Any production is costly and generally includes fixed costs and variable costs. To achieve profitability, sales revenue must be greater than production costs, and the fixed cost of this is constant, so the more production, the less fixed costs are allocated to individual products, and the more profit. Your production must meet or exceed the break-even point, that is, economies of scale. People with more friends will make more friends with frequent contacts, while those who lack friends will always be alone. Those who are famous outside will have more opportunities to show their faces, so they will become more famous. What is the Matthew effect? ​​This is an era of winners, the rich enjoy more resources - money, honor and status, but the poor become nothing. The poor get poorer and the rich get richer. Many contributions have been made to the society. The Guangdong hardware industry has developed rapidly in recent years, forming a relatively complete industry category of tool hardware, daily hardware, electromechanical hardware, stainless steel hardware, abrasives and hardware, and has formed a large number of distinctive industries. Bases, such as Zhongshan Xiaolan locks, Yangjiang cutters, etc. Zhongshan Xiaolan has formed an industrial cluster with locks and gas appliances as its leading, upstream and downstream products and various accessories. The scale effect in the hardware market is also not uncommon. For example, the scale effect formed in the Pearl River Delta region and the resulting benefits are obvious to all. In the 30 years of reform and opening up, the achievements due to the scale effect have been remarkable. Small businesses are slow to develop due to limited resources such as funds, talents, and information, and even stop. Such large enterprises are increasingly surpassing small businesses in the same industry and gradually become the dominant players in the industry. If a large enterprise does not develop, it will leave the small enterprise far behind. The gear effect is also applicable in the hardware market. Some large enterprises have advantages in resources, money, connections, information, etc. Once developed, they will take a big step. Hardware locks, hardware locks can be everywhere in the hardware market, branded, unbranded, in short, once a certain hardware lock company has an advanced patent technology, invented a new product, with this New products are put on the market and have achieved good economic benefits. This leading product will inevitably drive the overall development of the hardware locks industry and give priority to the success of the industry. One step ahead, step by step. Step by step, this effect is also applicable to the hardware market. In a specific environment, because a particular technology or brand leads other companies in the same industry, it will inevitably drive the development of the entire enterprise. Some small hardware companies are almost incapable of encountering financial problems. Chinalco invested US$19.5 billion in Rio Tinto, and the highest record of overseas investment by state-owned enterprises was once again refreshed by Chinalco. Although Chinalco bought a 12% stake in Rio Tinto on February 1, 2008 for US$14.05 billion, it has become the biggest loss of Chinese companies' overseas investment so far. Apart from other complicated factors, no one can deny that Chinalco is a sign that Rio Tinto is one of the world's three largest iron ore giants. The famous students are already out of the way. Chinalco is risking its blood and is still serious. Joined Rio Tinto. The better the performance, the easier it is to gather funds. The more companies with good performance and abundant funds, the more banks want to give their qualifications to it, this is the accumulation effect of funds. 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, first investing, because the hardware cost is too high, it will inevitably be discouraged by users, but once this hardware product is recognized, then this hardware product will inevitably lead the industry and promote the development of the industry. When users move from one brand of technology to another, they will pay a certain cost for this transfer. When the transfer cost is too high and the user is discouraged, the user is in a locked state.
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