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

NTT DoCoMoIntroduction NTT DoCoMo is one of the largest mobile communications companies in lacquer that has achieved for a long period. Despite of this performer, the bon ton faces several challenges in wrong of food grocery saturation, competition from rival companies and rivalry in the mobile remember industry. NTT DoCoMo was found in the year 1992, a period when it was spun off by NNT (Nippon Telegraph and Telephone). Looking back at NTTs history, it is noted that the connection was privatized in 1986, but still the g everywherenment of japan still held near sh atomic number 18s of 46% and part of its equities in the year 2004. As a conclusion of this, NTT owned 58% of DoCoMos equities. Though DoCoMo poses great potential in terms of innovation, the guild also faces competition, especially in the engineering sector. Felica (part of DoCoMo) has over the years competed with Type A and Type B contactless IC technologies, where fortune A technology was mostly used in Europe, and Type macrocosm utilized in japan extensively. With this type of competition, the participation was subject to line alliances with early(a) stakeholders to come up with a technology (a rubbish tech) that would be utilized by credit observance users. DoCoMos strategy to play along the wireless internet was achieved with the launch of i-mode. This is in divvy upation of the fact that i-mode technology alterd users to receive an incoming call while surfing the internet. The technology mostly targeted young consumers rather than personal line of credit persons, in spite of the fact that business individuals would most prob adapted use premium work of the proceeds. Through this aspect, the conglomerate competitive advantages of the product are realized with its tradeplace limitations on the other hand. This concept introduces porters generic strategy into use, where one elicit increase profits done the reducing of costs while at the same time charging indu strys average price. Porters strategy (cost reduction strategy) also facilitates the increase in market shares finished the lowering of prices, while at the same time making levelheaded profits from the sale of each share. In consideration of the cost reduction strategy, DoCoMo Company was able to set up small 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 a strategy poses a competition to credit card companies whose transaction fee run on an average of about 3% to 5%. Porters generic strategy also incorporates the concentre strategy, where a alliance concentrates on a particular market. This is usually through the understanding of the dynamics that exist in a particular market (understanding of the customers needs is one of the crucial factors to consider in this strategy). The main advantage of this strategy is that, customer loyalty is usually constituted especially when unique servi ces are provided in a revolutionary market. Despite the DoCoMos extensive marketing strategies, the phoner was not able to utilize the focus strategy. Though DoCoMos success in Japan in the initial launch of i-mode, the come with did not lay a strategic focus on the Japan market. Its foreign ventures especially in the USA and other countries also faced various challenges that were not considered front to the venture. From the study, it is evident that DoCoMos partners also did not adopt i-mode technology, something that contributed to its disadvantages overseas. In porters louvre model, four factors are perceived to beat the capability of causing market rivalry. These factors are supplier power, threat of new entrants, threat of substitutes, and the buyers power (Hill & Jones,2010). Through the psychoanalysis of DoCoMos market, it is realized that the troupe faces a high suppliers power in its market, a factor that has made it loose its influence over the Japanese market. G overnment policies have also affected DoCoMos entrant to new markets, an element that has cut down the extent of expansion of the company. Prior to taking any take a chance, companies and others organizations ought to come up with a model that will 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 issue affecting the companys performance was the lack of well centered risk projection conformation or model. In a risk projection model, one has to position the risk, analyze the risk qualitatively, assess the issues at hand quantitatively and lastly come up with a risk response planning. With this model, DoCoMo Company would be able to come up with a solution to its market caper especially in the Japanese market. The model would also enable the company to choose selectively, the most appropriate countries to partner with (Grey,2004). . Competition is o ne of the line of works that DoCoMo is facing. This problem can be addressed effectively through the implementation of a correct differentiation strategy. Product differentiation entails making once product different and more attractive than the competitors products. The extent of differentiation in this case will depend on the nature of technological products being produced by other companies in the market. In consideration of this concept, DoCoMo will be obligate to produce products that have more functionality, features and durability than the competitors products. I relation to this i-mode (DoCoMos product) would have a higher competitive frame over its rival products (Joia,2003). 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 dominate in its market where the product supply would remain constant. In this case a proper focus can be achieve d through the development of a unequivocally low-cost and well-specified product market. Such a strategy would enable the company to create dominance over its market, hence establishing customer loyalty (Joia,2003). follow focus differentiation would also be an important 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 misrepresentment of the company is also expected to carry out a wonk analysis of the company in order to solve its problems. A clear and strong SWOT analysis would enable the company come-up with a measure to manage the suppliers power and also the capability to reduce the buyers power. This would in-turn enable the company dominate its market and thrive in all its market ventures (Joia,2003).Recommendation From the study, it is realized that DoCoMo is a company that has been extensively to produce products that are o f 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 management program. A program, that will be able to overlook 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).ReferencesGrey,S. (2004). Practical risk assessment for project management. Chichester Wiley.Hill,C.W., & Jones,G.R. (2010). Strategic management theory An integrated approach. Mason, OH South-Western/Cengage Learning.Joia,L.A. (2003). IT-based management Challenges and solutions. Hershey, PA Idea Group Pub.Source roll