Hardware industry cluster analysis of advantages

As an industrial organization form, industrial clusters not only avoid the problems of high management costs and agency costs caused by “integration” and large groups, but also avoid the problems of high transaction costs and logistics costs caused by long-distance transactions. .

From the customer's point of view, hardware industry clusters provide them with a convenient platform to shop around. In the view of hardware companies, everyone in the industrial cluster is facing the nearest, many hardware raw material suppliers and equipment suppliers, and can purchase various input products at a lower cost, higher demand, and faster speed. Including various social services and various human resources. This kind of proximity and preference purchase is a kind of competitive matching relationship. It has both vertical integration (internal allocation) efficiency, and more extensive autonomy and selectivity. In general, the hardware industry cluster has obvious advantages.

1. It is conducive to the in-depth division of labor among hardware companies, and the deep division of labor is conducive to specialization and refinement, which is conducive to improving efficiency and technological innovation.

In the hardware industry cluster, the business model of the company is generally "core capabilities plus outsourcing." That is to say, each hardware company will concentrate all its funds and all its energy on the point that it has the most advantage. This is made the cheapest, best, and even the cheapest and best in the world. This is the core capability of the company. Other work, including the production of other parts and components, product design, and sales, is outsourced to other professional companies. In this way, each hardware product is a summary of the core capabilities of many companies.

2. The hardware industry cluster helps to save the transaction costs. In the industrial cluster, the company is facing the nearest, many raw material suppliers, equipment suppliers, and therefore can shop around, can lower the cost, and higher Requires faster purchase of various inputs, including raw materials, spare parts, machinery and equipment, various services, and various human resources.

3. Industry clusters facilitate the mutual promotion of industrial and professional markets Industrial clusters are conducive to the formation of professional markets, and the formation of professional hardware markets will further promote the development of industrial clusters.

First, because there is a professional market that has a great influence at home and abroad, it is beneficial to the sales of products of enterprises.

Second, because of the large number of professional markets, it is easier for companies to purchase raw materials and accessories, and the prices are very low.

Third, these professional markets are both product distribution centers and information distribution centers. While concentrating the same domestic and foreign products here, people have concentrated the relevant information at home and abroad here. With this information, companies in the cluster can improve the variety of designs in a timely manner and quickly adjust the product structure. Hardware companies can continue to reduce costs and provide external power and pressure.

4. Industrial clusters are more likely to stimulate the sense of competition Within the industry cluster, products of the same kind are not produced by one enterprise but produced by many enterprises. These enterprises naturally compete with each other. This kind of competition is face to face. Many similar companies are even door-to-door and household-to-house.

5. Industrial clusters are conducive to investment promotion After studying the industrial development model in many parts of the country, industrial clusters are the best investment environment. Industrial clusters themselves represent the market and business opportunities. It is understood that industrial clusters are a good project incubator and business incubator. Some visionary people can continuously find investment blanks here. It is the investment in these blank areas that makes the industrial supporting system and service system of the cluster increasingly perfect, and the industrial chain is continuously extended.

In addition, starting a business within an industrial cluster not only has low cost of entry, but also has a low exit cost. Since there are hundreds or thousands of similar hardware companies, individual companies fail due to poor management, or need to be sold due to industrial restructuring, including the sale of some assets, it is easy to find buyers because many high-quality companies urgently need to expand. Mergers and acquisitions of local companies are the best way for them to expand at a low cost. Not only is it conducive to attracting external direct investment, but it is also conducive to the internal and external capital markets of companies within the cluster.

6, industrial clusters conducive to governance "credit deficiency"

The lack of credit is a chronic problem in China's current market economy. According to media reports, the “credit deficiency” caused the ineffective costs in market transactions to account for 10% to 20% of China’s GDP, and direct and indirect economic losses amounted to 585.5 billion yuan each year. In the case of a serious lack of credit, regional industrial clusters are effective measures to reduce transaction costs and avoid loss of lack of trust.

In the industrial cluster, the bosses of various companies are already familiar with each other, and some are partners who grew up together. Long-term business contacts have further enhanced mutual friendship and trust. Because of locality, kinship, and business relationships, people form friendship networks that help each other and trust each other. Trading activities among enterprises are This friendship network is based on that. Under such circumstances, frauds such as fraud, fraud, malicious defaults, etc. will generally not occur between enterprises.

7. Industrial clusters can promote enterprise innovation and make a certain region become a learning organization in the location of industrial clusters. As domestic and foreign users, distributors, and suppliers are brought together, all kinds of the latest hardware market information, hardware product information and technical information Also gathered here, and these will be the source of innovation. In addition, the exchange of various information within the cluster has become more frequent, and there are more opportunities to promote innovative ideas. In addition, the competition within the cluster and the exchanges between enterprise personnel also make the company's desire to learn more intense, but also to reduce the cost of learning, and more likely to produce learning effects. In addition, the leading role of the leading enterprises in the cluster is also very obvious.

8. Industrial clusters are favorable for creating regional brands. In the fiercely competitive market economy and society, not only hardware products need brands but also hardware companies need brands. It is a city and a county also needs a brand. The brand of the product indicates the unique performance and quality of the product, while the regional brand indicates the industrial advantages and product characteristics of the region.

Just as a brand's influential product can gain more consumers, the region with a greater brand influence can attract more dealerships, suppliers, investors, and talents. At present, China's major hardware product industrial bases have, to varying degrees, promoted the prosperity of the upstream and downstream industries and are very beneficial to the overall development of the regional economy.