The Research On Competitiveness Of Household Appliances Industrial Cluster In Shenzhen

The effects industrial cluster have on regional economic development are becoming increasingly apparent under the effects of globalization and the knowledge economy. This has become a hot topic for debate amongst academics and has caused great interest for the industry planning department. The competitiveness of such industrial cluster has important effects on its formation and development,this forms an important basis of industrial cluster theory. Although the industrial cluster in my country have been in effect for a relatively short time, development has been exponentially growing thus proving its immense economic potential.Despite twenty years of continuous rapid development, Shenzhen's household appliance sector remains small. This is due to the facts that division of labor within enterprises is inefficient, insufficient levels of competition. In turn this causes poor resource management and poor competitive advantage at a state level. The whole industry's development would be adversely affected with a poor level of risk management. Therefore, we must come up with new development strategies to improve development of industrial cluster in regards to household appliances industry within Shenzhen. But first let's ask what advantages and disadvantages do we get when developing industrial cluster producing household appliances? What strategies and policies should we adopt to promote development?Porter's diamond model will be used in this paper to fully analyze competitiveness in Shenzhen's household appliances industrial cluster. The analysis covers the four main factors of production, market demand associated by industrial support, strategic cluster structure and competition. Also included are two supporting factors: government intervention and opportunities. Conclusions will be drawn upon the advantages and disadvantages of the competitiveness in Shenzhen's household appliances industrial cluster. The conclusion would also provide advice on increasing competitiveness of the aforementioned sector, therefore, strengthening the integration of the household appliances industrial cluster and its momentum. The government will also be leveraged to increase competitiveness, scientific research and innovation capability.