Building A Core Competence

China Post Logistics Co. LTD (CNPL) is a model in the Chinese Logistics industry that has been turn from a conventional Logistics enterprise to a modern one. In this thesis, the conceptions about the Logistics, the competitive strategy and the core competence will be explained at first. The following is an introduction of CNPL's background and overall status. Then there is an application of the competitive strategy theory. The competitors of CNPL will be divided into several groups to show the opportunity and threat in this market. Afterwards, the advantage and disadvantage of CNPL will be shown together with its absence of core competence. Based on these all, a conclusion is derived that the competitive strategy of CNPL must be turn from a cost-leadership strategy to a differentiation one. And the enterprise must set out to build a core competence by executing an organizational reform, integrating the resources, and improving the knowledge and skills.The analysis will give us an insight into the operational mode and direction of the modern Logistics. It also provides a way for the other Logistics enterprise to execute their reformation and development.