The Acquirement Of Persistent Competitive Advantage

The objective of enterprise is to make profit maximum, and the gain of profit is based on the competitive advantage compared with another one. As an important role in the global economic activities, transnational corporations face on a worldwide changefully market environment where they have to consider not only the market circumstances of their homeland but also local policies and international exchange rate. It is remarkable that a new trend of economic globalization has emerged from 1990's, which makes the competitive among transnational corporations increasingly fury. In the circumstances, whether transnational corporations could acquire persistent competitive advantage or not is the most important factor. Thus, most of transnational corporations adjust their strategies to obtain persistent competitive advantage by abandoning previous parochial viewpoint and adopting a new long-term dynamic opinion. To match with economic globalization, transnational corporations adopt global strategic management. They integrate all the subordinate companies to take full use of their resources. Transnational corporations try to find an appropriate strategy with strategic analysis and strategic evaluation. At the same time, they take both competition and cooperation to achieve their own profit through transnational mergers and acquisitions and international strategic alliances in order to occupy global market as could as they can.The previous research about transnational corporations is based on foreign direct investment. It is a macroscopically static viewpoint. However, the author tries to analyze transnational corporations microscopically with a dynamic opinion. As China is open to the world and has joined WTO, the author also makes some suggestions about how Chinese enterprises grow into transnational corporations.