A Model Being On Guard Against Crisis Based On The Core Competence

Crisis isn't only linked with low-level something like daily management or public crisis any longer and should be upgraded to strategic level. One of unavoidable problems about corporations' strategy is how to be on guard against crisis from corporations' strategic angle, how to pull through the crisis, ect. The thesis suggests a model on the basis of a theory that is using core competence to keep watch the crisis. With analyzing the process of the corporations' development, there are two conclusions: one is the reason of crisis that lies in excessive emphasis on the gains, another is core competence is a necessary factor for corporations that desire to develop permanently. Excessive emphasis on the gains is shown in two aspects: product-market positioning is concerning about present profits ignoring future ones; corporations neglect stakeholders. Corporations can develop in short term after overcoming two above defects, however in order to keep watch crisis in long run, corporations have to cultivate core competence and lay down the relevant strategy based on the core competence. Core competence is fruit perfectly mixed core capability based on corporations' strategic resources with unique corporations' culture and organizational structure. Competitive strategy is a powerful tool for corporations to compete in the market that should be laid down on the basis of the core competence.