CaseStudyShimano：MarketCreationThrough

ComponentIntegration＊

AkiraTakeishiandYaichiAoshima

Clerk： Hi・HowcanIhelpyou？
Customer：MykidwantSamOuntainbike・WhichonelSgOOd？
Clerk： Well，rightnowIrecommendoneofthese．ThisoneismadeinJ叩an，and
thisoneismadeinTaiwan．
Customer：MadeinTaiwan？
Clerk： Well，itISaShimano．

Introduction

Wesometimesobservethatwhileanentireindustrymaybeinrecession，SOme
COmPaniescontinuetoperformwell・Shimano，abicyclepartsmanufacturer，is
SuChacompany．
ThebicyclemanufacturingindustryhasrecentlybeeninastruCturalrecession．
Importsaccountedfor30％ofthedomesticmarketin1997and67％in2001，With
OVer7millionofthellmillionbicyclessoldinJapanbeingimported（Figurel）．
The averageprlCe Ofbicycles commonly seen aroundtownand often called

Themaininformationsourcesofthiscaseinclude：InterviewswithMasal1iroTsuzaki，
ManagerofMarketingDepartment，EngineeringDivision，Shiman0Inc．andMasal1iko
Jimbo，ManagerOfthesamedepartment（January25，2001，October25，2001，and
MarCh5，2001）・InterviewwithHiroshiNakamura，CycleDevelopmentCenter（Janu−
ary25，2001）・SpeechdeliveredbyYoshizoShiman0，CEOofShimanOInc．atasemi．
narheldbytheMinistryforEconomics，TradeandIndustry（June27，2001）．ShimanO
hc・80−Year−History−EditingCommittee，80YearsQf’shimano1921−2000：Tbwarda
New凡ture，March2001・ShimanOProductCatalog．“ShimanOMachikottioutekinaJi−

yuugaKatsuryoku，JitennshaBuhindeSekaiseiha（Shlmano，sActivePowerlikeSmall
Workshops：WorldDominationinBicycleParts）”（InJapanese）NikkeiBusiness，No−
Vember2，1998，PP・54−56・純ShimanOKoukyyuuJitenshabuhindeToppu，PuromoAi−

youshiKouseisekiRenpatsu（ShimanoisTopinQualityBicyclePartS，ContinuedSuc−
CeSSaSProfbssionalsbecomeRegularUsers）”（inJapaneSe）NikkeiBusinessFebruary
21，1998・PP・39−41・WewouldparticularlyliketoextendourgratitudetoMr．Tsuzaki
andMr・Jimbo，Whocooperatedwiththreeinterviewsandexplainedeverything録om
thebasics，inadditiontoprovidingavarietyofmaterials．Thiscasewasoriginallywrit−
teninJq）aneSein2007andq）PearedonHitoか〟bashiBusinessReview，50（1），2002，

Pp・158−177・English的nslationwas血lanCiallysupportedbyHThe2lstCenturyCOE
ProgramOnKnowledge，CorporateSystem，andInnovation”atHitotsubashiUniversity．
Allresponsibilityforthecontentofthiscaselieswiththeauthors．
30 A．TakeishiandY．Aoshima CaseStudyShiman0‥MarketCreationThroughComponentIntegration 31

＝grarmybikesMisar0und20，000Yenfordomesticallymanufacturedmodelsand ersintheindustry・HowdidShimanoreachitspresentpositionfromitshumble

aroundlO，000Yenforimportedbikes丘omSouthEastAsiaandChina・ThedifL StartaSaSmall，SPeCialized，Pre−WorldWarIIbicyclepartsmanufacturer？What

ferenceisclear．Domesticproductionofbicycleshascontinuedtodeclineand factorsseparatedShiman0fromothermanufacturersinthebicycleindustry？

therehasremainednovestigethatJapanOnCeShinedastheproductionbasefor
theworldbicyclemarket・Yet，ShimanohasmanagedtomaintainanOVerWhelm−
1ngShareintheworldmarketforbicycleparts，SuChasderailleurs，Shiftlevers，
OutlineandHistoryofShimanoBicycleComponentBusiness
andbrakes．Shiman0，sbrandvalueisrankedhighamongJapanese鎖rmS・Accord−
lngtOtheNihonKeizaiShimbun，sbrandscore，Shimanoisranked20thinJapan
CompanyProme
（2001）．Companieswiththesamerankincludelarge重rmSlikeHitachi，Sharp，
Denso，Fanuc，andHOYA．1
Shimano，WithitsheadofnceinSakai，Osaka，manufacturesandsellsbicycle

80％
COmPOnentS・鮎hingtackle・andcold−fbrgedproducts・Ithas叩PrOXimately5，500
8．000

匠≡証；】Number叶IPOrted aHy
employeesworldwide，Withaboutl，000workinginJapan・Itssalesonaconsoli−

7．000 70％ datedbasein2001（Jan・tODec・2001）were125billionYen，Withprofitsof12．7

billionYen，makingitahighlypro飢ablecompanywithoperatingpro丘tonsales

6．000
望対 襲
60％ OrlO・1％．伊ig∬e2）．

50％
（  5．000
占
8
‘ゴ
こ  4．000 40％

屋
E
Z 3．000
30％

2，000 20％

1．000 10％

0 0％
1g；汀       1998       1999       2000       2001

Note：Proportionofimportedbicycles（percent）＝thenumberofimportedbicycles／（the
numberofbicyclesproducedandshippeddomestica11y＋thenumberofimportedbicycles）・
Thenumberofexportedbicyclesisnegligible・Source：JapanBicycleAssociation

Fig．1．BicycleproductionandimportsinJapan

BicyclefansproudlysayHIhaveDura−Acen・Dura−AceisthebrandnameOf
theseriesofpartsShimanosellsforsportingbicycles・Aspreviouslymentioned，
theuseofShimanOPartSmatterSmOreforcustomersthanWhoassembledthebi− Fiscalyear
cycle．M毎Orbicyclemanufacturerscarmotevenstartproductdevelopmentbefore Note：1983∼1999useNovembertermS（forexample，鮎calyear1984isconsideredtobe

ShimanOarmOunCeSaneWPrOductplan・Intel，SformerCEO・AndrewGrovewas December1983∼November1984）．Fiscalyear2000isthe13months舟omDecember1999

reportedlyamusedtohearthatShimanOWaSCalledHtheIntelofthebicycleindus− toDecember2000aqiusted（12／13）to12months．Fiscalyear2001isJanuarytODecember．
Source：ShimanOFinancialReports
try．”

TherecentperformanCeOfShimanohassu飴redsomewhatduetosetbacksin Fig・2・Shimano’ssalesapdoperatingprofit（COnSOlidatedbase）
AmericanandEuropeanSales，butits瓜nanCialperformanCeisfarbetterthanoth−

l 〃溝0乃及才巧の′05肋加古〟刀，Febmary14，2001
32 A．TakeishiandY．Aoshima CaseStudyShiman0：MarketCreationThroughComponentIntegration 33

TheBicycleComponentsDivisionmakesup68％ofsales，andtheFishing ・Ingeneral，thebicyclemarketconsistsoffoursegments・

TackleDivisionaccountsforapproximately30％・Inadditiontothese，ShimanO
1．Road：Sportsbicyclesusedinprofbssionalroadraces suchasthe Tourde
producesdi脆rentialgearsforautomobiles，SnOWboardsand，mOrereCently，gOlf
FranCe．ThehighestlevelofperformanCeingearshiR，brakeanddrivepower，
clubs．ThecommonthemethroughoutShimano’sbusinessistoprovideleisure
andthelightestweightarerequiredinthismarket・
equlPmentuSedforoutdooractivitiesbasedoncold−forgedtechnology・
2・MountainBike（MTB）：B主CyClesforridingofflroadthroughmountainsand
Onaconsolidatedbase，OVerSeaSSalesaccountedfor75％and90％ofbicycle
mud．Touglmessandlightweightarerequired・
partssalesin2001・Theoverseasproductionratiowas33％・ShimanOhasamain
3．comfbrt：AsegmentcenteredinEurope．BicyclesforeruoylngCyClingwith
OVerSeaSPrOductionbaseinSingaporeタandotherfactoriesinMalaysla，Indonesia，
thefamily．Comfortandstableoperationareimportant・
China，andItaly・Sales ofnces arelocated throughoutthe worldinAmerica，
4．City：Commuterbicyclesusedforgoingtoschoolorwork．Aninexpensive
EuropeandAsia・Bicyclepartstakemanypathsintheiroutflow，butthe瓜naldis−
tributionis51％inEurope，26％inNorthAmerica，14％inJapan，andtheremain− PrlCeismostimportant；the“gramlybike”previouslymentionedfallsunderthis
Segment・
derinotherareas．

