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The following are the factors restricting the development of hardware accessories industry

1. Leading effect

In a specific environment, because a specific technology or brand is ahead of other companies in the same industry, it will inevitably drive the development of the entire company. For example, hardware locks, hardware locks can be found everywhere in the hardware market, with brands and no brands. With the launch of this new product on the market and good economic benefits, this leading product will inevitably drive the overall development of hardware lock enterprises, and take a big step forward in giving priority to the success of the same industry.

2. Lock-in effect

When users transfer from one brand of technology to another brand of technology, they must pay a certain cost for this transfer. Users are locked in when transfer costs are too high to discourage users. When a high-tech product is successfully developed and won the market, it is easy to grasp the future market and take the initiative in the fierce competition. This is also applicable in the hardware market. Invest first. When the cost of hardware is too high, it will inevitably be discouraged by users. However, once this hardware product is recognized, then this hardware product will inevitably lead the industry and promote the development of the industry.

3. Matthew effect

This is a winner-take-all era, where the rich have more resources—money, honor, and status—while the poor have nothing. The poor get poorer and the rich get richer. People with many friends will make more friends through frequent contacts, while people who lack friends are often lonely all the time; people who are famous will have more opportunities to show their faces, so they will be more famous.

4. Gear effect

Large enterprises will not develop if they do not develop. Once they develop, small enterprises will be left far behind. The gear effect is also applicable in the hardware market. Some large enterprises have advantages in resources, money, contacts, information, etc. Once they develop, they will take a big step; while small enterprises are limited by resources such as funds, talents and information. Development is relatively slow, or even stagnant. Such large enterprises are increasingly surpassing small enterprises in the same industry and gradually become the industry leaders.

5. Aggregation effect

The more companies with outstanding performance and abundant funds, the more banks want to give seniority bonuses to them. This is the aggregation effect of funds. Under the financial crisis, some large hardware companies have excellent performance. Once there is a capital problem, the current predicament will be alleviated accordingly, whether it is through a bank or other company's shareholding, and it will inevitably be easier to gather funds; once some small hardware companies encounter capital problems Almost impossible to move.

6. Scale effect

When the production reaches or exceeds the break-even point, economies of scale are formed. Because any production has costs, generally including fixed costs and variable costs. To achieve profitability, the sales revenue must be greater than the production cost, and the fixed cost is constant, so the more production, the less fixed cost allocated to a single product, and the more profit.

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