I-Mode: NTT DoCoMo's Wireless Data Service SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of I-Mode: NTT DoCoMo's Wireless Data Service
In 1992, Japan's Nippon Telephone and Telegraph (NTT) spun off its wireless phone service, forming NTT DoCoMo. NTT DoCoMo introduced I-Mode, a wireless data service, in November 1998. At the time of introduction, this was a new, untested market. However, within 2 years, the service had been adopted by 18 million subscribers--45% of the company's Japanese wireless voice customers. This case describes NTT DoCoMo's initial product and marketing strategy, its technology and competition, the company's business model, and future plans. Also describes the supply chain for the wireless data service business, from components, hardware manufacturing, carriers, service and software to end users. This discussion includes business models at each stage, as well as the implications of new technology development. Raises questions about the future direction of NTT DoCoMo and the wireless data industry.
Swot Analysis of "I-Mode: NTT DoCoMo's Wireless Data Service" written by Seungjin Whang includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ntt Wireless facing as an external strategic factors. Some of the topics covered in I-Mode: NTT DoCoMo's Wireless Data Service case study are - Strategic Management Strategies, Supply chain, Technology and Strategy & Execution.
Some of the macro environment factors that can be used to understand the I-Mode: NTT DoCoMo's Wireless Data Service casestudy better are - – central banks are concerned over increasing inflation, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, increasing government debt because of Covid-19 spendings, geopolitical disruptions, increasing household debt because of falling income levels, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing inequality as vast percentage of new income is going to the top 1%, increasing energy prices, etc
Introduction to SWOT Analysis of I-Mode: NTT DoCoMo's Wireless Data Service
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in I-Mode: NTT DoCoMo's Wireless Data Service case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ntt Wireless, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ntt Wireless 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 I-Mode: NTT DoCoMo's Wireless Data Service can be done for the following purposes –
1. Strategic planning using facts provided in I-Mode: NTT DoCoMo's Wireless Data Service case study
2. Improving business portfolio management of Ntt Wireless
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 Wireless
Strengths I-Mode: NTT DoCoMo's Wireless Data Service | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ntt Wireless in I-Mode: NTT DoCoMo's Wireless Data Service Harvard Business Review case study are -
Training and development
– Ntt Wireless has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in I-Mode: NTT DoCoMo's Wireless Data Service 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.
Diverse revenue streams
– Ntt Wireless is present in almost all the verticals within the industry. This has provided firm in I-Mode: NTT DoCoMo's Wireless Data Service 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.
Operational resilience
– The operational resilience strategy in the I-Mode: NTT DoCoMo's Wireless Data Service 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.
Low bargaining power of suppliers
– Suppliers of Ntt Wireless in the sector have low bargaining power. I-Mode: NTT DoCoMo's Wireless Data Service has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Ntt Wireless to manage not only supply disruptions but also source products at highly competitive prices.
Cross disciplinary teams
– Horizontal connected teams at the Ntt Wireless 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.
Successful track record of launching new products
– Ntt Wireless has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Ntt Wireless 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
– I-Mode: NTT DoCoMo's Wireless Data Service firm has clearly differentiated products in the market place. This has enabled Ntt Wireless to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Ntt Wireless to invest into research and development (R&D) and innovation.
Innovation driven organization
– Ntt Wireless is one of the most innovative firm in sector. Manager in I-Mode: NTT DoCoMo's Wireless Data Service Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Ntt Wireless
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ntt Wireless does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High brand equity
– Ntt Wireless has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Ntt Wireless to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Learning organization
- Ntt Wireless 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 Wireless is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in I-Mode: NTT DoCoMo's Wireless Data Service Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Ntt Wireless 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.
Weaknesses I-Mode: NTT DoCoMo's Wireless Data Service | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of I-Mode: NTT DoCoMo's Wireless Data Service are -
No frontier risks strategy
– After analyzing the HBR case study I-Mode: NTT DoCoMo's Wireless Data Service, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High bargaining power of channel partners
– Because of the regulatory requirements, Seungjin Whang suggests that, Ntt Wireless 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 I-Mode: NTT DoCoMo's Wireless Data Service, it seems that the employees of Ntt Wireless 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.
Low market penetration in new markets
– Outside its home market of Ntt Wireless, firm in the HBR case study I-Mode: NTT DoCoMo's Wireless Data Service needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
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 Ntt Wireless supply chain. Even after few cautionary changes mentioned in the HBR case study - I-Mode: NTT DoCoMo's Wireless Data Service, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Ntt Wireless vulnerable to further global disruptions in South East Asia.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Ntt Wireless is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study I-Mode: NTT DoCoMo's Wireless Data Service can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Lack of clear differentiation of Ntt Wireless products
– To increase the profitability and margins on the products, Ntt Wireless needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Ntt Wireless 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 cash cycle compare to competitors
Ntt Wireless 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study I-Mode: NTT DoCoMo's Wireless Data Service, in the dynamic environment Ntt Wireless has struggled to respond to the nimble upstart competition. Ntt Wireless has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Ntt Wireless has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Ntt Wireless even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Opportunities I-Mode: NTT DoCoMo's Wireless Data Service | 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 I-Mode: NTT DoCoMo's Wireless Data Service are -
Manufacturing automation
– Ntt Wireless 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.
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 Ntt Wireless 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.
Creating value in data economy
– The success of analytics program of Ntt Wireless has opened avenues for new revenue streams for the organization in the industry. This can help Ntt Wireless to build a more holistic ecosystem as suggested in the I-Mode: NTT DoCoMo's Wireless Data Service case study. Ntt Wireless can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
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 Wireless 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 Wireless can use these opportunities to build new business models that can help the communities that Ntt Wireless operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Better consumer reach
– The expansion of the 5G network will help Ntt Wireless to increase its market reach. Ntt Wireless 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.
Building a culture of innovation
– managers at Ntt Wireless 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.
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 Wireless 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 Wireless 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ntt Wireless 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Ntt Wireless can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Ntt Wireless can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. I-Mode: NTT DoCoMo's Wireless Data Service 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ntt Wireless is facing challenges because of the dominance of functional experts in the organization. I-Mode: NTT DoCoMo's Wireless Data Service 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Ntt Wireless 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, I-Mode: NTT DoCoMo's Wireless Data Service, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats I-Mode: NTT DoCoMo's Wireless Data Service External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study I-Mode: NTT DoCoMo's Wireless Data Service are -
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 Wireless in the Strategy & Execution sector and impact the bottomline of the organization.
Regulatory challenges
– Ntt Wireless 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.
Consumer confidence and its impact on Ntt Wireless 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.
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.
Stagnating economy with rate increase
– Ntt Wireless 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ntt Wireless 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.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Ntt Wireless 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 I-Mode: NTT DoCoMo's Wireless Data Service .
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 Wireless.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study I-Mode: NTT DoCoMo's Wireless Data Service, Ntt Wireless 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 .
Shortening product life cycle
– it is one of the major threat that Ntt Wireless is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
High dependence on third party suppliers
– Ntt Wireless 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.
Increasing wage structure of Ntt Wireless
– 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 Wireless.
Environmental challenges
– Ntt Wireless 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 Wireless can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Weighted SWOT Analysis of I-Mode: NTT DoCoMo's Wireless Data Service 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 I-Mode: NTT DoCoMo's Wireless Data Service 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 I-Mode: NTT DoCoMo's Wireless Data Service 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 I-Mode: NTT DoCoMo's Wireless Data Service 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 I-Mode: NTT DoCoMo's Wireless Data Service 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 Wireless needs to make to build a sustainable competitive advantage.
