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Strategic Planning for Successful International Expansion

Strategic Planning for Successful International ExpansionA long-time friend of WWJ, Walter Adamson, founder and principal at Digital Investor, sat down with us to share his latest presentation, “Strategic Planning for Successful International Expansion: Lessons Learned from Asia’s Failed Experiences,” a primer on the mistakes that mobile content companies have made while trying to expand across borders, with a focus on Japan and Australia. In the Japanese case, some have succeeded, but many others have not and Walter has provided a clear outline of common mistakes.

Walter attributes failure in many cases to unsophisticated management approaches and suggests that a solution can be found from addressing what he calls the ‘Top Six Sins’ — Strategic Intent, Underestimated Risk, Lack of Linkage (between strategy and action), Poor Balance, Poor Project Reviews and Poor Alignment (between strategy and structure). WWJ thinks Walter’s view may just be valuable to mobile companies anywhere considering a leap into someone else’s market.

Bridging the Mobile Gaming Divide

Bridging the Mobile Gaming DivideDespite all the effort WWJ has put into finding and covering software developers that have successfully transitioned out of Japan’s navel-gazing mobile market to markets elsewhere, I must admit we haven’t found thousands. Or even dozens. But one of them is Shinjuku, Tokyo-based G-mode, and this week the Japanese mobile game maker and its Dublin, Ireland-based partner Upstart Games said four IQ-enhancing games, already popular in Japan, would be distributed in the US and Europe via Upstart. The news underscores the profits to be found when forward-thinking mobile players work hard to bridge the wireless culture divide.

Upstart’s CEO Barry O’Neil told WWJ that the company has been planning to launch a brain training game for mobile since the runaway success of the genre in Japan late last year. Ironically, the Irish side was initially skeptical that such a narrow niche could win operator interest in Europe or the US. “We’ve a relationship with G-mode dating back to last year, and their Right Brain Paradise was something we’d looked at in the past, but felt gaining operator support could be difficult. Now that the genre is becoming more widely known we felt the time was right to introduce this mobile series,” he wrote in an email yesterday.

The three-game series, dubbed, “I.Q. Academy” is intended to help get players’ brains in shape by offering games designed to exercise the brain’s right side and improve spatial, visual and cognitive skills in the player. I.Q. Academy is based on G-mode’s hyperpopular ‘Right Brain Paradise’ series, which, according to the company, has sold almost two million downloads. The series is expected to launch in Europe and the US in the coming months (WWJ subscribers log in for full article).

Vodafone Japan's Final Media Briefing: Out with a Whimper

Vodafone Japan’s Final Media Briefing: Out with a WhimperFor Vodafone Japan, the end came not with a bang, but with a whimper. When we arrived at last Monday’s press event – the final one, it turned out, before news of the Japan sell-out hit the Web – the smell of pending doom hung in the air. Ironically, the media briefing bore an optimistic title: the “Future Direction of Product & Service Development.” It was also surprising to see that President Bill Morrow and Chairman Tsuda-san would attend for the 3G roadmap briefing to be given by former J-Phone super-star Ohta-san; WWJ has never seen three Vodafone Big Guys in one room together for a media briefing (perhaps there is safety in numbers)? But when the talk from all three turned out vague and totally avoided any mention of new MVNO’s signing up to resell Vodafone 3G capacity — widely considered to be one of Big Red’s few viable options in Japan — we suspected something was up.

And when we learned that a $49 bn write-off had been announced by London on the same day, it was obvious that the clock had already started ticking down for the carrier’s long-speculated Japan exit. Thus ended, after some five years of trying, what could have been one of the most brilliant tie-ups between a global brand name and world-leading Japanese mobile know-how.

Will it be SanyoKia or Nokia-San?

Will it be SanyoKia or Nokia-San? by Mobikyo KKLast week’s announcement of Nokia and Sanyo joining forces to boost their combined CDMA market share in the US was lost in the next-gen mobile TV hype and media avalanche (not to mention complaints about pokey dial-up access from the venue) coming from the 3GSM World Congress. The Nokia-Sanyo combination is an obvious play with both sides bringing a decent value proposition to the table; Nokia has massive manufacturing capacity, established distribution channels and a global brand while Sanyo has proven experience producing ultra-cool high-tech handsets and strong operator/vendor relationships. The companies gave no financial details of the tie-up, which is expected to close in the second quarter, but the JV will be based in Osaka and San Diego with an estimated 3,500 employees.

