Jiangsu Province, A Town Of Stainless Steel Industrial Clusters Development Status And Improvement

As an economic phenomenon in globalization development, industry cluster's more like an organism system inside which enterprises live, those firms are able to gain advantages from the systematic intergrowth. The industry cluster could boost the regional economic development. It's quite interesting that SMEs(small and medial size enterprises) are easy to be found in an economy flourishing area or ever flourished area.Nowadays, the competition between enterprises looks more and more like competitions between clusters and enterprises, even like competitions between clusters. To some tense, the core competitiveness of a country depends on the competitiveness of those clusters. Industry cluster has become one of hot topics of domestic and international institutes and an important topic that governments take an emphasis on. In fact, the industry clusters have ever been dug out and brought up by some local governments. With the cluster economy development, to a more and more deeply extent, the regional development leans upon one specific industry cluster's development.However, industry cluster could not be considered as a master key to the engine that drives the development of economy, it has a life circle and will go downhill someday. In some situations, the advantage of industry cluster could end up suddenly not gradually with the development to maturation. If that happened, it would destroy the local economy which depends on the cluster development. Here is an example, X town ,a town of Jiangsu province, China, grew up with the development of stainless steel industry cluster, but now, it faces with an unheard-of crisis. Based on an analysis of the reason of that crisis, this thesis tries to put forward methods to resolve it.Firstly, this thesis briefly take a quick look back at the definition and characteristic of industry cluster, those theoretic and research on industry cluster before are also introduced which are the basis of theory that this thesis analyze the current situation of cluster, reasons and resolutions of to-be crisis.Secondly, taking the current situation of stainless steel industry cluster in X town as a start, this article works over the grade of cluster congregation, and come up with that higher grade would damage the development of economy more deeply. At the same time, the styles of cluster are also analyzed that current cluster is an Italian style industry cluster which is mainly made up of SMEs, it'll turn into an axle style industry cluster in the future which has characteristics of economy of scales like iron and steel industry.Thirdly, the reasons of current crisis has been specifically analyzed from different aspects, such as macro environments, competition environments and statuses inside the industry cluster..Finally, from the angle of government management of X town, the paper brought forward ways to resolve the crisis that the industry clusters has to be updated. Specifically, some methods were put forward on SMEs how to get through the crisis smoothly and successfully, and also suggestions on government how to develop industry cluster currently were put forward.