The importance of extending the industrial chain

Question 1: High School Geography: What is the use of extending the industrial chain? Explain in detail! Extending the industrial chain can: 1. Increase the diversification of local industrial composition and development, and promote ecological, economic, and social development. **Coordinate development; 2. Strengthen the added value and deep processing level of products to improve economic benefits; 2. Strengthen the stress capacity of the industrial economy and improve the insurance coefficient; 3. Promote employment and build a harmonious society. 4. Promote the common development and improvement of various related industries.

Question 2: What are the economic significance of extending or shortening the industrial chain? What are the multiple circular economy industrial chains? Isn’t its significance meant to protect the fragile local ecological environment, improve the ecological environment in the north, especially in Beijing, and promote sustainable development? It is said that the wind and sand from the north have blown to Japan. Japan funded the China Environmental Protection Agency to improve the ecology many years ago. I don’t know if it has played any role. Question 3: What are the benefits of attaching importance to deep processing of products and extending the industrial chain?

Create barriers to entry

Invest in exclusive assets

Master key resources or capabilities

Maintain product quality

Improve Production Scheduling

Question 4: The role of efficient integration of the industrial chain 1. Conducive to reducing business costs. With the development of social economy, industrial division of labor has become increasingly detailed, specialized production has become stronger, and the industrial chain has become longer and longer. Industrial chain extension is a resource that reflects the scale effect of industrial agglomeration. "There will only be two types of enterprises in the future, one is very large-scale enterprises, and the other is very specialized small and medium-sized enterprises." Under the current conditions, no enterprise can be optimal in any link of the industrial chain. It can only have an advantage in one or several links. The stronger the industrial correlation, the closer the industrial chain, and the higher the efficiency of resource allocation. Through the integration of the industrial value chain, not only can enterprises with different advantageous links be connected, and each link in the industrial value chain can be optimized, thereby realizing the overall optimization of the enterprise's industrial value chain, but also the integration of resources based on the industrial value chain can be achieved through, for example, Implementing standardized production and strictly controlling internal management expenses can effectively reduce the costs of product packaging, circulation, inventory, sales and internal department coordination in the industrial value-added link, and gain cost leadership. 2. Conducive to the emergence of new enterprises. Clusters are the catalyst for the birth of new enterprises. New businesses tend to grow within established clusters rather than in isolated areas. Due to the increased opportunities for mutual communication, enterprises within the cluster can not only discover the demand for products and services in a timely manner, but also obtain more information about development opportunities. The first manufacturers to enter actively seek ways to create specialized production factors and strengthen the in-depth development of knowledge and technology in their industries by attracting new talents. And because local financial institutions and investors are familiar with the industrial characteristics within the cluster, it is easy for the cluster to obtain the necessary assets, skills, development teams, and high-quality labor, thus lowering the entry threshold for new enterprises and reducing risks. The barriers to reorganization of enterprises within a cluster are lower, which is more conducive to the birth of new enterprises. For example, a new supplier of computer accessories can expand within the computer industry cluster because being in a customer-focused base can reduce risks, and because a well-developed industry cluster includes related industries that usually attract the same or similar industries. Factor input enables suppliers to gain opportunities for further expansion. In addition, the entry barriers within the cluster are very low, and it is easier to obtain the required capital, technology, raw material input and high-quality human resources within the cluster, thus accelerating the spin-off process of new enterprises. 3． It is conducive to the formation of an innovative atmosphere in enterprises. The extension of the industrial chain is also an environment. Where there is an industrial chain, enterprises can not only reduce investment costs and transaction costs, but also facilitate the exchange and collection of information resources, and promote the joint innovation of technology and products. The cluster industrial chain is a hotbed for cultivating enterprise learning and innovation capabilities. When enterprises are close to each other, they will feel the invisible pressure of competition, forcing them to continuously carry out technological innovation and organizational management innovation. Technological innovation is caused by the needs of the market. Enterprises combine various innovative resources and use scientific methods and means to create new products and new processes, produce them, and finally commercialize them. When commercialization is successful and the enterprise gains benefits, , this technological innovation is considered successful.

Due to competitive pressures and challenges, enterprises within the cluster need to continuously innovate and improve in terms of product design, development, packaging, technology and management to adapt to rapidly changing market needs and win new customers. The knowledge innovation of one enterprise can easily spill over to other enterprises in the region, because through on-site visits and regular face-to-face communication, these enterprises can learn new knowledge and technologies from each other quickly. In the industrial value chain, due to frequent exchanges and regular cooperation between neighboring companies, face-to-face observation and learning are facilitated. A technological innovation can easily be discovered by other companies, and other companies can learn through it. The digestion, absorption and imitation of this technological innovation, and technological improvements on this basis, in turn lead to the continuous occurrence of progressive technological innovation, thus forming a powerful squeeze effect. Clusters provide a good "habitat" for enterprise innovation and effectively promote the improvement of the industry's technological innovation capabilities. In terms of technological innovation, clusters have the organizational structure, industrial cultural foundation, and internal mechanisms for knowledge accumulation and diffusion required for innovation. Clusters provide a realistic foundation for the construction of innovative regions. 4. It is conducive to building a "location brand". Industrial-related enterprises, their supporting enterprises, and corresponding auxiliary institutions, such as local governments, industry associations, financial departments, and education and training institutions, will all gather in space to form a flexible production complex, which will in turn constitute the core competitiveness of the region. In addition, the formation of clusters makes *** more willing to invest...>>

Question 5: What does "extending the production chain" mean? What does it do? Extending the industrial chain can: 1. Increase the diversification of local industry composition and development, and promote the coordinated development of ecology, economy, and society; 2. Strengthen the added value and deep processing level of products to improve economic benefits; 2. Strengthen industry Economic stress capacity, improve the insurance coefficient; 3. Promote employment and build a harmonious society. 4. Promote the common development and improvement of various related industries.

Question 6: What do vertical integration of the industrial chain, extension of the industrial chain, and integration of the industrial chain mean, and what is their relationship? 1. The industrial chain is divided into: product design, raw material procurement, order processing, and production There are 7 links: manufacturing, warehousing and logistics, wholesale operations, and terminal retail.

2. The so-called vertical integration of the industrial chain is to vertically integrate these seven links to make the entire industrial chain operate efficiently

3. Once the vertical integration of the industrial chain is achieved, You can maximize your business profits and generally get more than 45% profit margin!