The challenge — and rewards — of morphing these respective ‘best of’ brands into a unified product offering are significant. Sanyo has advanced mobile battery and GPS chip expertise that even a Nokia would be hard-pressed to build on their own and such technologies are fast becoming key competitive differentiators as the US (and other markets) mandate emergency location reporting and other public safety services. Sanyo was vaulted to the ranks of top-tier suppliers to national champion DoCoMo last year as the name behind some of Big D’s first GPS-enabled models, the SA800i and SA700iS.

A Nokia-Sanyo tie-up makes sense from an economy of scale perspective and the end result should be better hardware for the end user, potentially at a lower price, which should please the operators and — more to the point — their shareholders.

3G Mobile Future: Exclusive Interview with Tomi Ahonen

3G Mobile Future: Exclusive Interview with Tomi AhonenTomi Ahonen is a smart guy who’s done a lot of observing and thinking about the 3G future. He reports that planet Earth has 2 bn mobile phones, with more phones in use than cars, credit cards or televisions, and that advertisers, businesses and governments are all trying to understand how the mobile future will download. For a glimpse into the future, Tomi was in Tokyo last month for the 3G Mobile World Forum 2006 where he observed that Japan already has the handsets, the networks and users who have migrated to 3G, while “the rest of the world is just starting to understand and discover this opportunity.”

He points out that in Japan, roughly 30 percent of all mobiles are 3G phones, compared to the UK, where it’s only 8 percent. “We have a long way to go to catch up.” WWJ’s Lawrence Cosh-Ishii caught up with Tomi for a tightly-focused interview covering 3G, 3.5G, consumer service definition, key technologies and how marketing and advertising are starting to recognize the potential of mobile.

KDDI's Competitive Edge in Japan

Over the past 12 to 18 months the mobile division of KDDI, known here as ‘au,’ has been leading the way in Japan’s cellular marketplace. During a recent interview at the 3G World Forum, one European visitor asked the seemingly obvious question, “What is the main reason for their success?” KDDI au's Competitive Edge in Japan by Mobikyo KK

The reasonable answer is that it’s actually a combination of several factors, but one thing stands out. Compared to the NTT DoCoMo and Vodafone business models, au has a very tight focus on the domestic market. Their attention to detail in customer service and product offerings is not challenged by how the product mix and content offerings might fit into the company’s global strategy — and it shows. This has allowed au to take the lead in areas like GPS, flat-rate data and faster networks, all provided to the consumer on affordable price plans. The carrier now offers a full suite of popular and useful services ranging from Navitime, EZ auctions, EZ book, EZ channel, EZ games, and EZ FM to (recently introduced) mobile IM (‘Hello Messenger’), mobile blogging (‘DuoBlog’) and Lismo.

Looking again at au’s recent blitz of cutting-edge models at Designing Studio last week, just in time for Japan’s peak spring sales season, we were truly impressed; it will be a tough choice for shoppers. The phones and services strongly illustrate one of the most fundamental and important learnings about Japan’s mobile success that we’ve been trumpeting for years.

