Study On The Strategic Choice Based On The Core Competence

The core competence of corporation, which is essential in corporation's sustainable development and competitive advantage, has been becoming a new view and issue since 1990s.Successful practice of corporation shows:With increasingly severe marketing competition, the interior analysis aiming to core competence of enterprise becomes more and more important. The keys to corporation strategy are training and developing which can improve the core competence that helps the corporation hold advantageous status in future competition; and based on the core competence, the corporations can choose suitable developing strategy according to their resources and capability. At the same time the corporation strategy promotes core competence continuously. The ability and strategy supplement each other and support organization together. In a drastically competitive environment, it is the ability of creation, accumulation and utilization that performs as the source of lasting competitive advantage, which should be a starting point of all strategic management. This dissertation takes advantage of essential theories of enterprise management, strategic management, economics and previous research results, and considers the characteristics of enterprises and the competitive environment after entrance to WTO. Furthermore, Adopting the methods of qualitative analysis combining with quantitative research, and standardizing research combining with positive research, the dissertation identifies the connotation and characteristics of core competence. Having carried on deep investigations to constitutional essentials of core competence, this dissertation designs an index system that evaluates the core competence. Meanwhile, this dissertation puts forward a new idea: firstly, a fundamental evaluation of core competence should be conducted to identify the strength and weakness of corporation's core competence. This is the foundation to further identification of core competence and it can be utilized to decide whether the corporation possesses of core competence, on which the corporation can explore and discover activities or factors, which contribute to the competitive advantage. And then the mechanism of interacting with strategy to core competence is analyzed. Finally this dissertation proposes company strategies and business strategies based on core competence.