A challenge towards 4G: The strategic perspective of Japanese operators in a mature market

The global economic growth has supported the engine of innovation, leveraging the development of mobile technology from 1G to 2G, 2G to 3G and 3G to upcoming 4G. The paper attempts to answer a question how Japanese mobile operators (DoCoMo, KDDI and Softbank) have tried to differentiate themselves in regards to mobile technology evolution. We discuss the operators' strategic perspective in 3G era, when main service has shifted from voice to data and the market is getting mature. In regards to the upcoming evolution towards 4G, we further explore the operators' strategic challenges. We develop the analyses based on co-evolutionary perspective between technology, operators and the market. By conducting statistical analysis related to mobile technology generations' standards, we reveal the trends and information which benefit the operators for developing their upcoming strategic perspective. The main findings imply that Japanese operators have responded to market and technological changes. They have adopted similar strategies valuing life style applications towards 4G. Operators' strategic differentiation has been set in which DoCoMo built an image as the most innovative in lifestyle infrastructure, KDDI emphasized its technical differentiation and Softbank created an image as Internet company with most economic value. The development of mobile technology evolution is showing convergence by concentrating more on data communications. Therefore a future challenge might be one in which operators make benefit of data services and to aggregate lifestyle contents offered to a mature market.