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    NTT Docomo Inc. - Group 9 - EOS B

    Uploaded by

    Manas Das
    Docomo is strategizing its entry into the e-money and credit card business in Japan. It has three main options - promoting its existing Edy service exclusively, pursuing interoperability between different e-money providers, or merging with larger players like JR and JCB. The document recommends that Docomo pursue interoperability to increase adoption while avoiding overreliance on any single provider. It also suggests that Docomo enter non-exclusive partnerships with existing credit card companies rather than launching a proprietary service, in order to leverage their experience and network effects.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    NTT Docomo Inc. - Group 9 - EOS B

    Uploaded by

    Manas Das
    109 views9 pages
    Docomo is strategizing its entry into the e-money and credit card business in Japan. It has three main options - promoting its existing Edy service exclusively, pursuing interoperability between different e-money providers, or merging with larger players like JR and JCB. The document recommends that Docomo pursue interoperability to increase adoption while avoiding overreliance on any single provider. It also suggests that Docomo enter non-exclusive partnerships with existing credit card companies rather than launching a proprietary service, in order to leverage their experience and network effects.

    Original Description:

    NTT Docomo Inc case solution

    Original Title

    NTT Docomo Inc._group 9_EOS B

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    Docomo is strategizing its entry into the e-money and credit card business in Japan. It has three main options - promoting its existing Edy service exclusively, pursuing interoperability between different e-money providers, or merging with larger players like JR and JCB. The document recommends that Docomo pursue interoperability to increase adoption while avoiding overreliance on any single provider. It also suggests that Docomo enter non-exclusive partnerships with existing credit card companies rather than launching a proprietary service, in order to leverage their experience and network effects.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    109 views9 pages

    NTT Docomo Inc. - Group 9 - EOS B

    Uploaded by

    Manas Das
    Docomo is strategizing its entry into the e-money and credit card business in Japan. It has three main options - promoting its existing Edy service exclusively, pursuing interoperability between different e-money providers, or merging with larger players like JR and JCB. The document recommends that Docomo pursue interoperability to increase adoption while avoiding overreliance on any single provider. It also suggests that Docomo enter non-exclusive partnerships with existing credit card companies rather than launching a proprietary service, in order to leverage their experience and network effects.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    NTT DoCoMo, Inc.

    : Mobile FeliCa
    Group- 9
    Manas PGP/19/024
    Yuganand PGP/19/031
    Yukti PGP/19/060
    Harsh PGP/19/143
    Utkarsh PGP//171
    Kapil PGP/19/263

    Platform sponsors

    Options available with Docomo


    strategizing its e-money and credit
    cards business

    Proprietary

    Licensing

    Joint
    Venture

    Shared

    Only one platform sponsor- Felica


    Multiple platform providers- Edy, Suica, Quickpay
    It makes sense for Docomo to go for licensing

    Ration behind licensing


    Edys loyalty program
    Suicas experience in
    integration of e-money to
    JR services

    Quickpays ability to
    provide higher credit
    limit(30,000 yen)

    Unique capabilities of licensees to


    cater to differentiated needs of users

    Sponsor can boost platform


    adoption by harnessing partners
    marketing clout

    Powerful users might insist upon a


    second source of supply to reduce
    vulnerability

    JMS Co. ltd. Had a sales


    force of 100 working to
    persuade more merchants

    Felica Network
    Mercha
    nts

    Users

    Users

    Edy, Suica,
    QuicPay

    Platform
    Providers

    Edy,
    Suica,
    QuicPa
    y

    Platform
    Sponsor

    Option in eMoney
    Continue to support Edy and installation of Edyexclusive devices
    To promote eMoney reader interoperability
    Merge efforts with JR and JCB in order to harness
    network effect

    Options

    Pros

    Cons

    Promoting Edy Exclusive


    devices

    Would make EDY as


    proprietary provider and
    Felica as sole sponsor

    -Will not able to access


    customer base of other
    eMoney providers
    -Too much bargaining
    power to Edy

    To promote eMoney
    reader interoperability

    -Others are also


    -Difficult to achieve
    developing IC tech and
    interoperability
    this will enable making
    Felica as standard and add
    to users convenience
    - Increase merchants WTP

    Merge efforts with JR and


    JCB

    -JCB and JR has large user -Problems of free riding


    base and therefore
    arises
    increased merchant WTP
    and increased adaptation
    -R&D
    shared and owing to the advantages
    * We propose Docomo to go
    withcost
    inter-operability
    reduces
    risk it is difficult to achieve but it is
    that it would achieve out of
    it. Although
    doable

    Option in credit cards


    Enter non-exclusive partnerships with incumbents
    Exclusive partnership with a single card issuer
    Launch proprietary service without partnering

    Options

    Pros

    Cons

    Enter non-exclusive
    partnerships with
    incumbents

    -Would benefit from the


    -Free riding problem
    experience of others
    -As it is not WTA market it
    makes sense to partner
    with incumbents to
    enhance network effects

    Exclusive partnership
    with a single card
    issuer

    -With its strong brand


    awareness among young
    consumers can capture a
    disproportionate share of
    consumers lifelong
    transaction volume

    Launch proprietary
    service without
    partnering

    -Would make Docomo as


    proprietary provider and
    a sole sponsor

    -Risk of losing customers


    as it is not WTA market

    -Lacks experience in
    financial services
    - They are looking for
    revenue from transaction
    fees but actual revenue in
    * We propose Docomo to enter non-exclusive partnerships with incumbents
    credit cards come from
    as we see the same in case of visa, master cards etc.
    revolving debts

    Pricing Decision

    Application providers
    It should be priced more than marginal cost of providing
    services . Also there is a negative same side network effect,
    late adaptors will be benefit at the expense of early adaptor.
    This price should be maintained lowered in future as
    incremental benefits for new application provider is low.

    Carriers
    As carriers gets more revenue due to reduced churn
    rate/subscriber acquisition and increase data usage but why
    would adapt something which might not provide them
    competitive advantage with DoComo. Therefore carrier
    should be subsidized heavily as this will enable locking of
    Felica mobile phone users as well. In future, price can be
    increased

    * For revenue from application providers for managing their


    servers, DoComo should keep the price low so as to attract
    small application providers and large application providers
    anyways will use their own infrastructures.

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