A Study Of The Strategy Of Improving Of Core Competency Of JDM Company

JDM company, with construction area of more than59thousand square meters,was founded in1997as a wholly-owned subsidiary of Guangdong DM Group Limited.It is an integrated private enterprise, focusing on the manufacture of the precessedproducts and independently--researched&developed products. JDM features inreasonable allocation of personnel and equipment, strong technical force, excellentproduction craftsmanship and best quality products. The company is an importantstrategic supplier of the processed products to XH Low--Voltage Switch CompanyLimited (hereinafter referred as AB Corporation) which is subordinate to Axx, one ofthe world top500. In the research and development of the independent products, thecompany has established the cooperative relationships with some domestic leadinguniversities and research institutes to jointly develop new products.JDM mainly processes a series of spare parts of plastic-encased circuit breakersand relevant electric equipments, meanwhile produces a series of special-purposeelectricity gauges and plastic-encased sealing products. In the past five successive years,the output value of JDM company has increased at the speed of15%. But due to moreand more mature market and more and more competitors, to a certain degree, both ofthe two business sections have been influenced considerably. JDM has been reduced tothe second largest supplier, even to the third to AB Corporation instead of the first dueto the decreased turnover of the processing section, while the independent research anddevelopment section has gradually lost its uniqueness in technology and priority inpreconception. And soon JDM will be confronted with the situation that JDM and itscompetitors are on the same starting line. How to maintain and enhance the company’score competency is a new task for the long-term and medium-term development of thecompany.According to the characteristics of the company and the changes in marketsituation, basing on the in-depth analysis and discussion of the company’s internal andexternal environment, this thesis tends to explore the strategic plan and guideline onhow to enhance and maintain the company’s core competency. In the establishment ofthe company’s core competency, apart from market research and development, it isnecessary to explore new management mode or improve existing one, strengthen the construction of talents team, integrating the resources, and reinforce the company’sinternal management. Only by the comprehensive improvement and enhancement ofmanagement levels of all aspects, surpassing the competitors in such aspects as low cost,advanced product and market acceptance, can the company’s core competency be reallyachieved.On the basis of the definition and connotation of the core competency of anenterprise, combining the background as well as management mode of JDM company,by adopting the concept and theory of the core competency and company’s value chainand their analyzing methods, through some analyzing devices and methods of somemolds and matrices, this thesis analyzes the characteristics of JDM company corecompetency, its component elements, the ways and procedures to establish thecompany’s core competency, and the relationship between company’s core competencyand the establishment of learning-oriented organizations. Centering on the integration ofcompetitive strength and the consolidation of craftsmanship and production skills,together with case studies, this thesis also makes an in-depth investigation into thestrategic development advantages of JDM maintaining and enhancing the corecompetencyIn the light of JDM company’s background and the characteristics of itsmanagement system, in the study of the company’s core competency, this thesis does notput undue emphasis on the improvement of whole component elements. On the contrary,this thesis puts forward some suggestions on how to maintain and enhance thecompany’s core competency, such as, adjusting management structure, refiningproduction management, building distinctive corporate culture, making thedisadvantageous advantageous, meanwhile maintaining and perfecting existingcompetitive advantages. Only in these ways can the company gain an competitiveadvantage in the market competition.The thesis consists of three parts. The first part is the analysis of JDM company’score competency. The second part is on the formulation of the strategy for JDMcompany’s core competency. The third puts forward some suggestions on how tomaintain and enhance JDM company’s core competency.