1.1 Research Background & Significance
Under the new economy background of global economic integration, the market competition becomes increasingly fierce, and even become cruel, the breadth and depth of economic globalization is also expanding and changing with the development of economy. The alternation of the new established and old corporation, whether it is the birth of the new corporation or a hundred years corporation, has become a grim reality that must be faced in the process of the rapid development of the world economy. Winners and losers, winner is the king , this is the nature of the competition, the result of economic development!
With the continuous development of economy, knowledge economy plays an important role in the economic tide. Both the Internet and the application of high and new technology have made the business activities of corporations are facing unprecedented severe challenges. Market demand is rapidly changing, the development of technology is also diverse with the application of high and new technology as the basis of small and medium corporations in the competition to be based on, must continue to enhance the competitiveness through technology innovation and upgrading, that is, the promotion of competitive advantage. And the growth of the corporation is not always going smoothy. In order to obtain considerable competitive advantage, the most importance is in the cultivation of the core specialty of corporations, especially the talent, technology, knowledge and so on. In the growing process of China's private corporations, especially with the trend and development of private corporations, they are facing the problem like growing slowly and corporation lifetime is short; many corporations in the competition in the transition rely on price war to keep the corporation's to survive and expand their market which will lead to a loss for all of them. But over diversified by ignoring cultivate and raise the core competence is increasingly becoming an important reason for the failure of the corporation.
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1.2 Main Research Content In
order to analyse the topic in a more comprehensive way, the paper will be divided into four different chapters:
Chapter I. Introduction. This chapter mainly describes the research background and significance of the research, the research ideas and methods of this research, and the practical and guiding significance of this thesis.
Chapter II. Literature review. Analysis of the characteristics of each stage of the corporation base on the theory of corporate lifecycle. In particular to summarize the research achievement on the core competence of the corporation from the very beginning and it’s development process, the background and theoretical origin of the theory of the core competence of the corporation and its conceptual features and elements are summarized,the different understanding and viewpoint about the core competence of corporations in the domestic and foreign scholars, and then to make a comprehensive review of the relevant theoretical literature. On the basis of the theory of corporate life cycle and corporation's competitive strategy, this paper puts forward the understanding of corporation's core competence.
Chapter III. A case study of Company A's market competitiveness strategy. Using Michael Porter's five forces model, pest, MOA, SWOT TOWS Matrix and other research tools and methods to analyze industry and the market environment at the present stage of Company A , and to carry out comprehensive analysis for the implementation of market competition strategy of market strategy (market positioning strategy, marketing strategy, technology research and development strategy, etc.), also for it’s strength and weakness in the competition and problems and difficulties they are facing now. To evaluate the core competence of Company A and make recommendations. In this chapter, the author analyze the characteristics of Company A, which is based on the theory of the second chapter. So professional technology has become the key to the corporation in the field, which is the key to establish and enhance the core competence of Company A. And then pointed out that Company A is lack of core competence in the process of implementation of market strategy .
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CHAPTER II. Literature Review
2.1 Research of Corporate Lifecycle Theory
The research on the life cycle of corporation began in the 1970s. In 1972, Professor Larry - Greiner (Larry E.Greiner) from Harvard University mentioned the concept of corporation life cycle the first time in his book - “Evolution and Revolution As Organizations Grow ". After that, American scholar Ichak Adizes carried out a systematic study on corporation culture from the perspective of corporation life cycle. In addition, many scholars had explored and modified the life cycle theory and methods constantly from the qualitative or quantitative point of view and proposed a different business life cycle model.
In 1989 , Ichak Adizes published his book “ Corporate Lifecycle “ became the classic study of the life cycle theory of corporations . The book presents a corporate life cycle model , some will call it classical model①. Adizes believe the growth of the corporation and the aging of the organism are the same as the relationship between the two factors of flexibility and controllability, the Flexibility and controllability determine the position of the corporation in the life cycle. Adizes defined the corporate lifecycle into 3 different stages – Courtship , Prime , The fall and divided each stage into 10 fined stages ( See Figure 2-1 ) are : Courtship , Infant , Go-go , Adolescence , Prime , Late-Prime , Aristocracy , Recrimination , Bureaucracy , Death .
