Research On The System Of The Core Competence Of The Corporation

Core Competence is a bundle of skills and technologies that enables a company to provide a particular benefit to customers. In their 1990 article entitled, The Core Competence of the Corporation, C.K. Prahalad and Gary Hamel coined the term core competencies, or the collective learning and coordination skills behind the firm's product lines. They made the case that core competencies are the source of competitive advantage and enable the firm to introduce an array of new products and services. They tried to study the situation of Japanese corporation that enlarge multiple technologies and the coordination of diverse production skills. For example, CANON automatic exposure, auto-focus, optical image stabilization and eye control auto-focus, SONY miniaturization pocketability, HONDA engine-design/mfg, reliable performance. The concept of Core Competence is different. Someone defined as a kind of competence capability of based accumulation of special knowledge and technology, in condition a system of frame. Another defined as Core Competence is a special capability to bring excess profit to corporation. This capacity isn't easy to copy to competitor and formed in process of managing in a corporation. It is a integrate knowledge with technology in an interior of corporation. Someone concluded that Core Competence is unique, valuable, extendable, learning. First, it can't be copied. Second, it can't be purchased. Third, it can't be brought by anyone. Core Competence has some character, including character of value, character of function, character of belonging, character of time-dependent. The character of value is merit. Because Core Competence enables customer of get some special profit. The character of function is extendable. Core Competence not only maintains existing products, but also provides a powerful platform to support a corporation developing the new product and entering a new domain. The corporation will get the sustaining potential of developing. The character of belonging is particular, integration and dynamic. The character of time-dependent of Core Competence is that Core Competence of corporation need a long time to be formed. It can be cultivated gradually by the operations and managing of corporation in a long-range. The background that Core Competence been made include four aspects, deepening of economic globalization'course, transform of organization structure and management of enterprise, the developing and the application of IT, the comprehensive influence of above three aspects on background of economic globalization. The structure of Core Competence includes four aspects: the power of corporation culture, the power of corporation learning, the power of corporation innovation and the structure of Core Competence. The identification of the core competence of the corporation starts on the comparative advantage and the difference. It can find the potential of corporation. It also can analyze the value of developing core competence of the corporation. Start on analyzing the market circumstances and the circumstances of industry competence, the corporation look for the opportunity of market to find core products, to ascend the core competence of the corporation. Start on analyzing the value-chain of corporation, the corporation look for the strategic chain and the chain of value-added to search core competence of the corporation. Starton analyzing of the comparative advantage and comparing ability of difference of corporation to the competitor, the corporation can find the key of the core competence of the corporation. The plan of core competence of the corporation should abide by three principles: ①the principle of market leading. Be leading by object of stratagem of the corporation, analyzing core resource and core capacity to get the object and Meeting the market opportunity. ②the principle of developing advantage and avoiding weakness, developing the advantage and potential owed by corporation enhance the main business, core products, core technology and core specialty. ③the principle of system, to aggregate and optimize the capability of corporation. Building the core competence of the corporation is a systems engineering. It can be start on the three part of work: in the first, basic matter includes the corporation culture, managed idea, innovation, feature, information, etc. second parts include human resource, mechanism, structure, strategic management, brand, etc. Third parts are a series of operation process. These processes of operation possess the importance of strategy. The management of the core competence of the corporation includes identification, plan, building, use and maintenance. The core competence can't be descended with using. But it should be protected carefully and continued to cultivate. The corporation can use some the managing method and measure to enhance the coping difficult to the competitor, for instant, the secreting of core technology, patent right, carefully introducing core technology, and increasing the investment of core technology forms the advantage of scale to threaten the competitor. The corporation can keep the advanced advantage relatively to the competitor. Withtime, the core competence of the corporation will change the general capacity. Because all of resource can devaluate, the core competence of the corporation must be continuously invested, updated, maintained. The continuously invested includes three aspects: core technology, human resource, marketing capacity. The building of core competence of the corporation has many different choices and models to large corporation. The maintaining core competencies means enlarge main industry maximally, especially first main industry. At the same time, according to situation, the corporation abandons unimportance business operation and concentrates its attention on developing main industry. The corporation gets the profit and developing by main industry. The small corporation must blur its core competence. If the core competence of the small corporation is clear, the competitor will copy easily. The large corporation is power, and the core competence is clear. But the small corporation is weak. Its core competence should be misty. Pay attention to customer's change, because customers uninterruptedly seek new products. They went to show the personality and manner by owed product themselves. Therefore, the product differential will be welcome by customer and easy to get profit. Nowadays many small enterprises built the especial characteristic. Many large corporations provide the different characteristic products to meet different need for customers.