China's Cable Industry Clusters Advantages

Industrial cluster refers to a large number of organizations, organizations, and other actors involved in the development of a large number of companies of different scales with a division of labor and cooperation in a specific industry within a certain area. The spatial accumulation is closely linked through criss-crossing network relationships. Represents a new type of spatial economic organization between the market and the hierarchy. Industrial clusters have surpassed the scope of the general industry and formed symbiosis in which multiple industries within a specific geographical area are integrated with each other and many types of institutions are interconnected. This constitutes a regional competitive advantage.

One of the characteristics of an industrial cluster is that in a particular area under a specific area, there is a group of related companies, suppliers, affiliates, and specialized systems and associations. It is a group of independent and interrelated companies that cooperate in a specific area through division of labor. On the phenomenon of concentration. As a new form of economic activity space organization, industrial clusters have the great advantage that powerful agglomeration functions and competitive advantages are easily reflected and can promote the rapid development of the regional economy.

For the wire and cable industry, after decades of development and accumulation in China's wire and cable industry, the industry has been in the late stage of the industrial life cycle, and its industry maturity has reached a considerable extent. At the same time, China's wire and cable industry has formed an industrial cluster. As a result, a number of industrial clusters and product production bases with certain characteristics have been formed in areas such as East China and North China, such as the power cable company group in Jiangsu Yixing in East China, and the communication cable company group in Wujiang, Jiangsu and Fuyang, Zhejiang. , Zhejiang Lin'an radio frequency cable enterprise group, Anhui intangible special cable enterprise group, Guangdong Pearl River Delta Guangdong Dongguan electronic cable enterprise group.

Wire and cable industry clusters can bring the following advantages for industry companies:

First, improve the overall competitiveness Wire and cable industry clustering trend is to some extent the inevitable result of industry competition, when the industry competes to a certain extent, this type of company "clustered", can improve the competitiveness of the entire region's wire and cable industry, the formation of The competitiveness of regional industry clusters, and then improve the company's own ability to survive. In general, when an industrial cluster is formed, it will be able to improve the competitiveness of the entire region through a variety of ways, such as reducing costs, stimulating innovation and improving efficiency, and form a cluster competitiveness. This new kind of competitiveness cannot be owned by non-cluster and extra-cluster enterprises. That is, clusters will be more competitive than non-clusters under the same conditions.

Second, to strengthen effective cooperation among enterprises in the cluster The enterprises within the wire and cable industry cluster have formed a common formal or informal code of conduct and practice because of their geographical proximity and close relationship between leaders. The cooperation relationship thus reduces the tendency of opportunism and reduces the risks and costs of cooperation. Therefore, the chance of cooperation and the possibility of success will undoubtedly increase greatly. Nowadays, the competition of enterprises is not just a direct competitive advantage of an enterprise. It is more likely to be the competition of the supporting capabilities of the entire industry chain. The industry properties of the wire and cable industry itself are expected to be heavy and light, making the industry operate to supply copper and aluminum to the upstream raw materials. The efficiency is very dependent on this, and such high concentration of capital goods not only tests the capital flow problem of a company, but also tests the logistics distribution problem of a company. The effective cooperation among enterprises in the industrial chain within the cluster can not only improve the efficiency of the use of funds by enterprises. , It can also better solve the problem of logistics costs and storage costs, so as to make it more competitive in the market.

Third, increase the company's ability to innovate Wire and cable industry clusters are also conducive to promoting corporate innovation. First of all, the cluster can provide a good atmosphere of innovation for the enterprise. The enterprises within the cluster are close to each other and will be subject to the invisible pressure of competition, forcing companies to continue to carry out technological innovation and organizational management innovation. At the same time, enterprises within a cluster are geographically similar and can deal with each other face-to-face, which is conducive to the spread of new ideas, concepts, technologies, and new knowledge. This creates a spillover effect of knowledge and acquires “learning economy, enhancing corporate research and innovation. Secondly, clusters are conducive to promoting the transfer of knowledge and technology, and due to spatial proximity and common industrial and cultural background within the cluster, not only can the dissemination and diffusion of explicit knowledge be strengthened, but more importantly, the tacit knowledge can be enhanced. Spread and spread, and further promote the flow and diffusion of explicit knowledge through the rapid flow of tacit knowledge.Thirdly, due to the close geographical location and frequent exchanges between each other, it becomes possible to provide more innovations for enterprises. Learning opportunities reduce the cost of corporate innovation.

Fourth, conducive to the formation of "Location brand"

By clustering, integrating the overall strength of the enterprises within the cluster, increasing investment in advertising, and using group effects, it is easy to form a "location brand", so that each enterprise will benefit. This regional brand is generated by the common production location of the enterprises within the cluster. Once it is formed, it can be enjoyed by all companies in the region. Such as Anhui Wuweigou special wire and cable group, special wire and cable production base has become a special brand effect of its industry, if it is only a single company, it can not form the industry "special wire and cable base" this precious intangible assets.

The advantages of industrial cluster development are so obvious that the development of wire and cable industry to clusters is not only an inevitable trend of the development of modern industrial organization theory, but also the result of the fierce competition in the current wire and cable industry.

In the face of an increasingly competitive cable market at home and abroad, cable companies must find ways to develop themselves. China's cable companies should develop in clusters and look for their own regional brand advantages. Pay attention to the guiding role of industrial clusters, build an ecological environment for industrial clusters, attach importance to the construction of a talent team, establish a public service platform system for technological innovation, foster the leading role of key enterprises, optimize industrial layout, and strengthen the optimization and upgrading of regional environment and supporting logistics facilities. Measures should be taken in a timely manner to change from simply focusing on the construction of regional cable industry brands to building key corporate brands, and to promote the promotion of regional brands with corporate brands. Actively encourage and support leading companies to accelerate the pace of corporate brand building.