Itisestimatedthatabout95millionbicyclesweresoldworldwidein2001．Of
this，theroadmarketforracingbicycleswasaboutlmillionandtheprofessional

Shimano，sPositioninBicycleParts一山TheInteloftheBicycle 鱒Ountainbikemarketforbicyclessuchasthoseusedinofflroadraceswasalso
aroundlmillion．2Thereisalsoamarketonthe舟ingeofthe“serious”mountain
Industry，，
bikemarketforabroaderde負nitionofmoumtainbikesthatareuSedformoregen−
eralpurposes．ForexamPle，ifweincludeallthemountainbikesorderedthrough
ThepartssuppliedbyShiman0，sBicycleComponentsDivisionincludeshitting SPeCializedbicycle shops calledIBDs（IndividualBicycleDealer），themarket
（OrtranSmission）systems，brakes，frontgears，andhubs・（Figure3）・Inthebicycle reaches60r7million，andifweincludeallthemountainbikelook−alikesthatare
COmPOnentindustrymostcompmiestraditionallytendtospecializeinoneparticu− tommonlysold，this丘gurefurtherincreasesto20million．Bicyclesotherthan
larpart．Shimano，incontrast，handlesacomparativelylargevarietyofpartS・Al− thesetwosegmentsfallunderthecategoryofcomfortorcity．3Approximately
thoughthescopeofShiman0，stechnologleSWellmatchesthatofbicycleassem− 40％ofthewholemarketisforbicycleswithshi氏inggears，With70％ofthesebe−
blers，ithasneverenteredthe丘nishedproductbusiness． lngeXtemalgearSand30％intemalgears．4
ShimanOPrOVides componentsforallsegmentsfrom（1）to（4）．Shimanois
＄■ddlo
mostcompetitiveinthe負eldofbicycleswithshi氏inggears，andhascreateda
StrOngbrandandcommandedahighmarketshareinsegments（1）and（2）．5How−
ever，Shimanoalsohasmaintainedasteadyincomeinthehigh−VOlumecitybicy−
Clemarket，althoughthemarglnisnothigh・WhileJapanesecompaniesarehaving

2 Themountainbikesrefbrredtohereareracingbikeswithatleastninegears・

3 comfortisasegmentthatdoesnotexistinJapan・ItisanimportantmarketinEurope，

accountingfor25％ofthetotalmarketinGermanyforexamPle．InEurope，thede且ni−
tionofcityandcomfortisvague，andthereisapossibilitythattheveryconceptofcom・
r fortmqychangeinthefuture．InAmerica，mOuntainbikesareuSedfornormalcycling
andcommuting．Theboundariesbetweenthemountainbikemarketandthecomfb〟
Citym訂ketshavethusbecomeunClear．
4Intemalgearsareatypethatcontainsage訂boxonthehubaxle．Thegearboxstaysin−

SidesoitiscompactandmaintenanCefree，butthenumberofgearsislimitedandmuト
：tiplelayeringisdifncult．ThegearratiocannOtbe丘eelychanged．Extemaltypescanbe
lfoundin（1）to（3）andintemaltypesin（3）．（4）doesnotusuallyusegearsofanykind

（Singlespeed），althoughrecentlysomehavegears．
5 Accuratedataonthemarketforbicyclesandbicyclepartsarenotavaihble・Shiman0，5
Fig．3．Mqiorpartsofabicycle（COnVentionalroadbike）
Shareisalsonotavailable．IngeneraltermS，itistoldthatShlmanohasanOVerWhelm−
ingsharethatissubstahtiallyhigherthanthesecondlargest．NikkeiBusinessreported
thatShiman0“hasa70％shareintheshift−gearSandbrakemarkets，Whichrequlrethe
highestleveloftechnologies．”（November2，1998）
34 A．TakeishiandY．Aoshima CaseStudyShimano：MarketCreationThroughComponentIntegration 35

troublewithOverseascompetitioninthissegment，ShimanopartSareuSedinbicy− ShimanoisbeingcomparedwithIntel，Whichhasanoverwhelmingshareinthe

Clesimported丘omChina・ marketformicroprocessors，Whicharetheheartofapersonalcomputer．

CamPagnOloisalong−StandingItaliancompanythathasastrongpositioninthe
marketforpartsforroadracebicycles，butShiman0，spositionisevenstronger・
ForexamPle，intheroadraceofthe1996AtlantaOlymPICS，thebicyclesofriders Eistory
uptothetwelflhplaceallhadShimanOgearSandbrakes・LanceArmStrOng，Who ′二ト

wontheTourdeFrancefor3consecutiveyears，alsorodebicyclesusingShimanO
himano wasfoundedin1921．Thefounder，Shozaburo Shimano，Who was a
COmPOnentS・BikeswithShimanocomponentshavealsosweptalmostallmqor
2ぬ鮎manatanironworksinSakai，WaSOnly28yearSOld．Atthattime，Sakaiwas
moumtainbikeracesincludingtheWorldChamPionships・Thiscanbelikenedto
thecenterofJapan’sbicycleindustry．Thistown，Withatraditionofblacksmiths
SWeePlngallthetoppositionsofboththeFomula−lchampionshipsandtheParis−
白山knownforkitchenknivesandgunSSincethe16thcentury，Shi鮎ditsindustry
Dakarrally．
dthemanufactureofbicyclepartsand丘nishedbicyclesintheMeiiiPeriod．The
Withitsoverwhelmingshareandbrandpowerthatsurpassesthatofbicycleas−
鮎stproductmanufacturedbythe“Shiman0IronWorks”wasaslngle鮎ewheel．
Semblers，Shimanoisoftencalled“theIntelofthebicycleindustry”・Thisisa
yonewhohasriddenabikeknOwsthattherearwheeltumswhenyoupedal，
goodcomparisoninthatthebicycleindustryandthepersonalcomputerindustry butthewheeldoesnotstopwhenyoustoppedaling．Thisfunctionismadepossi−
havemanyCharaCteristicsincommon．Bothbicyclesandpersonalcomputerscan
blebytheuseofaratchetmechanismattachedtothe丘・eeWheelontherearWheel．
bemadeihtofinishedproductsfrompartsbought放omavarietyofcompanies・
ShimanOCOntinuestomakefreewheelseventoday．
YoucanSeethisifyougotoaneatbybicyclestore．Ofcourse，therearepre−made ；“Ihitshistoryofmorethan89years，therehavebeenanumberofoccasionsthat
roadracebikesandmountainbikes，butitisalsopossibletomakeanoriginalbike
eanbeseenasm年IOrtumlngPOintsforShimano．Oneofthesewasaround1960
thatsuitsyourneedsandprefbrencesbyorderingparts丘omacatalogue・Thisis
Withthearrivaloftheboomforlightmotorbikesandmopeds（motorbikeswith
thesameasmakingaPCoutofpartsboughtinTokyo，sAkihabaraOrfromthe
fiedals）・Manybicycleandbicyclecomponentmanufacturersenteredthemoped
Intemet．Thisispossiblebecausethefunctionofeachpartiswellde丘nedandin−
bu畠iness，butShimanoremainedabicyclecomponentspecialist．Thedecisionwas
terfacesandperformanCemeaSureSareCOmmOnlysharedbytheindustry・Systems
払adeaRersomeconsideration，basedontheoutlookthatthequalitybicyclemar−
withthesecharaCteristicsaresaidtohave“open，mOdulararchitecture・”Thisin
ketthatwaspresentinEuropeatthetimewouldeventuallyemergeinJapan．The
contrastcannotbedonewithcarsormotorcycles，Whichhaveclosed，integralar−
鮎tthatShimanOdidnotevenenterbicycleassemblywasaresultofaconsistent
chitecture．6
POlicythatthecompanyhadmaintainedformanyyearS．
Thereasonwhymanymanufacturersspecializeinaparticularpartisthatin− d ThenextimportanteVentWaStheexpanSionoverseas．Shimano enteredthe
dustrystandardshavebeenestablishedanditisdimcultforBnalassemblersto
Americanmarketinthe1960SandEuropeinthe1970sbyestablishinglocalsales
takecontrolattheirowndiscretion，Whileatthesametimecompaniescanspecial−
COmPanies・ThiswasextremelyadventurousforasmalllocalcompanylikeShi−
izeinaparticularpartandselltheirproductsworldwideaslongastheyadhereto
man0，butthisledtoglobalexpanSioninlateryears．FurthermOre，Shimanostarted
theindustrystandards・WecanobserveaSimilarPictureinthepersonalcomputer
localproductioninSing叩Orein1973．Thiswasanearlymovetowardoverseas
industry，Wherecompaniesare specializedinharddisks，mOnitors，aPPlication
PrOductionamongJapanesecompanies・TheSingaporeplanhasbeenevoIvedto
soRware，OPeratingsystems，microprocessors，Printersandothervariousperipher−
becomeacorebasefbrShimano’sglobalproductionsystem．
als．
Shiman0’Spolicyoflimitingitselftothebicyclecomponentbusiness，anddar−
Underthese circumStanCeS，ShimanO has built an overwhelming worldwide
lnglyexpandingoverseasinthisareaestablishedthefoundationfbrthelaterex−
shareingearsandbrakes，Whichafekeypartsofabicycle・Thisisthereasonwhy
PanSionofShiman0・However，themostimportantfactorinbuildingShimano’s
presentpositionwastheintroductionofaseriesofnewproductssincethe1970S．
ThisincludestheintroductionsoftheDura−AceSeriesin1973，theShimanoIndex
6 see，forexample，Richard．N．LangloisandPaulLRobertson，“NetworksandInnova− Systemin1984，theNewDeoreXTSeriesformountainbikesin1986，andthe

