NTT DoCoMo (TM): Value Innovation at DoCoMo SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of NTT DoCoMo (TM): Value Innovation at DoCoMo
As of November 2001, NTT DoCoMo is the only company that has been able to make money out of the mobile Internet. This case study describes how, in a very competitive industry engaged in a technology race and strong price erosion, NTT DoCoMo has been able to achieve superior performance, with its novel i-mode services. Launched in February 1999, its i-mode service was an immediate and explosive success. DoCoMo came to exceed its parent company in terms of market capitalization as well as potential for profitable growth as we enter the age of mobile Internet. This case offers a value innovation perspective to analyze the success of i-mode with a particular emphasis on the business model used to exploit the i-mode innovation of DoCoMo.
Authors :: W. Chan Kim, Renee Mauborgne, Ben M. Bensaou, Jason Hunter
Swot Analysis of "NTT DoCoMo (TM): Value Innovation at DoCoMo" written by W. Chan Kim, Renee Mauborgne, Ben M. Bensaou, Jason Hunter includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Docomo Mode facing as an external strategic factors. Some of the topics covered in NTT DoCoMo (TM): Value Innovation at DoCoMo case study are - Strategic Management Strategies, Competitive strategy, Creativity, Innovation, IT, Psychology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the NTT DoCoMo (TM): Value Innovation at DoCoMo casestudy better are - – increasing commodity prices, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, increasing transportation and logistics costs, geopolitical disruptions, increasing energy prices,
central banks are concerned over increasing inflation, cloud computing is disrupting traditional business models, etc
Introduction to SWOT Analysis of NTT DoCoMo (TM): Value Innovation at DoCoMo
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in NTT DoCoMo (TM): Value Innovation at DoCoMo case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Docomo Mode, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Docomo Mode operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of NTT DoCoMo (TM): Value Innovation at DoCoMo can be done for the following purposes –
1. Strategic planning using facts provided in NTT DoCoMo (TM): Value Innovation at DoCoMo case study
2. Improving business portfolio management of Docomo Mode
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Docomo Mode
Strengths NTT DoCoMo (TM): Value Innovation at DoCoMo | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Docomo Mode in NTT DoCoMo (TM): Value Innovation at DoCoMo Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Docomo Mode are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High switching costs
– The high switching costs that Docomo Mode has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Superior customer experience
– The customer experience strategy of Docomo Mode in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Docomo Mode is one of the most innovative firm in sector. Manager in NTT DoCoMo (TM): Value Innovation at DoCoMo Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Docomo Mode digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Docomo Mode has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Organizational Resilience of Docomo Mode
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Docomo Mode does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Successful track record of launching new products
– Docomo Mode has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Docomo Mode has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Diverse revenue streams
– Docomo Mode is present in almost all the verticals within the industry. This has provided firm in NTT DoCoMo (TM): Value Innovation at DoCoMo case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Strong track record of project management
– Docomo Mode is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Docomo Mode has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study NTT DoCoMo (TM): Value Innovation at DoCoMo - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Docomo Mode is one of the leading recruiters in the industry. Managers in the NTT DoCoMo (TM): Value Innovation at DoCoMo are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Docomo Mode is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Docomo Mode is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in NTT DoCoMo (TM): Value Innovation at DoCoMo Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses NTT DoCoMo (TM): Value Innovation at DoCoMo | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of NTT DoCoMo (TM): Value Innovation at DoCoMo are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the NTT DoCoMo (TM): Value Innovation at DoCoMo HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Docomo Mode has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study NTT DoCoMo (TM): Value Innovation at DoCoMo that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case NTT DoCoMo (TM): Value Innovation at DoCoMo can leverage the sales team experience to cultivate customer relationships as Docomo Mode is planning to shift buying processes online.
Low market penetration in new markets
– Outside its home market of Docomo Mode, firm in the HBR case study NTT DoCoMo (TM): Value Innovation at DoCoMo needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Docomo Mode products
– To increase the profitability and margins on the products, Docomo Mode needs to provide more differentiated products than what it is currently offering in the marketplace.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study NTT DoCoMo (TM): Value Innovation at DoCoMo, is just above the industry average. Docomo Mode needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Docomo Mode supply chain. Even after few cautionary changes mentioned in the HBR case study - NTT DoCoMo (TM): Value Innovation at DoCoMo, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Docomo Mode vulnerable to further global disruptions in South East Asia.
Need for greater diversity
– Docomo Mode has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Docomo Mode is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study NTT DoCoMo (TM): Value Innovation at DoCoMo can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, W. Chan Kim, Renee Mauborgne, Ben M. Bensaou, Jason Hunter suggests that, Docomo Mode is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study NTT DoCoMo (TM): Value Innovation at DoCoMo, it seems that the employees of Docomo Mode don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Skills based hiring
– The stress on hiring functional specialists at Docomo Mode has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities NTT DoCoMo (TM): Value Innovation at DoCoMo | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study NTT DoCoMo (TM): Value Innovation at DoCoMo are -
Using analytics as competitive advantage
– Docomo Mode has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study NTT DoCoMo (TM): Value Innovation at DoCoMo - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Docomo Mode to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Docomo Mode in the consumer business. Now Docomo Mode can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Docomo Mode can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Docomo Mode to increase its market reach. Docomo Mode will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Docomo Mode is facing challenges because of the dominance of functional experts in the organization. NTT DoCoMo (TM): Value Innovation at DoCoMo case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Docomo Mode to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Docomo Mode in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Docomo Mode can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Docomo Mode can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Docomo Mode can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, NTT DoCoMo (TM): Value Innovation at DoCoMo, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Docomo Mode has opened avenues for new revenue streams for the organization in the industry. This can help Docomo Mode to build a more holistic ecosystem as suggested in the NTT DoCoMo (TM): Value Innovation at DoCoMo case study. Docomo Mode can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Buying journey improvements
– Docomo Mode can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. NTT DoCoMo (TM): Value Innovation at DoCoMo suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Developing new processes and practices
– Docomo Mode can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Threats NTT DoCoMo (TM): Value Innovation at DoCoMo External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study NTT DoCoMo (TM): Value Innovation at DoCoMo are -
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Docomo Mode can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study NTT DoCoMo (TM): Value Innovation at DoCoMo, Docomo Mode may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Technology acceleration in Forth Industrial Revolution
– Docomo Mode has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Docomo Mode needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Stagnating economy with rate increase
– Docomo Mode can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Docomo Mode business can come under increasing regulations regarding data privacy, data security, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Docomo Mode can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study NTT DoCoMo (TM): Value Innovation at DoCoMo .
Increasing wage structure of Docomo Mode
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Docomo Mode.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Docomo Mode will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Consumer confidence and its impact on Docomo Mode demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Environmental challenges
– Docomo Mode needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Docomo Mode can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Regulatory challenges
– Docomo Mode needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Weighted SWOT Analysis of NTT DoCoMo (TM): Value Innovation at DoCoMo Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study NTT DoCoMo (TM): Value Innovation at DoCoMo needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study NTT DoCoMo (TM): Value Innovation at DoCoMo is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study NTT DoCoMo (TM): Value Innovation at DoCoMo is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of NTT DoCoMo (TM): Value Innovation at DoCoMo is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Docomo Mode needs to make to build a sustainable competitive advantage.
