Domestic hardware industry group model advantage
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This kind of proximity and choice of purchase is a competitive relationship. It has both vertical integration efficiency and a wider range of autonomy and selectivity. Overall, the advantages of the industrial group are very obvious.
As an industrial organization form, the industrial group avoids the problems of excessive management costs and agency costs caused by “integration†and large groups, and avoids the problem of excessive transaction costs and high logistics costs caused by long-distance transactions. .
Conducive to the deep division of labor between enterprises
The deep division of labor is conducive to specialization and precision, which is conducive to improving efficiency and conducive to technological innovation.
Within the industrial group, the business model of the enterprise is generally “core capability plus outsourcingâ€. 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.
Taking Zhongshan in Guangdong as an example, the development of Zhongshan has made Zhongshan's hardware supporting enterprises quite perfect. It can be found in the northern part of Zhongshan. Rapid prototyping provides convenient services for the rapid transformation of products.
The world's largest Stanley hardware tools 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 procedures, which can be completed on the spot in the northern part of Zhongshan.
In addition, there are more than 360 packaging and printing enterprises in Zhongshan, which is also an important part of the smooth delivery of products, and the internal industry of the group is well-equipped.
Conducive to saving transaction costs
Within the industrial group, 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.
Conducive to the mutual advancement of industry and professional market
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 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 within the group 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.
More stimulating competition
Within the industrial group, the same kind of products are not produced by one enterprise, but by a large number of enterprises, and these enterprises naturally form competition with each other. This kind of competition is face-to-face, and many similar companies are even door-to-door, household-to-household.
Conducive to attracting investment
After studying the industrial development model in many parts of the country, we found that the industrial group is the best investment environment. The industrial group itself represents the market and business opportunities. The industrial group is 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 group's industrial supporting system and service system more and more perfect, and the industrial chain has been continuously extended.