tioninaModularSystem：LessonsRomtheMicrocomputerandStereoComponentIn− ShimanOTotalIntegrationin1989．

dustries，”ResearchPoliqJ21（2001）：297−313；Car1issY・BaldwinandKimB・Clark，
DesignRules：ThePowerQfModularioJ（MITPress2000）；andTakahiroFltjimoto，
AkiraTakeishi，andYaichiAoshima（eds．），BusinessArchitectuTY：StrategicDesignQf
Produc札OrganizalionsandProcesses（inJapaneSq）（Yuhikaku2001）・Systems are
madeupofrelativelyindependentpartsandtheinteractionbetweenthesepartshases−

tablishedrules（modular）．TheserulesaresharedwidelythroughOutsociety（OPen）・Bi−
CyCles，PCs，andaudiosystemsareexamplesofopenmodularsystems・
36  A．TakeishiandY．Aoshima CaseStudyShiman0：MarketCreationThroughComponentIntegration 37

IIistoryofProductInnovation Incontrast，SISmadetheshi氏leverdigital．Theshiftlevercontainsaratchet

actionindexingunit．Oneindentmovementoftheshiftlevermovesthecablea
SPeCifiedam0untandoperatesthederailleurtoshi氏thechaintothenextsprocket
Dura−AceSeries
（Figu∫e4）．

In1973，ShimanOintroducedtheDura−AceSeriesforroadracebicycles・Ittook
theapproachofselling＆eewheels，derailleurs，brakes，andcranksasaset・This
StePWaStakentorespondtotheBikologyboombothinsideandoutsideJapanand
raisethelowrecognitioninEuropeasShimanOeXPandedintothatreg10nafterthe
UnitedStates．
Theybegantoprovidepartsasa“setmenu”ratherthanSellingthemindividu−
ally．Productswerelinedupwithsetsofpartsdividedbygrade，andtheirdesign
wasunified to make them more attractive．Shiman01eamed this method舟om RearDeraiJer
CamPagnOlo，anItalianPartSmanufacturerthathadestablishedastrongposition GuidePulley
ShiftLever
intheroadbikemarketatthetime．CamPagnOlodevisedtheorlglnalshiftinggear
SyStemforracingbicyclesandwasfamousforsTIPPOrtingthehistoryofbicycle
roadraclng．ThecompetitionwastoughforShiman0anditsproductswerenotini−
tiallywelトreceived．Nevertheless，ShimanOSlowlypenetratedtheEuropeanmar−
ket，throughintenseeffbrt，SPOnSOrlngPrOteamSandgraduallybuildinguptrack
recordsinroadracing． Fig・4・Shiman01ndexSystem

MostcriticalforthesubsequentsuccessofShimanOWaSthata“systemcomp0−
nentphilosophy”wasestablishedinShimanOduring1975basedontheexperience
OfDura−Ace．ItisthephilosophythatbicyclesarenOtjustagrouplngOfparts，but Onemayfbelthatthisisaconceptthatanyonecouldthinko￡However，this

representacollectionofinter−functionlngCOmPOnentS・This■isstillalivetQdayas ideahadnotbeenestablishedinthebicycleindustrybefore・Normallymanufac−

Shiman0’S丘mdamentaldevelopmentphilosophy．Aroundthistime，ShimanOeX− turerSOfbicyclepartsspeCializeinderailleurs，gearS，OrChains，andtheirinterest
focusesonthedurabilityorwearofaspecificpart・Amanufacturerofchainsmay
PandeditsdevelopmentactivitiestoareasotherthanShiRingsystems，SuChas
driveandbrakesystems，andincreaslngemPhasiswasputonfunctionsandper− havestrongideasaboutoptimizationofthechainasacomponentofthedrivesys−

formanCeaSatOtalsystemthatcombinestheseparts，ratherthanimprovementof tem，butitwouldbedifncultforsucha丘rmtOPayattentiontotheperformanCe
individualparts・AboutlOyearslater，agreatSuCCeSSWOuldbloom舟omthisde− forshiRing・Gearmanufacturersalsopaymoreattentiontothedurabilityandwear

Velopmentphilosophy：theShimanoIndexSystem・ Ofgears・Thinkingofhowtoimprovegearshiftingasaninter−linkedsystemof
COmPOnentS WaS SOmethingthat went beyond such companies，attentionand

imagination・Finalassemblers，Whichhadtraditionallyrelieduponspecialized

SbimanoIndexSystem PartSmanufacturerS・alsolackedtheideasrequiredtocreativelydevelopnew

PartS・Shimanocouldcreatetheideathatotherscouldrarelyimaglne，becauseit
TheShiman0IndexSystem（SIS）wasreleasedaspartoftheDura−AceSeriesin emphasizedthesystemcomponentphilosophy・
’However，COmlnguPWithanewideaisonething，realizingtheideaisanother
1984．SISisagearShittsystemcomprlSlngOfashiftlever，derailleur，andcables・
Theconventionalshiltingsystemuntilthenwascalledfrictiontype，uSinga thing・SISisasystemthatcombinesavarietyofpartsandonlyfunctionswell
frictionclutchtightenedwithscrewsandashi氏Ievertomakefineaqjustments， Whentheseareproperlymatched・Ifa句ustmentsarenotcarefullymade，Operabil−
Wheretheleverisshiftedin”analogue”fashion．Thederailleur，Ontheotherhand， itywillbeworsethanWithaconventionalsystem．
こTheshiftlever，gearS，innercable7diameter，innercableattaclmentpoints，de−
usesapantographstruCture，andguidepulleymovestoshiRthegearinparallel・

