How Industry Clusters can Drive Small-Business Growth

Having your company set up in the “industrial center” where businesses having traits or characteristics in common, are clustered together, your company enjoy getting direct access to various benefits.

_{Image source: Pixabay, Creative Commons}

The idea of clustering looks outwardly contrary to intuition or common sense. This cause one to suppose companies have to pay high real estate prices to get closer to their competitors. No doubt about it that there are quite a good number of businesses that prefer real estates that are not as expensive as others to encourage growth from the threat of competitors, however, a lot of industries are deep into the practice of clustering. The practice of clustering by some businesses such as the technology companies of Silicon Valley and the shops of Oxford Street in London have shown that clustering has the power to attract or interest. Businesses that are new are the ones in the best position to benefit from clustering. It makes it very easy to gain access to a network of suppliers, customers and informations which have already been established. It can also assist in helping you build what your business have been known for. This serves as a strong recommendation for your clients to associate your organization with other reputable companies that have long been operating in the area.

A company that is located in an industry that is very competitive like selling cars have a lot to benefit from clustering. It is easier for customers to choose your rival ahead of you when your companies stand side by side with one another, but companies with truly superior, competitive products need not be afraid about this. A very popular example of clustering among many is the entertainment industry of Hollywood, where the sucess of many small companies and freelancers have been recorded via their location near the studios. Further in this positive direction is the example of Silicon Valley that was cited earlier. Silicon Valley is a cluster of technology firms that are enjoying great benefits from the large supply of talents in universities very close to them. Despite the fact that clustering create various challenges for some business, a company that is innovative, dynamic and efficient will be able to explore and make good and effective use of the unparalleled adantages that are found in the course of facing those challenges. There are some certain points you need to put into practice when carrying out clustering for your businesses. They are given in the points below:

• For certain products, there are often several industrial centers at various locations. Carry out your research thoroughly to determine which of the examined industrial centers is best for your business.

• Make sure the offering of clients are competitive for real. The Comparison provided by clustering between your company and other rival companies in a direct manner will benefit only companies with really good products which are superior compared to others.

• Give a significant or interesting detail of where you are and give emphasis or extra weight about the superiority of your products. This will encourage them to choose your products ahead of that of your rivals.

• Do make sure to take good advantage of the increased access to informations representing the forefront, or position of greatest advancement in the industry. This may include but not limited access to regional publications and neighborhood gossip.

• Always have it at the back of your mind that clustering is not suitable for every firms or companies. As such, befoe you make a decision on where to locate, make sure you put your overall business plan and the nature of your business into consideration.

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_{Kindly let me know your view about this in the comment box below.}

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_REFERENCE

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• _{Great business ideas from leading companies around the world by Jeremi Kourdi.}

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_{Also published on my whaleshares blog}

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_{Thanks to @beherenow for creating this image for me..I love this!}

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