Large foreign investment started taking place as the Government lifted limitations on the same. Competitors were eager to offer new services. * The annual average growth rate of 68% for the wireless market was astounding but was still small compared to that of fixed line market. * Penthouse market was growing but the ARPA was going down. * There was growth in the Internet and email usage; hence It was time to move on to a new technology. The five forces that affected the Industry performance were: 1) Intensity of competitive rivalry With the launch of I-mode, Dotcom gained flirts mover advantage.
Its competitors were lagging behind in terms of technology. 2) Threat from new entrants I-phone responded to I-mode’s success by upgrading its J-Sky service so that users could send and receive large email messages. Penthouse new entrants were trying to gain market share, Dotcom managed to hold on to their customer base. 3) Threat from substitutes After I-mode’s launch DID Cellular and DID, announced their own data communication services, called “EX. Web” and “EX. Access” respectively. 4) Bargaining power of buyers There was no real substitute to I-mode and hence no direct competition to I-mode.
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Therefore the bargaining power of buyers was comparatively less. 5) Bargaining power of suppliers I-mode provided a platform for the content providers as Dotcom provided pre- selected websites and the phone manufacturers also benefited as they changed the look as well as other features of the phone. Thus introduction of the I-mode technology was an excellent move taken by Dotcom. It gave them advantage in terms of increasing the customer base as well as retaining the existing customers. 2. How did Dotcom create distinctive value at low cost? How did Dotcom combine the strengths of the mobile phone and the PC-lenient?
How did the value curve of Doctor’s I-mode differ from those of the mobile phone and the PC-lenient? Anus: Dotcom created distinctive value at low cost by: * Charging YE per month, to access the I-mode network, and another YOU to YE to access any of the subscription only sites. This helped Dotcom to get 9% mobile services, users were charged by the volume of data transmitted to their mobile phones rather than the length of time on the network. * Adopting new text language c-HTML which was the compact version of HTML. It was low cost, quick and easy.