COMPANY PROFILE -Nippon Telegraph and Telephone Corporation (NTT)
Business Sector :Telecom
Operating Geography :Asia, Japan, Global
About Nippon Telegraph and Telephone Corporation (NTT) :
The Nippon Telegraph and Telephone Corporation commonly known as NTT, is a Japanese telecommunications company headquartered in Tokyo, Japan. Nippon Telegraph and Telephone Public Corporation, also known as Den-Den Ksha, was created as a state monopoly in August 1952 to take over the Japanese telecommunications network run by AT&T during the Occupation of Japan. Den-Den Ksha was privatised in 1985 to promote competition in the nation's telecom market. It is ranked 50th in Fortune Global 500 and has 332,000 employees as of early 2023. For demonstrating the initiatives for service improvement, revenue growth, cultural change, and transformation, NTT Com was awarded Operator of the Year for the seventh time in 2020. Additionally, NTT Communications received recognition from Frost & Sullivan's 2020 Asia Pacific Best Practices Awards Program in two categories.
The USP of NTT is that it ranks third among Japanese publicly traded companies and is the fourth-largest telecommunications company in the world based on revenue. NTT’s mission statement reads, “NTT DATA Group uses information technology to create new paradigms and value, that help contribute to a more affluent and harmonious society”.
Nippon Telegraph and Telephone Corporation (NTT) Revenue :
¥ 11,944 billion – FY ending 31st March, 2021 (y-o-y growth of +0.04%)
¥ 11,894.4 billion – FY ending 31st March, 2020
Competitive Analysis of Nippon Telegraph and Telephone Corporation (NTT)
The SWOT analysis for NTT is presented below:
| Strengths | Weaknesses |
1. NTT has a diverse business portfolio spread across many sectors
2. NTT has reported strong financial performances over the years
3. NTT has strategic collaborations and partnerships
4. NTT has a very strong R&D Department
| 1. NTT’s fortunes are highly dependent on the Japanese market
2. NTT has very limited international brand presence
|
| Opportunities | Threats |
1. Oversees business expansion will lead to profit generation
2. Initiating towards next generation network
| 1. Intense competition from all the segments
2. Changing trends and business transformation
3. Highly susceptible to natural disasters
4. NTT is susceptible to social and cyber issues
|
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Detailed SWOT Analysis of Nippon Telegraph and Telephone Corporation (NTT)
Strength
1. NTT has a diverse business portfolio spread across many sectors: NTT Group can be divided into five major segments: NTT East, NTT West, NTT Communications, NTT DoCoMo, and NTT Data are major subsidiaries. These subsidiaries cater businesses which include regional communication, long distance and international communication, mobile communication and data communications. The Mobile Communications Business includes smart life business activities and mobile phone services, movie and music distribution and e-book services, and finance and payment services. NTT Docomo is mainly responsible for this. Regional Communications Business looks after regional telecommunications operations in Japan and Fiber to The Home and other services. NTT East and NTT West are mainly responsible for this. Long Distance and International Communications Business is mainly responsible for long-distance telecommunications operations in Japan, international telecommunications business, solutions business, and related businesses. It provides various services like cloud services, data center services, migration support services, and other services. NTT Ltd. (Global Operating Company) NTT Communications Corporation (Japan Operating Company) are the main companies of NTT looking after this. Data Communications Business’ main business activities are network system services, system integration, etc., in Japan and overseas. NTT Data Corporation is the main company looking after this. NTT Urban Solutions and NTT Anode Energy Corporation are other companies that look after Other Business which include Real estate, finance, construction/electric power system development, advanced technology development, etc.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weakness
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Opportunity
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Threat
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The PESTLE / PESTEL analysis for NTT is presented below:
| Political | Economical |
| 1. No direct involvement in public policy issues | 1. Strong GDP growth in emerging markets to drive ICT and smart technology spending |
| Social | Technological |
1. Changing consumer habits influencing service demands
2. Technology driving social revolution
3. Japan has a record ageing population
| 1. Telecom companies have started to have a comprehensive telecom technology portfolio
2. R&D investments helping create strong technology platform
|
| Legal | Environmental |
1. Strong compliance framework established across the supply chain
2. Telecom industry is highly regulated with frequent changes
| 1. Leveraging technology to reduce emissions |
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Detailed Pestle Analysis of Nippon Telegraph and Telephone Corporation (NTT)
Political
This section is available only in the 'Complete Report' on purchase.
Economical
This section is available only in the 'Complete Report' on purchase.
Social
1. Changing consumer habits influencing service demands: Consumer habits have witnessed a strong trend towards increasing demand of data and decreasing demand for voice services. The increase in data demand is due to higher penetration of smartphones across consumer segments, especially higher penetration in the developing nation. Countries like India have witnessed a digital revolution due to government schemes and innovation by private players. This has resulted in increasing video downloads and usage of other internet related services which has increased the average data ARPU for NTT and compensated for the decrease in voice revenues. The pandemic has also increased the usage of video calling apps, this has resulted in more internet usage across the globe. This would again mean in increased revenues from data business for NTT but not accompanied by a similar growth in voice revenues.
The remaining section under "Social" is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
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TABLE OF CONTENTS
DELIVERY AND FORMAT
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Check Out Analysis of Other Relevant Companies
References used in Nippon Telegraph and Telephone Corporation (NTT) SWOT & PESTLE Analysis Report
1. NTT at a Glance - https://group.ntt/en/ir/library/annual/pdf/21/04.pdf
2. Annual Report - https://group.ntt/en/ir/library/annual/pdf/annual_report_21e_p.pdf
3. Nippon Telegraph and Telephone - https://en.wikipedia.org/wiki/Nippon_Telegraph_and_Telephone
4. Why NTT looked to the past to unite 28 companies under one global brand - https://www.b2bmarketing.net/en-gb/resources/articles/why-ntt-looked-past-unite-28-companies-under-one-global-brand
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