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The Classic Definition Of Core Competitiveness Is Wrong.

2008/9/10 11:17:00 41797

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I do not agree with the definition of core competitiveness, that is, core competitiveness is unique to itself, and opponents do not have the resources, capabilities, and advantages.

First of all, the core competitiveness is to serve the survival and development of enterprises. Therefore, if all resources, capabilities and advantages fail to achieve such a goal, he will not be the core competitiveness, even if the opponent does not.

So what kind of competitiveness is the most fundamental ability for the survival and development of enterprises?

Only those customers can meet the needs of customers, but the needs of customers always change, so when your competitiveness has always been aimed at adapting to customers, you can not call the core competitiveness, only the core competence.

On the contrary, only when the customer can only choose to adapt to you, your competitiveness can be called the core competitiveness. Therefore, the only characteristic of the core competitiveness is its monopoly. Your core competitiveness must be a monopoly ability, externally, that is, you must have the ability to set industry standards and rules of the game, which is called brand from the perspective of the customers.

In the case of Huarun, what we see is the distress of an enterprise that has achieved primitive accumulation and entered a rapid expansion period in the search for core competitiveness.

In January 2002, Ning Ning, President of Huarun group, organized a working conference of group general managers. The main agenda was to discuss core competitiveness.

According to the minutes of the meeting, Ning Gaoning first raised three questions: what is the core competitiveness?

Does Huarun have core competitiveness?

How does Huarun form its core competitiveness?

Ning Gaoning was concerned about this issue because of the more specific, clearer and more operational consideration of Huarun's strategy.

Because Huarun's business in the mainland, including 80-90%'s business in Hongkong, is facing a comprehensive market competition.

At the same time, the industry's external core competitiveness is very rampant. This has attracted Ning Gaoning's attention and thought, and that Huarun's troubled businesses, poorly performing businesses or businesses that can't survive for a long time are due to the lack of their own unique capabilities.

But what he doubts is that when he first heard the concept of core competitiveness, he did not understand the formation mechanism of the core competitiveness, nor did he fully understand the complete definition of the core competitiveness.

However, after some thoughts and insights, he seems to have identified some key points of core competitiveness.

He will share these experiences with the whole management team. At the same time, he also hopes that Huarun's management team will seriously consider and discuss, as a competitive enterprise in the market environment, does Huarun have any core competitiveness to make Huarun survive?

In fact, in this open and famous internal discussion, Huarun's understanding of its core competitiveness is still at a loss. It focuses on two points: 1, looking for the core competitiveness of Huarun, it seems that there is no way to start. 2 or five years later, Huarun's retail business and real estate business have core competitiveness.

Some classical business literature is not very instructive because it deviates from the particularity of the growth stage of enterprises and talks about growth with enterprises.

The more you talk to the author of the book, the more it will be found that all of the ideas and assumptions they put forward are super - class enterprises based on the world, and if they are the benchmarks, you have no way to emulate it.

This is because the enterprises at different stages of growth are essentially different from the stop points and constraints that they face. If they are to find the gap in a rigid way, and use the successful template of the upward business to solve the short board of the downlink business, it is just as ridiculous as thinking that they can go to the adult competition for a child with a pair of nail shoes.

Over the past few years, we have heard many domestic leaders of enterprises talk about the core competitiveness. This phenomenon is the result of the example of the inventor of the management concept, who conducted the model analogy and benchmarking in the different stages of development.

Just imagine, as Huarun, who had just entered the stage of rapid expansion from original capital accumulation, had to excavate its core competitiveness when the theory of enterprise and reasonable profit distribution mechanism had not been established in turn.

Our research does not agree with the definition of core competitiveness, that is, the core competitiveness is unique, and the resources, capabilities and advantages of competitors do not have.

First of all, the core competitiveness is for the survival and development of enterprises. Therefore, if all resources, capabilities and advantages can not achieve such a goal, he is not the core competitiveness, even if the opponent does not.

Then the question arises. What kind of competitiveness is the most fundamental driving force for the survival and development of enterprises?

Only those who are able to meet the needs of customers, but the needs of customers always change, so when your competitiveness has always been aimed at adapting to customers, you can not call the core competitiveness, only the core competence.

On the contrary, only when the customer can only choose to adapt to you, your core competence can be called core competitiveness.

Therefore, the only characteristic of core competitiveness is his monopoly, and your core competitiveness must be a monopoly power.

Externally, an enterprise has the ability to formulate industry standards and rules of the game.

From the perspective of customers, this is called brand, and from the point of view of industry competition, it is called core competitiveness.

Our research does not agree with the definition of core competitiveness, that is, the core competitiveness is unique, and the resources, capabilities and advantages of competitors do not have.

Then the question arises. What kind of competitiveness is the most fundamental driving force for the survival and development of enterprises?

On the contrary, only when the customer can only choose to adapt to you, your core competence can be called core competitiveness.

Therefore, the only characteristic of core competitiveness is his monopoly, and your core competitiveness must be a monopoly power.

Externally, an enterprise has the ability to formulate industry standards and rules of the game.

From the perspective of customers, this is called brand, and from the point of view of industry competition, it is called core competitiveness.

In fact, the core competitiveness means that an enterprise has already done a thorough job in a certain industry, and has become the maker and implementer of the industrial standard. But as a trade starting enterprise, Huarun has just pferred from the original accumulation to the rapid expansion stage. How can we excavate the core competitiveness without obvious technical advantages, experience accumulation and talent reserve?

Of course, this does not affect Huarun's ability to compete with the core competitiveness to create its own enterprises.

And this requires him to break through his own career theory and profit distribution mechanism and other related stop points before he can get the core competitiveness of his growth.

Then there will be a question: what does a downlink enterprise without core competitiveness rely on to survive and grow?

This leads to another important principle of Pyramid's principle: any enterprise must rely on the unified power system and grow up by breaking through the stop point.

In fact, if we can not establish a unified power system that is linked to customer value, even the uplink enterprises with core competitiveness can not survive.

The unified power system is the core of strategy and operation, and is the foundation of the survival of enterprises. The breakthrough point is to achieve core competitiveness and establish super first-class Pyramid enterprises.

The survival and growth of Huarun can not be separated from such an iron rule.

In fact, the core competitiveness of Huarun can not be found in the group. In the end, the growth of the unified power system and the breakthroughs in the business theory have led to the survival and phased growth.

From the perspective of growth, the power to bring Huarun's rapid expansion to the next stage of development is aimed at the difficulties and breakthroughs in the stop point of business theory.