DOCOMO

Case # 02

Jul 05, 2009

 Introduction

• 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
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

History

• DCOMO was formed in 2000 with 67% shares held by

NTT(Nippon Telegraph & Telephone)
• Earlier NTT was having a monopoly in Japanese
Telecommunication.
• Later Japanese Govt. opened the Japanese Market to
foreign players
Situation Analysis-2002

• In year 2002 entity DOCOMO suffered a loss(116.2

billion yen) and goodwill write off (624.6 billion yen).
• Increase in operating revenues by 10.6 % well below
expectation
• Decline in Average Revenue Per User( APRU) for voice
services & slower growth in cellular subscriber
• Faster penetration of market vs US based AOL
• Losses incurred due aggressive overseas expansion
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
– Other’s View point was to increase ARPU
• Japanese Market already reached to maturity i.e. 100
million subscription
• New Foreign Players are entering into Japanese Market
Industry Environment Analysis
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
Meeting future Challenges/ Opportunities
Opportunities
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.
Company Strategy

Vision:
• Transformation & Globalization
Corporate Strategy
• Change & challenge thru latest technologies & meet precise
customer needs in terms of design, network quality, rates &
customer service
• Reduce cost and expense to solidify the company’s financial
standing for sustained growth by nationwide optamisation of
operations and reduction of cost related to network & sales.
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
Corporate Philosophy
Strategic Intent & Mission
Strategic Intent & Mission
Implementation
Implementation
Implementation
DOCOMO’S Leading Product
Conclusion & Recommendation

•Revamping of brands
•Innovation and explore new
Markets
•Meet & Exceed expectations
•Consistently earning trust &
loyalty of customers
•Overcoming all challenges to
pursuit the corporate vision