NTT DoCoMo and Its i-mode Success: Origins and Implications SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of NTT DoCoMo and Its i-mode Success: Origins and Implications
In slightly over 2 years, NTT DoCoMo, Japan's leading wireless telecommunications network provider, has been able to win over 30 million subscribers to i-mode, its mobile Internet service. i-mode represents the first successful implementation of the convergence of the Internet and mobile telephony into a new industry. This article examines the origins of i-mode's success, both in terms of NTT DoCoMo's technological strategy and business model and why Japan has proven such a fruitful environment for mobile Internet. It also explores whether i-mode's success provides a global first-mover advantage to NTT DoCoMo's plans to employ strategic partnerships to spread the i-mode standard.
Swot Analysis of "NTT DoCoMo and Its i-mode Success: Origins and Implications" written by John Ratliff includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ntt Mode facing as an external strategic factors. Some of the topics covered in NTT DoCoMo and Its i-mode Success: Origins and Implications case study are - Strategic Management Strategies, Internet, Joint ventures and Strategy & Execution.
Some of the macro environment factors that can be used to understand the NTT DoCoMo and Its i-mode Success: Origins and Implications casestudy better are - – talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, there is backlash against globalization, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, increasing transportation and logistics costs, supply chains are disrupted by pandemic ,
cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of NTT DoCoMo and Its i-mode Success: Origins and Implications
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in NTT DoCoMo and Its i-mode Success: Origins and Implications case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ntt Mode, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ntt 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 and Its i-mode Success: Origins and Implications can be done for the following purposes –
1. Strategic planning using facts provided in NTT DoCoMo and Its i-mode Success: Origins and Implications case study
2. Improving business portfolio management of Ntt 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 Ntt Mode
Strengths NTT DoCoMo and Its i-mode Success: Origins and Implications | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ntt Mode in NTT DoCoMo and Its i-mode Success: Origins and Implications Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Ntt Mode in the sector have low bargaining power. NTT DoCoMo and Its i-mode Success: Origins and Implications has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ntt Mode to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Ntt Mode is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by John Ratliff can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Effective Research and Development (R&D)
– Ntt 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 and Its i-mode Success: Origins and Implications - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Operational resilience
– The operational resilience strategy in the NTT DoCoMo and Its i-mode Success: Origins and Implications Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
High switching costs
– The high switching costs that Ntt 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.
Cross disciplinary teams
– Horizontal connected teams at the Ntt 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.
Sustainable margins compare to other players in Strategy & Execution industry
– NTT DoCoMo and Its i-mode Success: Origins and Implications firm has clearly differentiated products in the market place. This has enabled Ntt Mode to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Ntt Mode to invest into research and development (R&D) and innovation.
Training and development
– Ntt Mode has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in NTT DoCoMo and Its i-mode Success: Origins and Implications Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Learning organization
- Ntt 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 Ntt Mode is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in NTT DoCoMo and Its i-mode Success: Origins and Implications Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Ntt Mode in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Ntt Mode is present in almost all the verticals within the industry. This has provided firm in NTT DoCoMo and Its i-mode Success: Origins and Implications 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
– Ntt 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.
Weaknesses NTT DoCoMo and Its i-mode Success: Origins and Implications | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of NTT DoCoMo and Its i-mode Success: Origins and Implications are -
Low market penetration in new markets
– Outside its home market of Ntt Mode, firm in the HBR case study NTT DoCoMo and Its i-mode Success: Origins and Implications needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study NTT DoCoMo and Its i-mode Success: Origins and Implications, it seems that the employees of Ntt 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 Ntt 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ntt Mode is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study NTT DoCoMo and Its i-mode Success: Origins and Implications can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study NTT DoCoMo and Its i-mode Success: Origins and Implications 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 and Its i-mode Success: Origins and Implications can leverage the sales team experience to cultivate customer relationships as Ntt Mode is planning to shift buying processes online.
Increasing silos among functional specialists
– The organizational structure of Ntt Mode is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Ntt Mode needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ntt Mode to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though Ntt Mode has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - NTT DoCoMo and Its i-mode Success: Origins and Implications should strive to include more intangible value offerings along with its core products and services.
Workers concerns about automation
– As automation is fast increasing in the segment, Ntt Mode needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Capital Spending Reduction
– Even during the low interest decade, Ntt Mode has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the NTT DoCoMo and Its i-mode Success: Origins and Implications 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 Ntt Mode has relatively successful track record of launching new products.
High cash cycle compare to competitors
Ntt Mode has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Opportunities NTT DoCoMo and Its i-mode Success: Origins and Implications | 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 and Its i-mode Success: Origins and Implications are -
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ntt Mode is facing challenges because of the dominance of functional experts in the organization. NTT DoCoMo and Its i-mode Success: Origins and Implications 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.
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. Ntt Mode can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Ntt Mode has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Manufacturing automation
– Ntt Mode can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Using analytics as competitive advantage
– Ntt 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 and Its i-mode Success: Origins and Implications - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ntt Mode to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Ntt Mode can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Buying journey improvements
– Ntt Mode can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. NTT DoCoMo and Its i-mode Success: Origins and Implications 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ntt Mode can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Ntt Mode can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
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 Ntt Mode in the consumer business. Now Ntt Mode can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Ntt Mode can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ntt Mode can use these opportunities to build new business models that can help the communities that Ntt Mode operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ntt 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 and Its i-mode Success: Origins and Implications, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Ntt 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 and Its i-mode Success: Origins and Implications 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 and Its i-mode Success: Origins and Implications are -
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Ntt Mode.
Regulatory challenges
– Ntt 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.
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 and Its i-mode Success: Origins and Implications, Ntt 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 .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ntt Mode in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
High dependence on third party suppliers
– Ntt Mode high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Stagnating economy with rate increase
– Ntt 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ntt 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 and Its i-mode Success: Origins and Implications .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Ntt Mode with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on Ntt 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.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Ntt Mode needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
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. Ntt Mode can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Ntt 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.
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.
Weighted SWOT Analysis of NTT DoCoMo and Its i-mode Success: Origins and Implications 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 and Its i-mode Success: Origins and Implications 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 and Its i-mode Success: Origins and Implications 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 and Its i-mode Success: Origins and Implications 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 and Its i-mode Success: Origins and Implications 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 Ntt Mode needs to make to build a sustainable competitive advantage.