Ona且ve−SPeedbike，forexample，thechainmovesacross負vegearslayeredat Slgnandattaclmentofrearderailleurandgearcogsareallrelated・Thepositions

approximately5mmintervals，Wheregearsarechangedin“digital”fashion・In Oftheratchetontheshiftleverarealldi脆rentforeachgear・Thisisbecauseca−
Otherwords，thiswasashiRingsystemthatreliedontherider’sskilltouseanana−
loglevertomanagedigitalgears．Theriderdetermineswhetherthegearhasen− 7 0fthecableslinkingtheshiftleverandthederailleur，inadditiontothebrakeleverand

teredtherightplacea鮎rbeingderailedbylistenlngtOthesounditmakesand thebrake，thecurved早eCtionnearthebrakeiswrappedinanOthercabletoholdits
ftelingtheshockthroughthepedals・Thisislikeaqjustingoldcameralensesor Shapeandthisiscalledtheoutercable・Thepartsthatareattachedtothe丘ameina
doubleclutchesoncarSWheretheuser，sskilldeteminestheoutcome． StraightlinedonotrequireanOuter，Cableandonlyneedaninnercable．
38 A．TakeishiandY．Aoshima CaseStudyShiman0：MarketCreationThroughComponentIntegration 39

blesmustbepulledmoreontheoutsidethanOntheinsideasthederailingmecha− ShimanOCOuldnotcreateitsoverwhelmingsharewithSISalone．Certainly，the

nismusesapantographstruCture．Fitnessofthechainisalsoanissue・Ifa4just− Shimanobranddidspreadtoadegreenotseenbefore．Yet，Campagnolointro−

mentsarenotmadebetweenthese，gearShiftwouldactuallybecomeproblematic・ ducedanindexsysteminthesameWay，andathomeinJapanShiman0，scompeti−
SISrequlreSahigherlevelofprecisionofeachcomponentthantheconven− torMaedaIndustries（SunTour）alsoirrtroducedasimilarsystemunderthename

tionalsystem・Inaddition，italsodemandsmoreprecisionintheotherpartsofthe OfAccushiR．Untilthen，MaedaIndustrieshadabetterreputationinqualitybicy−

bicycle，tOWhichSISisattached・Forexample，therearderailleurisattachedto ClesthanShiman0．Shimanoneededafurtherinnovationtogainitscurrentposi−
theframe．IftheendsectionoftheframetOWhichthewheelisattacheddoesnot tion．

havesufncientaccuracy，thederailleurwouldnotbeinstalledcorrectlyITheIndex

Systemwillthennotfunctionsmoothly・Inthefrictionsystem，riderscouldmake
thesea4iustmentsbythemselves．InSIS，WherethepartsrelatedtogearshiRare TheNewDeoreXTSeriesfbrMountainBikes
integratedasasystem，themanufacturemustachievenecessaryprecisionand

matching． Theconceptofridingbikesthroughthemountainsandoff・rOadbeganaSneWreC−
Criticaltorealizethissuperiortotalsystemwereotherteclm010giesthatShi− reationamongyoungCalifomianSduringthe1970S・9Initsearlydays，Whenother

manohadworkedonuntilthattime・Theyincludedthefreehubsystemthatre− COmPaniesshowednointerest，Shimanopaidattentiontothemountainbikemar−

ducedgearShake，thedualservOSlantPantOgraPhsystemthatincreasedshiRing ketandsupporteditsdevelopment・In1982，ShimanOWaSquicktoreleasethe
mountainbikecomponentcalledDeoreXT・Thiswasthe血sttimethatspecial
perfbrmanCe，andtheUniglideChain（Tablel），Theaccumulationoftheseindi−
vidualtechnologleSledtotherealizationofthehighprecisiontotalsystemofSIS・ PartSWerePrOVidedtoendurehardconditionsthatpreviousbikescouldnothandle
TheperformanCeOfSISwassuperiortotheskillofprofbssionalriders・SIScan suchasmountaintrails，rOCks，deserts，riversandmudtracks．Atthetimethere

maintainthesamelevelofprecisionasprofbssionalridersinpeakcondition・Not WereVirtuallynobicycleassemblersthatwereinterestedinmountainbikes・

evenprofbssionalriderscanalwaysbeintopcondition・ForexamPle，thereare Sincethemid1980S，themountainbikemarketbegantOgrOWraPidlymainlyin

caseswherearaceiswonorlostinagearchangeatthetopofahillaRerriding theUnitedStates．Behindsuchgrow血wereincreaslnginterestsinoutdooractivi−

for250km．EventhebestriderscannotshiftgearSatthesamelevelasSISunder tiesandthefitnessboom．TriathlonsalsobegantOSPread，andthisevokedadesire

theseconditions．“Nevermissashift”wasthesellingpointofSIS・ forseriousandyetfashionablebikes．UserswiththeseneedsjumPedtomourrtain

However，SuChaclaimwouldalsohurttheprideofprofbssionalsandinsome bikes，Whichhadalowerthresholdforridingthanroadbikes．Thehandlebars
waysinsultthem・IfanyonecouldshiRgearswellregardlessoftheirskill，the Wereflatandthesaddlepositionlow，makingthemeasiertoridethanroadbikes・

teclmiquesthattheyhadsocarefullyhonedwouldbeworthless・Thisislikethe MountainbikescouldberiddenanywhereandsymbolizedtheAmericanculture
waythatprofessionalphotogr叩hersdislikecameraswithauto−focus・Fearingtheir Ofpursuing録eedom・ThecollapseofthecoldWarStricturethatbroughtaboutre−

backlash，initiallySISwasdesignedtoalsofunctionashictiongears・Thetradi− newedinterestinAmeriCanCulturealsoseemedtostimulatetheeventualSpreadof
tionalmethodcouldbeusedattheflickofaswitch，tOSendthemessagethatShi− mountainbikestoEuropeandJapan＆omthelate1980stoearly1990S．

manorespectsconventionalshiftingskills・ Inthemid1980S，arOund2．5millionbicyclesweresoldannuallyinAmerican

Racersneversaythattheywonthankstothebike，Indeed，itisdifnculttoas− bicycleshops（IBDs），buttheproportionofmountainbikeswasvirtuallyzeroat

certaintowhatdegreethebikemadeadi脆rence・Noonearguedthatriders thetime．From1986to1988，thisrapidlyincreasedto30％，50％and瓜nally70％．
startedtowinoncetheyswitchedtoSIS・At丘rsttherewasevensomeopposition By1992，aglobalmarketofarOund20millionmountainbikeshadbeenestab−

tosIS．However，itgraduallyspread・ProfbssionalridersareCOntraCtedracers・ 1ished．JustaSthisrapidgrowthstarted，ShimanoreleasedtheNewDeoreXTSe−

Theymove丘omteamtOteam・IftheyusedShimanoatthepreviousteam，they riesthatcontainedtheSISformountainbikesin1986．Thiswasavitalpoint．

wouldsaythattheywanttOuseShimanOagain・Asamarketingstrategy，Shimano Theconditionsrequiredtorealizeanindexsystemformountainbikeswere
madeeffbrtstoincreasethenumberofsponsoredteams・OnceSISusereaChed evenharsherthanthoseforroadracers．TheupsanddownSOftheridingsurface
about30％ofracers，itthengrewnaturally．ThedecisivemomentwasthatCam− andconditionalchangesaremorepronounCed．Thedemandforshiftingperform−
anCeismuchhigher．0仔・rOadalsoimpliesharshconditions suchasvibration，
pagnolobegantOPrOVideanindexsystemafterwards・UntilthenitwasH丘iction
versusindex”or“theoldversusthenew”，butwhenthecompetitionchangedto
uindexvs・indexM，SISgainedcitizenshipintheracingcommunity・8

wasimprovedbyattachingthespringsbetweenthefourparallelsidesofthepantOgraPh
B sincethenSIS，sperfbmanCehasimprovedcumulatively・Akeyhasbeenlightaction・
insteadofthefouraxles．Therettmefnciencycanbeimprovedjustbychanglngthe
Thederailleurisamechanismthatispulledbyasprmg．Theweakerthissprlngis，the WayaSPnngisattached．                  鼻

easieritisfbrtheridertoshiftgearS・AlargeamOuntOffine−tuninghasbeendoneover 9ItissaidthatthisbeganWhenanAmericanOlympicathlete，GaryFisher，WaShaving

thepastlOyearstomaketheretumOfgearchangeSlighter・Forexample，efnciency funridingbicyclesonmountainswithhis丘iends・
40 A．TakeishiandY．Aoshima CaseStudyShimano：MarketCreationThroughComponentIntegration 41

mud，anddust．ItisjustastheParis−DakarRallycannOtbewonusingFormula POSitionifthemountainbikemarkethadnotemergedandgrownsostrongly・
Onepa瓜 WhatmadeShimano，soverwhelmingadvantagePOSSiblewasitsleadinSISfor

