Final answer:
Mass customization is the ability to create custom products or services on-demand. It combines mass production with customization, giving customers unique options.
Step-by-step explanation:
The ability to create custom product or services on-demand is referred to as mass customization. It is a business strategy that combines the benefits of mass production with the uniqueness of customization. Companies use advanced technologies and flexible manufacturing systems to offer personalized products or services to individual customers.
For example, Nike allows customers to customize the color, style, and materials of their shoes using their Nike By You program. This enables customers to have a unique product that suits their preferences and needs.
Mass customization provides a competitive advantage for companies by meeting the individual needs and preferences of customers without sacrificing the efficiency and cost savings associated with mass production.