Management of Technology and Innovation in Japan

32 A. Takeishi and Y. Aoshima
The Bicycle Components Division makes up 68% of sales, and the Fishing
Tackle Division accounts for approximately 30%. In addition to these, Shimano
produces differential gears for automobiles, snowboards and, more recently, golf
clubs. The common theme throughout Shimano’s business is to provide leisure
equipment used for outdoor activities based on cold-forged technology.
On a consolidated base, overseas sales accounted for 75% and 90% of bicycle
parts sales in 2001. The overseas production ratio was 33%. Shimano has a main
overseas production base in Singapore, and other factories in Malaysia, Indonesia,
China, and Italy. Sales offices are located throughout the world in America,
Europe and Asia. Bicycle parts take many paths in their outflow, but the final distribution
is 51% in Europe, 26% in North America, 14% in Japan, and the remainder
in other areas.
Shimano’s Position in Bicycle Parts – “The Intel of the Bicycle
Industry”
The parts supplied by Shimano’s Bicycle Components Division include shifting
(or transmission) systems, brakes, front gears, and hubs. (Figure 3). In the bicycle
component industry most companies traditionally tend to specialize in one particular
part. Shimano, in contrast, handles a comparatively large variety of parts. Although
the scope of Shimano’s technologies well matches that of bicycle assemblers,
it has never entered the finished product business.
Fig. 3. Major parts of a bicycle (conventional road bike)