Shaping Of Core Competencies And Discussion On The Business Model Of HB Company

Energy is an important foundation for economic and social development. Since theIndustrial Revolution, the world’s energy consumption has sharply increased and fossilenergy resources such as coal, oil, natural gas have consumed rapidly. Earth’s ecologicalenvironment is deteriorating, especially emissions of greenhouse gas lead to the worseningchange of global climate. The sustainable development of human society is seriouslythreatened. Environmental problems seriously caused by limited energy resources and theirutilization, restricts the sustainable development of economy and society, which makeshumans have to find renewable energy. And abundant solar radiation energy, which isinexhaustible, clean and cheap, can be used by humans freely.With the formal implementation of the Renewable Energy Law, quite a few SMEs haveentered the photovoltaic (PV) module industry, but the development of China’s PV industryhas been ups and downs. PV Enterprises were driven to go by orders in2007and faced theweak demand of international market and serious excess capacity in2011, half of which werein the state of serious underemployment. And then imposed on Chinese PV products by250percent anti-dumping duties in March2012, Chinese PV enterprises will be completely out ofthe U.S. market, and will face closure tides… Therefore, Chinese PV enterprises must makeinnovations boldly, form their own core competencies quickly and enhance their profitability.Many enterprises are exploring to form their own core competencies, but cannoteffectively identify core competencies in their building process. Many enterprises take somecapabilities which are not core competencies as core competencies to build, and cannot formtheir core competencies in a true sense. This paper chooses HB Company, a typical PV SME,as the research object. Based on theories of core competencies at home and abroad, this studyanalyzes the forming of HB Company’s core competencies. Firstly，by using Porter ValueChain analysis method, this paper analyzes the program of building core competencies fromthe aspects of customer satisfaction, service value of products, employee satisfaction andsupplier management. Secondly, by using SWOT analysis method, this paper summarizes thecompany’s advantages and disadvantages, and analyzes its opportunities and challenges.Finally, by using Porter’s Five Forces framework analysis method, this paper analyzes fiveforces of the company in internal and external environment. Based on the actual situation ofHB Company, this paper provides a series of ways to build core competencies suitable for the company, and discusses a series of business models for the company which major strategy isbased on cost leadership.This paper consists of five parts. The first chapter describes the purpose and significanceof the study, and points out its writing ideas and methods. The second chapter analyzes thecompany’s existing management problems, describes the market background of HBCompany’s expansion, and makes a detailed description of its potential crisis, which led aconflict of management. Based on the theoretical knowledge of core competencies, the thirdchapter analyzes the case company’s core competencies and its strategic choice by using theanalysis methods of Porter Value Chain, Porter’s Five Forces and SWOT. The fifth chapterprovides solutions for the case company and develops an ultimate program of shaping its corecompetencies. Finally, the last part summarizes the conclusions of this study.