Docomo Case Essay

1250 Words Apr 12th, 2013 5 Pages
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Strategic Innovation
1231.3635.01

Case Questions: (1) How did DoCoMo create distinctive value at low cost? How did DoCoMo combine the strength of the mobile phone and the PC-Internet? How did the value curve of DoCoMo’s i-mode differ from those of the mobile phone and PC-internet?
(2) Where and how did i-mode create new buyer utility? What is i-mode’s business model?
(3) How did NTT DoCoMo make profits out of its i-mode service?

(1) DoCoMo broke "Red Ocean" by ignoring the technology race and price competition in highly crowded voice-based market. The industry has reached a maturity stage and by taking a Breakaway positioning approach DoCoMo succeeded to reposition a mature
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* Later games platform introduction was also based on strategic alliance with Sun. * In order to overcome organizational hurdles that might have blocked the blue ocean, DoCoMo took the Organization Separation approach, created a dedicated project and staffed it with leaders recruited from outside (the unthinkable move for Japanese culture)
DoCoMo reconstructed market boundaries and created a new market between the PC-internet market and the cell phone by combining their strengths: * Mobile strengths: Voice-based services, gadget positioning that was so popular for Japanese market, small size of the phone, mobility and everywhere access, cheap but well designed device were available by using the same improved DoCoMo’s product as a baseline platform and only adjusting it to support non-voice data communication offering. * PC-Internet strengths: access to variety of information and entertainment content avoiding the limited radio bandwidth constraint, answering the emerging customer need for communication, information, knowledge and entertainment were possible * by improving the Network - Packet based telecommunication and * by supporting c-HTML format which allows integration with all content providers
The value curve compares performance/value across various factors of competition: * Mobile phones value curve concentrated on high mobility, ease-of-use, weight,

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