Case Study Description of NTT DoCoMo: Establishing Global 3G Standards
In October 2001, NTT DoCoMo, Japan's leading mobile telecommunications company, launched the world's first commercial third-generation (3G) mobile service. However, the new service faced technological obstacles. Many observers were skeptical about its future success. But 3G in Japan was only DoCoMo's first step in a grand plan to have its standards of 3G technology and service established worldwide. By late 2001, DoCoMo had formed alliances with major telecommunications players in Asia, Europe, and the United States to develop 3G networks. Despite technological setbacks and astronomical fees for obtaining a license to operate 3G in some European countries, DoCoMo and its partners continued to build the infrastructure for the new-generation service. Analysts saw these moves as a gamble.
Swot Analysis of "NTT DoCoMo: Establishing Global 3G Standards" written by Ali F. Farhoomand, Vincent Mak includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that 3g Docomo facing as an external strategic factors. Some of the topics covered in NTT DoCoMo: Establishing Global 3G Standards case study are - Strategic Management Strategies, Globalization, Growth strategy, Joint ventures, Technology and Global Business.
Some of the macro environment factors that can be used to understand the NTT DoCoMo: Establishing Global 3G Standards casestudy better are - – technology disruption, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, there is backlash against globalization, wage bills are increasing, increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels,
challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of NTT DoCoMo: Establishing Global 3G Standards
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in NTT DoCoMo: Establishing Global 3G Standards case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 3g Docomo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 3g Docomo 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: Establishing Global 3G Standards can be done for the following purposes –
1. Strategic planning using facts provided in NTT DoCoMo: Establishing Global 3G Standards case study
2. Improving business portfolio management of 3g Docomo
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of 3g Docomo
Strengths NTT DoCoMo: Establishing Global 3G Standards | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 3g Docomo in NTT DoCoMo: Establishing Global 3G Standards Harvard Business Review case study are -
Organizational Resilience of 3g Docomo
– The covid-19 pandemic has put organizational resilience at the centre of everthing that 3g Docomo does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- 3g Docomo 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 3g Docomo is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in NTT DoCoMo: Establishing Global 3G Standards Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For 3g Docomo digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. 3g Docomo 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.
Superior customer experience
– The customer experience strategy of 3g Docomo in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Global Business industry
– NTT DoCoMo: Establishing Global 3G Standards firm has clearly differentiated products in the market place. This has enabled 3g Docomo to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped 3g Docomo to invest into research and development (R&D) and innovation.
Low bargaining power of suppliers
– Suppliers of 3g Docomo in the sector have low bargaining power. NTT DoCoMo: Establishing Global 3G Standards has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps 3g Docomo to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– 3g Docomo is one of the leading recruiters in the industry. Managers in the NTT DoCoMo: Establishing Global 3G Standards are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– 3g Docomo has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. 3g Docomo 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.
Innovation driven organization
– 3g Docomo is one of the most innovative firm in sector. Manager in NTT DoCoMo: Establishing Global 3G Standards Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Strong track record of project management
– 3g Docomo is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– 3g Docomo has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in NTT DoCoMo: Establishing Global 3G Standards 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.
Operational resilience
– The operational resilience strategy in the NTT DoCoMo: Establishing Global 3G Standards 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.
Weaknesses NTT DoCoMo: Establishing Global 3G Standards | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of NTT DoCoMo: Establishing Global 3G Standards are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the NTT DoCoMo: Establishing Global 3G Standards 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 3g Docomo has relatively successful track record of launching new products.
Increasing silos among functional specialists
– The organizational structure of 3g Docomo is dominated by functional specialists. It is not different from other players in the Global Business segment. 3g Docomo needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help 3g Docomo to focus more on services rather than just following the product oriented approach.
Products dominated business model
– Even though 3g Docomo 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: Establishing Global 3G Standards should strive to include more intangible value offerings along with its core products and services.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study NTT DoCoMo: Establishing Global 3G Standards, it seems that the employees of 3g Docomo 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 strategic competitive environment developments
– As NTT DoCoMo: Establishing Global 3G Standards HBR case study mentions - 3g Docomo takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
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 3g Docomo supply chain. Even after few cautionary changes mentioned in the HBR case study - NTT DoCoMo: Establishing Global 3G Standards, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left 3g Docomo vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study NTT DoCoMo: Establishing Global 3G Standards, is just above the industry average. 3g Docomo 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.
Interest costs
– Compare to the competition, 3g Docomo 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.
Skills based hiring
– The stress on hiring functional specialists at 3g Docomo 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Ali F. Farhoomand, Vincent Mak suggests that, 3g Docomo 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.
Capital Spending Reduction
– Even during the low interest decade, 3g Docomo 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.
Opportunities NTT DoCoMo: Establishing Global 3G Standards | 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: Establishing Global 3G Standards are -
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 3g Docomo in the consumer business. Now 3g Docomo can target international markets with far fewer capital restrictions requirements than the existing system.
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 3g Docomo 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects 3g Docomo can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of 3g Docomo has opened avenues for new revenue streams for the organization in the industry. This can help 3g Docomo to build a more holistic ecosystem as suggested in the NTT DoCoMo: Establishing Global 3G Standards case study. 3g Docomo can build new products and services such as - data insight services, data privacy related products, data based consulting services, 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. 3g Docomo can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– 3g Docomo 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: Establishing Global 3G Standards - to build a competitive advantage using analytics. The analytics driven competitive advantage can help 3g Docomo to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, 3g Docomo can use these opportunities to build new business models that can help the communities that 3g Docomo operates in. Secondly it can use opportunities from government spending in Global Business sector.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, 3g Docomo 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: Establishing Global 3G Standards, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Low interest rates
– Even though inflation is raising its head in most developed economies, 3g Docomo can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Better consumer reach
– The expansion of the 5G network will help 3g Docomo to increase its market reach. 3g Docomo 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 3g Docomo 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 Global Business segment.
Buying journey improvements
– 3g Docomo can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. NTT DoCoMo: Establishing Global 3G Standards 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.
Learning at scale
– Online learning technologies has now opened space for 3g Docomo to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Threats NTT DoCoMo: Establishing Global 3G Standards 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: Establishing Global 3G Standards are -
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. 3g Docomo 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. 3g Docomo 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.
Environmental challenges
– 3g Docomo 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. 3g Docomo can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Regulatory challenges
– 3g Docomo 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 Global Business industry regulations.
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.
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 3g Docomo in the Global Business sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, 3g Docomo 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: Establishing Global 3G Standards .
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. 3g Docomo needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
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.
Shortening product life cycle
– it is one of the major threat that 3g Docomo is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 3g Docomo business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– 3g Docomo has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, 3g Docomo needs to keep up with the evolution of technology in the Global Business 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for 3g Docomo in the Global Business industry. The Global Business 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.
Weighted SWOT Analysis of NTT DoCoMo: Establishing Global 3G Standards 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: Establishing Global 3G Standards 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: Establishing Global 3G Standards 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: Establishing Global 3G Standards 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: Establishing Global 3G Standards 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 3g Docomo needs to make to build a sustainable competitive advantage.
