Obstacles to the development of the hardware accessories industry

The following are the factors that restrict the development of the hardware accessories industry

1. Leading effect.

In a specific environment, due to a particular technology or brand being ahead of other enterprises in the same industry, it will inevitably drive the development of the entire enterprise. For instance, hardware locks are everywhere in the hardware market, with both branded and unbranded ones. In short, the market is full of all kinds of products. Once a hardware lock enterprise acquires an advanced patented technology, such as inventing a new product, and this new product is launched on the market and achieves good economic benefits, this leading product will inevitably drive the overall development of the hardware lock enterprise And it has taken a big step forward in achieving success ahead of the same industry.

2. Locking effect.

When users switch from the technology of one brand to that of another, they will inevitably pay a certain cost for this transfer. When the transfer cost is too high and deters users, they are locked in. Once a high-tech product is successfully developed and wins the market, it will easily grasp the future market and take the initiative in fierce competition. This also applies to the hardware market. First, make an investment. When the cost of hardware is too high, it will inevitably be deterred by users. However, once such hardware products are recognized, they will surely lead the industry and promote its development.

3. Matthew Effect

This is an era where the winner takes all. The rich enjoy more resources - money, honor and status, while the poor have nothing left. The poor get poorer and the rich get richer. People with many friends tend to make more friends through frequent interactions, while those lacking friends often remain lonely all the time. People with a good reputation will have more opportunities to be in the public eye, and thus will become more famous.

4. Gear effect.

Large enterprises either do not develop or, once they do, leave small ones far behind. The gear effect is also applicable in the hardware market. Some large enterprises have advantages in terms of resources, money, connections and information. Once they develop, they will surely take a big step forward. However, small enterprises develop relatively slowly or even come to a standstill due to limited resources such as funds, talents and information. Such large enterprises are increasingly outperforming small ones in the same industry and gradually becoming the dominant players in the sector.