DoCoMo - The Japanese Wireless Telecom Leader

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

The I-Mode network was based on Personal Digital Cellular Technology - a technology that allowed the data to be sent to its destination in parts called packets. Both the network and the middleware software were DoCoMo's proprietary services. The company's middleware software was based on compact HTML (cHTML), a subset of HTML, identical to WAP . cHTML was used to create the content of I-Mode sites, as it enabled content providers to easily convert their HTML Internet site content into an I-Mode compatible format with minor programming changes. This flexibility in operation helped DoCoMo to attract more content providers onto the I-Mode platform.

Another reason that triggered I-Mode's growth was the business model DoCoMo adopted from AOL's packet billing model. According to this model, billing was based on the volumes of data received and sent by the subscriber and not on the amount of time spent on the Internet.

This meant that unlike the traditional billing model, which billed the subscribers on the basis of time they stayed connected to the Internet, I-Mode users were billed only when they sent or received any data. However, DoCoMo altered AOL's model to include incentives for content providers as well to encourage them to develop innovative applications and services (Refer Exhibit IV for the strengths of DoCoMo's business model).

Growing e-commerce transactions on I-Mode also contributed to its I-Mode's success. DoCoMo realized that most of its customers were not very comfortable making payments through the Internet. To address this issue, the company started adding the value of its customers'online purchases to their monthly bill. This was not only much more convenient, but also gave the customers a sense of security – something they felt was missing in online payments.

As a result, there was a substantial increase in e-commerce transactions through I-Mode. The success of I-Mode was also credited to DoCoMo's clever marketing strategies. Reportedly, the company consciously chose not to refer to the term Internet or Web in its promotional campaign for I-Mode during the first year of its launch.

DoCoMo - The Japanese Wireless Telecom Leader - Next Page >>>

Case Details

Case Code : BSTR049
Themes: Differentiation
Case Length : 17 Pages
Period : 1992 - 2003
Organization : NTT DoCoMo (DoCoMo) Inc
Pub Date : 2003
Teaching Note : Available
Countries : Japan
Industry : Telecommunication

Free Case Studies

Business Strategy
Finance
HRM
Insurance
IT and Systems
Marketing
Operations
Leadership
More Case Studies >>

Micro Case Studies

Business Environment
Business Ethics
Business Strategy
Human Resource Management
IT and Systems
Marketing
Operations
Micro Case Studies >>

Free Resources

Micro Case Studies
Case Studies
Articles
Interviews
Book Reviews
Glossary
Online Quiz
More Free Resources >>

Case Related Links

Best Selling Case Studies
Business Case Studies
Learning With Case Studies
Cases Used in Textbooks
Prize Winning Case Studies
Business Updates
More Case Studies >>

Case Studies and Management Resources