| Core competences are the source of achieving competitive strengths for today's enterprises. Enterprises' existence and sustained development largely depends on their own core competences that achieved in the course of their daily operations. The theory of core competence has now become the main and widely used method of solving enterprises' underlying problems since it was introduced by the two famous American scholars C.k.Prahalad and Gary Hame. The development of China's economy depends on the development of its firms, which means the firms of China should have core competence .So, the study how to promote an firm's competitiveness is very important. Many theoretic studies and evidences show that to build and develop core competence is the key to promote firm's competitiveness.The introduction section of this paper points out, foreign owned retail enterprises will, after China's successful accession to WTO, carry out a more intense "beachhead forestalling "movement in our country. Chinese retailing industry is about to meet a new round of upgraded competition, It will bring some extremely new pressures and challenges to our retailing industry in a situation of too many shops and severe competition. Domestic retail enterprises must, in order to survive and develop in competition, learn from advanced foreign retail enterprises and improve their core competitive power.The article is divided into three chapters, being in the light of advancing the problem, analyzing the problem, and account for the solution of the problem. Firstly, based on the review of review of the history and practice of chain operation, the author deeply clarifies her view that chain operation is the outcome of high-speed economy development brought by the Industrial Revolution of modern times. It produces three patterns regular chain operation, voluntary chain operation and special permission chain operation. From the high plane of economics of scale economy division of labour theory and exchange expense theory, the author explains the interior rationality and advantages. Secondly, describing the concept of competition ability and core competency, subsequently analyzes the present condition of Chinese retailing firms to nowdays international situation. Lastly, on the base of the two previous chapters, putting forward some conceives and suggestions about how to increase the enterprise core competencies in our country. |