Essay: NTTdocomo analysis and SWOT

This assignment deals with NTTdocomo. In addition to the mobile phone communications business, the company provides “d-healthcare” and other services that provide content such as electronic magazines as a smart life project and support training such as walking.
NTTdocomo, based on the policy on “Isolation of mobile communication business” by Nippon Telegraph and Telephone Corporation in “Government Measures” in March 1990, NTT DOCOMO, August 1991, NTT Mobile Communications Planning Corporation was established as.
Since establishment, This company have established and developed a confident i-mode Internet communication technology in Japan, and they have worked on mobile phone credit technology “DCMX” etc. ahead of other companies.
Recently, NTTdocomo has also worked on business other than mobile phone communication service using the d-point member base. For example, it is a shopping site called Favo Square. NTTdocomo‘s mobile phone communication charges and d-point member stores can store d-points. Customers can use this d-point as a discount when purchasing items offered in Favo Square. Products provided at Favo Square include goods that utilize communication technology, such as bags that make it easy to store devices such as smartphones and tablet terminals and small devices that can track even small items such as wallets are lost Has been done.
NTTdocomo‘s mission states that they are aiming to establish more personal communication that makes their customers fully satisfied by making full use of personal capabilities to create a new world of communication culture.
In “The medium – to long – term strategy 2020 beyond declaration”, utilizing the new communication technology of 5G, The Scheme is depicted that to enjoy soccer game by using VR and investment support by robot advisor using AI.
The company’s mission is the reason for the existence of an organization and the vision is a common goal of the organization that defines the future of a company. The purpose of a company is to create corporate value and expand its value.
Corporate value includes (1) economic value such as net income and ordinary income, (2) social value such as social contribution and regional contribution, (3) organization value such as change to organizational culture and society, but in general companies Is understood as shareholder value.
The difference between a profit corporation and a nonprofit sector is that the former distributes dividends to shareholders and the latter does not pay dividends. For this reason, for-profit corporations will consider projects to increase shareholder value.
On the other hand, in the non-profit sector, social contribution is the main focus of the improvement of its value, but it is said that the purpose is ambiguous and there are issues that leadership and inability to change.
Strategy refers to the organization’s long-term direction and strategic planning refers to a systematic, step-by-step procedure for developing an organization’s strategy.
Strategic planning has advantages and dangers as shown on the next page, but it is essential to (1) cope with uncertain and complicated business environment, and (2) achieve corporate purpose.
An important aspect in management is “resource-based view ”to which understand the competitive advantage compared to other companies and what kind of difference there is in the basis for achieving excellent performance.
First of all, critically evaluate the companywide strategy. VRIO analysis is an analysis scheme for companywide strategy. VRIO analysis is to evaluate management resources from the four perspectives of value, rarity, imitation possibility, and organization. By doing this, it is possible to determine the quality of strength existing within the company and the current competitive advantage in the market, and to take effective measures to maintain and further improve the competitive advantage.
VRIO analysis on ”The medium – to long – term strategy 2020 beyond declaration” can be evaluated as follows, the current position may remain temporary competitive advantage, there is concern about future business management. In particular, it seems that the management philosophy of ‘making the most of individual’s abilities’ is not put in concrete products or services.
The BCG Matrix uses market share and market growth criteria for determing the attractiveness and balance of business portfolio.
Below, we look at each segment. The telecommunications business is a major business of NTT docomo, which corresponds to the communication charges of mobile phones. Although this is a “star”, there is a possibility that growth may be suppressed by the regulation of the country (①).
Other than that, maintenance of mobile phones can be mentioned, but as long as DoCoMo’s products and services can be sold, it is necessary to maintain the products, so it can be evaluated as a golden tree, but as in ①, communication charges and terminals If price restrictions are strengthened, opportunities for growth are likely to be impaired (②).
Smart Life includes d Healthcare services, but other care services and the like are in a state of muddy and can be evaluated as a problem child. However, since the elderly population will increase in Japan, it is necessary to strengthen this project (③).
Problems related to medical care and nursing care and service needs tend to increase with the increase of the elderly population in Japan. On the other hand, the current service model is a business model that keeps in mind that communication devices can be utilized, and it is poor in products and services that can be utilized by elderly people with dementia and weak elderly people.
