Research On Sustainable Competitive Advantage Of The Firms

Research on sustainable competitive advantage of the firms is one of the most important parts of strategic management theories .This dissertation summarized the relative research findings and introduced life cycle theory into the description of the evolutionary process of the competitive advantage in some certain form. On the basis of it, we concluded that every special competitive edge would die away sooner or later and that if a firm was to gain sustained competitive advantage, it must overcome the harmful influence of core rigidities and establish new competitive advantage. This paper holds the view that core capabilities is crucial for an enterprise to obtain sustained competitive advantage. In order to get over the adverse impact of core capabilities, the corporation should walk on "two legs": one is to establish the mechanism which is favorable to spontaneous innovations, the other is to carry into execution organized innovations that include organized partial innovations and organized integral ones in time of need. In the last part of this dissertation we focused on the practical measures about how to manage these two kind of innovations successfully.