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1, leading effect.
In a particular environment, because a particular technology or brand is ahead of other enterprises in the same industry, it is bound to drive the development of the entire enterprise. For example, metal locks, hardware locks everywhere in the hardware market first, brand, brand, in short mixed, once a hardware lock company has an advanced patented technology, such as Shenzhen Chong Hing Metal Products Factory invented A new product, with this new product on the market and achieved good economic returns, this leading product will inevitably lead to the overall development of hardware locks, and give priority to the success of the industry has taken a big step forward.
2, lock effect.
When a user moves from one brand of technology to another, it is bound to pay for such a transfer. When the transfer cost is too high, the user is prohibitive, the user is in a locked state. When a high-tech product is successfully developed and won the market, it will easily grasp the future market and take the initiative in fierce competition. This also applies in the hardware market, the first investment, as hardware costs are too high, the user will certainly be discouraged, but once this hardware products are recognized, then this hardware products will inevitably lead the industry to promote the development of the industry.
3, Matthew effect
This is a win-win era when the rich enjoy more resources - money, honor and status, while the poor are nothing. The poorer and poorer, the richer and richer. People with more friends tend to make more friends by making frequent contacts, while those who lack friends are often lonely; those with good reputation will have more opportunities to be seen and become more famous.
4, gear effect.
If large enterprises do not develop, they will be left behind as soon as they develop. Gear effect in the hardware market is also applicable, some large enterprises in resources, money, contacts, information and other aspects have an advantage, once the development will certainly take a big step; and small businesses due to capital, talent, information and other resources Limited development is slow, even halt. Such a large enterprise more and more beyond the same industry, small businesses, has gradually become the industry leader.
5, aggregation effect.
The more those outstanding performance, well-funded companies, the more banks want to qualify for it, which is the effect of capital accumulation. Financial crisis, some large hardware companies outstanding performance, in the event of funding problems, whether through banks or other companies' shares will be a corresponding ease of the current dilemma, will be more likely to gather funds; some small hardware companies in the event of funding problems Almost impossible to move. Chinalco 19.5 billion investment Rio Tinto, the highest record of overseas investment in state-owned enterprises once again Chinalco refresh. .
6, the scale effect.
When the production reaches or exceeds the breakeven point, the formation of economies of scale. Because any production is costly, it generally includes fixed costs and variable costs. To achieve profitability, you must make the sales revenue greater than the cost of production, and the fixed costs of which are unchanged, so the more you produce, the lower the fixed costs you allocate to a single product, and the more you earn.
