Intelligent production-competition strategies for producing enterprises.

Producing enterprises in Europe were in a situation marked by a strong growth in competition and individualization of the customer's requests increasing at the same time. In order to maintain the market, many enterprises with mass production are challenged to link two strategic options: simultaneous improvements in differentiation and cost structures. Consequently, controversial measures would be required. Attempts to find a solution in the context of conventional business models showed the following characteristics: a strong increase in information and communication, an increase in the product type and number of variants, a reduction in manufacturing lot size, unstable, frequently changing production processes and extensive storekeeping at several stock levels (‘complexity costs’). Enterprises which introduce the mass production for the individual customer try to combine the advantages of mass production with those of individual manufacture. Intelligent competition strategies based upon concepts of the ‘Digital Factory’ approach aim to overcome the traditional duality of ‘cost leadership’ or ‘differentiation strategy’ and to make both efficiency and effectiveness possible. [ABSTRACT FROM AUTHOR]

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