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!