In principle, a definition of a cluster can be given : it’s a grouping of interrelated elements. And in this case, business clusters are a geographic grouping of companies or corporations, as well as suppliers and other companies in the industry.
To put it more simply: business clusters are a group of companies that share a common field and geographic location, with common characteristics that seek to unite precisely to achieve greater productivity, to become stronger and more competitive together.
Clusters can bring together companies of different sizes and structures. And although they may have different objectives, they at least share a common goal that unites them. This is to fulfill and develop the purpose of this philosophy. From this , certain points can be drawn:
- Community: Here companies have common operations and a shared market scope.
- Concentration: Interactions between companies occur in a very fluid manner.
- Connectivity: They may be different companies, but they strengthen their relationships with each other.
What are the objectives of the business cluster ?
All the companies that make up the clusters pursue objectives that bring significant benefits. This is true both for each company and for the economy of the geographic area comprised of these associations. These common objectives include:
- Increase business productivity by utilizing inputs, accessing important data and assets, and making essential partnerships for the process.
- Innovate more quickly with the support of cooperative research and with greater and more demanding competition.
- Encourage the creation of new business associations.
Delving into a plan that leads to business-related objectives, the following points are included:
- Assume shared targets. Clusters increase the likelihood of achieving sales by reducing the effects of competition.
- Access international or hard-to-enter markets. And this is possible thanks to the combined forces of companies, where they can break into new markets more quickly.
- Cooperation and intervention in operational activities and costs.
- Increase sales. Covering large-scale projects through grouping.
Likewise, there are objectives related to R&D&I and they are the following:
- Sharing both technical and human resources and, of course, optimizing them. This will allow us to deploy products or services that, if developed individually, would be very limited or unviable.
- To impart the experience and knowledge acquired in business.
- Form groups that act jointly with clients or stakeholders. This allows them to request resources or assistance to support the objectives of the companies associated with the clusters .
Types of clusters
In the industry, those who apply the cluster strategy must be aware of the different types of clusters to determine which one to apply to their grouping. Cluster characteristics include:
- vertical cluster : under this scheme, companies are linked through their supply chains.
- Horizontal cluster : Corporations integrate through knowledge and, based on this, apply it in the development of similar technologies and products.
- High-tech clusters : These clusters unite around the knowledge economy. This horizontal sub-branch is supported by highly reputable universities and research centers.
- Industrial cluster : This group includes companies that produce goods and services. Many of them are suppliers or engineering and technology companies, among others.
How to create a business cluster ?
If you’ve been thinking long and hard about creating a business cluster , don’t worry; clusters are easy to establish. And for your company to embrace the cluster strategy , you need to keep in mind some defining characteristics:
- The cluster is created with companies from the same geographic jurisdiction. Ideally, a total of 10 companies or fewer is required to ensure the cluster is fully utilized.
- When a cluster is formed, it’s made up of companies of the same type. And the larger companies tend to be the ones.
- All of these companies operate in the same type of industry or sector. The largest or most powerful companies tend to lead the cluster .
- Once the cluster is established , a route or plan must be drawn up that establishes the strategies and objectives to be met.
- Likewise, projects to be carried out, such as technological or non-technological innovations and exports, must be considered.
- Both public and private financing are available.
Just always keep in mind the advantages and disadvantages that may arise during the creation of your group in the geographic area.
Examples of business clusters
Among the most famous cluster examples are those created by the following companies, which we will see below:
- Silicon Valley: the most exemplary success story of a Cluster. It’s comprised of the most important internet and technology companies in the world.
- Madrid Technology Park: This park is in the midst of developing innovative companies and technological infrastructure.
Hollywood: A powerful film industry cluster that brings together filmmakers, actors and actresses, as well as other related artists and suppliers.