Therefore, we consider that it is necessary to develop products and services based on the integrated provision of smart houses and nursing care services that utilize IoT technology that can be used by elderly people with dementia and weak elderly people.
Specifically, this company will strengthen the health care department and collaborate or acquire companies with know-how in the housing, and consider introducing IoT technology to existing buildings, such as watching sensors and long distance conversations.
In addition, as an aid of IoT technology in new structures, for example, technologies that take a scale and know the situation of their own mind and body by looking at the mirror and give advice on points to be careful about in life are conceivable.
According to the advice, the company will give d-points to those who have taken various preventive measures towards health and revenue by providing anonymous information etc. of people living in the smart house and providing data on a fee basis It is also possible to secure. And this company should develop services covering care and smart house against overseas markets with little share.
In addition, deposit management and asset management become an issue for the elderly. As for these, IoT and process technology which can make complicated procedures as much as possible for the elderly themselves can be considered to be more efficient. In particular, as elderly people unfamiliar with work using personal computer are common, maintenance of a remote window where procedures can be carried out with banks at home can be considered.
As a result, the new service will be as follows.
①Reinforcement of healthcare division and expansion of healthcare service utilizing d-point member base
②Integration of d healthcare with smart house
③Integration of smart house business and asset management utilizing member base
Task1-2
First, SWOT analysis is used for external factors and problems in internal factors.
SWOT analysis is one of the management strategy formulation methods that aims to analyze external and internal environments in four categories, Strengths, Weaknesses, Opportunities, and Threats, and to optimally utilize management resources in response to changes in the business environment.
The internal factor is the high share of the mobile communication business. It accounts for 45 percent of the total in the mobile phone business in Japan, and the scale merit is considered high. In addition, since it has a membership base other than the mobile phone communication business called d-point member, it is possible to utilize these membership base. Also, as a state-owned enterprise, there are backgrounds that have been running for many years, brand power is high, trust in service is very thick.
Next, external factors will be discussed. As an opportunity, since it has an overwhelming share in the mobile communication business, there is an advantage that characteristic data can be extracted from various samples when verification data accompanying various development and its verification are carried out. As a result, it is possible to develop services and so on according to finer customer layers. Considering that the elderly population will increase in Japan in the future, how to enrich services for the elderly is needed. In addition to having a d-point member base other than the mobile communication business, it is also possible to grasp the potential service needs by grasping the daily settlement situation of these users with prior agreement , Grasping the living environment of the layer which does not use the mobile phone at all may possibly be able to develop a highly convenient service even for the elderly who becomes difficult to use the mobile phone itself.
Furthermore, due to the size of NTT docomo’s business foundation, the groundwork for developing new services linking communication technology to something is also considered to be great due to agreements with companies etc. of other industries. In this sense, partnership with industries dealing with living is not only consistent with “to make the most of individual capabilities” in NTTdocomo’s management philosophy, it is considered that opportunities can be effectively utilized.
As a threat, in addition to the competition of the three major mobile phones, cheap cell phone sales etc. have appeared recently. Share owns a proportion that approaches the majority, but the growth of these low-cost businesses could affect management in the future. In addition, communication technology in mobile phone sales etc. is a regulated business, sales regulation of MIC is being debated. Depending on the policy change by the Ministry of Internal Affairs and Communications, there is a possibility that periodic communication charge revenues may increase or decrease, possibly damaging the business foundation. Actually, Chief Cabinet Secretary Suga said in his speech, “There is room for cell phone charges to drop by about 40%.”
Regarding contents, for example, regarding videos, diversified and inexpensive services have appeared as typified by Amazon Prime and Netflix, and these aggressive advertisements also stand out. Furthermore, in the Japanese market, the relative increase in the elderly population is pointed out as society as a whole. Even those of these elderly people may be limited in market share unless it is easy to use as a service.
Furthermore, due to the size of NTTdocomo’s business foundation, the groundwork for developing new services linking communication technology to something is also considered to be great due to agreements with companies etc. of other industries. Overseas, as the entire Tech industry is in a bullish market environment, the performance of major telecommunication companies is sluggish, and the transformation of services is also required worldwide. In other words, this indicates that the change of service of the existing telecommunications business itself is required even from the worldwide level, and we can expand our new market share by handling smart housings ahead of other countries.
