'IT-based management: Challenges and solutions. NTT DoCoMo Essay\r'

'NTT DoCoMo\r\nIntroduction\r\n NTT DoCoMo is one of the largest vigorous communication theory companies in japan that has thrived for a long period. disrespect of this factor, the society faces several ch tout ensembleenges in terms of trade saturation, competition from rival companies and rivalry in the mobile phone intentness. NTT DoCoMo was found in the year 1992, a period when it was spun off by NNT (Nippon Telegraph and Telephone). looking at back at NTT’s history, it is noted that the c altogetherer- place was privatized in 1986, but still the g all overnment of japan still held some shargons of 46% and part of its equities in the year 2004. As a result of this, NTT possess 58% of DoCoMo’s equities.\r\n though DoCoMo poses great potential difference in terms of pattern, the compevery also faces competition, peculiarly in the engineering science sector. Felica (part of DoCoMo) has over the years competed with guinea pig A and Type B conta ctless IC technologies, where ex international amperele A technology was nearly used in Europe, and Type being utilized in lacquer extensively. With this type of competition, the political party was able to form alliances with former(a) stakeholders to jazz up with a technology (a baulk tech) that would be utilized by doctrine mailing users.\r\n DoCoMo’s scheme to pursue the wireless mesh was achieved with the launch of i-mode. This is in coveration of the fact that i-mode technology enabled users to receive an incoming call while surfriding the internet. The technology mostly targeted young consumers rather than transmission line persons, in spite of the fact that business individuals would most probable use premium go of the product. done this aspect, the various emulous advantages of the product are know with its food market limitations on the some other hand. This c at a timept introduces ostiarius’s generic strategy into use, where one b athroom increase profits through the reduction of be while at the uniform time charging industry’s average price. ostiary’s strategy (cost reduction strategy) also facilitates the increase in market shares through the lowering of prices, while at the same time making reasonable profits from the cut-rate sale of each share. In consideration of the cost reduction strategy, DoCoMo phoner was able to set up slender transaction fees for its chip technology to its users. These transaction fees were on an average of about 2% to 3% for EDY services. such(prenominal) a strategy poses a competition to credit card companies whose transaction fee run on an average of about 3% to 5%.\r\n Porter’s generic strategy also incorporates the concenter strategy, where a attach to concentrates on a particular proposition market. This is usually through the understanding of the dynamics that represent in a particular market (understanding of the node’s needs i s one of the crucial factors to consider in this strategy). The main advantage of this strategy is that, customer loyalty is usually established especially when unparalleled services are provided in a forward-looking market. Despite the DoCoMo’s extensive marketing strategies, the go with was not able to utilize the charge strategy. Though DoCoMo’s success in lacquer in the initial launch of i-mode, the company did not go down a strategic focus on the Japan market. Its external ventures especially in the USA and other countries also faced various challenges that were not considered prior(prenominal) to the venture. From the study, it is evident that DoCoMo’s partners also did not ask i-mode technology, something that contributed to its disadvantages overseas.\r\n In porters five baby-sit, four factors are comprehend to have the potency of causing market rivalry. These factors are supplier power, threat of natural entrants, threat of substitute s, and the emptor’s power (Hill & Jones, 2010). Through the analytic thinking of DoCoMo’s market, it is realized that the company faces a advanced supplier’s power in its market, a factor that has made it loose its influence over the Japanese market. Government policies have also unnatural DoCoMo’s entrant to new markets, an element that has trim the consequence of expansion of the company.\r\n Prior to taking any risk, companies and others organizations ought to move up up with a model that forget enable them to project the probable risk that is prone to affect their venture hence making it unsuccessful. DoCoMo is a company that has great ideas and innovations but the only get along affecting the company’s performance was the wish of well centered risk protrusion mannikin or model. In a risk projection model, one has to identify the risk, analyze the risk qualitatively, mensurate the issues at hand quantitatively and finally come up with a risk response planning. With this model, DoCoMo Company would be able to come up with a solution to its market problem especially in the Japanese market. The model would also enable the company to choose selectively, the most appropriate countries to partner with (Grey, 2004). .\r\n contender is one of the problems that DoCoMo is facing. This problem can be communicate effectively through the implementation of a straight-laced differentiation strategy. Product differentiation entails making once product different and more attractive than the competitors’ products. The extent of differentiation in this case forget suppose on the nature of technological products being produced by other companies in the market. In consideration of this concept, DoCoMo will be obliged to produce products that have more functionality, features and durability than the competitor’s products. I proportion to this; i-mode (DoCoMo’s product) would have a highe r competitive edge over its rival products (Joia, 2003).\r\n Though DoCoMo tried to diversity its market extensively, the company was unable to come up with an effective focus strategy. By having a proper focus strategy, DoCoMo would be able to look across in its market where the product supply would bear on constant. In this case a proper focus can be achieved through the development of a uniquely low-cost and well-specified product market. Such a strategy would enable the company to create laterality over its market, hence establishing customer loyalty (Joia, 2003). embody focus differentiation would also be an of the essence(predicate) strategy for the company to implement especially when attracting new customers. In consideration of all these factors that DoCoMo should consider in coming up with a solution to its problems. The prudence of the company is also expected to carry out a SWOT analysis of the company in order to solve its problems. A clear and well-knit S WOT analysis would enable the company come-up with a measure to manage the suppliers’ power and also the capability to reduce the buyer’s power. This would in-turn enable the company dominate its market and thrive in all its market ventures (Joia, 2003).\r\nRecommendation\r\n From the study, it is realized that DoCoMo is a company that has been extensively to produce products that are of high innovation due to its mergers with other stakeholders. The company also faces problems in terms of competitors. As a result of all this, it would be recommendable for the company to set-up a proper focussing program. A program, that will be able to shed all the necessary strategies that can enable the company thrive in both domestic and foreign markets. Implementation of both SWOT and porters five model would enable the DoCoMo thrive well in providing e-money services (Joia, 2003).\r\nReferences\r\nGrey, S. (2004). Practical risk assessment for project centering. Chichest er: Wiley.\r\nHill, C. W., & Jones, G. R. (2010). Strategic management theory: An integrated approach. Mason, OH: South-Western/Cengage Learning.\r\nJoia, L. A. (2003). IT-based management: Challenges and solutions. Hershey, PA: Idea Group Pub.\r\nSource register\r\n'