Zhejiang Sme Cluster Competitive Advantage

Small and Medium Enterprise (SME) Cluster is geographic concentrations of interconnected SMEs and institutions in a particular field. Cluster encompasses an array of linked industries and other entities important to competition. After the Second World War, large enterprises and SMEs tend to be globalized and clustered respectively. SEM cluster with strongly competitive advantage has become a support to the development of SMEs in global economy.Since the reform and opening-up in china, SMEs have developed at full speed and have formed many clusters, which have become the main driving force in the development of local economy. Zhejiang is the most centralized province of SMEs in China. And it known as "Zhejiang Mode", which plays a key role in economic development in Zhejiang, is typical representatives of SME clusters in China. Meanwhile, SME clusters have gradually developed, but haven't formed stable competitive advantage. At present, the activities of the clusters are mainly involved in the traditional industry and the traditional trade and business, so the level and grade need to bee improved. Will the clusters maintain their competitive advantage, and how? It is meaningful for the sustainable development of Zhejiang to investigate and analyze the competitive advantage of the clustersThis thesis covers how the competitive advantages of SME clusters have formed and how to utilize them. In chapter one, it introduces the importance of the cluster to the economic development of various countries, so draws forth the purpose and meaning of the writing. In chapter two, from the definition, classification and competitive advantage, it sums up the theories of the cluster, which is the foundation of theory analysis. In chapter 3 and chap 4, it analyses SME clusters in Zhejiang and the low-voltage electric apparatus SME cluster in Zhejiang-Liushi, which is a typical representative of clusters in Zhejiang. From chap 5 to chap 7, it investigates and analyses the form of competitive advantages, which are determined by many factors, such as collection and networks of SMEs, competition and cooperation among the cluster members. Finally, it draws the conclusion. I hope this thesis would be of value, as it helps Zhejiang SME clusters and other regional economies development in China.