News

The Following Are The Factors Restricting The Development Of Hardware Accessories Industry

The following are the factors restricting the development of hardware accessories industry

1, leading effect.

In a specific environment, because a particular technology or brand ahead of other enterprises in the same industry, will inevitably lead to the development of the entire enterprise. 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 the invention of a new product, with the new products on the market and obtain good economic benefits, the leading the 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 users transfer from one brand technology to another brand, they will pay a certain cost for this transfer. When the transfer cost is too high and the user is discouraged, the user is locked. When a high-tech product develops successfully and wins the market, it is easy to grasp the future market and take the initiative in the fierce competition. 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

It's a winner taking all era, where the rich have more resources - money, honor and status, and the poor have 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.

Large enterprises do not develop, but the development of small enterprises will be far behind. 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 enterprises in the same industry, and gradually become the leader of the industry.

5, aggregation effect.

The more the companies with outstanding performance and abundant funds, the more the banks want to give the premium to them, which is the agglomeration effect of the funds. 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. Chinalco's $19 billion 500 million investment in Rio Tinto, the highest record of overseas investment by Chinese companies, was again refreshed by chinalco..

6, scale effect.

When the production reaches or exceeds the breakeven point, the scale benefit will be formed. Because any production is cost, it generally includes fixed costs and variable costs. To achieve profitability, sales revenue must be greater than production costs, and the fixed cost is constant, so the more the production, the less the fixed cost allocated to a single product, the more profit.


Hangzhou Xiaoluan Imp & Exp Co.,Ltd

Address: Dijing business street 129,Hezhuang street, Xiaoshan District,Hangzhou 

TEL: +86-571-82135908

FAX: +86-571-82135898

E-mail: info@ajl-hzxiaoluan.com