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 - – there is increasing trade war between United States & China, talent flight as more people leaving formal jobs, geopolitical disruptions, increasing commodity prices, there is backlash against globalization, wage bills are increasing, increasing inequality as vast percentage of new income is going to the top 1%,
supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, 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 -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Ntt Mode digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ntt 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.
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.
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.
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.
Ability to recruit top talent
– Ntt Mode is one of the leading recruiters in the industry. Managers in the NTT DoCoMo and Its i-mode Success: Origins and Implications are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
Highly skilled collaborators
– Ntt Mode has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in NTT DoCoMo and Its i-mode Success: Origins and Implications HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Strategy & Execution field
– Ntt Mode is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Ntt Mode in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
Successful track record of launching new products
– Ntt Mode has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ntt 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.
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.
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 -
Interest costs
– Compare to the competition, Ntt Mode has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
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.
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.
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.
Lack of clear differentiation of Ntt Mode products
– To increase the profitability and margins on the products, Ntt Mode needs to provide more differentiated products than what it is currently offering in the marketplace.
Need for greater diversity
– Ntt 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.
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.
High operating costs
– Compare to the competitors, firm in the HBR case study NTT DoCoMo and Its i-mode Success: Origins and Implications has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Ntt Mode 's lucrative 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study NTT DoCoMo and Its i-mode Success: Origins and Implications, is just above the industry average. Ntt 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.
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.
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 -
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.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ntt Mode to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Ntt Mode to hire the very best people irrespective of their geographical location.
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.
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.
Creating value in data economy
– The success of analytics program of Ntt Mode has opened avenues for new revenue streams for the organization in the industry. This can help Ntt Mode to build a more holistic ecosystem as suggested in the NTT DoCoMo and Its i-mode Success: Origins and Implications case study. Ntt Mode can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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.
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.
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.
Building a culture of innovation
– managers at Ntt Mode can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ntt 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.
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 -
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 Ntt 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, 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 .
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.
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.
Increasing wage structure of Ntt 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 Ntt Mode.
Environmental challenges
– Ntt 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. Ntt Mode can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
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.
Technology acceleration in Forth Industrial Revolution
– Ntt Mode has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Ntt 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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Ntt Mode in the Strategy & Execution sector and impact the bottomline of the organization.
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.
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.
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.
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 .
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.