Mass Customization

MASS CUSTOMIZATION Describe the basic principles of “mass customization. Many companies are faced today by an unprecedented trend towards individualization of demand. Mass customization is the new paradigm that replaces mass production which is no longer suitable for today’s turbulent markets, increasing product variety, and infinite opportunities for e-commerce that demand adaptability. Manufacturers are forced to build production systems that require additional variants that must proactively manage product variety in this environment of rapidly evolving products, niche markets, and individually customized products sold through stores or over the internet. Mass customizers can customize products quickly for individual customers or for niche markets at better than mass production efficiency and speed. When customers are built into the value model of Mass Customization by defining and building a specific individualized solution or model, this is called Co-design. Co-design is the main difference between mass customization and other versions of agile development strategies which establish an interaction between the manufacturer and customer and increase loyalty. This principle also co-creates a customer’s experience and a sense of design ownership that aligns the customer with the company’s goals. Once a customer has purchased an individual item, the knowledge aquired by the manufacterer can be used to erect a huge barrier against switching suppliers. To match the level of customization offered by a manufacturer with the customers' needs becomes a major success factor. Additionally, mass customization practice shows that consumers are frequently willing to pay a price premium for customization to reflect the increment of utility they gain from a product that better fits to their needs than the best standard product attainable. Indicate how this method of strategic analysis fundamentally differs from Porter’s traditional model. Porter’s traditional “Five Forces” Model...