Study On Evaluation&Cultivation Of Core Competence Of China’s Domestic Venture Capital Institutions

China’s Venture Capital has a short history, but China’s domesticventure capital institutions develop very fast. With the changingeconomic situation and the maturing venture capital market, however,China’s domestic venture capital institutions would face reshuffle andstrategic transformation. In a competitive market China’s domesticventure capital institutions need to build their core competence.Since Prahalad and Hamel proposed the concept of core competence, manyexperts study on it. Core competence is very important in strategicmanagement area, however, the researches of China’s domestic venturecapital institutions is very limited. Firstly this article analyzes thetheoretical and practical significance of the core competence of China’sdomestic venture capital institutions and then in-depth study of theconcepts and features of the core competence. Secondly, this articledivision five stages of the development of domestic venture capitalinstitutions, and then use the five forces model analyzes the competitivestrength of the venture capital market.On the basis of core competence and venture capital theory, thisarticle defines the concept of the core competence of the venture capitalinstitutions, and then use of value chain analysis and customer perceptionto identify elements of the core competence of the venture capitalinstitutions. According to indicators and select the method to build thecore competence evaluation index system of venture capital institutions,this article uses the cobweb graphical evaluation method to establishevaluation model.Using the spider diagram, this article evaluates a typical China’s domestic venture capital institutions--QKT. The problems of QKT corecompetence also reflect the common problem of China’s domestic venturecapital institutions.With the common problem of the core competence of China’s domesticventure capital institutions, this article establishes a mechanism tocultivate the core competence of China’s domestic venture capitalinstitutions, and develop the core competence from the internal channelsand external channels to enhance China’s domestic venture capitalinstitutions. Internal channels include structural reform, theestablishment of personnel, improve the ability to invest and improve theability of value-added services; external way is to assist the nurturingway, mainly for foreign venture capital institutions to establishalliances with other venture capital organizations. Through internal andexternal ways to cultivate the core competence of China’s domestic venturecapital institutions, this article helps them establish and maintain acompetitive advantage.