KDDI Corporation - Company Strategy Report

KDDI Corporation - Company Strategy Report

Summary

KDDI is a leading telecommunication operator offering both fixed and mobile services to consumers and businesses in Japan under its au and au HIKARI brands. It aims to maintain the growth of its domestic business customers and bring new innovations and technology to provide upgraded products to its consumers. The company’s research and development initiatives hope to improve technologies in a wide range of fields including next-generation networking and super high-speed wireless transmission technology, security, and applications.

MarketLine’s Premium company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading telecommunication companies. The reports detail company operations in key geographies as well as comprehensive analysis of each company’s growth strategy and financial performance. Furthermore, the reports allow benchmarking company performance through the provision of key performance indicators including: subscriber volumes, subscriber churn, ARPU, and MoU.

Key Highlights

KDDI’s growing mobile subscriptions leading to increased revenue
KDDI’s mobile subscriptions have increased considerably, along with its total customer base. The major growth in mobile subscriptions is due to the increase in postpaid subscriptions which increased from 35.4 million in 2012 to 44.5 million in 2016. The growth in customer base has thereby contributed significantly towards the increase in revenue from US$18,676.2 million in 2015 to US$22,703.6 million in 2016, demonstrating strong growth.

KDDI’s strategic partnerships will enable the company to improve its competitive position
In 2016, the company entered into a partnership agreement with Team Hakuto, a privately funded lunar exploration team from Japan which is maintained by ispace technologies. The partnership could help the company to develop new space and communication technologies. In 2015, the company partnered with Ossia, a wireless technology company, to develop wireless power charging systems aimed for practical realization of “Cota”, a wireless power charging technology. The collaboration could help the company to create new businesses.

New “au Economic Zone” to provide business prospects
KDDI is looking to establish a new source of income by promoting the economic zone by using its telecommunication platform. The “au Economic Zone” includes activities such as online content, and offline transactions including financial services and commerce. In addition, the company offer cards that can be used to purchase daily necessities.
Through its new payment and services platform, the company is targeting an increase in total transaction volumes by US$18,374.8 million from “au Economic Zone” by the end of the fiscal year 2019.

Scope

- Company Snapshot - Details key indicators and rankings of KDDI in terms of Subscribers, Revenue, and Market Share in the company’s key markets.
- Company SWOT Analysis - Outlines KDDI’s Strengths and Weaknesses, and weigh Opportunities and Threats facing the company.
- Growth Strategies - Understand KDDI’s corporate goals and strategic initiatives and evaluate their outcomes.
- Company Performance and Competitive Landscape - Analyze the company’s performance by business segment compared to other players across key markets on metrics such as such as Revenues, Customer Churn, MoU, and Subscribers.
- Key Developments - Showcase KDDI’s significant recent corporate events, changes, or product initiatives.

Reasons to buy

- How does KDDI rank among telecommunication service providers in Japan and globally?
- What are KDDI’s main aims and how successful has the company been at implementing them?
- How will KDDI’s global ICT business strategy help the company support its corporate customers?
- How has the company performed over the historic period in terms of Revenue growth, ARPS, Customer Churn, and MOU?
- What are KDDI’s strengths and weaknesses and what opportunities and threats does it face?