The Study On Strategy Of Cultivating Core Competence For Non-government Corporations

One of the most important pillars of Chinese economy being strongly and stable increased is non-government enterprises. However, the growing of the non-government enterprises faces so many difficulties and problems that it is difficult for them to become big and successful. Even if they become big and successful, they are still hard to survive. The best way to solve this problem is to continuously cultivate corporation core competence.Gary Hamel and C.K Prahalad put forward the theory of core competence and give a scientific explanation for the enduring source of maintaining competitive advantage. They advanced the corporation strategy management to a new phrase. The focus of cultivating corporation core competence is different for the corporations of different types, qualities and environment. For the small or medium size corporations without adequate system, cultivating and upgrading core competence is an important task for the theory researchers and managers.Guangzhou Hengda Group has been a modern large enterprise group with a lot of industries such as transportation, energy, high technology, education, repast, entertainment, and etc since it set up from a basic industry of real estate in 1997. Now it is one of the Chinese 500 tops, 20 tops non-government enterprises, 10 tops in real estate in China with the total property of 12 trillion, net property of 8 trillion. It has developed to one of the most typical Chinese non-government enterprises. This article based on the theory of studying corporation core competence, through the demonstrated analysis of Guangzhou Hengda Group, provides some useful strategies for Chinese non-government enterprises of cultivating core competence.The author firstly analyzes the significance and necessity of cultivating core competence of non-government enterprises; secondly reviews its historic evolvement course from its produce to development. He anatomizes the definition of core competence, analyses the features of core competence and generally summarized the study of the non-government enterprise core competence in China. Based on it, the author makes a demonstrated analysis from aspects such as strategy innovation in the core competence in Guangzhou Hengda Group and points out the relationships between cultivation the core competence and those elements. It is just the resolution of those relationships that forms the core competence of Guangzhou Hengda Group. Finally, the author provides his suggestion for upgrading the core competence for the non-government enterprises in our country.