What is the Matthew effect? This is a winner-take-it-all era. Rich people enjoy more resources—money, honor, and status. The poor have nothing. The poorer the poor, the richer the richer. People with many friends will make frequent contacts to make more friends, while those who lack friends will always be alone; those who have a reputation will have more chances to appear, and therefore will be more famous.
Scale effect. It means that your production must meet or exceed the break-even point, ie, scale efficiency. Because any production is costful, it generally includes fixed costs and variable costs. To achieve profitability, the sales revenue must be greater than the production cost, and the fixed costs among them are constant, so the more production, the less the fixed costs allocated to a single product and the more profitable.
The economies of scale in the hardware market are also commonplace. For example, the scale effect of the Pearl River Delta region and the resulting benefits are obvious to all. In the 30 years of reform and opening up, due to the scale effect, it has made remarkable achievements and made many contributions to the society. Guangdong's hardware industry has developed rapidly in recent years and has formed a relatively complete industry category of hardware, electrical and mechanical hardware, stainless steel hardware and abrasive hardware. Formed a large number of unique industrial bases, such as Zhongshan Siu Lam, Yangjiang tools. Zhongshan Siu Lam has formed an industry cluster with locks and gas appliances as its leader, upstream and downstream products and various accessories. The city of Guangdong, Guangdong Hardware and Electrical Hardware City formed the center of trade activities, gathered together, and produced a strong scale effect, which provided a strong backing for the rapid development of Guangdong. Therefore, some large-scale hardware companies should pay attention to the value brought by the scale effect, which is the only way for the development of hardware companies.
effect. Large enterprises do not develop, and once they are developed, small businesses are left behind. The gear effect is also applicable in the hardware market. Some large companies have advantages in terms of resources, money, contacts, and information. Once they are developed, they will take a big step. Small companies will be affected by resources such as funds, talent, and information. Limited development is slow, even halting. Such large companies have increasingly surpassed small businesses in the industry and have gradually become industry leaders.
Leading effect. One step ahead, step by step. Step by step first, this effect is also applicable to the hardware market, in a specific environment, because a particular technology or brand leading other companies in the same industry will inevitably drive the development of the entire enterprise. For example, hardware locks can be found everywhere in the hardware market, branded, unbranded, and in short, have a mixed bag, once a hardware lock company has an advanced patented technology, invented a new product, along with this The introduction of new products on the market and good economic returns will surely drive the overall development of hardware and locks companies, and give priority to the success of the industry.
Aggregation effect. The more companies with outstanding performance and abundant funds, the more banks want to give it premiums, which is the effect of capital accumulation. Under the crisis, some large-scale hardware companies have achieved outstanding performance. Once there is a financial problem, no matter whether it is through the bank or other companies' shares, it will correspondingly ease the current predicament and will inevitably make it easier to gather funds; some small hardware companies once faced with financial problems It is difficult to move. Chinalco’s $19.5 billion investment in Rio Tinto and the highest record of overseas investment by Chinese companies were again refreshed by Chinalco. Although Chinalco purchased a 12% stake in Rio Tinto in the United States on February 1, 2008 for US$14.05 billion, it has become the biggest loss overseas investment by Chinese companies so far. Apart from other complicated factors, no one can deny that Chinalco has taken a fancy to the fact that Rio Tinto is one of the world’s three largest iron ore giants. The famous students are already out. Chinalco’s risk of losing everything is solemn. Shares Rio Tinto. The better the performance, the easier it will be to congregate funds.
Locking effect. When users move from one brand of technology to another, they will certainly pay a certain cost for this transfer. When the transfer cost is too high and users lose their feet, the user is locked. When a high-tech product is successfully developed and wins the market, it can easily grasp the future market and take the initiative in fierce competition. This is also applicable to the hardware market, first investment, because the hardware cost is too high, will inevitably be daunted by the user, but once this hardware product is recognized, then this hardware product must lead the industry and promote the development of the industry.
Scale effect. It means that your production must meet or exceed the break-even point, ie, scale efficiency. Because any production is costful, it generally includes fixed costs and variable costs. To achieve profitability, the sales revenue must be greater than the production cost, and the fixed costs among them are constant, so the more production, the less the fixed costs allocated to a single product and the more profitable.
The economies of scale in the hardware market are also commonplace. For example, the scale effect of the Pearl River Delta region and the resulting benefits are obvious to all. In the 30 years of reform and opening up, due to the scale effect, it has made remarkable achievements and made many contributions to the society. Guangdong's hardware industry has developed rapidly in recent years and has formed a relatively complete industry category of hardware, electrical and mechanical hardware, stainless steel hardware and abrasive hardware. Formed a large number of unique industrial bases, such as Zhongshan Siu Lam, Yangjiang tools. Zhongshan Siu Lam has formed an industry cluster with locks and gas appliances as its leader, upstream and downstream products and various accessories. The city of Guangdong, Guangdong Hardware and Electrical Hardware City formed the center of trade activities, gathered together, and produced a strong scale effect, which provided a strong backing for the rapid development of Guangdong. Therefore, some large-scale hardware companies should pay attention to the value brought by the scale effect, which is the only way for the development of hardware companies.
effect. Large enterprises do not develop, and once they are developed, small businesses are left behind. The gear effect is also applicable in the hardware market. Some large companies have advantages in terms of resources, money, contacts, and information. Once they are developed, they will take a big step. Small companies will be affected by resources such as funds, talent, and information. Limited development is slow, even halting. Such large companies have increasingly surpassed small businesses in the industry and have gradually become industry leaders.
Leading effect. One step ahead, step by step. Step by step first, this effect is also applicable to the hardware market, in a specific environment, because a particular technology or brand leading other companies in the same industry will inevitably drive the development of the entire enterprise. For example, hardware locks can be found everywhere in the hardware market, branded, unbranded, and in short, have a mixed bag, once a hardware lock company has an advanced patented technology, invented a new product, along with this The introduction of new products on the market and good economic returns will surely drive the overall development of hardware and locks companies, and give priority to the success of the industry.
Aggregation effect. The more companies with outstanding performance and abundant funds, the more banks want to give it premiums, which is the effect of capital accumulation. Under the crisis, some large-scale hardware companies have achieved outstanding performance. Once there is a financial problem, no matter whether it is through the bank or other companies' shares, it will correspondingly ease the current predicament and will inevitably make it easier to gather funds; some small hardware companies once faced with financial problems It is difficult to move. Chinalco’s $19.5 billion investment in Rio Tinto and the highest record of overseas investment by Chinese companies were again refreshed by Chinalco. Although Chinalco purchased a 12% stake in Rio Tinto in the United States on February 1, 2008 for US$14.05 billion, it has become the biggest loss overseas investment by Chinese companies so far. Apart from other complicated factors, no one can deny that Chinalco has taken a fancy to the fact that Rio Tinto is one of the world’s three largest iron ore giants. The famous students are already out. Chinalco’s risk of losing everything is solemn. Shares Rio Tinto. The better the performance, the easier it will be to congregate funds.
Locking effect. When users move from one brand of technology to another, they will certainly pay a certain cost for this transfer. When the transfer cost is too high and users lose their feet, the user is locked. When a high-tech product is successfully developed and wins the market, it can easily grasp the future market and take the initiative in fierce competition. This is also applicable to the hardware market, first investment, because the hardware cost is too high, will inevitably be daunted by the user, but once this hardware product is recognized, then this hardware product must lead the industry and promote the development of the industry.
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