Market Entry Strategies Case Study

Japan’s Docomo’s Entry into Indian Telecom Market: Can it Tap the Growth in India?

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Abstract:

Docomo was Japan's largest telecommunications service provider which had introduced the latest mobile technologies including 3G (third generation) services in Japan. The company, which had dominated 52% of the Japanese mobile phone market for more than a decade had been losing ground to rivals over the last few years. The rivals KDDI and Softbank launched aggressive marketing campaigns to lure subscribers. Also, the introduction of the number portability system in 2006, which allowed consumers to retain their mobile phone numbers while switching to new service providers, further accentuated its problems. Due to weak sales in a saturated domestic market, Docomo sought international expansions by acquiring stakes in the mobile phone companies of Hong Kong, Malaysia, the Philippines and Bangladesh. On 12 November 2008, Docomo acquired a 26% stake in Tata Teleservices, the world's second largest mobile phone market, to gain a foothold in India. The case analyses Docomo's domestic challenges, international alliances and highlights its expansion plans in India.

Pedagogical Objectives:

• To emphasise Docomo's business in Japan, its international alliances and the reasons for their failure.
• To highlight the reasons for Docomo's entry into India.
• To discuss the challenges for Docomo in the Indian market.

Keywords :  Docomo; Japan; Telecommunication; Softbank; i-mode; FOMA (freedom of mobile multimedia access); 3G (third generation); Mobile; KDDI; India; TTSL (Tata Teleservices); GPS (global positioning service)

Contents : 
Docomo’s Domestic Challenges
Docomo’s Expansion Plans in India