(Abstract) 100 Great Business philosophy: concept 21: Industrial Clusters

Concept 21 Industrial Clusters

By setting up "industry centers" in areas where similar industries are gathered, companies can easily find a lot of benefits.

Concept

It seems a little contrary to people's intuition. It means that companies need to pay high real estate fees and access their competitors geographically. Although many companies prefer to pay cheaper property fees to stay away from the threat of competitors, companies in the same industry are very common in many industries. Industrial Clusters are very attractive from Oxford Street stores in London to widely distributed technology companies in Silicon Valley.

The benefits of companies in the same industry are closely related to new businesses. It can easily use the established customer, supplier, and information network, it also helps build a company's reputation-it inspires customers to associate your company with other highly respected and well-established companies in the region.

In highly motivated industries, this approach is also a good thing for a company, such as the automobile sales industry. For customers, it is easy for them to make choices between you and your competitors next door. It is fearless for companies that can provide truly excellent and competitive services.

One of the most famous examples is the entertainment industry in Hollywood. Here, freelancers and small companies around the producer are doing well for their location. To the north, we can take silicon valley as an example. technology companies that are surrounded by technologies have benefited a lot from the abundant talent reserves of nearby universities.

While companies in the same industry are facing challenges for any company, innovative, efficient, and dynamic companies can turn these challenges into insurmountable advantages.

Practical application highlights

§ For a specific product, there will be many industrial centers. You should carefully investigate and select which one is best for you.

§ Ensure that the services you provide to customers are truly competitive-direct comparison with competitors will prompt companies to provide superior products and benefit from industrial clusters.

§ Highlight your position and advantages of your product.

Take advantage of the ever-increasing cutting-edge information in the industry, including publications in the region and "gossip around.

§ Remember that this way of gathering companies is not suitable for all companies -- consider your business plans and the nature of your company before determining the geographic location of your company.

(Abstract) 100 Great Business philosophy: concept 21: Industrial Clusters