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- Special Feature The Challenge for New Value Creation
Four elements comprise the new iida brand
innovation Even the briefest flash of inspiration can be an evolutionary leap that transforms your everyday world. imagination Is it really true that the imagination of the creator surpasses the imagination of a person who owns a mobile phone? Not with an idea. design art The right design is the one that can thrill a person just by its feel. The idea that the seemingly ordinary things closest to you should be works of art.
Issues and Initiatives
In the past, KDDI’s performance growth has been driven by its Mobile Business. Due to the delays in the completion of the KDDI Integrated Platform during FY 2009.3, however, KDDI was unable to release sufficiently functional and high-performance handsets, which resulted in a loss of market competitiveness, making it clear that KDDI needed more attractive products as a solution. In order to ensure growth going forward in a maturing and saturated consumer mobile phone market, it is critical that KDDI not only work to lower product procurement costs, but take up the challenge of developing new distribution methods that do not rely solely on existing sales channels. And, with the Company soon approaching its tenth year in business, KDDI needs to avoid the inertia that can plague any large corporation, revitalize its organization with an eye to the next ten years, and create a corporate environment in which every employee has the mettle to take on the challenge of new value creation. As one initiative in response to these issues, KDDI has launched its new “iida” brand. What Customers Look for in a Mobile Handset Design Compact, lightweight High functionality Low price Color
(Source: KDDI survey, 2008)
The Value “iida” Brings
KDDI has provided a variety of attractively designed mobile phones through its “au design project” and other efforts. The basic concept of the new brand is to design products with peoples’ lifestyles in mind, by developing and expanding these efforts in the past and collaborating with outside designers. The brand name “iida” is an acronym for the four words which are the basic elements of this concept: innovation, imagination, design, and art. The theme of the new brand is “LIFE>PHONE,” and its keyword is not “mobile phone,” but “lifestyle.” KDDI will continue to strengthen its “au” brand with strategic models that meet the needs of its customers by responding to their requests for emphasis on innovation, lifestyle, price, and other factors with mobile phone functions that meet their needs. At the same time, the new “iida” brand will use these strategic models as a platform, introducing new mobile phones and peripheral devices targeting those customers who wish to emphasize quality of design, ease of use, and other aesthetic considerations over function. By combining these two brands in a single, balanced product offering, the Company will also work to lower its procurement costs. In addition to its existing au shop and large-volume retailer outlets, KDDI will also explore new sales channels for the “iida” brand, taking on the challenge of developing product distribution matched to the specific characteristics of each model. By making effective use of existing frameworks, while also providing a virtual platform for creating new business models, the “iida” brand is being positioned as a kind of internal MVNO, and in that sense is expected to bring fresh energy to the Company while generating a new, positive business cycle.
KDDI CORPORATION Annual Report 2009