Indexsystemsforroadbikeshadasimplecablerouteastheshiftleverwasat− mountainbikes・The且nalnailinitscompetitors，cofnnwasthenhammeredin：

tachedtothedown−tubeofthe舟ame，buttheshiftleveronmountainbikeshad theShimanoTotalIntegration・

beenonthehandlebars（calleda負ngershiRerorthumbshiRer），makingthecable
routelongerandalsomakinganOuterCablenecessary・10Thiscorrespondingly
madetheapplicationofSISacomplexmatter・Theinnercableneededonlytotake
SbimamoTotaHntegratiom
intoconsiderationtheamountofinnerextension．However，theoutercableisre−
TheShimanOTotalIntegration（STI）furthersystematizedbicyclecomponentsand
quiredtodealwithnotonlytheextensionoftheinnercablebutalsotheretraction
oftheoutercableinordertoobtainindexprecision・Theoutercableisflexibleand
StrengthenedShiman0Iscompetitiveposition・Whenitscompetitorswerealready

madebywrapplngreSin，nylon，andcopperwire，andretractsinresponsetothe
Strugglingwithindexsystems，ShimanointroducedyetanOtherproductontopof
itsalreadysuccessfulline．
expansionoftheinnercable・Thisretractionisam町OrPrOblemformountain
bikes．
Thekeywastheintegrationofgearoperationandbrakeoperation：thedual
COntrOlleverforroadracers，andthesystemcalledHrapidfire”formountainbikes
Roadracershavetwofrontgearsandthediffbrenceinthenumberofteethis
aroundlObetweenthetwogears・Thedi飽renceinthenumberofteethinthe （Figure5）・ShimanoTotalIntegrationwasintroducedin1989bycombiningSISll，
ShimanoLinearResponse，HGgears，andSGgears（Tablel）．
倉ontgearShasagreatimpactonthepositionlngOftherearderailleur・Onmoun−
tainbikes，therearethree倉ontgearsandthedi脆renceinthenumberofteethis
Ro鵬R鵬●8批●；Pu●＝；○血tL●Y●l
around20・Theimpactisthereforeevengreater・Whenthe録ontgearischanged，
Dl娼IGorl仙LoⅥ升
20teethworthofslackinthechainmustbetakenupbytherearderailleur・For
thisreason，thefunctioningoftheguidepulley（aspringfora嘩ustingslackinthe
chaincausedbyshiRing）alsobecamedifBcult・Changinggearsonasteepslope
withaloadonthechainwasalsodifncult．TosunuP，thedevelopmentofanin−
dexsystemformountainbikeswasmuchharderthanforroadbikesinallrespects・
Shiman00VerCamethesedifncultconditionsbyfu11ymobilizingthetechno10−

giesthathadbeenaccumulatedfor丘eehubs，UGgearSandUGchains・MaedaIn−
dustriesandCampagnolowerenotcompetitiveinthesetechnologies・Although
繰如鵬油日榊耶R坤IdR搾
bothcompaniesfollowedShimano，sleadofmakingindexsystems，theywereun−
丁蜘IbS肋r◆Dr血Lover
FU劇OnOl釣的L…r卯d計abLoW
abletoovertumShiman0，spredominanCethatwasbackedbytechnologies・Asa
resultthemountainbikemarketbecameaPlacedominatedbyShiman0・This
strengthinthemountainbikemarkethasalsobeenbeneficialintheroadmarket・
、1
WhenthemotdainbikemarketwasundergolngraPidgrow血，dealersand瓜n− ′

ishedbicyclemanufacturerstendedtoorderpartsforroadbikesandmountain
bikestogether・ThechoicewasbetweenSISandAccushift・Itwassimilartothe
choicebetweenaWindowsmachineandaMacintosh．Therewasnopartscom−

patibilitybetweenthetwointegratedsystems・IfanOrderwasplacedforboth
mountainbikesandroadbikes，itwaseasiertouseSIS，Whichcoveredbothroad
ando路roadthanplacinganorderforSunTour，Whichdidn，tprovidegoodAc−
cushi氏formountainbikes．Eveniftherehadnotbeenalargedi脆renceintech− Fig・5Jntegrationofshi氏1everandbrakeleverinSTI（ShlmanOTotalIntegration）

nologiesforroadbikes，thedifftrenceinthemountainbikeneldworkedinShi−
man0，sfavorandspilledoverintotheroadfield，Withthise脆ctaccumulating
overtime．Shiman0，ssharesnowballedandSunToureventuallydisappeared・
Iftherewereonlytheroadracemarket，SumTourmighthavesurvived・Cam− 11JustbeforetheintroductionofSTI，SISwasintroducedforthe丘ont−Sh拍leverinaddi＿

pagnolo，Whichhassomehowmaintaineditsstrongpositionintheroadracemar− tiontotherearshiftlever・ThiswascalledtheDualIndexSystem・TheSISforthe
ket，Stillexists．ThisseemstoindicatethatShimanOWOuldnothavereachedits
Bont一gearSyStemWaShotverylmPOrtantOnrOadbikes，Sincetheyhさdonly2front

gears・TheSISforthe魚・Ont−gearSyStemWaSdevelopedlaterformountainbikes，Which
10 seefootnote7forinnerandoutercables． have3丘ontgears．
42 A．TakeishiandY．Aoshima CaseStudyShimano：MarketCreationThroughComponentIntegration 43

Tablel．（Continued）
Tablel．MqjorpartsandcomponentsystemsdevelopedbyShiman0

ShimanOLinearRe− Thissystemreducestheoverall録ictionofthebrakesystem．Pre−
Shlman0IndexSys− ThisisthesystemthatpreciselychangeSthereargearonelevel
tem（SIS） whenthegearleverisshiRedoneindent・Byputtingtheratchet SpOnSe vi0usly，SPringswereonlyattachedtothebrakearch（Caliper）．

usedtodeterminethepositionofthegearlevertoensureprecise ThissystemaddsasmallsprlngtOthebrakelever．Thesetwo
SPrlngSreducetheloaduponthearch．Forcables，thissystem
gearShiRing，anyOneCanquicklychangegearSWithoutmistake，aS
opposedtothethctionmethod，Whichreliedheavilyontherider，S usesaresin1inerandalow−Viscosityoil，insteadofacoilspring

skilltomovetheleverdeliberately． SOlidi鮎dwithresin・Overall，鉦ictionoflever，arCh（Caliper），and

FreehubSystem Thissystemintegratestherearwheelhubandthe丘eewheel・Rear
Cablewasreduced，andbrakingperformance（brakingforce，1ight

wheelbalanCeimproves・Thissystemallowsfaster，eaSiergear
changeSandalsoimprovedthestrengthoftherearwheel．

DualServOSlant Thissystemkeepsthedistancebetweeneachgearandtheguide Thedualcontrolleverfbrroadracersworksbymovlngtheleververticallyfor

