Creating The Competitive Advantage From The Core Values

Access to maintain competitive advantage has been a hot and difficult problem in the strategic management research. Around the study of competitive advantage, it has been gradually formed three schools for a long time, which are competitive advantage school, core competence school and resource basis school. The theory of the competitive advantage school is mainly about considering the competition in perspective of industry; the core competence school believes that core competence is the source of sustainable competitive advantage; and the resource basis school upholds the key resource is direct source of the competitive advantage. However, the change, competition and innovation of the word economy have been greatly speeded up with the arrival of the knowledge economy. The competition around companies has changed into persons with ability, knowledge and innovative ability, but the key factor of these competitions is depend on corporation culture, core values of corporation is pith of the corporation culture. Wherefore, what is great significance for the long-term development of our business in the new period? The answer is in search of the competitive advantage from the perspective of core values.In this thesis "Creating competitive advantage from the core values", the established process of competitive advantage is researched based on core values. Whilst, the similarities and differences of the most admired companies in China and United States are analyzed, the principle of core values deciding core competence is discussed, and how it decides the competitive advantage is also studied by using the tools of induction, comparison analysis, system analysis, and case study.Firstly, the paper reviews the correlative theories about the relationship between corporation culture and competitive advantage at home and abroad. Based on core values, we compare the 2006 China's Most Respected Enterprises with the 2007 America's Most Admired Companies. These companies have the same core values of "integrity and honesty, people-oriented, innovative, customer-oriented, team building, social responsibility," which is the reason that they become admired. But at the aspect such as creative ability in reality, service consciousness and quality view, there are still long gap between Chinese enterprise and American business. Secondly, we look for the principle of how the core value decides core advantage based on these common views. To analyze how core values decides core competence by using the core competence as a medi-variable, and how core competence decides competitive advantage, get the relation model of "core values-core competence-competitive advantage". Finally, the further process for Chinese enterprise should develop excellent culture to promote competitive advantage was achieved, inherit and carry forward the excellent traditional culture; learn how to shape core values from excellent corporate in the United States.