Study On The Structure And The Cultivation Countermeasure Of Core Competencies Of Automotive Parts Enterprises

Entering the 21st Century, science and technology were rapidly developed and widely applied in various kinds of industries. At the same time, under globalization, auto-parts industry was also developed with the following trend:(1)The pace for inter Company merging, acquisition and joint cooperation has been accelerated. "Giants" of big companies and big groups are forming into shape.(2)The Auto-parts department was separated from the whole Auto group, forming into individual comprehensive parts company while the original auto group would be mainly focusing on branding, global sourcing of parts, speeding assembly and also global sales.(3)With the new progress of the modular and systematic technology, the development of parts technology begins to focus on Safety, Environment and Energy-saving, which makes it possible for its global sourcing. It has become a common rule for the auto industry that purchasing the parts with least cost but for best quality, most-advanced technology, shortest delivery and first-class service.In face of the serious market competition, Parts enterprises become increasingly concerned about core competitiveness issues, which now are widely researched academically. Even a theoretical system has been formed already, but for an individual industry, especially for auto-parts industry, no concrete or systematic theoretical system could be followed. The paper below will be mainly focused on how to nurture the core competitiveness and analyzing its essential elements and evaluation methods.Through extensive reading of literature and information gathering, it is pointed out in the paper that the core competitiveness is certain ability to integrate different company resources (includes material resource, technical resource, human resource, knowledge resource, finance resource and also organizational resource)and capabilities (includes production capability, management capability, sales capability, engineering capability and also employee capability). It does not refer to one single capability, such as production capability or sales capability; instead, it is a integration of all the competitive capacity of the enterprise. Core competitiveness maintains the distinctive nature, which makes it different from competitiveness and difficult to imitate. Thus it is with scalability and dynamic characteristics.Based on the feature of auto and auto assembly industry, combining the basic theory of core competitiveness, it is also raise out in this paper that the essential elements of the auto-parts enterprises, includes labor productivity, company size, P&L Statement, product development, internal management, enterprise culture and also creativity. Even the auto-parts industry is separated from the auto industry, they were born with some common characteristics. However, its uniqueness also makes its core competitiveness different. As a result, when analyzing the core competitiveness of the auto-parts industry, careful positioning and identification would be needed.As for the analyzing of the essential elements of the core competitiveness of auto-parts industry, we selected 4 most telling indicators to build the evaluation model. By refining the company size, market capacity, product development capacity, organizational and managerial capacity into a number of indicators and computing the performance of the enterprise in terms of the four sub-systems, namely technology, resources, market and management, we can come up with the accurate evaluation of the core competitiveness from quantitative perspective. Qualitatively combing our auto parts industry and micro-enterprise core competitiveness description, it is agreed in the paper that the core competitiveness of our auto-parts industry along is hard to for us to sustain the advantage during the serious market competition. Consequently, auto-parts industry should fully establish the sense of crisis and realize the importance of building its own core competitiveness. Only by strengthening technological research and development input, creating the company's core technology can we grasp the development trend and build our own core competitiveness from the strategic and tactical point. When building the core competitiveness of the company, theunderstanding of the relationships between core competitiveness and enterprise strategy should come to the first. It is crucial to know how to build and adjust the core competitiveness strategically. There are several choices, including establishing the core competitiveness from inside, merging core competitiveness from outside and jointly develop core competitiveness with outside. Based on the three different methods, the following methods could be adopted respectively:First, building the core competitiveness does not only require the research and discussion from top management teams. It is more important to reach consensus within the whole organization.Secondly, due to the limitation of the resource, ability and knowledge of a certain enterprise, it is also important for them to learn from the outside to establish its core competitiveness. Completely rely on one single enterprise; it is very difficult to have the core competitiveness established. To establish the core competitiveness, enterprises are not only required to make full use of their own resources and knowledge, develop their already-existing skills and technologies, they should also learn from the outside to get new skills and advanced technologies.Last but not least, to establish of core competitive, enterprises could also cooperate with other companies and through joint venture and strategic alliance, we can internalize the core expertise of other enterprises into necessary elements to build our own core competitiveness, which would be further consolidated and developed in the future long-term business practice.In one word, the establishment of core competitiveness is a long way to go. Only if we firstly understand the essential elements, can we choose the best way and strategy to refine them into concrete actions to consolidate. The paper below could help to enrich the core competitiveness research of certain industries and provide the decision makers of auto-parts industries with a operational basis for the core competitiveness establishment.