Case study on Weber Model
Optical Instrument Manufacturing Industry
What can you observe from the icons?
Most brands are Japanese brandsLarge market sharesThey all have branches in HK
So anything to do with Weber model?
Illustration: Nikon CooperationHead office located in Tokyo,
JapanProduction and assembling line
MAINLY not in Japan (There are still four plants in Japan), but in Thailand, Mainland China and Taiwan instead
Why Nikon?
Factors affecting location
Why the production lines are in South-east and east Asia?
1. Near markets (Hong Kong, Mainland China, and etc…)
2. Relatively more stable and abundant supply of localized materials
3. Cheap labor
Factors affecting locationWhy the head office and some
components manufacturing lines are in Japan?
1. History2. Agglomeration economies3. R&D
LEAST COST LOCATION
Weber Model
Least Cost LocationHeart of Weber modelUsing the spatial differences in
transport costs of localized materials and products
Labor costAgglomerate economies
AGGLOMERATION ECONOMIES
Weber Model
Agglomeration economiesDefinitionWhat to do with Nikon and other
camera manufacturers?1. Bulk purchase of raw materials
with other firms2. Original Equipment
Manufacturer (OEM)(Sony provides CMOS/CCD to
Nikon)
Q&A
Thank You Very Much!