A Study On The Core Competence Of International Settlement Business Of BOC Based On RBV

Core competence is a new concept that occurs in the early 1990s,and it provides new ideas of corporate strategic planning.The core competence of enterprises is constituted by resources and the capabilities to allocate resources.Resources and the capabilities,together with the market are the major elements deciding the future development of enterprises.Basing on the assumption that Bank of China does not have any significant difference in the capabilities of allocating resources and the ability to judge the market environment compared with other competitors,this paper starts from a study of the relationship of enterprises' resources base and the core competence,then tries to figure out the competitive strategy and future core competence for BOC's international settlement business by using the theory of resource based view and corporate core competence.The paper focuses on the specific area of international settlement business of the banks,and after a deep analysis of the present situation of BOC's international settlement business,it finds that the advantageous resources inherited from the long history,including customer resources,brand name,professional and technical personnel, foreign exchange funds and overseas branches etc,have led to the existing market leadership position;but with the grow-up and improvement of the competitors over the past few years,Bank of China begin to lose its advantage of strategic resources.Facing the great changes of competition environment and after a comprehensive analysis,this paper proposes that Bank of China should take the cost leadership strategy.To achieve the purpose of cost leadership,and being inspired by the usual way of cost-cutting in the manufacturing industry,the paper presents that concepts like scale operations,process optimization,mass customization and outsourcing business should be introduced into the international settlement business and it thus work out feasible measures for implementation.And it further identifies the strategic resources base that new core competence is built on and presents the measures of how to obtain the strategic resources and cultivate the new core competence.It also calls for attention on the risks in the process of cultivation and proposes the measures to guard against the risks.