Dynamic View of Strategy in a Large Corporation: Challenges Toward Next-Generation Video Communications

Abstract

NTT, Japan’s largest telecommunications carrier, is currently facing a major period of transformation. As in other regions of the world, an optical-fiber infrastructure for broadband is being constructed at a rapid pace in Japan, and new products and services need to be created to generate customer value in this environment. NTT urgently needs to create new services that can compensate for the declining income from telephone services, once its largest source of profits, due to the growing penetration of IP telephone services. Meanwhile, in 2003, NTT Group member NTT DoCoMo and others introduced a flat-rate data communications service as part of their 3G mobile phone service, as developing new services that could differentiate themselves from competitors (KDDI’s au and Vodafone) became an issue as urgent as broadband was on fixed communication networks.