<p align="justify">The KIDDI Corporation is a Japan based telecommunication operator. The company was established in 2000, after the merger between KDD, DDI and IDO Corporation. The company is headquartered in Garden Air, Tokyo. KDDI operates in a telecommunication industry and provide cellular services by using the “au by KDDI” brand. The networks of ISP and solutions are offered under “au one Net” brand name. However, “au Hikari” is used for providing the international data communication and voice services. It is also used for providing FTTH services (Fibre to the home). The ADSL one provides broadband services, and Metal Plus is branded for IP telephony services (KDDI, 2019).</p>
<p align="justify">The KDDI works in world’s technologically advance country and has to bear industrial pressure from its rivals. The company has to analyze the industrial competition level in order to make decisions. Porter Five forces model helps the company in making strategic decision by analyzing the rivals in the industry. It provides new opportunity doors, and companies can re-examine their strategies in order to retain the market position. Here is the detailed porter five forces analysis of KDDI;</p>
<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">The bargaining power of the suppliers is an important force for the financial profitability of the company. This force is influenced by different factors. The high switching cost will weaken the buyers’ bargaining power. Moreover, limited number of options will limit the bargaining power of the consumers. In case of KDDI, the bargaining power of the consumer is moderate. There are mainly few options available in the market to choose from. Hence, it is necessary for KDDI to increase its customer base, by applying more marketing strategies. The company is one of the leading firms in the industry, hence, innovation will help the company to grow more (Eurotechnology, 2019).</p>
<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">The telecommunication sector in Japan has few companies who need suppliers. hence, the suppliers only have these companies to sell their products, thus, weakening their bargaining power. When there are few buyers as compare to suppliers, the bargaining power of the suppliers decreases. However, other suppliers for the company can be employees, who have high bargaining power. However, KDDI maintains good relationship with its suppliers. It has good distribution and network channels. It has maintained efficient supply chain in order to achieve economies of scale (Eurotechnology, 2019).</p>
<h2 align="justify">Threats of New Entrants</h2>
<p align="justify">Threats from the new entrants in the telecommunication industry of Japan is very low. This is beneficial for all the companies working in the industry. The high capitalization cost is one of the main factors for the new entrants. It is difficult for the new entrants to compete with leading companies in the industry. the need of developing distribution networks is a difficult task for the new entrants. Moreover, to avoid the competition, big leadings firms take over or merges with new entrants. furthermore, telecommunication industry has many strict policies ad regulations set by the Japanese government (Eurotechnology, 2019).</p>
<h2 align="justify">Threats from the Substitute Products</h2>
<p align="justify">There are no such threats of substitutes for the telecommunication industry. As the companies in the industry are working not only with the landline or telephone services, but also providing Wi-Fi, internet, cloud, and many other services. Thus, covering all the substitute products too. However, threats from the substitutes is only when rivals are offering the service in low prices. Moreover, KDDI is also collaborating with Facebook for its new project, which will give the company edge on its rivals, and retain the consumer base (KDDI, 2019).</p>
<h2 align="justify">Rivalry of Existing Players</h2>
<p align="justify">The telecommunication industry of Japan is one of the most significant industry across the globe. This is mainly because every company is technologically advance and bring innovative products in market. The companies see high profits. The main competitors of KDDI are Softbank, Mitsubishi, and Hikaru Tsushin. Around 172.8 million customers registered for phone subscription in 2018 (Statista, 2018). The rivals are giving tough competition to each other by launching new products. It has become important for the KDDI to engage itself in the launch of new items before the rivals, to grab the attention of consumers. geographical segmentation will also help the company in gaining more market share. The differentiated product strategy will make the company stand odd one out, and attract new consumer base (Jiji, 2019).</p>
<h2 align="justify">References</h2>
<p align="left">Eurotechnology, 2019. Japan telecommunications, internet and cloud markets. [Online], Available at: <a href="https://www.eurotechnology.com/insights/telecom/">https://www.eurotechnology.com/insights/telecom/</a>, [Accessed on: 2nd December, 2019].<br />
Eurotechnology, 2019. Breaking into Japan’s telecommunications markets. [Online], Available at: <a href="https://www.eurotechnology.com/industries/telecommunications-and-mobile/">https://www.eurotechnology.com/industries/telecommunications-and-mobile/</a>, [Accessed on: 2nd December, 2019].<br />
Jiji, K. 2019. Government to warn SoftBank and KDDI over smartphone discount plans. [Online], Available at: <a href="https://www.japantimes.co.jp/news/2019/09/18/business/corporate-business/softbank-kddi-unlock-smartphones/#.XeUc7egzY2w">https://www.japantimes.co.jp/news/2019/09/18/business/corporate-business/softbank-kddi-unlock-smartphones/#.XeUc7egzY2w</a>, [Accessed on: 2nd December, 2019].<br />
KDDI, 2019. Company Profile. [Online], Available at: <a href="https://www.kddi.com/corporate/kddi/profile/">https://www.kddi.com/corporate/kddi/profile/</a>, [Accessed on: 2nd December, 2019].</p>