Building Core Competences Of XTC Company

It was reported that more than 30,000 enterprises in China collapsed during the year of 2005. Some large companies disappeared in fierce market competitions......How to survive in the on going competition and maintain sustainable development? The answer is to have the core competence which the competitors do not have. "Core Competence" is the foundation for a company's development. If a company doesn't have or doesn't know how to build core competence, its strategies would be unrealizable.In recent years, China has strengthened protection on resources. Tungsten, as a strategic resource, the raw material market price has increased drastically amidst big fluctuations, export environment for primary or secondary products is getting worse. Moreover, some industries are looking for replacement of tungsten.XTC has won global competition on primary and secondary products through outstanding abilities on technical innovation, brand management, and effective cost-control. But its down-streamed products are just on the beginning stage. XTC must build its core competences in order to realize its long-term development strategy.This article applies the "Core Competence" theory of C.K. Prahalad and Gary Hamel, to analyze the core competences of XTC in the context of the internal and external environment. The author maintains that to recognize and to build the core competences of XTC, integration of the company resources, strategic alliances and the modern management conception and approaches should be a must.