Looking at domestic telecommunications phone operators, although each has developed various businesses, there is no entity handling smart housing. In other words, so-called Blue Ocean exists in this area. Blue Ocean refers to a new market where competition has been minimized. By the way, NTTdocomo’s advantages are high in that there are several business operators trying to handle smart housings, such as Panasonic, for example, but none have a communication infrastructure.
Think about “opportunity” that can provide smart housing and Diversity and performance. Diversity and performance refers to a phenomenon in which a person who has diversified to a certain extent to a related industry tends to be more successful due to its synergistic effect but conversely if diversifying to a business not related to it, the result will be bad. Since smart housing can maximize the strengths and opportunities of NTTdocomo and it is a diversified relationship strongly related to the telecommunications business, its outcomes may be higher.
Stakeholders such as shareholders need to be verified.
Stakeholders are all those related to the management interests, including stakeholders and shareholders, as well as customers, financial institutions borrowing funds, social activists, political organizations, and administrative officials. (1) Which stakeholders are most affected, (2) What kind of expectations need to pay most attention, (3) From the viewpoint of how much expectation and influence of various stakeholders will change, Stakeholder mapping will be implemented.
The key Player is described below. The most important keeper is the government. It is desirable to build relationships that can request collaborative policies and institutional reforms so that regulations on communication charges do not become too strict. In order to establish a business foundation that does not rely too heavily on communication charges, it is also necessary to understand the development of new services.
Regarding the shareholders, the shareholding ratio of NTT, the parent company, is now 63.31% at present, and it is difficult to think strongly from other shareholders about management. However, a significant change in policy of the parent company, for example, withdrawal from the telecommunications business, will affect the management policy of the subsidiary itself. It goes without saying that it is necessary to return to the parent company by maximizing corporate value so that the business base of NTTdocomo itself is not existing. Although it is a small number from the viewpoint of the shareholders as a whole, it is necessary to pay dividends and capital gains to individual shareholders as well.
Competitors are always looking at new strategies deployed by other companies. Even if new services are deployed, there is a possibility of developing similar services, so speeding up the strategy is required.
Also, the customer wants to use the new service and sometimes seeking a more fulfilling service than other users with a short use period if using it for a long time. It may be possible to add shades to added value depending on such usage period.
Next, consider the layer of keep informed. Activists, Suppliers, Political groups, Trade Association can be considered for this. Activists are, for example, consumer protection organizations. With regard to these cases, there are cases where the problem develops into litigation problems if product defects or services are inadequate. Therefore, it is necessary to promise to carry out appropriate quality control and service guarantee and continue to inform it. Political organizations as well. As for suppliers and trading associations, since they are basically in cooperative relationship, it will not have a major impact in the case of peacetime as long as we keep good relationships and pay appropriate fee. However, in order to build a good relationship, it is necessary to continue to inform about the information on new product development and the concept of the service that we would like to collaborate and create, increase the expected value.
And it is a layer of keep satisfied. In Japan, the productive age population is decreasing, and there is a danger that the business itself will not go unless it is necessary to answer the demands of Unions and Employees. For this reason, efforts are required to continue to satisfy employee satisfaction. In this regard, for example, as part of verification and welfare benefits, it might be possible to think of an effort to have employees live in a smart house. We can simultaneously eliminate pioneering efforts, needs for housing, and verification. Financial Community is important in terms of financing. Financial institutions have difficulties in managing the property of the elderly, and in that sense, services such as simplification of counter service linked with smart houses can lead to satisfying financial institutions.
Reference as Task 1’s future strategy was to strengthen the healthcare department and to partner with or acquire companies with expertise in housing and to incorporate IoT technology into existing buildings.
At the moment, smart houses that utilize IoT technology are in the demonstration stage and regulations do not exist. With respect to smart houses, it is considered that entities competing as content are not at the present moment, and against the increase in the elderly population, it is possible to utilize less stressful technology against the operation called IoT.
In conclusion, it can be said that this strategy can enhance development not only in the telecommunications business that competitors have not chosen in the threat of external factors.