- Analysis of City-Clusters in China
Factor Condition/Endowment

Transportation:
It has road, inter-city rail and
mainly it has port, Wingdao which makes it very especial place. Also, many road
and rail way project is going on such as opening of the Qingdao-Yantai-Weihai-Rongcheng
intercity railway line and international airports. Thus, this region is
connected with other cities by transportation facilities which facilitates of
transportation of people and commercial products.
Natural resources: It has one of the biggest sapphire deposits in the world. Shandong also has
huge petroleum deposits, especially in the Dongying area in the Yellow River
delta. It also produces the salt from sea water.
Firm strategy, structure and rivalry
Many foreign countries have invested in
this place, especially Korean and Japanese. Thus, there is large competition in
term of production locally as well as internationally. It produces Jewelry,
Wine and beer such as Tsingtao Beer, Haier and Hisense. Furthermore, it
produces oil, automobiles and heavy industrial goods. Hence, the competition
with the industry is growing as many firms are competing with each other and
also foreign investment is growing in this area. As a result, the local
competition has improved their competitiveness and innovation. Furthermore, the
municipal governments are competing with each other which is good for
developments as a whole.
Demand Condition
The local and
international customers are demanding the low budget products so industries are
using skilled but comparatively low cost labor. The production industries are
also being benefited by its learning experiences over time. Furthermore, the
demands of infrastructure development are forcing the local government to
invest in road, railway, airport etc which strategically helping for easy
supply and better production facilities. Furthermore, the demand of technology
development is growing and there is foreign investment in IT industries from
different parts of worlds.
Related and supporting Industry
Shandong industries
are supported by own resources and suppliers. It has very good soil for
production and supply of vineyards which supply is facilitated the wine
industry. It doesn’t have to rely heavily on others for jewelry supply as it
has its own deposits. It is the largest fossil fuel consumer in china and it is
maintaining its demand of fuel from its own petroleum deposits. Also, the
transportation and port supported its industries significantly.
Conclusion:
Shandong peninsula and its geographically advantageous position with huge natural resources. transport and port industry supports it in consequence of that was very interested in a rapid development of foreign investors. Based on
this we can say that the competition in this area is very high compared with other regions also needs infrastructure
development compels local authorities to invest in roads, railways, airports, etc., which are strategically help to smooth the supply and better production . in this
context is a large flow of foreign investment in the region.
in the near future, Shandong Peninsula will be one of the key in the economy of China
in the near future, Shandong Peninsula will be one of the key in the economy of China