Hardware accessories industry development

 The following are the factors that restrict the development of hardware accessories [1] industry

1, leading effect.

Under certain circumstances, the development of the whole enterprise will inevitably lead to the development of the enterprise as a result of a particular technology or brand leader in the same industry. For example, hardware locks, hardware locks in the hardware market may be everywhere, there is no brand brand, in short, once a hardware lock dragons and fishes jumbled together. The company has an advanced patented technology, such as Shenzhen Chong Hing metal products factory has invented a new product, with this kind of new products on the market and achieved good the economic benefits of the leading products will promote the development of the whole enterprise hardware lock, and the same industry priority success has taken a big step.

2, locking effect.

When the user from one kind of brand technology, transfer to another kind of brand technology, will certainly pay a certain cost for this kind of transfer. When the transfer costs are too high, the user is discouraged, the user is in a locked state. When a high-tech product development success, after winning the market, it is easy to grasp the future of the market, in the fierce competition in the possession of the initiative. This is the same in the hardware market, the first investment, because the hardware cost is too high, will be discouraged by the users, but once the hardware products are approved, then the hardware products will lead the industry to promote the development of the industry.

3, Matthew effect

This is a winner of the times, the rich have more resources, money, honor and status, but the poor become nothing. The poor, the rich richer. A person who has many friends, with frequent exchanges to make more friends, and the lack of friends, often all alone; the reputation of the people, there will be more publicity, therefore, will be more famous.

4, gear effect.

Big business is not development, a development will be far behind the small business. Gear effect also applies in the hardware market, some large enterprises in resources, money, contacts, information and other aspects have the advantage, once developed, will step forward; and the small enterprises because of funding, personnel, information and other resources limited development is relatively slow, or even stop. Such large enterprises are more and more beyond the small business of the same industry, and gradually become the dominant industry.

5, aggregation effect.

The more outstanding performance of those companies, capital adequacy of the company, the bank would like to be qualified to it, which is the accumulation of funds effect. Under the financial crisis, some large hardware enterprises outstanding achievement, once the funding problems, whether through a bank or other company's shares will be appropriate to alleviate the current difficulties, will be easier to gather funds; some small hardware enterprises once encountered financial problems is almost can't do anything. In the investment of $19 billion 500 million in Rio Tinto, the highest record of foreign investment in the country is again in the aluminum refresh..

6, scale effect.

When the enterprise production reached or exceeded the break even point, that is, the formation of scale efficiency. Because there is a cost of any production, generally including fixed costs and variable costs. To achieve profitability, we must make the sales income is greater than the cost of production, but the fixed cost is the same, so the production of the more fixed cost allocation to a single product in less [2] and more profit.