Henry Ford, founder of Ford Motor Company, is quoted as saying that customers could choose a car

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Henry Ford, founder of Ford Motor Company, is quoted as saying that customers could choose a car in any color as long as it was black.

Things have come a long way since that time—when customization and choice were seen as expensive and inaccessible. Today, brands are offering just about any way to customize, personalize, build loyalty, and create a deeper bond and greater engagement with customers. From music playlists to sneakers to burgers, mass customization continues to create a unique edge for businesses.

Mass customization combines elements of mass production with custom tailoring. Using information technology, Levi's originally created customized jeans for women by taking their measurements and sending the information electronically to a factory where the jeans were electronically cut, produced, and shipped to the customer. Built Custom Burgers, a popular Los Angeles–based franchise, serves “Build Your Own” burgers, fries, shakes, and more.

Close to 20 years ago, footwear giant Nike was one of the first to create a mass customization service that allowed customers to engage directly in the design of their sneakers by choosing colors and materials. Nike's e-commerce customization service is known as NikeID, and customers can order to their specifications. Nike blends the benefits of a traditional handcrafted product with modern-day manufacturing efficiencies. Nike recently unveiled the Nike Makers'

Experience in New York City that merges “digital design with traditional footwear making.” In 90 minutes, a collaborative design experience is created, along with a fully customized pair of Nike Presto X shoes.

Automobile makers have embraced customization, too. Through Tesla's online design studio configurator, automobile options include equipment levels, paint, wheels, interior, autopilot feature, LED lighting, suspension, hi-fidelity sound, and a $5,000 premium interior, and a long-range battery, which Tesla refers to as the ~75 kWh pack, is available at a premium of $9,000. Customization may have a cost, but it seems no one is complaining about a personalized purchase.

Questions for Critical Thinking 

1. One advantage of mass customization is that customers typically pay for products before they're produced, which eliminates excess inventory and potential markdowns. Are there other industries where mass customization has caught on? Provide some examples.

2. What are the advantages and disadvantages of mass customization for a manufacturer? Is mass production taking a backseat to mass customization? Explain.

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Contemporary Business

ISBN: 9781119498414

18th Edition

Authors: Louis E. Boone, David L. Kurtz, Susan Berston

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