Japan Rail Launches Mobile Wallet Phone Service

Japan Rail Launches Mobile Wallet Phone Service by Mobikyo KKOn a sunny Saturday morning here in Tokyo, Japan Rail launched their long-awaited Mobile Suica service, which will allow customers to use their FeliCa-enabled Osaifu ketai (wallet phone) to get into the station simply by swiping their handset past the turnstile reader. The service will be available at almost 900 stations located in the Tokyo, Sendai, Niigata, and Kansai regions. On roll-out day the system supports 12 handset models from DoCoMo and KDDI; none of the three available Vodafone units will be supported at launch. Interesting to note that DoCoMo’s latest F702iD, just announced last week, will be accepted as well. Until now, it has in fact not been possible to use your phone as a train ticket in Japan. Despite all the live demonstrations, trade-show hype and media speculation around FeliCa, the FeliCa-based Suica cards used by JR and the FeliCa-based handsets sold by DoCoMo, KDDI and Vodafone have been incompatible. As the well-established ‘Suica’ card is also accepted at many shops (including Bic Camera, a major electronics chain) in and around JR stations, this move will undoubtedly push up the volume of mobile payments made in 2006. It should come as no surprise that NTT DoCoMo announced on 26 January that sales of their FeliCa handsets passed the 10 million mark, a notable increased from the stated [.pdf] circulation of 7.7 million units in November 2005.

Vodafone Japan New 3G Phones: Details, Audio Interview

Last week was a rare clean sweep in Japan’s tooth-and-nail handset race as each of the Big Three carriers in turn announced multiple new 3G models at splashy press events. Across the field, we saw an onboard 4-GB hard drive and a digiTV phone from KDDI, the 702i ‘designer’ models from DoCoMo and Japan’s first Samsung phone and new 3G data services from Vodafone. Vodafone Japan New 3G Phones: Details, Audio Interview

It’s no simple coincidence that this week the carriers are announcing their third-quarter financial results: it’s super vital to have a flashy new set of handsets to point to when presenting your report card to the analysts in Tokyo and London. Also, spring is the premiere mobile sales season in Japan and the models announced last week should hit the streets around cheery blossom time.

If Vodafone Japan’s market troubles in the past couple of years can be blamed on handset mix, then the new phones may go a long way to to fixing Big Red’s market position. Today’s WWJ Portable Reportable MP3 audio report features an interview with Vodafone Japan from last week’s press event with in-depth details on their new 3G models, which include phones from Samsung, Toshiba, Sharp and NEC, and comments on competitive positioning in the market.

KDDI Introduces Seven New 3G Handsets

This week was a new-cell-phone-announcement triple-play! Following DoCoMo on Tuesday and Vodafone yesterday, KDDI’s au brand held a press conference this afteroon at the super-swank New Otani hotel to unveil an impressive spring line-up. From L. to R. (below): Toshiba’s W41T with Japan’s first built-in 4GB HDD, the slick-styled Neon, is the latest addition to the in-house Design Project; Hitachi’s W41H ‘One-Seg’ digital TV phone; Casio’s W41CA, featuring a FeliCa mobile wallet; Kyocera’s W41K is a ‘Full Function’ camera phone with a 3.2-megapixel cam; SonyEricsson’s W41S is also FeliCa IC-enabled; and finally the Sanyo W41SA, which has an interesting handwritten character scanning application. The new fleet will hit store shelves starting in February along with the introduction of an enhanced Listen Mobile Service.

KDDI Introduces Seven New 3G Handsets by Mobikyo KK

Sanyo and KDDI Introduce 3 New Sweet Handsets

Sanyo and KDDI Introduce 3 New Sweet HandsetsBuilding on the original teen-targeted Sweet handsets first introduced in January 2005, the companies have just announced three new models for release starting 1 February. One of the key features included in the first series was a GPS-aided application that included user location data in email sent from the phone (so that parents would know whether young Yukiko-chan was actually at juku (cram class) — or not). The second gen of these handsets goes a few steps further to include that function as well as the new Voice Input application and Hello Messenger, for starters. The latest CDMA 1X (3G) Sweet-series all have 1.3-megapixel cameras, are both BREW- and Flash-enabled and include a built-in security buzzer that boasts a screaming 98dB alarm in case of emergency.

Perhaps the most interesting new feature that was announced, and missed by most other mainstream media, was the new OCR feature. You use the phone’s camera to scan text, such as an email address, URL or phone number, which can then be easily added to the onboard address book; this is a very handy feature. There is also a new “Camera Dictionary” BREW application that will also scan — and translate — English text into Japanese kanji characters as well. Now that is Sweet!

Safety features for children is a growing market niche and this series should prove very popular with both youthful customers and their parents (subscribers log in for full feature descriptions from the press release).