Research On Diversification Strategy Based On Core Competence About WMCo

Preconditioned on the study of inner link between enterprise's core competence and diversification operation strategy, this study investigated enterprise's diversification operation strategy based upon core competence with the demonstration by the example of Wugang Mining Corporation (Hereinafter referred to as WMCo) by using qualitatively and quantitatively strategic analyasis and evaluation measures including SWOT and AHP etc., and finnaly gave out particular policies and implementation measures for contructing enterprise's diversification operation strategy based upon core competence, get some useful results.Firstly, the situations of domestic and foreign study on enterprise's core competence and diversification operation strategy were summarized as well as the meaning of enterprise's core competence and diversification operation strategy reviewed, and the measures identifying and cultivating enterprise's core competence and measurements were analyzed on enterprise's diversification level.Secondly, this study investigated the mutual functioning and strengthening between enterprise's core competence and diversification. It analyzed the features of enterprise's diversification strategy based upon core competence, which results in a class of enterprise's diversification operation evaluation techniques based on core competence with quite high robustness for amending the defects of traditional criterions concerning measurements. These techniques can be used for the decision-making on identifying and importing of enterprise's diversification operation as well as the decision-making on separating bad operations from the enterprise's "core-oriented" strategy.Thirdly, the study addressed the techniques focusing on the objective of enterprise's diversification operation, modes selection and policies preparation for constructing enterprise's diversification operation strategy based upon core competence, and probed into the implementation of enterprise's diversification operation strategy based upon core competence in detail by considering the two points, i.e., factors influencing enterprise's diversification strategy and problems to be observed in the implementation.Fourthly, the study analyzed the situation of in-house resources and environment including natural resources, finance& accounts, equipments& talents etc. of WMCo. It evaluated the core competence of the company's main operation by AHP method, which results in advices for improvement. Aslo the study analyzed the current diversification operation situation of the company with ore products, non-ore products and third industry etc., delivered corresponding conclusions and improvement measures.Fifthly, the study established WMCo's core competence framework of two-layer - six mines - four series. With the analysis on the internal and external environments of WMCo by SWOT method and the research on the construction of WMCo's core competence according to the thought of constructing WMCo's core competence based upon main operation and advantageous characteristic techniques, this study determined the company-level integral core competence of WMCo and professional core competences of the four mines subjected to four characteristic series.Sixthly, the study delivered the strategic objective of the company's diversification operation resulted from the systematic discourse on the preparation of WMCo's diversification operation strategy and related implementation essentials. Also the study summarized some important practicability-concerned problems in planning the implementation of WMCo's diversification operation strategy to improve the practicability in addition to its delivering integral strategy and strategic objective of the company's diversification after the discussion on the directives of diversification operation.The research of this paper has explored the work of studying and instituting diversification stratagy of mining enterprises according to the core competence theory. It has given reference to the researchers for the further research in this field. Meanwhile, it has provided policy-making basis for further development of WMCo.