Research, Resource-based Competitive Advantage

Beginning in the 1980抯, more and more attention has been paid to the study of competitive strategy. The market economy is founded upon competitiveness. Thus, it is impossible for companies and countries in an international economy to avoid participating in competition. Competition balances and contrasts the strengths of various competitive enterprises. If enterprises wish to operate, and to obtain the benefits of operation, under the international business system, they must compete against enterprises both in their domestic and foreign markets. Furthermore, if enterprises both in their core competitive capability, they will not be able to operate successfully in their industries. Therefore, it is becoming increasingly important to conduct competitive capability study, and to search for ways to measure and improve competitive capabilities. And also, the basic intention of strategic management research is how to acquire and sustain competitive advantage for enterprises. The field of strategy has largely been shaped around a framework first conceived by Kenneth R.Anderws in his classic book The Concept of Corporate Strategy. But the first important breakthrough of strategy theory came in Michael E.Porter抯 book Competitive Strategy. Techniques for Analyzing Industries and Competitors (1980). Porter抯 work built on the structure conduct performance paradigm of industrial-organization economics. The essence of the model is that the structure of an industry determines the state of comptetion within that industry and sets the context for companies conduct-that is, their strategy. With the appearance of the concepts of core competence and competing on capabilities. The pendulum swung dramatically in the other direction . moving from outside to inside the company. These approaches emphasized the importance both of the skills and collective learning embedded in an organization and of management抯 ability to marshal them. ABSTRACT The emerging resource-based competitive advantage view of the enterprises considers, the key point of competitive strategy lies in cultivating and developing core capabilities, which help enterprise to acquire competitive advantage in marketing competition in the future. In the process of strategic management, firstly enterprises should survey the present resources and core capabilities of theirs, and utilize their value in the proper period of marketing competition. In the meantime, the enterprises should find out the disparity between the present and the future resources and core capabilities. Finally the enterprises make a strategic decision to make up for the disparity, and the aim of strategic decision is to build the enterprise抯 core capabilities.