Gaining integrity in modular industries

Abstract

In modular industries, component makers have a competitive advantage and it is difficult for assembly manufacturers to gain a competitive edge. Although the postwar Japanese machine tool industry dominated the global market through modularization, component makers held a competitive advantage and machine tool makers lost their competitiveness. Using the example of Yamazaki Mazak, a company that achieved success through the development of multi-tasking machines in Japan’s modularized machine tool industry, this paper analyzes competitive advantage gained by utilizing markets with characteristics that differed between Japan and the United States. This increased product integrity in stages through the fusion of exploratory technology and a wide range of collaborative activities both inside and outside the organization.