PantOgraPhSystem pulley（apartthatmakesa句ustmentsforchainsagduringgear brakingandhorizontallyfortheshiftlever．Inotherwords，theshiftleverandthe
−ChangeS）belowthechangegearShortandalmostconstant・The
brakeleverweremadeintoone・Inthemid1980S，Shimano，senglneerSWhowere
guidepulley，spantOgraPhmovesdiagonallyfo11owlngaformSimi− WOrkingonfasterandmorereliableshi氏leversforroadbikescameupwiththe
lartothepathofthegears・Itmakesg甲‘ChangeSSmOOtherand
ideathat“theshi氏levershouldbecontainedwithinthebrakelever，”ratherthan
moreaccurate． “wheretheshiftlevershouldbeplaced”．OneproblemwasthatforSIStheshは
Uniglide（UG） ThisistherearchangegearandchainformakinggearchangeS
Ieverremainedinplacea氏erbeingmoved，butforSTIthelevershouldbere−
GearS，Uniglide smoother・Theshapeofgearteethandthesh叩eOfchainplates
tumedtoitsinitialpositionaflereachgearShiR・Thismadethemechanismquite
（UG）Chains WereSPeCiallydesignedforbettershifting・Previouslytheywere
designedonlyforbetterdrive． COmplex．

ShimanOTotalInte− Thisisatotalsystemforgearchanglngandbraking，COnSistingof Themarketquicklyresponded．The decisivebenentofSTIwasthatriders

詳細ion（STI） thedualcontrollever（forroadracebikes）orrapid丘resystem（for COuldshiftandbrakewithoutmovingtheirhand・BeingabletoshiRgearswhile

mountainbikes），theShimanOIndexSystem，ShimanOLinearRe− Standingandpedalingupahillwasagreatadvance．Removingthehandleadstoa
sponse，HGgearSandSGgearS・Itimproveseaseofuse，PreCision，
greatSetback・Racerscouldslowdownandthenquicklyspeedupatthe血alcor−
andspeedofgearchangingandbraking．
nertowardthefinishwithoutmovingtheirhandsandmiss−Shift．Racerswerealso
DualControILever Thisintegratesthegearshiftleverandthebrakeleverintoonefor
pleasedthatotherriderscouldnolongerseegearchangeSthroughthemovement
roadracebikes．Verticalmovefunctionsasthebrakeleverand
Oftheirhands・STIrqpidlyspreadwhenusersquicklyrealizeditsvalue．
horizontalmoveasthegearshiR1ever（indexsystem）・Previously，
therider，shandshadtomove放omthehandlebarStOShiRgears，aS
TheRqpidFireformountainbikesdidnotjointheshiRleverandthebrake
leverintooneasbreakinglSmOreimportantOffroadthanonroad．Incontrastto
theconventionalgearshiRIeverwasattachedtothedowntubeof
thefiame．Thislevermakesitpossibleforriderstoshiftgearsand roadracebikesthatconventionallyhadtheshiRleveronthedowntubeofthe
brakeaccurately，quickly，andeasilywithoutremovlngtheirhands 舟ame，mOuntainbikesalreadyhadthisontopofthehandlebarsnearthehands．
fi・Omthehandlebars． Thiswasbecausethemovementofhandsmustbesmallaspossibleoffroad．This
RapidFireSystem ThisLcombinesthemountainbikegearShiRIever（indexsystem）on SyStemWaSCalledHThumbShifter，門inwhichtheshi氏1everwaspushedbythe
thebrakeleverside．Shiftingcanbeconductedwithaslnglethumb・ thumbandpulledbackbytheindexnnger．Whenthisleverwasmovedcloserto
ConventionalnngershiftersareattaChedtothe舟ontoftheupper thebrakeleverandplacedonthebottom，theridercannOtPutenOughpowerof
partOfthehandlebars，meanlngridershadtoloosenorchangetheir hisnlerarmWhenpushingtheshiRIever・Ridersshouldbeabletopushthelever
grlPtOShiftgears，butthismakesitpossibleforriderstoshi魚gears
Onlybythethumbandcouldnotusetheindex鮎gertopullback（Figure5）．
andbrakeaccurately，quickly，andeasilywithoutlosingone，sgrlP
Therefore，inordertomovetheshiftleverclosertothebrakelever，theshi氏ing
ofthehandlebars．

SGGears，HG TheseareeVOIvedversionsofUGgearsandchains．Aspecialshape
mustbemadelighteranditmustbedesignedsothatgearscanbechangedwithout
theuseoftheindex丘nger．RapidFirerealizedthisgoal．
Gears，HGChains ofgearteethandchain，designedwithcomputers，fiⅩthepaththe
chainwouldtaketoensurethatitmovestothenextgearaCCurately， Offroad，itisevenmoreimportantthanOnrOadtochangegearsandbrakepre−

quickly，andsmoothly・Byre且ningtheshapeofrearchangegearS Cisely，quicklyandsmoothly・TheSTIformountainbikesgainedagoodreputa−
（HG），舟ontchangegears（SG）andchains，thesystemimprovesnot tionandquicklypenetratedthemarket．ItwasinthismannerthatShimanOCreated
0nlyreargearsh的butalso杜ontgearshiR． anunShakeablepositionthroughacomponentsystemthatdrasticallyimproved

慧霊豊悪霊霊慧霊忠霊浣悪霊
tivebase，倉ommainlyinshiftingtobothshiftingandbraking．
 CaseStudyShiman0：MarketCreationThroughComponentIntegration 45
44 A．TakeishiandY．Aoshima

rectlysoldbicyclesunderitsownbrand，ithasahighlevelofteclmicalexpertise
Shimano，sStrategy：CreatingMarketsThroughComponent
Withregardtonnishedbicyclesandhasattemptedtobypassfinalassemblersand
Integratiom
todirectlyaccessendusers，oplnlOnS・ShimanOWaSquicktoenterEuropeanroad

racingbecauseitattemptedtounderstandthedemandsforthebikeasa伝nished
SystemComponents PrOduct・TheHDealerCaravanM，Whichwillbeexplainedlater，isanOtherexamPle
OfsuchanattemPt・Ofcourse，informationonenduserscanbeobtained録ombi−
shimano，ssuccesswasaresultofsuccessivelyintroducinglnnOVativenewprod− CyCleassemblers・However，Whatisimportantfor血ishedbicyclemanufacturers
uctstopursueeaseofusefortherider・ThroughoutthehistoryofShimano，ssuc− isthecustomizationofbicyclestosuitreglOnalcharacteristicsandtargetedusers．
cessfulproductinnovations，thekeywasthedevelopmentphilosophyofsystem Todrawuponumiversalneedsforbicycles，Shimanothinksthatitisnecessaryto
componentsthatcameOutinthemid1970S・ maintainclosecontactwithandfbelthemarketdirectly・
Dura−Ace，SIS，NewDeoreXTandSTIallcommonlysharetheideathatvari− Shimanoalsoneededcooperation丘omothercompanies・ShimanOissimplya
ouspartsshouldbeoptimizedtofunctionandperformaSaSyStem・Inthebicycle
PartSmanufacturerandisnotdirectlyinvoIvedinthefinalassembly・However，the
industry，Whereinterfacesarestandardizedandeachpartismadebyaspecialist totalsystemthatShimanOdevelopedrequiredadvanCedintegrationnotonlyinde−
manufacturerratherindependently，mOStmanufacturersviewedthederailleur， Signbutalsoinassembly〉WhichissomethingthatShimanocouldnotrealize
gearShiRleverandbrakeasseparateCOmPOnentS・Shiman0，however，Viewed alone・ThesystemwillnotfunctionifthepartSarenOtaSSembledwiththere−
theseasaslngleunitIandintegratedthemasasystemachievingnewfunctions quiredprecision・Therearderailleurisfixedtotheframes，andtheindexsystem
andhigherperformanCethatcouldnotbereacheduntilthen・Inotherwords，Shi− Willnotfunctionproperlyifthederailleurisnotattachedwithprecision．Theman−
manOChangedthearchitectureofsomeofkeycomponentsystemsinbicycles agementofassemblylinesatbicyclemanufacturers）theprecisionofthe舟ameit−
丘omHopen，mOdularntOuClosed，integralM・ Self；nnala噌ustmentstobemadeatdealerships（retailers）aretheareasthatare
These“architectural”innovationsrequiredavarietyofingenuityandagreat CriticaltohaveSISworkeffbctivelybutShimanOCannOtdirectlycontrol．
dealofe放）rtatShimano．Wehavealreadymentionedmanyteclmicalproblems ShlmanOthereforemadefrequentvisitstomanufacturersof血ishedbicycles
thathadtobeovercomeintheprocessofintegratingparts・Theinnovationofato− WhenSISwasreleasedandmadespeCincrequestsregardingassemblyprocesses．
talsystemwasmadepossiblebytheaccumulationofvariousimprovementsand Shimanoalsoprovidedtechnicalnotesabouthowtohandlenewproducts．Forex−
innovationsinindividualpartstechnology・12Thepartsteclm0logleSneWlydeve1− amPle，theyspecifiedconditionsrequiredfortheproperfunctionlngOftheindex
0pedbyShimanOincludethecomponentsthatShimanodoesnotproducesuchas SyStemSuChasthepositionoftherearderailleur，brakedimensions，andhandlebar
UGandHGchains．Shiman0，sattitudeistodevelopaparticulartechnologyifitis lengthto血ishedproductmanufacturers，andaskedforcooperationtomeetwith
requiredtohavethesystemfunctionandperformastargeted・ 1theserequirements・Inadditiontospecifyingrequirementsforothercomponents

