Research On Construction Of The Hotel's Core Competence

The ability theory of the corporation has a long history. Since Hammer and Paraharad published The Core Competence of the Corporation at the Harvard Business Review, the unique competence of a company, the core skills and strategies, the relationship between industry development and its performance have been becoming the lasting research focuses among the western world.During 20 years' open-door and reform, the tourism and hotel industry in China has witnessed a rapid development. Coming to the new century, the economic globalization is gearing up. Such major and happy events as China's entry into the WTO, Beijing's successful application of the 2008 Olympic Games, and Shanghai's successful application of the World Trade Exhibition in 2010 are determined to surge a new round investments in this industry. China's tourism and hotel industry, while embracing these opportunities, are also facing the big challenge and competition from international and multi-national well-known hotel groups. Worry still, currently, such difficulties as repeated construction, surplus, heavy taxes, profit margin declining, exodus of employee, direct cost elevating etc. are also plaguing the industry. Thus, only by cultivating and promoting the hotel's core competence with their unique features can they keep sustained competitive edge.This paper brings forward ideas on the identification, cultivation and management of hotel' s core competence.This paper consists of six chapters. In Chapter I, a brief to the competence theories is presented, in which includes thedefinition of core competence, its main contents, the current situation and development trend of the hotel industry in China.Chapter II is focused mainly on the identification of the hotel's competence and its process of cultivation-The hotel industry operates for its products, service, quality and culture. When a hotel programs its core competence, the first step and the most important thing is to make the SWOT analysis to find out and highlight its resources and advantages.Aspects of the cultivation of the hotel's core competence are discussed in Chapter III and VI respectively by a research in detail on the hotel's quality, marketing and human resources.Chapter V refers to the management of the hotel's core competence and its maintenance. The chapter is focused mainly on the ideas that the performance management is an integrated system and it mirrors wholly the process of the cultivation of the hotel's core competence.The research results of this paper are concluded and a prospect to the industry is suggested in the last chapter.The paper is written after the author's extensively reading of the relevant documentations. More than that, special thanks are given to the officials and staff from the Hengshan Moller Villa who helped the author get access to many previous first hand information of their hotel. Adding these, the paper can demonstrate and enrich itself with many cases other than only theoretical illations. A memorandum to our interview with the personnel from Hengshan Moller Villa is enclosed at the end of this paper.