Reengineering Our Commercial Banks' Core Competence

Core competence exists in any organization that possesses strategic advantages with which the organization wins over its adversaries, and commercial bank makes no exception. Many previous documents about commercial bank competition only cast asuperficial glance at the problem, and didn't dip into its essence--the competition ofcore competence. The theoretical innovation of this article is that it constructs a model of weights for the seven aspects of commercial bank's core competence, and reengineering commercial bank's core competence from the seven aspects regarding its respective weight is the realistic meaning of the article, furthermore , the forecast of timetable set for the reengineering process of core competence of state-owned commercial banks in China shows the expectation of the author.With regards to domestic and foreign commercial banks, the article attentively analyzes their competitive advantages and disadvantages, and from which respectively compares their core competences with one another. The article holds that core competence is a matter of comparative advantage, and it is compared within a certain sphere. By contrast and comparison between commercial banks home and abroad through quantitative analysis & qualitative analysis, the author puts forward the idea of constructing a model of weights for seven aspects of commercial banks' core competence, and with view to the fact that our domestic commercial banks core competence is far from perfect , it is urgent for the commercial bank to reengineer core competence to face up to the challenges from foreign banks. In the end, the article puts forward the corresponding strategic measures of reengineering core competence for our domestic commercial banks.