On Corporates’ Core Competences

Recently, the nature of competition in the IT industries is dramatically changing, which caused a phenomenon that financial capital is scarce and markets are increasingly volatile. Because of this, the pace of change is relentless and ever-increasing. In the past, China was generally seen as a low-competition market and a low-cost producer. Today, China has become an extremely competitive market in which local market-seeking multinational corporations must fiercely compete against other multinational corporations and against those local companies that are more cost effective and faster in product development.Dramatic changes in the information technology have occurred in recent years. Personal computers, smart phones, artificial intelligence, virtual reality, massive databases, and multiple social networking sites are the examples of how information is used differently as a result of technological development. An important outcome of these changes is that the ability to effectively and efficiently access and use information has become an important source of competitive advantage in virtually all industries.From the deep analysis of the company’s financial records, people could quantify the indicators of strategic core competitiveness. By making the connection between the financial data analysis and the enterprise core competitiveness evaluation, we can bring the enterprise core competitiveness evaluation into the financial data analysis system, and establish the financial data analysis indicators based on the enterprise core competence. Based on the analysis of indicators, the company could effectively obtain and allocate the key resources in the business competition. It will help the company to maintain the stable and sustainable competitive advantages among competitors.