On Company Core Competence and its Sustainable Competitive Advantage during Industrial Transformation

Reobtaining sustainable competitive advantage is the primary goal for company in transition. Beginning by literature review of researches of competitive advantages, this article establishes a core competence model and explains the relationship between environmental changes and company decline based on detailed analysis of competencies dimensions. Finally, the core competence mechanism shows how to reobtain sustainable competitive advantages through rebuilding core competencies, which involves four stages, namely, analysis of necessary competencies, digging the existing competencies and obtaining new competencies, integration of the obtained competencies, and evaluation of the core competencies.The last two decades has witnessed significant changes in business environment, including increasing international competition, rapid technological advances, deregulations, e-commerce, cost cutting, and an increasing fluctuation of customer demands, all of which have consequently brought great challenges to China. One of such challenges to Chinese economic development involves the declining of a large number of traditional industries such as textile, clothing, machine, iron, mining and traditional consumerist electrics. Reobtaining sustainable competitive advantage has become the primary aim for company in transition. Beginning by literature review of source of competitive advantages, this article shows how to reobtain sustainable competitive advantages through rebuilding core competencies.