Advantages of metal hose industry cluster

Industrial clusters as a form of industrial organization , both to avoid the "integration" and caused a large group management and agency costs too high , but also avoid the long-distance exchange transaction costs and lead to the problem of high cost of logistics . Conducive to the depth of the division of labor among enterprises , but also beneficial to the depth of the division of labor and the spirit , helping improve efficiency , is conducive to technological innovation. In this industrial cluster metal hose , business models are generally " core competencies plus outsourcing ." That each firm will be fully funded entirely concentrate to do their most advantageous that point , this point to make the country the cheapest , best , and Hydraulic ferrules even the world's most expensive , best . This is mostly the company's core capabilities. Other work , including other parts of the production , product design , sales and other related businesses, are outsourced to other specialized companies to complete . In this way, each product is a summary of a number of core competence . Industrial clusters help save transaction costsAdvantageous industries and industrial clusters specialized market mutual promotion of industrial clusters to stimulate the sense of competition more favorable treatment industry cluster "credit deficit disorder ," the creation of regional clusters favorable brand