Core Competence: Cornerstone Of High-tech Business Growth - From Laborers Technology Industry Co., Ltd., Survey Analysis

From the 1990's, the new economy, which has brought about great changes in the world economy, results in a new structure. Many newly booming hi-tech enterprises push the world economy ahead greatly. On the other hand, some big enterprises are fading off because of their slowness in creation. Though the success of these hi-tech enterprises is shining and stunning, unfortunately, every nine of ten have failed, which shows that the competition in new economy is even fiercer, and the former theories can hardly explain the differences making the winners and losers. Fortunately, the concept of core competence emerged as the times required. The core competence explains the reason of success in the new age, and gives a way of surviving and developing. There are less successful hi-tech enterprises in China. They don't know much about the core competence. The theory on the core competence, which is being studied by scholars in the world, is not perfect. Yet, still will be helpful to employ this theory to induce and sum up useful and practical means by studying the case of Huagong Hi-tech Company. This paper has three parts:In the first part, I analyze the Huagong Hi-tech Company, which produces laser products, and find out the core competence of this company. In the first two sections, I briefly introduce the background of this company and the laser product industry.In the second part I analyze the process of forming and building up the core competence of Huagong. There are two sections in this part, which is the key point of this paper. The first section shows what is the core competence and defines the theory on the core competence and specifies the boundary of this paper. There are two points: first, the definition of the core competence. Citing the standpoint of the theory, the core competence is the integration of varies abilities. This is to show the key to attaining the core competence is to bring up the core ability. Second, the ability of organizing, creating, marketing and management is very import in a hi-tech company. It is the main part of the hi-tech enterprise.In the second section, I analyze the core competence of Huagong Hi-tech Company. This is the main section of this part and this paper. The core competence is built up by its location advantages and strategy, which one of extreme importance to shaping a core competence in developing a enterprise. We can build up the core competence by means of1. Core technology. 2. The organization structure optimization3. Human recourses and incentive mechanism.4. Enterprise culture-knowledge creation and competition team.In the third part, based on the case study of Huagong Hi-tech Company, I point out how to mold the core competence in hi-tech enterprise in China. There are three sections in this part. First, I analyze the actuality of the hi-tech enterprise in China. Second, I define some problems in processing the core competence and show some reasons that prevent the hi-tech company from fostering the core competence in China. In the last section, I give some idea and suggestion about how to promote the core competence in China. I hope it will be helpful to the hi-tech enterprises in China.This paper is not perfect due to the limited time and my ability. If there is any suggestion and disagreement on this paper, please let me know.