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Hinder the development of hardware accessories industry


  1, the leading effect.
  In certain circumstances, due to a particular technology or brand ahead of other companies in the same industry, will inevitably bring about the development of the entire enterprise. For example, metal locks, metal locks available everywhere in the hardware market first, branded, unbranded, in short cohabitation, once a hardware lock company has an advanced patented technology, we invented a new product, along with this new product on the market and achieved good economic returns, the leading product development will inevitably bring the whole enterprise hardware lock, and give priority to the success of the industry to produce a big step.
  2, the lock-in effect.
  When a user from one brand of technology, transfer to another brand of technology, this shift is bound to pay a certain cost. When the transfer costs are too high, so users away, the user is in the locked state. When a high-tech product development success, after winning the market, it will be very easy to grasp the future market, gain the initiative in the fierce competition. The same applies in the hardware market, the first to invest, due to hardware cost is too high, users will inevitably be discouraged, but once this hardware product to be recognized, then this will inevitably lead metal products industry and promote the development of the industry.
  3, Matthew
  This is a winner-take-all era, the rich have more resources - money, fame and status, the poor have become nothing. The poor poorer and the rich are getting richer. Friends and more people, by means of frequent exchanges will make more friends, and friends of the missing person, often been lonely; chance reputation of people, there will be more public appearances and, therefore, will be more famous.
  4, the gear effect.
  Big companies do not develop already, a small business development will be lost in the far back. In the hardware market in gear effect also applies to some large enterprises in resources, money, contacts, information, and so has the advantage, once developed, will take a big step; and small enterprises because of funding, personnel, information and other resources by limited development has been relatively slow, even stalled. Such big companies increasingly go beyond the industry's small businesses, has become the industry leader.
  5, the accumulation effect.
  The more of those outstanding performance, well-funded companies, banks want more seniority payments to it, which is the aggregation effect of funds. Under the financial crisis, some large hardware companies outstanding performance, once the funding problem, either through banks or other companies of the corresponding shares will alleviate the current difficulties, certainly easier to gather funds; some small hardware business in the event of financial problems almost unable to move. Chinalco Rio Tinto to invest $ 19.5 billion, a record high Chinese companies overseas investment to be refreshed again in aluminum.
  6 scale.
  When production reaches or exceeds the breakeven point, that the formation of scale. Because there are no production costs generally include fixed and variable costs. To achieve profitability, must be such that sales revenue is greater than the cost of production, and of which the fixed costs are the same, so the production of more products allocated to a single fixed cost less, the more profit.
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