Shimano Case Study

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Compared to EU market, start from US is much better, because EU market had history that established company were already there with high quality parts.

Shimano has high quality and high level customer oriented culture, so they could success US market with good reputation.

1970’s entering EU market.

Since EU market was much tougher proportion than US market because of bicycle culture is deeply entrenched,

Shimano decided to take strategy to go into the bicycle racing world first. Which aim it to gain high brand image through the race.

Then they could success to become the sponsor of the Belgian Team.

This strategy succeed, because their win increase Shimano’s reputation and brand image. Sponsored this kind of strong team gave Shimano known as a high quality brand.

Shimano finally success in the EU market because of Mountain bike boom in EU, they could adjust EU market from US as a good bicycle parts brand.

Shimano products points

High quality with low price: Customer who are not care too much about bicycle, they choose popular brand such as Trek, Giant,

Shimano supply parts in that area.

And for experts, Shimano could provide integrated packages with high quality. They had brand image with race, so even experts, they can recognize Shimano as top brand.

About entering Mountain bike Market, In 1980s, Shimano enter the Mountain bike market, from US to all over the world. Shimano adapted whole technology in early stage.

They could make durable, resistant to mud parts rapidly and then growth ahead of its competitor. So they could dominant the market.

The technologies acquired through the development of mountain bike parts were applied for Dura Ace and they just turned out to be useful for mountain bike and they could use sales network which used dealer caravan. So, this strategy really works because they make good use of their skill which gained from race technology. This is the synergy we can see.

About golf market, synergies are expected to applying the Shimano technologies. Golf is outdoor sports same as fishing and cycling. Plus, they can use carbon technologies in the golf club and shaft.

Golf market is larger compare to bicycle market, around 3 times compare to sports bicycle market. People who are playing golf are declining but still large market. Plus there are huge players like Mizuno and Bridgestone, Dunlop. But again, population who play it are almost double compare to cycling population.Even beginner set of clubs cost 100.000 Yen, so it’s expensive and customer check product well, it means quality is point for this market.

So, market size is huge and synergy are many, easy to join the market, so the strategy to enter golf market is appropriate way. Problem is market decline and huge competitor. But even market decline, market still huge and recently new generation who were previously unenthusiastic about golf also interested in golf. So, there are huge potential and opportunity are there in the golf market.