The Japanese company Shimano has world dominance in the production of bicycle components.
Broadly speaking, the company is a Japanese multinational manufacturer of cycling components, fishing tackle and rowing equipment.
Until before 2005, it produced golf supplies and, until 2008, snowboard equipment.
Headquartered in Sakai, Japan, the company has manufacturing plants in Kunshan, China; Malaysia; and Singapore.
Above all, the company has 70% of the global market share for bicycle components that cost more than $ 500.
With the massive increase in demand for bicycles over the last 18 months, both Shimano and SRAM, its main competitor, have shown that they simply do not have enough production capacity to supply their customers.
As a result, the shortage of bicycles and bicycle components is commonplace, according to the Appleseed Fund. Had there been a more fragmented industry, the extent to which shortages have occurred could have been much more limited.
As a result of decades of lax antitrust enforcement, business concentration has increased in virtually every industry, including airlines, wireless telecommunications services, cable television, hospitals, health insurance, social media, semiconductors and others. In his view, the level of business concentration in specific industries has contributed to the current shortage.