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2.2 Characteristic of different stage of Corporate Lifecycle
Some scholars took Ichak Adizes’s Corporate Lifecycle theory as an reference and divided the development of corporations’ lifecycle into four different stages as : Start-up stage , Growth stage , Mature stage , Decline stage . The development of an corporation is actually more like a transition or transition from one to another in a lower stage to another higher stage . Corporations will show different characteristics in different stage and their target will shift as well . Meanwhile , In different stages of the life cycle, will experience and have different risks . No mater it is characteristic , development target or risks will influence those corporations in how to participate into competition and choice of their competitive strategy direct or indirectly .
2.2.1 Characteristic Analysis of Start-up Stage
At this stage, corporation has just been born, business scale is small , the strength of competition is weak, the organization structure is simple and is not standardized, but the operation is flexible, most of the market is created and driven by technology or innovation . The market share of the corporation is small but with big risk .
The main goal is of corporations in the start-up phase is to survive in the market which they are going to enter , expand their product sales by expansion , accumulate cash flow continuously to enhance the size and strength of the corporation, and lay a good foundation for the further development of corporations.
The corporation will face the risk of survival . As the corporation has just been born and start having the basic operational management capabilities, the corporation will not and be able to do business beyond their business scope and scale .
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Chapter III Case Analysis of Market Competitive Strategy of Company A ................... 35
3.1 Case Description ......................... 35
3.1.1 Introduction of Company A ................. 35
3.1.2 Background information of Company A ................. 35
3.1.3 Challenges facing by Company A ...................... 36
3.2 Case Analysis of Company A ............................ 37
3.2.1 Current Market Situation and Industrial Environment Analysis of Company A ......................... 38
3.2.2 Analysis of Market Competence of Company A ................. 40
3.2.3 Challenges facing by Company A in Market Competitive Strategy ............... 41
Chapter III Case Analysis of Market Competitive Strategy of Company A
3.1 Case Description
3.1.1 Introduction of Company A
Company A was established in 2011 and specialized in sale of wire rope and lifting rigging fabrication . They regard “ Strength , Safety , Professional “ as their quality policy to provide high quality products and services in China. Company A is equipped with 6000kN and 10000kN splicing machine with an capability for wire rope between 3mm-70mm . And also with a 600kN imported test bed can do tension test for different kind of wire rope sling , chain sling , rigging and hooks . The fuse and tapering machine can fuse and taper wire rope from 6mm-40mm to prevent loose end . Also with wire rope coiling machine and length measuring machine to measure the length in according to customer’s requirement . Products has been widely used in shipping , industrial , construction , port cranes , wire rope sling , riggings , etc. Company A has gathered a great experience in the last decade in wire rope business in China , and has been recognized as one of the most professional company in Guangdong province .
3.1.2 Background information of Company A
Although company A was newly established since 2011 , but they got many experiences in lifting products . Because it’s predecessor was a JV company between a U.K wire rope manufacturer and a global well-known shipping company . But due to their predecessorcompany need to be winding up , so the ex-employees have to look for another job and that’s how and why company A was established . This also provide her a very good technical supporting for the company in future . Just because of those ex-employees started setting up their business together , recruited those ex-technical people and bought in those second hand equipment by updating the equipment , managing their production , recruiting new people , they have become one of the best lifting rigging company in south China within 4 years effort .
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Chapter IV Conclusion
4.1 Conclusions
Small and medium size corporations in the technical production industry must continue to creative in technology innovation . As a fact that the small and medium size corporations are very efficient in technology innovation. However, the core principle of an technical production corporation should pay attention to cultivate the core competence of the corporation. Through cultivating the core competence of corporations can help corporations to predict the trend of technology accurately and changing of market demand . So as to adjust the direction of development of corporations , to develop the right technology innovation strategy, so that the corporation can be developed constantly in various projects, and ensure smooth development of corporations. And in the process of innovation, through the level of integration of the internal competence of corporations elements increasing gradually , in a certain extent can contribute to the cultivation of the core competence , so as to promote the realization of innovation achievements in further . Corporations will be a spiral upward trend in growing in having two elements formed a benign interaction cycle. In order to achieve considerable development for corporations, it must be based on the basic strength of the corporation itself , identify the strategic base point as the basis for the development of corporations. Small and medium size corporations tend to choose niche markets which are always ignore by large corporations by providing specialized services to get the maximum profit, that is to take niche market principle by adopting the focus strategy to avoid over diversification. The strategic basis is trying to develop one or a plurality of profitable "niche" markets and avoid direct compete with large corporations. On the same strategic basis, small and medium size corporations have to face many competitors, so small and medium-sized corporations must be based on their own development goals , resources and market environment to determine their own strategic approach .
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