| The core competence, which is regarded as the motive source of the operation and development of enterprises, is the lifeline of corporations. However, compared with that of enterprises in many western developed countries, the competence of Chinese corporations ranks rather low so far. According to the 2003 world competitiveness report of 51 countries released by the International Institute for Management Development (IMD) in Lausanne, Switzerland, the essential factors of the business management capabilities, with the exception of competitive advantage of the labor cost, are mainly in low level, among which the lack of efficient management method is the key point that restrains enterprises from improving their core competence. Consequently, we can conclude that the promotion of world competitiveness of the large-scaled enterprises in China still has a long way to go. After the entry of WTO, China is confronted with more challenges and fierce competition from world market; it is inevitable for enterprises to make efforts to improve their core competence. Nevertheless, how should enterprises construct their core competence? The author thinks it is possible to use "the value chain analysis methodology" to analyze the forming process of core competence, so that the core competence of corporations can be developed and reconstructed by optimizing the value chain management models."The value chain analysis methodology" is firstly proposed by Michael Porter, the famous strategic management expert in Harvard Business School of USA., who grouped the internal and external business activities into two headings: primary activities and support activities. It is certain that not all the links of activities are capable of creating value and actually there are only a few value-added activities which are called "strategic links" of value chain. Enterprises must attach great importance to the state of organizations' resources by using the methodology of... |
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