DoCoMo - The Japanese Wireless Telecom Leader

I-Mode: DoCoMo's Success Story Contd...

The biggest advantage of I-Mode, according to analysts, was that the service acted as a Win-Win-Win platform, benefiting DoCoMo, content providers and customers. While DoCoMo collected information charges from customers (for the content acquired by the customers from various sites) on behalf of the content providers and charged a commission of 9% on the amount, it passed the rest to the content providers. The content providers could thus receive their share without indulging in the hassles of billing and collection, which left them free to concentrate on developing content.

DoCoMo's constant focus on identifying the changing needs of customers and providing for them well in advance than its competitors helped it in positioning itself as the market leader. Reportedly, its major competitors KDDI and J-Phone were left far behind on account of I-Mode. Chris Parente, senior product manager, VeriSign (a leading security services provider for online companies), said, "NTT DoCoMo concentrated on the consumer. It made sure that there was quality content, good handsets and an entirely new billing process based on packets of data exchanged, not time online. Even more important, it provided billing services to the official content providers, and consumers one central bill."

DoCoMo sources said that two invaluable resources were responsible for its accomplishments through the years - the sophisticated R&D efforts and the close ties with its huge customer base and partner network. While its R&D was engaged in the development of mobile communications and next generation wireless services, the focus on customers enabled it to listen to them. The partner network built with other companies helped DoCoMo improve its own applications and offer good content, besides providing technical and operational expertise.

According to reports, DoCoMo had multiple points of contact with the customers. Customer representatives were present at all its branch offices and shops across Japan to take feedback on products, services, customer assistance, product maintenance, repair and other product related issues. The company also enabled its customers to reach it through a specially set up telephone service center. With such initiatives, DoCoMo succeeded in staying close to its customers and understanding their needs and thereby changing its strategies to provide solutions for them.

Apart from the company's strategies, various external factors also contributed to the success of I-Mode. Though Japan's population density was high, the PC penetration remained low (when compared to other industrialized nations). This created an untapped market for wireless technology. Also, since the Japanese spent more time commuting on trains, I-Mode was a useful 'companion' for many people. In the words of Kirk Boodry, telecommunications analyst, Dresdner Kleinwort Benson Securities (Tokyo), "I-Mode came at the right time, in the right place, with the right content. It just dazzled everybody."

Next >>