Research On Constructing Dynamic Competitive Advantage Of The Corporation Based On Core Competence

The competitive advantage, which is essential to corporation to gain success, is the goal of corporation to pursue forever. Corporation has been in the dynamic environment with more indefinite factors than before since the 1990s, it is more difficult to obtain and keep competitive advantage. The effective way for corporation to have the lasting advantage is constructing core competence-based dynamic competitive advantage which can cater to the change of external environment.First, the paper explains the meaning of the dynamic competitive advantage, and points out it is the course of accumulation of static competitive advantage. Namely, the corporation must create and construct new competitive advantage before the original advantage disappears, thus their advantage can lasting in dynamic environment. Then, the article analyses the inside and external conditions of forming dynamic competitive advantage and points out it is impossible to form long-term strategy, owing to the constant change of external environment. Resource and ability inside competency is the source of competitive advantage. Chapter three systematically states the whole transformation course from core competence to competitive advantage. That is developing core technology through core competence and producing core product by core technology. Competitive advantage of corporation can be embodied by two characters of core product- "better than rivals" and "different to others". But today's core competence apt to form tomorrow's core rigidity to destroy the competitive advantage of corporation. So we need balance the rigidity and flexibility through strengthening the strategic flexibility, these kinds of core competence can change with environment. Finally, the whole construction course of dynamic competitive advantage will be finished though competitive advantage's spreading from point to group. And then the article recommends several kinds of basic tactics of construction such as low-cost strategy, difference strategy, technology innovation strategy, brand strategy, timely competitive strategy and studying organization, and narrates several avenues to create these kinds of tactics. To strengthen practicability, the articleuses the case of Glanz to explain how a corporation constructs their strong dynamic competitive advantage.This research not only enriches and improves the theory of core competence and competitive advantage under dynamic external environment, but also means much to native enterprises after entering WTO.