Building Core Competence In Chinese Retail Enterprises

The retail is the most import part in the business industry, is the key bridge between manufacturers and customers. China has become the member of WTO, and its economy has been a part of world economy, Chinese retail enterprises are facing fierce competition now. They have to make decision how to develop or be eliminated.This article summarizes core competence theories separately at first. First one is in angle of technic and technical innovation, second one is in angle of corporation knowledge, the third one is in angle of corporation resource, and the last one is on base of organization and system. The author concludes six characters of core competence i.e. valuable, rare, knowledgeable, systemic, tractility and durable. According to these characters, the article thinks the enterprises core competence is composed of technical ability, management ability, innovation ability, forecast and reaction ability and integration ability. The enterprise should identify its core competence after the enterprise analyzes its resource and abilities. Then the author analyzes Chinese retail enterprise's macro-environments at four aspects of economy, police, social culture and technical development. The article adopt value chain method to analyze the business mode of Chinese retail enterprise such as department store, super market, specialty store and convenience store, demonstrates Chinese retail operation environment and development trend, and conclude the enterpriser must have strategic decision-making.When Chinese retail enterprises are building core competence, the enterprisers must have decision such as market position, enterprise goal and competitive strategy at first. The retail corporation should establish study organization to train forecast and reaction ability etc. The company should build core competence according to market position, ability, resources and strategy. There are two means to build core competence in Chinese retail enterprise; one is to accumulate and innovate competence by themselves, the other is R&M or knowledge alliance. It is the period that knowledge and technic are developed dramatically, Chinese enterprisers should not only focus on building core competence by themselves, but also take more time to adopt external resource. Retail Company should avoid forfeiting after building core competence.