Xingda Group's Expansion Strategy Based On The Enterprise Core Capability

Expansion is an everlasting topic for enterprise development. However, it's a dilemma for enterprise, especially for the non-state owned enterprise whose risk resistance capacity is relatively low. It's very important for them to make compatible expansion strategy. According to the major idea of several management theories, it is pointed that the expansion strategy should be the matching process of internal and external resource. Based on Xingda Group's development for 18 years, the Xingda Model which is focused on core capability and depended on the industry cluster advantage may be a promising way to succeed.The proposition mentioned above is tested by theoretic analysis and empirical study. Classical enterprise core capability theory and enterprise expansion theory support the interaction between the competency cultivation and expansion in size, which are the two sides of one coin. The former equals to intensive development and the latter equals to extended development. Industry theory shows the way that the enterprise promotes its competitive advantage using the external, especially the mesoscopic environment. Xinada Group's core competence capabilities are evaluated by fuzzy synthetic evaluation model. Taking several investment projects as case study, the conclusions are following:(1) the core competence capabilities are technical tips and dominant products; (2) the motivation for both newly building and MA is developing technology and expanding the production capacity; (3) location is important to get good external environment, which means petrochemical industry zone is the preferred choice; (4) to ensure obviously financial performance, the integration management should be effectively performed; (5) the enterprise expansion model based on core competence capability is feasibility theoretically and practically.