2. Introduction
NBIC is Located in Osaka, Japan.
It began to manufacture & sell bicycles in 1952.

3. Introduction
NBIC is Japan’s second largest manufacturer of bicycles and
one of Japan’s premier mass customization firms.
NBIC is also a mass producer of bicycles, deriving over 90%
of its sales revenues from mass production (MP).
NBIC has two factories located next to each other:
oMass production factory
oMass-custom factory

4. Introduction
• Produces bicycles under three different brand names:
Panasonic - high quality, high-priced sports and fashion bicycles
(top of the line)
National – Simple bicycle for daily use.
Hikari - basic transportation bicycles from home to work
• High-end Panasonic bicycles are produced in both the MP
and MC factories
MP factory employs more line workers
MC factory employs best skilled workers

6. MC idea originated after NBIC’s president visited a famous
department store in Osaka and noticed that women could custom
order dresses which were delivered in 2 weeks.
Despite opposition, MC factory was fully operational 7 months
after department store visit.
The need of this idea occurs because in japan, the bicycle industry
was maturing rapidly & to gain market share it’s a high time to
rethink about its strategy.
The company wanted to customize bicycles to individual
specifications & for this reason too , they devised the firm’s
approach to “MC”.

10. MC workers train MP workers, improving MP processes
Innovation at MC firm adopted by MP firm
3-D automated measuring machine
software for CAM systems
robots for painting
Lot sizes in MP factory have decreased from 50 units to 20 units
Customer feedback through MC process used by MP factory to create
new and innovative designs (i.e., “fringe awareness”)
Enjoy first mover advantage: MC = Panasonic
Since Panasonic = MC, Panasonic MP enjoys premium pricing due to
brand “image”

14. Opportunities:
 To become the
market leader by
strengthen the
relationship with
their suppliers
and third party
distributers.
Strengths:
 all suppliers are near at the drive of
max. 40 min.
 GPS is attached in Electric bicycles
for the security & safety.
 No excessive inventory to carry &
low holding cost.
Threats:
 innovations (new
system, dynamic
designs, etc)
 New technology
in the market.
Weakness:
 Only distributing by their own
stores
SWOT ANALYSIS

15. NBIC’s Strategies:
o The company uses mixed approach as it have mass production &
mass customization.
¤ Mass production:
› NBIC is pursuing the low-cost strategy by using it’s different
product lines. MAKE TO STOCK
¤ Mass customization:
› NBIC is pursuing the produce-to-order approach by having 8
millions possible variations in the bicycles for a smaller segment of
the market. (differentiation strategy) MAKE TO ORDER

16. According to the General Manager of sales at NBIC
• We could have made the delivery time shorter, but we wanted
people to feel excited about waiting for something special.
Some creative solutions:
• Personalized computer- generated drawing of the bicycle with
thanking note
• Three month later another note inquiring about the customer's
satisfaction
• Finally, a 'bicycle- birthday' card is sent on first anniversary
of the bicycle