Case study on Weber Model Optical Instrument Manufacturing Industry

What can you observe from the icons?

Most brands are Japanese brands Large market shares They all have branches in HK So anything to do with Weber model?

Illustration: Nikon Cooperation Head office located in Tokyo, Japan Production 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 location Why the head office and some components manufacturing lines are in Japan? 1. History 2. Agglomeration economies 3. R&D

LEAST COST LOCATION Weber Model

Least Cost Location Heart of Weber model Using the spatial differences in transport costs of localized materials and products Labor cost Agglomerate economies

AGGLOMERATION ECONOMIES Weber Model

Agglomeration economies Definition What to do with Nikon and other camera manufacturers? 1. Bulk purchase of raw materials with other firms 2. Original Equipment Manufacturer (OEM) (Sony provides CMOS/CCD to Nikon)

Q&A

Thank You Very Much!