, to get the

content they require

Pradeep


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SUCCESS OF I-MODE

First internet service

Multi fuction

Diversi business

Improved technology

Simple & network access

Use aols packet billing model

E-commerce

Pradeep


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SUCCESS OF I-MODE

Win-win platform

Offer more website

Innovation

Sophisticated working team Good customer representative

Telephone service center

Pradeep


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EXTERNAL FACTER

High population density

Pc penetration low

Untapped wireless technology

Pradeep


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DOCOMO-BEYOND I-MODE Announced the development of freedom of mobile multimedia

access

(FOMA) , a 3G service launched in may 2001.

Tried to enter global arena with i-mode but could not succeed. Eg. Incompatibility.

Transmission protocol help to diversify into 3g..Wideband-code division

multiple access (w-cdma)

Biggest investment- in jan 2001, docomo completed theacquisition of 16%

Stake in AT&T, for $9.8 billion. (US Leading wireless co.)


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DOCOMO- PROBLEMS

APLENTY

In early 2001, DOCOMO still remained largest company in Japan by marketcapitalization and 2nd largest mobile phone co. in the world. (after Vodafone)

Launching FOMA (of Freedom of Mobile Multimedia Access)Scheduled in May2001

had to be postponed by 5months. Eg. Trial to 4000 customers in Tokyo.

First mover advantageJ phone communication were also planning to launch 3G byearly 2002.

After media report of Initial enthusiasm over 3G by created DOCOMO was slowlydying down across the world. Eg. Loose Investors, fell in Stock & share price.

Customers not interested to buy 3G enabled costly handset for faster service & viewpictures, videos, nuisance from hackers.

Criticism by part of trial customersshort battery life, network coverage, handsetscrashing easily, email attachment caused to automatically call n forword the email toother user. ( Recall 1500 handset in June 2001)


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Contd.

FOMA lacked the 2 essentialsAffordability & Ease to use.Eg. Subscription amount, data charges & handset)

subscription went lower 31.7% by Dec.2001 than the Dec. 2000.

Threat from competitor in Japan -- KDDIs Au 17.7% and Tu-Ka 5.7%. Vodafoness

J-phone launched Camera phone (sha- Mail) in 2001 &increased market to 17.6% by early 2002.

OFFERHandset subsidies, reduce margin..

ARPU declining because, customers shifting to cheaperwireless e-mail services. (Average Revenue Per USer)


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LIFE AFTER THE LOSS

Japans Flag Bearer April 2002, CDMA2002 1x gained 1million subsriber

Docomos partner was reluctant

Docomo stock fell by 33.8% from its 52 week high in mid2002

Freezing its overseas investment

FOMA discount to attract

I-Mode in germany & netherland


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BUSINESS AS USUAL?

In Jan 2003,DOCOMO decided to focus on increasing profits instead of

promotional expenditure on 3G service.

Offered phones with good battery life.

Increased sales of FOMA handsets to 191500

Company launched new handset P2102V in march 2003 having features

rotating liquid crystal screen and had a good battery life.In April 2003,

F66li handset was introduced with GPS feature.


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Contd.

DOCOMO regain status as one of Japans most profitablecompanies,consolidated net profit of $1.83 billion.

In April 2003 DOCOMO launched wrist watch with phonealong with six 2G camera phone with Sony,Sharp,Fujitsu,

and Mitsubishi.

By April 2003 covered 90% of Japans population and FOMAsubscriber increased to 330000.

Still in some problems due to new law of Local TaxesAmendment which result drop in profit.

Partners KPN and Hutchinson were in deep financial crisis andin demand of fresh capital.

Market shares of competitors KODI and I-Phone wereincreasing due differentiation strategy.

Loss making overseas investment,investor mistrust and marketnearing situation were major hurdles to sustain growth andleadership.

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DOCOMO Final Ppt