Research On Enterprise's Core Competence

Corporate sustainable competence and development have long been the major concern of economists and managers. Hamer and Plamhled, business strategists, initiated the new concept, core competence, in Harvard Business Review in 1990,which was drawn more and more attention of scholars ever since, and a number of essays and books on it have emerged accordingly.In the field of strategy management, Core competence is still a new concept in China as it is only less than ten years since it was introduced to China. The theory is not systematized yet, lack of guidance to its appliance, and therefore more researches are needed. So, the study of core competence is of significance and theoretical value.The essay is composed of five parts. The research aim and contents are presented in the introduction in which the theoretical and practical significance of the study of core competence is elaborated as well.Part One introduces the basic ideas of core competence, which is made up of three divisions. The first division provides the background on which the concept was shaped and the change of its meaning .The second division explains the four features of core competence: lasting possessiveness, irreplaceability, continual profiting and sustainability. The third division elaborates the component of core competence and its mechanics. More over, the correlations between the five components are analyzed.Part Two introduces the function of core competence in the corporate development .It is divided into three divisions: (1) how the core competence works in the corporate operation; (2) three stages in the acquisition of core competence; (3) cases to illustrate the function and importance of core competence in the corporate development. It concluded that core competence does not only guarantee a corporate edge over its opponents, but is also prominent in opening up new business and developing new staple products.Part Three discusses how to build up core competence in China in the environment of globalize economy. It falls into three divisions. The first one point out that china's corporations could build up their core competence through careful planning, training ofstaff and establishing alliance. Additionally, it suggests four approaches to obtain core competence, and ways to prevent straying. The second division points out that study and creativity is the most effective way in building up and maintaining core competence. The third division analyzes the two internal and external factors that lead to the loss of core competence while offering three measures to prevent the loss.Part Four presents some successful cases in obtaining core competence. In detail, Japanese, American, Korean and Indian examples are introduced. As for Chinese corporations, Haier and Glanz are elaborated as models for reference.