best in france case study kddi france best in france case study may 2005 by: mr. oie,ms. trotignon,...

Best in France Case Study

KDDI France


May 2005

By: Mr. OIE, Ms. TROTIGNON, and Ms. WIBAUX


KDDI Corporation

The biggest company in the international telecommunications market.

The second biggest company in the mobile phone market in Japan.


Executive Overview

• A major international telecommunications operator.

• Who targets a niche : the Japanese in France.• Why France ?• A paradoxical profitability.• Company values are customer-oriented.• Expected constraints in France.• The key to successful adaptation : flexibility.• Essential Advice.


History

• 1975 KDD Paris - Just an office.

• 1996 KDD France established.

• 1998 L34-1 granted.

KDD came to the market (first mover).

• 2000 KDDI Corporation was created –

KDDI France : a subsidiary of the group.


A major international telecommunications operator.

• Telephony• Data communication services & Internet provider • Solutions provider• A major investor in Intelsat and Inmarsat

programsFacility-Based business model.

Bargaining Power in the International Telecommunication Union Telecommunication Standardization Sector (ITU-T)


Main activity : Telephony

Percentage of turnover of KDDI France (2003)

80%

10%10%

Telephony

Solution

Data services


Surprising figures

• A very small company:– 30 employees– KDDI Corp's subscription to KDDI France :

4279000 euros (2003).

• Who targets a niche:– 90% Japanese customers– But 60% of turnover comes from French

customers


Why France ?

Market Potential :

• Huge delay in Data services & solutionsFirst-mover advantage

• Upcoming standardization in mobile phone technology

Potential diversification


Who are the customers ?

• 90% Japanese Customers

• Quality of customer service– High reliability– Language– Famous among Japanese

• But 60% turnover is French– Companies VS residential customers– High value added services


A representative function

• Government’s initiative

• Paris : an economical and political center in Europe

• Presence in 46 other countries

Not selective : small investment in many countries


A customer-oriented policy

• Data services & Solutions: no standardization possible

• « French people are rough »– Delays– Not good at « selling »– Different ways to show respect

• Adapted to the Japanese customer’s needs


Company values

• Respect of the Japanese culture :– Deadlines– Pull strategy– Service to the Japanese living in France

A kind of embassy

• Adaptability to the market

• Reliability


M.Fukuma opinion:As expected constraints in France...

• Problems in business life:– Labour cost:

• Too many holidays• Level of wages• Low productivity

– Working Habits:• Delays in deadlines• Reluctance to pay

subcontractors

– Infrastructures:• Strikes in transportation• Post service not reliable

- Rules & regulation• Working authorization• Slow administrative

procedures• Unproductive civil

servants


The key to successful adaptation :flexibility.

Flexible human resources:• A small organization : 30 workers.• Adaptation to the level of activity :

Ex : work on the weekends.

• 5 expatriates : less dependant of the headquarters.

• Recruitment: based on adaptability to Japanese culture.

• An horizontal structure.


Essential Advice

• Develop the Data & Solutions services.

• Go more towards French customers, who are very profitable.

• Expand the firm image as a leader in high-value-added technology.


We Thank

M.Fukuma President of KDDI France

For accepting to give us an interview and for the time he has spent answering our

questions.


Bibliography

• http://www.kddi.com/english • http://www.telehouse.net/uk.asp• MOCI Moniteur du Commerce International

(Mars 1999 n°1380) S'internationaliser ... face au défi de l'interculturel.

• Entreprises et télécommunications (Nov 1991 n°6) Les têtes de série japonaises : Sharp, Fujitsu, Nec, Ricoh.

• LSA Le Journal du grand commerce (Mars 2004 n° 1850) Les Japonais : des extrémistes de l’innovation.


Our Team

• Kosuke OIE

• Claire TROTIGNON

• Marguerite WIBAUX

best in france case study kddi france best in france case study may 2005 by: mr. oie,ms. trotignon,...

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