A Diamond Model Approach To The Competitiveness Of Lin’an Hickory Industry

The development non-wood forest products and services has become a major pathway to a prosperous life for many mountain areas. Located at the southern foot of Tianmu Mountain in the northwest of Zhejiang, Lin’an is known as the hometown of Chinese hickory, which, with an output and production value annually increasing, has been the chief source of income (60-70%of the total) for the local farmers. For this reason, a thorough analysis of the status quo of the hickory industry in Lin’an with its advantages and disadvantages and an exploration of the ways to promote its competitiveness will be of great practical significance.Based on theoretical framework of the Diamond Model, this thesis attempts a comprehensive analysis of the merits and demerits for the development of the hickory industry in Lin’an, by taking into consideration four major factors which influence the competitiveness of the industry (production; demands; related and supportive industries; business strategies, structures and intra-industry competition) and two additional factors (government support and opportunities). Through the research, we find that (1) the hickory industry in Lin’an is endowed with fairly rich natural resources, science and technology resources and financial resources, together with a sound infrastructure, but relatively limited in human resources;(2) the domestic demands of hickory is steadily on the rise, but Lin’an hickory has not gained sufficient recognition and its domestic market is clearly regional, mainly within the Yangtze Delta, less alone the share in the international market;(3) related and supportive industries form a pyramid structure, and except for their outstanding processing abilities, the enterprises have much room for improvement in their production and services;(4) the processing enterprises are large in number but small in size, the brands numerous and sundry, the products homogeneous and lacking in variety, with no distinctive identity, targets or long-term plans, which inevitably leads to low economic benefit and fierce internal competition;(5) the government of Lin’an has played a positive role in the development of its hickory industry; and (6) the open domestic and international market systems, together with great demands, are creating great opportunities for Lin’an as a distinguished leadership in the hickory industry. The findings made in the analysis further lead us to some proposals on the development of the hickory industry in Lin’an. We hereby suggest that the priority should be placed on the development of human resources and the cultivation of professional skills; that great efforts should be made to enlarge the domestic and international markets and promote brand recognition; that supportive industries should be strengthened and a central economic zone constructed; that enterprise structures should be enhanced and strategies adjusted to foster flagship enterprises; that the role of the government, industry associations and cooperative societies should be brought into full play.