Knowledgeaboutacomponentisnotenoughforimprovingthecomponent・An andassemblyprocesses，ShimanoprovidedspecializedtooIsformeasurementand
imageofthennalproductmustbedrawnbasedonanunderstandingoftheneeds a句ustment・Similarinformationwasalsoprovidedtodealers．Serviceinformation
ofendusers・SuperiorpartscarmotbedevelopedwithOutunderstandingtheenvi− isalsotiedtotheshiftlevertoensurethatendusersseetheinformation．SISre＿
ronmentinwhichtheywillbeused・Therefore，althoughShimanOhasneverdi−
qulreSinitiala嘩ustmenttodeterminethebasepositions，forwhichdealersandus−
ersneeded．
12Thesystemcomponentphilosophywasrealizedthroughtheteclmicaldevelopmentof InordertorealizenewfunctionsandperformanCeaSaSyStem，ShimanOaC−
individualpartS，butthissystem−COmPOnentPhilosophyalsohasanaspeCtOfencourag− quiredandifnecessaryadvanCedtechnologiesthatextendedbeyonditsownparts
lngteChnicalinnovationofindividualparts・Intheprocessofimprovlngthefunctions business，andmadeeffbrtstoobtainthecooperationofoutsideorganizations．

andperformanCeaSaSyStem，itbecomesclearthatacertainpartisholdingthesystem

backandthereisamechanismthatfbrcesthetechnicalinnovationofthepartinthebot−
tleneck．RosenbergfoundthataparticularteChnicalinnovationwaspursuedtoover−
ProductionTechnologyandMarketCreation
comeanimbalanCewithotherinterrelatedpartS，andthisintumencouragesanother
technicalinnovationofotherrelatedpartS．Oi．Rosenberg，Per甲eClivesonTbchnology，
NewYork，NY：CambridgeUniversityPress，1976）Forexample，foraudiosystems， Anotherissuewasincreasedcosts．Highqualitypartsmustbemadeinordertode−

increasedampli鮎rperformanCeCauSeSincreasesinspeakerperformanCe，andfor 1iversuperiorfunctionsandperformanCe・Forexample，inthecaseofSIS，thecost
automobiles，increasedenglnePerformanCeleadstoincreasesinbrakeperformanCe・In
thecaseofShiman0，intheprocessofintegratingpartsthatprevious1yhadstandardized
interfaces，englneerSCametObeawareofstronginterdependencebetweenpartsthat

hadnotreceivedattentioninthepast，andthisawarenessencouragedfurthertechno−
loglCalinnovations・
 CaseStudyShiman0：MarketCreationThroughComponentIntegration 47
46 A．TakeishiandY．Aoshima

JtwasnotmereluckthatShimanonoticedthepotentialofthemountainbike
oftheshiftleveralonesigniBcantlyincreased13sincethenumberofpartswasin−
marketmuchearlierthanothers・WhileShimanOisapartsmanufacturer，italways
creasedbecausetheratchetwasaddedtotheshiftlever，andresinpartswere
monitorsenduserneedsandmarkettrends・OnecueforsucheffbrtswasthedifB−
changedtosinteredpartS・Anotherfactorforcostincreasewasstricterprecision
CultexperiencethatShimanOhadmorethanthinyyearSagO．JustaRerShimano
requlrementS・Inparticular，theprecisionoftheshiRleverandgearswasin−
StartedexportstoAmerica，defbctsweredetectedintheexportedparts・Thebicy−
creased．Furthermorethosepartsspeciallydesignedfbrtheintegratedsystemhave
ClemanufacturerimportingthepartsaskedShimanotovoluntarilyrecallthefaulty
acosthandicapbecausestandardizedpartsthataregenerallyusedfortheconven−
PartS・ShimanOWaSforcedtodispatchlOteamsoftwopeopletotheUStovisitall
tionalsystemhavealargermarketanderjoyscaleofeconomy・Highprecisionre−
dealersandretailerstoreplacethedefbctiveparts・ThisvoluntaryreCalljoumey，
qulrementSandalimitedmarketmeanthatintegratedpartsinevitablycostmore・
however，ledtoapreciousdiscovery・Shiman01eamedthatawealthofinforma−
Additionalcomplicationsintheassemblyprocessandatdealershopsalsocon−
tioncouldbegainedbyvisitingdealers・
tributetoincreasedcost．
MishapscanbetumedintoblesslngS・Afterthisincident，Shimanodevisedthe
HowdidShiman00VerCOmethisproblem？OnemethodwasShimano，ssupe−
SO−Called‘‘DealerCaravann，COmPrlSlngOfJapaneSeandlocalstafftotraveltore−
riorproductiontechnology・MostofShiman0，sproductsutilizecold−forgetech−
tailersaroundtheworld・ItwasthroughtheDealerCaravanthatShimanonoticed
nology・Precisionishigherfbrcold−forgedproductsthanthoseforgedathigh
thepotentialofmountainbikes・InformationregardingratherstrangePeOPlein
temperatures，Whichallowedefncientproduction・Cold・forgeneedsnoheatdistor−
CalifomiawhorodeupanddownamOuntainforrecreationwascaughtbythe
tion，andtheextracuttingprocesstoobtaingreaterprecisionaRershapinglSnOt
DealerCaravan・Thatmountainbecamethebirthplaceofthemoumtainbike．The
required・Shimanoestablisheditscoldforgetechnologylongbefore・ShimanOhas
DealerCaravanStillcontinuestoday・
alsosuppliedpartstoautomobilemanufacturers・Theaimofthisbusinesshasbeen
ShimanOSendstechnicianStOPrOfbssionalteamStOWOrkasmechanics，and
tocontinuepolishingShiman0，scuttingedgetechnologyintheautomobilemar−
alsoplanSandsupportsavarietyofbikeracesandevents．Shiman。isals。fu11。f
ket，Whichhasstrictdemandsonqualityprecisionandcostreduction・ShimanOaC− ‘p‘bikefreaksMandHbikegeeks・MShiman0−semployeeslovetheproduct，Whichis
tivelydevelopeditsownautomatedassemblytechnologleSandtheSingaporefac−
alsothecaseforShiman0，sFishingTackleDivision・WhenanemPloyeepartici−
tory，aSmentionedabove，lSmakingagreatcontributiontocostreduction，high
PateSinabikerace，thecompanycoversthetravelexpenses・Thereisevenapro一
quality，andhighproductivity・
gramCalledHPedalMore，MinwhichemployeesareglVenPrlZeSaCCOrdingtothe
AnotherimportantapproachinovercomlngCOStincreaseswasthecreationof
distancetheyridetoworkbybicycle・AlthoughShimanOisapartsmanufacturer，
markets．AlthoughSISmayhavebeenexpensive，itwasmarketedtowardprofeS−
itseffbrtsandcultureenableittounderstand，anticipate，andcreatemarketseven
sionalriders，WhoarenotmuchconcemedaboutprlCebutwillproperlyevaluate
moreeffbctivelythanahishedbicyclemanufacturer．
itsfunctionsandperformance・Asdescribed，ittooktimeforShimanotohave
Althoughintegratedsystemshavehighfunctionality，PerformanCe，andquality，
themacknowledgethevalueofSIS，butitsvaluewaseventuallyrecognizedand
theirmarketisratherlimitedandcoststendtobehigher．Theabilitytolowercosts
sISspreadthroughoutthemarket・Shiman0，Sstrategywastomakeitsvaluebe
andtheabilitytofindandcreatemarketstomaximizeproductandbrandvalue，
recognizedinhigh−endusers，Createama血tthere，andthenusethesuccessin
WereCriticaltoreplacingmass−PrOducedstandardizedpartswithanintegratedsys−
thismatketasleveragetoexpandintolarger（lowerend）markets・Asthemarket
tem・ThesetwokeyabilitiesarebehindShimano，ssuccess．
expanded，themassproductionhandicapcomparedtostandardizedpartsgot

EvengreaterSuCCeSSWaSgained丘omthemountainbikemarket・Shimanono−
ticedthepotentialofmountainbikesatanearlystage，andcreatedamarkett0− Conclusion：SearchingbrNewGrowthOpportunities

getherwithagroupofmountainbike蝕IaticsbydeveloplngPartSSPeCiallyde−
signedforthemarketandhelpingitgrow・NotonlydidShimanogainfamefor Shiman0，Whichcommandeddecisivesuccessinmountainbikecomponents，rq）−
beingapartsmanufacturerthatcreatedthemarket，butitalsogainedadominant idlyincreaseditssalesfromthemid1980stothemid1990S・Thegrowthwas
positionbyprovidingSISandSmbrthemountainbikemarket，Whichhadhigher morethanthreefold，from51・2billionYenin1985to168billionYenin1993，
precisionrequlrementSandthusappreciatedthevalueofShimano，ssystems・The WithanaVeragearnualgrowthrateof16％（Figure2）．
strongbrandthatShimanobuiltinthismannermadepossibleprlClngthatcovered Shimano，sgrowth・however，hasleveledoffsincethemid1990S・Although
theincreasedcostcomparedtonormalparts・ Shimanohasmaintaineditstopshareworldwidewithhighprontability，Saleshave
Stalled・Behindthislietwoproblems：intensinedcompetitionandmarketmaturity・

ThecompetitiveenvironmentsurroundingShimanOhasbecomeharSherthanin
13Theshi銃lever，Whichwasabout2，500YenfbrfhctiontypeSyStem，WaSabout4，000 thepast・Itisnoteasy＼omaintainanOVerWhelmingshare・FormerCOmPetitors

YenfortheSIS．However，aSmentionedabove，SinceSISinitiallyhadtheoptionofus− likeMaedaIndustriesandCampagnolocompetedwithShimanowiththeirown
ingthe蝕ctiontype，aSimplecomparisoncannotbemade・
48 A．TakeishiandY．Aoshima

parts，WhichwerenotcompatiblewithShimanOSyStemS・However，nOWthatShi− JnvjsibJeDimensionsoflnnovation：Strategyfor
mano，sproductsaredominant，neWCOmPetitorsarecompetingwithShiman0−
De・COmmOditjzationintheJapaneseELectronjcs
compatibleparts・IntheUnitedStates，therehasbeenanantitruStjtidgmentagainst
shimanOWhichhasmadeitmoredifncultforShimanOtOSellpartsasatotalsys− lndustry
tem．AU・S・COmPany，Slam，WhichmakesaproductcalledtheGripShi氏thatin−
tegratesaresingrlPandashiftlever，hasalsobecomeaseriousrival・TaiwaneSe
manufacturerswithproductionplantsinChinaarealsoverycompetitiveandShi− KenKusunoki
man0，sabilitytOdictatepriceshasbeendecliningovertime・AsShiman0’sparts
havebecomesodominantandwidelyused，ithasbecomedifncultforbicycle
manufacturerstodi脆rentiatethemselves舟omonean0ther・Somecompanieshave
thusbeguntOintentionallyavoidShimanOtOmaketheirproductsunlque・
Digjtization，Modularization，andCommoditization
Themarkethasalsomatured．Shimano，sgrowththroughtheearly1990swas
supportedbythemarketexpansionofmotmtainbikes，tOWhichShimanOmadea
Companiesarehavingincreasingdifncultyincreatingnewvalue・Competitionis
greatcontribution・However，OnCemOuntainbikeshadspreadandthegrow血Iev−
eledonShiman0，sgrowthalsoleveledoff・Shiman0，S1993salesrecordremains intensifyingandsqueezingprofitmargins．Pro丘tisthedi脆rencebetweenrevenue

uhbroken． andcosts；thegapbetweenthecostofprovidingagoodorserviceandwhatacus−

Inordertobreakaway丘omcompetitorsandretumtOthepathofgrowth，Shi− tomeriswillingtopayforthatgoodorservice（Ishallreferherea氏ertothecon−

manOneedstocreatean0thernewmarketbasedonproductinnovations・Onearea CePtOfWTP，OrWillingnesstoPay）．Thereareonlytwowaystoincreasepronts：

thatShimanOiscurrentlyfocusmgonisthecomfortmarket・Shimanohasintro− ReducecostsorboostcustomerWTP．Companieshavetriedvarious“bestprac−

ducedcomfortcategoryproductscalledtheNexaveSeries・ShimanOisalsotrying tices”tomaintainproBtability：reStruCturingwithafocuson“corebusinesses，”

tochangetheconceptofcomfortbicyclesandcreateanewmafket・ business process re−englneenng，infomation technology−driven supply chain

Withitssystemcomponentphilosophy，ShimanOeXperiencedgreatsuccessrid− hlanagement（SCM）initiatives，OutSOurCing，andglobalization．

lngOnthewaveoftherapidgrow血ofthemountainbikemarket・Thequestion Theseeffbrtsarefundamentallyfocusedonreducingcost．Andwhilecostre−
stillremainswhetheritcanbuildanotherfoundationtoridethenextwaveof ductionisimportant，itisinsufncienttosustainpro丘tability．Byitsveryde鎖ni−
tion，COSt−basedcompetitionconvergesonthephysicallimitsofcostandpriceand
growth・Thereisnorestincompetition・Shiman0，schallengeswillcontinue・
ultimatelyisadead−endpath．CompaniesfoCusedexclusivelyonreducingcosts
WillhangthemselveswiththeirownrOPeS．FirmSmuStincreasecustomerWTPin
Ordertoaddnewvaluetotheirproductsandservices．
’Competitiveenvironmentchangesinrecentyearsmakeitincreaslnglydifncult

toboostWTP．OnekeyunderlyingfactoristhethreatofcommOditization．Thees−
SenCeOfstrategyisdoingthingsdi脆rentlyfromcompetitors，anditisdifncultto
Createdi脆rencesonceaproductorservicebecomesacommodity；’’priceH be−
COmeStheonlydiffbrentiatoranrmCanShowcustomers．Commoditization，there−
fore，meanSCOmPetitionconvergesoncost．Moreover，thespeedatwhichproducts

andservicesbecomecommoditieshasdramaticallyincreasedinrecentyears．We
banseemanygoodexamPlesintheelectronicsindustrywhichhasbeenhithard
bytheforcesofrapiddigitizationoverthelastdecade・
Digitizationaffbctsnaturesofproductsystemsinanumberofways．Ofthese，
themostfundamentalchangeisthe”modularization’’ofarchitectures．Architec−
ture、defineshowtobreakasystemdownintocomponentsandhowthosesystem
COmPOnentSareinterrelatedinwhatwecall“subsysteminterdependencies．‖Itisa

COnCePtforunderstandingsystemstates．Modularizationmeans’lbreakingdown

器票諾慧韻禁嵩霊慧詮霊霊慧禁：；霊宝霊器二
facebetweenmodules．”Modularizationcouldbedetinedasastrategyformini−
mizingsystemcomplexityandrelationalinterdependencebetweencomponentsby