Japan in the late 1990s was a veritable gold rush for the mobile phone industry. At the time, every third person in Japan owned a mobile phone and the market had just experienced seven years of rapid expansion to reach 45.6 million subscribers, making the island nation one of the largest wireless markets in the world. But Kouji Ohboshi, the chairman of the Japanese telephone giant, NTT DoCoMo, was worried. He knew that fast market growth meant a faster move through the market life cycle (adoption, expansion, maturity, saturation, and decline). Instead he saw the need to redirect his companys corporate strategy to create a new market space rather than simply adapting to changes in the industry later.
In this new case, Professors W. Chan Kim, The Boston Consulting Group Bruce D. Henderson Chaired Professor of International Management, Renée Mauborgne, The INSEAD Distinguished Fellow and Affiliate Professor of Strategy and International Management, and Ben M. Bensaou, Professor of Technology Management and Asian Business, along with Yasushi Shiina, INSEAD MBA 00, look at how Ohboshis contrarian views looking ahead versus staying the course resulted in value innovation.
The case starts in 1999 with the introduction of Ohboshis new motto, From Volume to Value, which reflected his wish to refocus efforts on creating new value for customers, such as providing information, knowledge, and entertainment via mobile phones. At the time, people were using mobile phones for what they had always been used for: communication. Now Ohboshi and his company would have to convince consumers that mobile phones could do many of the same things as their desktop computers.