Core Competence theory. In 1990, Xxxxxx Xxxxxxxx and Xxxxx released the ”The Core Competence of the Corporation” (Xxxxxx Xxxxxxxx, 1990). In their opinion, the core competence is the source of sustainable competitive advantage and new business development of enterprises, which should be the strategic focus of enterprises. Only the core competence and core products could allow enterprises to achieve the lasting leading position in the global competition. The main points of the theory: ① The competence of enterprise comes from the ability that the enterprise can establish core competence in the lower cost and faster speed than the competitor. ② Core competence is the compound of many elements, it is the combination f technology, management structure and collective learning. The core competence of enterprise is an ability which is scarce, difficult to imitate, valuable and extensible. The standards of inspecting the core competence are: Firstly, if it provides potential access which can lead to various market; secondly, if it brings obvious value for customers; thirdly, if it is difficult to be imitated by competitors. ③ Diversified enterprise is the combination of core competence, not the combination of products and career from Xxxxxx school. ④ Construct core competence and roadmap for the future of relevant technology. Keep the consistency of interior resource of enterprise through constructing strategy. The outstanding feature of this theory is to regard starting a new career as the focus of enterprise strategy, core competence as the sustainable competitive advantage of enterprise and source of developing a new career. From the basis of the theory, core competence is a concept of competition dominance based on resources, regards the enterprise as the combination of a series of unique resource. As every enterprise has limited resource, it can not achieve competitive advantage in every industry. Some enterprises have core technology competence and core manufacturing competence, but they don’t have core marketing competence, enterprise organization, coordination and management competence, or core competence of strategic management of enterprise. In the changeful market competition, the speed of single enterprise in self-adjusting with its won resource and ability is hard to catch up with the speed of market change. According to the core competence theory, in the enterprise economic organization, only the logistics resource is multi-purpose, is the core competence of enterprise whic...
