Research On Mass Customization In Multinational Companies In China

This paper explored the concept of mass customization i.e. explained why it is not anoxymoron but a reality and has come to stay. In addition it also looked at the advantagesand disadvantages of Mass Customization; discussed how it may be effectivelyimplemented as a strategy in management, and analyzed its applications to production inChinese Multinational Companies. The main purpose of this study was to investigate thecompetitive advantages of mass customization using an action research resulting in a casestudy. For this study the competitive advantages of mass customization in multinationalcompanies (MNCs) are defined generally as the key factor that has enabled businesses insome industries to access and analyze individual customer needs and tailor products indirect response to these needs with the efficiencies of a mass production system.In mass production cost economies are typically generated through economies ofscale, while mass customization typically generates cost economies by massproducing common modular components that are shared in multiple products throughthe use of which a firm can cut the costs of parts, reduce production costs the semi-finished products by mass producing, and reduce inventory levels for both componentpart and semi-completed products awaiting further customizing based on orders.Postponement of product differentiation also significantly lowers the costs of holdingfinished goods inventories. Finished goods are produced only when a customer ordersa specific product.The success of mass customization systems depended on a series of external andinternal factors justified it use as a competitive strategy and supported it systemsdevelopment. In other words, being the first to develop a mass customization systemcan provide substantial advantage over competitors.Innovations in strategy and new technology are transforming supply possibilities are atthe heart of today's rapid internationalization. Competitive advantage is not just a function of how well a company plays by the existing rules of the game. More important,it depends on the firm's ability to radically change those rules.Mass customization in multinational companies in China can be innovate in company tocustomer customization, company to company customization, and country to countrycustomization.Company to customer customization is an intensive integration and collaboration with thecustomer in all process of manufacturing and production using information about thecustomer profile. For that company have to know its customers, gender, habits, activities,income, shopping, when they are online, of line, medium of information. Knowing thoseenables companies to invest in developing and maintaining its products, create commonstrategy for diverse products that meet customers' needs and requirements.Company to company customization aims to provide customized products and servicesfor niche groups of customers on a mass scale without loosing the mass productionbenefits efficiency and productivity, high quality, low cost, and rapid response. In thiscontext customization should focus on the most valuable technologically, operationallyand economically feasible.Country to country customization is producing/manufacturing mass customized servicesand goods successfully implemented in one country that meet the needs, requirements ofanother country based on national trademark law, regulations, practices, forms, fees,institutions, trademarks agents, other trademarks services, case law providers, courtdecisions, and the specific administrative procedures available with the same success.International enterprises are more and more confronted with the fact that they have tooffer goods and services in different countries in order to care for customer loyalty. Thisis an opportunity, and a necessity for the host country (country provider) and thecompany to develop new services which support the customer's business processes(country customer). The data analysis consisted of a quantitative and qualitative analysis. The purpose ofhaving two analysis methods was to eliminate the limitations in each method and torefine the basic model used in the research. The sampling framework comprised some bigcompanies and other firms in Wuhan City (Hubei province) and other provincial bigcities in China. Most of the companies and firms in the area taken into consideration, dueto availability of information from the city are as a sample to represent the population.Variety was considered important in the survey rather than random sampling. The samplewas drawn from firms in Hankou, Hanyang and Wuchang, since Wuhan is divided intothree parts; the sampling followed the same pattern. The firms range from small, medium,to large enterprises with different kind of businesses and services. The main survey wasimplemented using the questionnaire modified from the pilot survey.Competitive advantage is not just a function of how well a company plays by changingthe existing rules of the game. Knowing those enables companies to invest in developingand maintaining its products, create common strategy for diverse products that meetcustomers'needs and requirements. Straightforward company should understand theirtarget customers needs and wants.Accordingly study results insights for managerial implications in mass customization inmultinational companies (MNCs) in China.