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The Competitive Advantage Of The Modern Enterprise - On The Core Competencies Of Systems Thinking,

Posted on:2001-07-11Degree:MasterType:Thesis
Country:ChinaCandidate:J LiangFull Text:PDF
GTID:2206360002451996Subject:Engineering and Engineering Management
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How to achieve and sustain competitive advantage is one of the fundamental problems in the field of strategic management. The thesis endeavors to explore the sources of competitive advantage of modem firms. It digs into three levels: asset, capability and mind-set positions, and makes the conclusion that core competence is the source of competitive advantage.First, core competence is the competence that integrates assets, people and processes of the firm. Second it抯 core, which means the competence should point to critical success factors, build unique professionals, and enable the firm to join the world manufacturing network. Besides, core competence implies it can make use of the economy of scale. Core competence is a system whose factors are technological competencies, and the relations among factors are composed of organizational competencies that integrate the former ones.Core competence is composed of two parts: stock and flow. The former is the base of the latter, which embodies the feature of path-dependence. Its flow can be named dynamic capabilities, which accumulates its stock. Dynamic capabilities have three roles: coordination/integration, learning, and reconfiguration! transformation.Core competence implies strategy. It enlarges the field of competition, and regards it as competition of the whole corporation that extends to three levels:industry prospective, core competence and market position.The evaluation can be executed in two steps. First, the competence network should be carved out. Then it is evaluated according to three criteria:elegance, value and sustainability. The dynamic mechanism depends on the distance between strategic intention and the current conditions. In order to empower dynamics, firms should set up marvelous vision in one way, and understand itself optically in the other. The thesis developed the method to establish core competence. It mainly includes three steps: achieve the necessary professionals that form core competence, integrate them, and develop core products.The planning of core competence is a critical step that brings theory to practice. Based on the understanding of its environment and itself, the firm may first set up its strategic intention. Then, it should foresee the future visions of the environment. Last, firms may compare the current and the future conditions to find the differences, and develop the executive framework in detail.
Keywords/Search Tags:strategy, competitive advantage, core competence
PDF Full Text Request
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