KDDI Corporation - Company Strategy Report
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.
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.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook