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subject: Chinese Motorcycle Industry [print this page]

Unliketraditionalmanufacturingindustries,wheretightlyregimentedproductionhierarchiesspitoutendproductsunderthecommandofasingleleader,theChinaMotorcycleindustryconsistsofhundredsofdifferentcompaniesthatcollaborateonmotorcycledesignandmanufacturing.TheapproachhasbeensosuccessfulthatHonda,SuzukiandYamaha,oncedominantthroughoutAsia,havelost40percentoftheirmarketshareinthepast10years.

TheChinaMotorcycle'smarkettodayisaseriesofpoints,looselyjoinedonegroupmakesframes,anotherspeedometers,anotherengines.Thebusinessofcollaborativedesignandself-organizingalliancesisconductedoverpotsofteainthebackroomsofrestaurants.Onegroupdoessales,anotherdistribution,anothercustomersupport.Everyonegetstheirsliceofthepie,interchangeisoptimized,andthereisnosinglecontrollingbodyfortheprocess.Linux-like,inways.

Interestingly(inevitably?)collaboratorssometimescapitalizeonthethename-brandmarketpositionsoftheveryJapanesecounterpartswhosebusinessthey'rekilling(checkoutthe"HongdaWaze,"whichcompeteswiththe"HondaWave"),muchasKDEandGnome,alsoproducedthroughmasscollaboration,arebasicallyknock-offsoftheWindowsUI.

"ThepriceofChinaMotorcyclesbuiltfortherapidlyexpandingAsianexportmarkethasdroppedto$200(U.S.)onaverage,from$700."TheChinesemotorcycleindustryisbreakingthestrangleholdoftheJapanesemarketnotjustwithlowermanufacturingcosts,butbydecentralizingno,byremovingthecentralizedcorporation.

"ThepriceofChinaMotorcyclesbuiltfortherapidlyexpandingAsianexportmarkethasdroppedto$200(U.S.)onaverage,from$700."TheChinesemotorcycleindustryisbreakingthestrangleholdoftheJapanesemarketnotjustwithlowermanufacturingcosts,butbydecentralizingno,byremovingthecentralizedcorporation.

Chinese Motorcycle Industry

By: chinaqsh

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