Chinese Telecom Companies The Core Competence

21st century is the century of knowledge economy. With the rapid development of economic globalization, most enterprises in the world are inevitably involved in this irreversible trend and find it more and more difficult to keep the long-term superiority in the fierce market competition. When numerous enterprises seek for the secret of longevity, the theory about core competence comes to the fore in order to follow the tides of times. As core competence now is widely regarded as the panacea for the lasting prosperity of enterprises and the source for them to keep the competitive superiority, the research about core competence become the hot spot both in the theory and in practice since 1990s. Nowadays each enterprise is trying hard to seek core competence for their own development, telecom enterprises is certainly no exception. However, due to the special situation of telecom enterprises that is, they just broke down the monopoly and introduced the mechanism of competition, they are still weak in capability, not mention to the core competence. In view of this, this paper will firstly study the current domestic and foreign theories of the core competence. Then I, through the detail analysis of the managerial character and current running situation of telecom enterprises, make use of the way of value chain to identify the core competence of telecom enterprises, that is, the ability for serving clients, for marketing, for business innovation, for brand management, and for joint competence.After identifying the core competence of telecom companies, this paper attaches much importance to the fostering of telecom enterprises of China. As an old saying goes, there are other hills whose stones are good for working jade-drawing on foreign and domestic excellent experiences about core competence benefits us much on fostering the core competence of our domestic telecommunication enterprises. Generally speaking, there are two ways to foster our domestic core competence, one is to attain frominside, that is, to form the core competence through self-accumulation, which includes designing strategic plan, building up client-oriented operational mechanism, improving the competitiveness of network, improving the level of management by means of OSS, enhancing marketing ability by means of relations marketing, establishing learning organization, paying attention to human capital, developing a telecom culture and so on. The other way is to attain from outside, such as merger and acquisition of enterprise, and the establishment of strategic alliance.Finally this paper suggests two ways against the loss of the core competence. One is to guarantee it by government; the other is to guarantee it by enterprises themselves.