Hardware industry group model advantages

As an industrial organization form, industrial groups 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 high logistics costs caused by long-distance transactions.

In the eyes of customers, the industrial groups provide them with a convenient platform to shop around. In the eyes of enterprises, all the people in the industrial community are facing the nearest, many raw material suppliers and equipment suppliers, and they can purchase various input products at lower cost, higher demand, and faster speed, including each Kind of 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. Overall, the advantages of industrial groups are very obvious.

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

Within the industrial group, the business model of the company is generally the core capability plus outsourcing. That is, each company will focus all its funds and all its energy on its own advantages, making it 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 product is a summary of the core capabilities of many companies.

Years of development has made Zhongshan's hardware support companies perfect. It can be found in the north of Zhongshan City. The rapid prototyping of Hanxin Mold provides convenient services for the rapid transformation of the company's products; the world's largest Stanley hardware The tool company is located in the northern region of Zhongshan and lays 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 in the north of Zhongshan, and there are more than 360 packaging and printing companies in Zhongshan. An important part of the smooth delivery, the internal industry within the group complete. Fourth, government service personnel are in place. Xiaolan Town has taken measures such as discounting the purchase price of related industries, unifying import export taxation, helping to capture information from overseas markets, and providing human resources services for enterprises, becoming one of the guarantees for the base to become stronger and bigger.

2. Industry groups help to save transaction costs. Within the industrial group, companies face the nearest, many raw material suppliers and equipment suppliers, so they can shop around, with lower costs and higher requirements. , Accelerate the purchase of various inputs, including raw materials, spare parts, machinery and equipment, various services, and various human resources.

3. Industry groups benefit from mutual promotion of industry and professional markets Industrial groups are conducive to the formation of professional markets, and the formation of professional markets will further promote the development of industrial groups.

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 group can timely improve the variety and quickly adjust the product structure. Companies can continue to reduce costs and provide external motivation and pressure.

4. The industrial group is more likely to stimulate the sense of competition Within the industrial group, the same kind of product is not produced by one enterprise but produced by many enterprises. These enterprises will 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. Industry groups favor investment promotion After studying the industrial development models in many parts of the country, we have found that industrial groups are the best investment environment. Industrial groups themselves represent the market and business opportunities. Industry groups 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 industry's supporting systems and service systems increasingly perfect, and the industrial chain continues to prolong.

In addition, starting a business within an industrial group not only has low cost of entry, but also has a low exit cost. Because hundreds of companies or thousands of companies in the same category, individual companies fail due to poor management, or need to sell due to industrial restructuring, including the sale of some assets, it is easy to find buyers, because there are many high-quality enterprises in urgent need of expansion. 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 beneficial to the internal and external capital markets of companies within the group.

6. The lack of credit for the lack of credit for industrial groups is a chronic problem in China's current market economy. According to media reports, the cost of credit caused by credit deficiencies accounts for 10% to 20% of China's GDP, and direct and indirect economic losses amount to 585.5 billion yuan each year. In the absence of serious credit, regional industrial groups are effective measures to reduce transaction costs and avoid loss of lack of trust.

Regional industries are concentrated, and many enterprises in the same industry and related industries are concentrated in the same city. They know each other well, and regardless of default, fraud, or fleeing from debt, they are not outsiders but are local people. Once a person has acted as a pit person, such information will be immediately transmitted in the local area, and it is difficult for him to establish a foothold in the local area.

Moreover, because buyers and sellers are very close together, buyers take away products without paying, sellers sell counterfeit goods, and the cost of debt collection and return is low. You can repudiate your account. I can go to your home every day to discuss. You don't need to fly or stay at the hotel. You can ask for it in ten minutes or eight minutes.

Within the industrial group, 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 groups can promote enterprise innovation, make a region become a learning organization in the location of industrial groups, because domestic and foreign users, distributors, suppliers are gathered here, all kinds of the latest market information, product information and technical information is also This collection, and these will be the source of innovation. In addition, the exchange of various kinds of information within the group becomes more frequent, and there are more opportunities for the idea of ​​innovation to collide. In addition, the competition within the group and the communication between the company's personnel also make the company's desire to learn more intense, but also reduces the cost of learning, and more likely to produce learning effects.

Here, the leading role of leading enterprises within the group is also very obvious. For example, the leading companies and brands such as Vantage, Sakura, Evergreen, Guli, Huafeng, St. Arlen, etc. in Zhongshan City have taken a huge role and become the model for other companies to learn from the region, stimulating the innovation of the entire industry.

8. Industrial groups are favorable to the creation of regional brands. In a fiercely competitive market economy and society, not only products need brands but also companies need brands. They are 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.

Industrial groups help create regional brands. When people mention home appliances, people think of Shunde. When people talk about lighters, they think of Wenzhou; when they mention a tie, people think of Luzhou; when they talk about socks, people think of Zhuji Datang; when it comes to textiles, people talk about textiles. Think of Shaoxing, Zhejiang Province; when it comes to hardware, people think of Yongkang.