Mass customization. Development of competitive strategies by applying the concept of Absorptive Capacity

Table of Contents

1 Introduction

1.1 Relevance and topicality

1.2 Problem statement and research objective

1.3 Outline of this paper

2 Mass customization

2.1 Definition and concept

2.2 Do customers want individual products?

2.3 Economies of mass customization

2.4 Classification of mass customization strategies

3 The case of Puma AG

3.1 Industry development

3.2 Company information

3.3 The ‘Mongolian Shoe BBQ’ project

3.4 State of project

4 Framework for defining mass customization strategies

4.1 Theoretical approach

4.2 Concept of absorptive capacity

4.3 Conceptual development of mass customization strategies

4.3.1 Acquisition

4.3.2 Assimilation

4.3.3 Transformation

4.3.4 Exploitation

4.4 Benefits and potential of this approach

5 Practical Application

5.1 Development phase: Mass customization as a branding tool

5.1.1 Implementation

5.1.2 Potential benefits and challenges

5.2 Research phase: Mass customization as a customer relationship instrument

5.2.1 Implementation

5.2.2 Potential benefits and challenges

5.3 Customer integration phase: Mass customization as an innovation platform

5.3.1 Implementation

5.3.2 Potential benefits and challenges

5.4 Mass customization as a sustainable business model

5.4.1 Implementation

5.4.2 Potential benefits and challenges

6 Conclusion

6.1 Summary and management implication

6.2 Limitations of this paper

Research Objective and Scope

This thesis aims to develop strategic options for Puma AG regarding its mass customization initiative, with the primary objective of evolving the project from a pilot-status marketing tool into a sustainable, strategically integrated component of the company's business model by applying the framework of absorptive capacity.

• Strategic alignment of mass customization within the corporate structure.
• Application of the concept of "absorptive capacity" to leverage customer knowledge.
• Evaluation of mass customization phases (Development, Research, Integration, Sustainable Model).
• Comparative analysis of industry practices to derive actionable management recommendations.

Excerpt from the Book

Summary of Chapters

1 Introduction: Discusses the rapid change in the business environment, the rise of mass customization as a buzzword, and defines the objective to integrate Puma's pilot project into a strategic plan.

2 Mass customization: Provides a theoretical overview of the term, its potential for competitive advantage, and reviews existing classification frameworks in the literature.

3 The case of Puma AG: Analyzes the sportswear industry, profiles Puma's company development, and details the 'Mongolian Shoe BBQ' project, including its current pilot status and SWOT analysis.

4 Framework for defining mass customization strategies: Introduces the concept of 'absorptive capacity' and develops a four-level theoretical model for implementing mass customization strategies.

5 Practical Application: Applies the theoretical framework to Puma, discussing implementation, benefits, and challenges for each of the four strategic stages: Development, Research, Customer Integration, and Sustainable Business Model.

6 Conclusion: Summarizes the key findings, outlines management implications for Puma, and acknowledges the limitations of the research.

Keywords

Mass Customization, Absorptive Capacity, Puma AG, Mongolian Shoe BBQ, Competitive Strategy, Sportlifestyle, Customer Integration, Customer Knowledge, Strategic Management, Product Innovation, Customer Relationship Management, CRM, Business Model, Brand Management, Market Research

Frequently Asked Questions

What is the core focus of this thesis?

The work focuses on how Puma AG can transform its mass customization pilot project, the 'Mongolian Shoe BBQ', from a mere marketing gimmick into a strategically valuable business model.

Which theoretical framework does the author apply?

The author applies the concept of 'absorptive capacity', which categorizes knowledge management into four subprocesses: acquisition, assimilation, transformation, and exploitation.

Why is mass customization often perceived as a "buzzword"?

It is often used as a marketing tool to increase brand visibility rather than being deeply integrated into a firm's core manufacturing or strategic planning processes.

What are the four phases of mass customization defined in the framework?

The framework defines the Development phase, the Research phase, the Customer Integration phase, and the Sustainable Business Model phase.

What role do 'lead customers' play in the model?

Lead customers are identified as key drivers for innovation, helping the firm discover new trends and develop more customer-centric products during the integration phase.

How does Puma's approach differ from competitors like Adidas?

While Adidas focuses on custom fit and performance through 'mi adidas', Puma emphasizes creativity, design individuality, and the 'event character' of the in-store customization process.

What does the SWOT analysis reveal about the current MBBQ project?

The analysis shows that while the program is strong in branding and design variety, it suffers from lack of strategic integration, long delivery times, and low margins.

Why does the author suggest moving beyond the 'Development phase'?

To avoid the fate of projects like 'Levi's Original Spin', which remained mere marketing gimmicks and were eventually closed due to a lack of long-term strategic viability.