Eight advantages of the hardware industry cluster model

In the eyes of customers, the industrial cluster provides them with a platform to facilitate shopping. In the view of enterprises, everyone in the industrial cluster is faced with a large number of raw material suppliers and equipment suppliers, who can purchase various inputs at lower cost, higher requirements and faster speed, including Social services and various human resources. This kind of proximity and choice of purchase is a competitive relationship. It has both vertical integration (inside) efficiency and a wider range of autonomy and selectivity. Overall, the advantages of industrial clusters are very obvious.

As an industrial organization form, industrial clusters avoid the problems of excessive management costs and agency costs caused by “integration” and large groups, and avoid the problem of excessive transaction costs and high logistics costs caused by long-distance transactions. .

1. It is conducive to the deep division of labor between enterprises, and the deep division of labor is conducive to specialization and precision, which is conducive to improving efficiency and conducive to technological innovation.

In an industrial cluster, the business model of a company is generally “core capability plus outsourcing”. That is to say, each enterprise will concentrate all its funds and all its energies on the point that it has the most advantage. Make this the cheapest, best, and even the cheapest and best in the world. This is the core competence of the company. Other work, including the production of other parts, product design, sales and other related businesses, is outsourced to other professional companies. In this way, each product is a collection of core competencies of many companies.

Years of development has made Zhongshan's hardware supporting enterprises quite perfect, as small as a silk nail, can be found in the north of Zhongshan, Hanxin mold rapid prototyping provides a convenient service for the rapid transformation of the company's products; the world's largest Stanley hardware The tool company is located in the northern part of Zhongshan, laying the foundation for the prosperity of the hardware industry. According to relevant sources, a very common lock has more than 40 parts and has 123 processes. These can be completed on the spot in the northern part of Zhongshan. In addition, there are more than 360 packaging and printing companies in Zhongshan. An important part of the smooth factory, the cluster's internal industry is well-equipped. Fourth, government public service is in place. Xiaolan Town has taken measures such as discounts on goods and related taxes, unified export tax and other measures, as well as measures to help capture overseas market information and provide human resources services for enterprises, and become one of the guarantees for the base to become stronger and bigger.

2, industrial clusters help to save the cost of transactions
In the industrial cluster, the company is faced with the nearest and many raw material suppliers and equipment suppliers, so it can shop around and buy various inputs at a lower cost, higher requirements and faster speed. , including raw materials, components, machinery and equipment, various services, and various human resources.

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

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

Second, because there are many professional markets, it is convenient for companies to purchase raw materials and accessories, and the price is very low.

Third, these professional markets are both product distribution centers and information distribution centers. At the same time that people of the same kind at home and abroad are concentrated here, relevant information at home and abroad is also concentrated here. With this information, companies in the cluster can improve the variety of colors in a timely manner and quickly adjust the product structure. Companies can continue to reduce costs by providing external power and pressure.

4. Industrial clusters are more likely to stimulate competition awareness
In an industrial cluster, the same kind of products are not produced by one company, but by a large number of enterprises, and these companies naturally compete with each other. This kind of competition is face-to-face, and many similar companies are even door-to-door, household-to-household.

5. Industrial clusters are conducive to attract investment
After studying the industrial development model in many parts of the country, we found that industrial clusters are the best investment environment. Industrial clusters themselves represent markets and business opportunities. Industrial clusters are a good project incubator and business incubator. Some visionary people can constantly find a blank space for investment here. It is the investment in these blank areas that has made the cluster's industrial supporting system and service system more and more perfect, and the industrial chain has been continuously extended.

In addition, starting a business within an industrial cluster not only has low entry costs, but also has low exit costs. Since there are hundreds or thousands of similar enterprises, some companies fail because of poor management, or they need to sell because of industrial restructuring, including selling some assets, it is easy to find buyers, because many high-quality enterprises urgently need to expand, Mergers and acquisitions of local companies are the best way to expand their costs. Not only is it conducive to attracting external direct investment, but it is also conducive to the financing of enterprises within the cluster in domestic and foreign capital markets.

6. Industrial clusters are beneficial to governance "credit deficiency"

The lack of credit is a major chronic disease in China's current market economy. According to media reports, “credit shortage” has caused invalid 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 per year. In the case of a serious lack of credit, regional industrial clusters are effective measures to reduce transaction costs and avoid loss of credit.

Regional industries are concentrated. Many enterprises in the same industry and related industries are concentrated in the same city. They know each other well. Whether they are in arrears, fraud or debt evasion, they are not locals, but they are local people. Once someone has a pit person's behavior, this information will be immediately spread in the local area, and it is difficult for him to stand on the ground.

Moreover, since the buyer and the seller are very close, the buyer does not pay for the product, the seller sells the fake, and the cost of debt collection and return is very low. You can go to your home every day to discuss, you don't have to fly, you don't have to live in a hotel, you can spend 10 minutes, 8 minutes to discuss.

In the industrial cluster, the bosses of each enterprise are familiar with each other, and some are partners who grew up together. Long-term business contacts have further enhanced each other's friendship and trust. Because of geography, kinship and business relationship, people have formed a friendship network of mutual help and mutual trust. This kind of friendship network is based on it. Under such circumstances, there is generally no such phenomenon as fraud, fraud, and malicious default.

7. Industrial clusters can promote enterprise innovation and make a certain region become a learning organization.
In the location of the industrial cluster, since domestic and foreign users, distributors and suppliers are gathered here, all the latest market information, product information and technical information are 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 for innovative ideas to collide. In addition, the competition within the cluster and the communication between the employees of the enterprise also make the desire of the enterprise to be more intense, and at the same time, the cost of learning is reduced, and the learning effect is more likely to occur.

Here, the leading companies in the cluster are also very effective. For example, in Zhongshan City, Vantage, Sakura, Changqing, Guli, Huafeng, St. Allen and other well-known enterprises and brands have taken great influence, and they have become the model for other companies to learn nearby, which has driven the innovation of the local industry.

8. Industrial clusters are conducive to creating regional brands
In a fiercely competitive market economy society, not only products need brands, companies need brands, they are a city, and a county needs brands. The brand of the product indicates the unique performance and quality of the product, and the regional brand indicates the industrial advantage and product characteristics of the region.

Just as brands with more influential products can get more consumers, brands with more influence can attract more dealers, suppliers, investors and talents. At present, China's major hardware industry bases have promoted the prosperity of upstream and downstream industries to varying degrees, which is very beneficial to the overall development of the regional economy.

Industrial clusters are conducive to the creation of regional brands. When it comes to home appliances, people think of Shunde; when it comes to lighters, people think of Wenzhou; when it comes to tie, people think of Zhangzhou; when it comes to socks, people think of Zhuji Datang; when it comes to textiles, people will Think of Shaoxing, Zhejiang; when it comes to hardware, people think of Yongkang.

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