Shimano Inc | Daily Markets
by Jacob Wolinsky
Another great post by guest blogger Sandesh Trivedi of sandeshtrivedi2.blogspot.com . Sandesh can be reached at sandeshtrivedi@gmail.com
Shimano Inc SHMDF.PK
Shimano Inc. is a leading producer of bicycle parts and fishing equipment. It is the world’s largest manufacturer of bicycle components such as gear wheels, derailleurs, and brakes, with a 70 percent market share. Bicycle components make up about 78% of sales, while fishing tackle makes up the rest of sales. Operating margin has averaged about 14% for the past eight years.

For a long time the company has held a dominant market share in components for derailleur- equipped bikes (a derailleur is the device to move a bicycle chain from one exposed gear to another). Shimano began making its famous derailleurs in 1956. Also called external speed changers, derailleurs were the mechanisms that moved the bicycle chain from gear to gear on ten-speed bikes and the like. The next year, the company began producing an internal, three-speed gearing mechanism that was enclosed in the hub of the rear wheel. This internal speed changer was introduced to the U.S. market a few years later and soon became the standard for three-speed bikes. In 1960, Shimano installed a cold forge that enabled stronger products to be made in a more efficient fashion. Manufactures like Shimano, based in Sakai, Japan near Osaka ship bikes and components to distributors. Overseas sales account for 85% of the total sales. The parts supplied by Shimano’s Bicycle Components Division include shifting (or transmission) systems, brakes, front gears, and hubs.
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