Six major effects determine the rise and fall of the 2011 hardware market

Six major effects determine the rise and fall of the 2011 hardware market In the 30 years of reform and opening up, due to the scale effect, it has made remarkable achievements and made a lot of contributions to the society. Guangdong's hardware industry has developed rapidly in recent years and has formed tool hardware, daily hardware, electromechanical hardware, stainless steel hardware, and abrasive abrasive hardware. Industry categories, and formed a large number of unique industrial bases, such as Zhongshan Siu Lam locks, Yangjiang knives and so on. Zhongshan Siu Lam has formed an industry cluster with locks and gas appliances as its leader, upstream and downstream products and various accessories. The Hardware City, including Guangdong Hardware City and Guangdong Mechanical and Electrical Hardware City, formed the center of trade activities, gathered together, and had a strong scale effect, which provided a strong backing for the rapid development of Guangdong. Hardware industry expert Luo Baihui believes that the marketing and development of hardware companies need to take into account the scale effect. For example, the economies of scale formed in the Pearl River Delta region and the resulting benefits are obvious to all. Some large hardware companies should pay more attention to the scale effect. Value, this is the only way for the development of hardware companies.

The marketing and development of hardware companies need to take into account the scale effect. For example, the economies of scale formed in the Pearl River Delta region and the resulting benefits are obvious to all. Some large hardware companies should pay more attention to the value brought by economies of scale. This is also a hardware company. The only road to development.

1. The leading effect is one step ahead and leads one step by step. Step by step, first, this effect applies to the hardware market, in a specific environment, because a particular technology or brand leading other companies in the same industry will inevitably drive the development of the entire enterprise. For example, hardware locks, hardware locks can be found everywhere in the hardware market, branded, unbranded, in short, a mixed bag, once a hardware lock company has an advanced patented technology, invented a new product, with This kind of new product puts on the market and obtains the good economic efficiency, this kind of leading product will inevitably drive the hardware lock enterprise's overall development, and has given a great step to the success that the industry produces first.

2. Lock-in effect When a user moves from one brand of technology to another, it will certainly pay a certain cost for this transfer. When the transfer cost is too high and users lose their feet, the user is locked. When a high-tech product is successfully developed and wins the market, it can easily grasp the future market and take the initiative in fierce competition. This is also applicable to the hardware market, first investment, because the hardware cost is too high, will inevitably be daunted by the user, but once this hardware product is recognized, then this hardware product must lead the industry and promote the development of the industry.

3. Matthew Effect This is an era where winners take all-or-nothing. Rich people enjoy more resources—money, honor, and status. The poor have nothing. The poorer the poor, the richer the richer. People with many friends will make frequent contacts to make more friends, while those who lack friends will always be alone; those who have a reputation will have more opportunities to appear. Therefore, they will become more famous.

4. Gear-effects Large companies do not develop, and once they are developed, small businesses are left behind. The gear effect is also applicable to the hardware market. Some large companies have advantages in terms of resources, money, contacts, information, etc. Once they are developed, they will take a big step. Small companies will be affected by resources such as funds, talent, and information. Limited development is slow, even halting. Such large companies have increasingly surpassed small businesses in the industry and have gradually become industry leaders.

5. The more agglomeration effects are those companies with outstanding performance and sufficient funds, the more banks want to give it to them, which is the effect of capital accumulation. Under the financial crisis, some large-scale hardware companies have achieved outstanding performance. Once a financial problem arises, no matter whether it is through the bank or other companies' shares, it will correspondingly alleviate the current predicament, and will inevitably make it easier to gather funds. Once some small hardware companies encounter financial problems It is almost impossible to move. Chinalco’s $19.5 billion investment in Rio Tinto and the highest record of overseas investment by Chinese companies were again refreshed by Chinalco. Although Chinalco purchased a 12% stake in Rio Tinto in the United States on February 1, 2008 for US$14.05 billion, it has become the biggest loss of overseas investment by Chinese companies so far. Apart from other complicated factors, no one can deny that Chinalco has taken a fancy to the fact that Rio Tinto is one of the world’s three largest iron ore giants. The famous students are already out. Chinalco’s risk of losing everything is solemn. Shares Rio Tinto. The better the performance, the easier it will be to congregate funds.

6. Scale effect When the enterprise's production reaches or exceeds the break-even point, it will form economies of scale. Because any production is costful, it generally includes fixed costs and variable costs. To achieve profitability, the sales revenue must be greater than the production cost, and the fixed costs among them are constant, so the more production, the less the fixed costs allocated to a single product and the more profitable.