The National Bicycle Industrial Company: Implementing a Strategy of Mass-Customization
OPERATIONS MANAGEMENT
THE NATIONAL BICYCLE INDUSTRIAL COMPANY: IMPLEMENTING A STRATEGY OF
MASS-CUSTOMIZATION
Anindito Prabowo (0848005)
Vidya Narayani (0848073)
Muhammad Adly Yusrizal (0848055)
Rogier De Roy
MAGISTER MANAGEMENT
GADJAH MADA UNIVERSITY
YOGYAKARTA
2008
COMPANY BACKGROUND
NBIC was Japan's second largest manufacturer of bicycles in 1992 with sales reaching about X20 billion. The firm marketed bicycles under three different brand names, Panasonic, National and Hikari. NBIC targeted each brand at a unique market segment, and together the three brands covered the wide spectrum of bicycles sold in Japan. They ranged from high quality, high price sports and fashion bicycles (Panasonic) to bicycles that were used primarily for transportation from home to the nearest train station or supermarket and back (Hikari). National and Hikari brands together constituted the bulk of NBIC's production and sales. Panasonic, the company's more expensive line, accounted for a little less than 20% of total production in 1992.
NBIC began to manufacture and sell bicycles in 1952. At first growth in sales was slow, but picked up rapidly within a few years after the firm's inception. Between 1952 and 1965, the firm produced almost a million bicycles. in 1965, due to ever increasing demand the firm completed the construction of a new factory in Kashihara city on the outskirts of Osaka, and moved its operations to this factory (see Appendix A for a brief outline of the company history). At Kashihara city the firm had two factories located next to each other. NSIC's management called them the mass production factory and custom-factory. The custom-factory, initially conceptualized as a pilot plant, was built in 1987.
In 1992 according to published estimates, the firm produced a combined total of 700,000 bicycles in these two factories. Over 90% of these were produced in the mass production factory and shipped to Matsushita's
THE NATIONAL BICYCLE INDUSTRIAL COMPANY: IMPLEMENTING A STRATEGY OF
MASS-CUSTOMIZATION
Anindito Prabowo (0848005)
Vidya Narayani (0848073)
Muhammad Adly Yusrizal (0848055)
Rogier De Roy
MAGISTER MANAGEMENT
GADJAH MADA UNIVERSITY
YOGYAKARTA
2008
COMPANY BACKGROUND
NBIC was Japan's second largest manufacturer of bicycles in 1992 with sales reaching about X20 billion. The firm marketed bicycles under three different brand names, Panasonic, National and Hikari. NBIC targeted each brand at a unique market segment, and together the three brands covered the wide spectrum of bicycles sold in Japan. They ranged from high quality, high price sports and fashion bicycles (Panasonic) to bicycles that were used primarily for transportation from home to the nearest train station or supermarket and back (Hikari). National and Hikari brands together constituted the bulk of NBIC's production and sales. Panasonic, the company's more expensive line, accounted for a little less than 20% of total production in 1992.
NBIC began to manufacture and sell bicycles in 1952. At first growth in sales was slow, but picked up rapidly within a few years after the firm's inception. Between 1952 and 1965, the firm produced almost a million bicycles. in 1965, due to ever increasing demand the firm completed the construction of a new factory in Kashihara city on the outskirts of Osaka, and moved its operations to this factory (see Appendix A for a brief outline of the company history). At Kashihara city the firm had two factories located next to each other. NSIC's management called them the mass production factory and custom-factory. The custom-factory, initially conceptualized as a pilot plant, was built in 1987.
In 1992 according to published estimates, the firm produced a combined total of 700,000 bicycles in these two factories. Over 90% of these were produced in the mass production factory and shipped to Matsushita's