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1. Viewer 李秋萍 高旋 李升泫 李 莉 李海哨 龚子君 彭博 云晓丹 黄端端

2. Reference • The core competence of the corporation by C.K Prahalad and Gary Hamel • Dynamic Capabilities And Strategic Management by David J．Teece，Gary Pisano And Amy Shuen

3. The development of main strategy theory Pay attention to • inner-creating  theory • competence-based theory • resource-based theory outer-creating theory 1 2 competence-based theory Competitiveness advantages Core Competence Dynamic Capabilities the development of strategy theory

4. GET VS NEC Doubt Why did Japanese corporations succeed with diversified strategy in business competition? Example Consider the last 10 years of GTE and NEC ? Opinion Different concept of the corporation SBU(GET) VS Core Competence(NEC) (Strategic business unit) Outline

5. Core concept 1 1 1 2 2 2 3 3 3 Business 1 Business 1 Business 2 • Toxic side effects • Invent risk • Underinvestment(投资不足） • Imprisoned resources • Bounded innovation • Depend on OEM(贴牌生产） • Barriers to building core competencies cash cash Corporation SBU mind-set Corporation Structure SBU concept of corporation CORPORATION: A portfolio of businesses Related in product-market get capital by effect Pursue today’s product

6. Core competencies are the collective learning in the organization ,especially w to coordinate diverse production skill and integrate multiple streams of technologic. (协调整合) End product Core competence by Prahalad & Hamel Spawn(生产) unanticipated products (NEC) Core competence concept of corporation Core competence Long-term In the long run ,which can provide more profit for corporation? Competitiveness of today’s products (GET) Short-term

7. End products 1 2 3 1 2 3 1 2 3 1 2 3 Business 1 Business 2 notice Business 3 Business 4 structure Business unit Core product2 Small breach Back Core product1 Trunk(树干) 1 2 3 4 root Core competences Basic technologies 1 2 3 4 Competencies: The Roots of Competitiveness Structure of diversified corporation

8. Strategic Steps Strategic Architecture （构架） Strategic Intent （意图） 3 • Program strategies according to strategic architecture to create core competencies 2 1 • Identify core Competences , Basic technologies and core products • clarify the corporation’s goals • Improving the employees Industry Foresight (行业前瞻） Competencies sever for computing, communications and components business （计算，通信和元件业务） Semiconductors(半导体） Exploit the convergence（融合） of computing and communication need How to get competitive advantages??

9. How to build core competencies? Get basic technologies Develop Core product • Get licensing deal • (经营许可） • alliances/acquisitions/recruitment • (联盟,收购,招聘) • Invent oneself • OEM-supply • ( 贴牌生产供应） • Leader in core competence • Build global brand umbrellas（品牌伞） Restructure Corporation structure Enter new business • advantages from core competencies \ brands\ chains \ Capital \reputation • R&D department • Location department • Leaning organization • Strategic • Architecture • （构架） A map of future

10. 1 2 3 Make a significant contribution to the perceived customer benefits of the end product Provide potential access to a wide variety of market Should be difficult for competitors to imitate. Identifying core competencies

11. Everything for core competencies Resource arrangement base on Strategic invent Invent risk Base on many advantages Succeed in business competition GET Competitiveness advantages Barrier to build core competencies Imprisoned resources Different Targets

12. 2 Framework Contents 1 Definition 3 Conclusion

13. What is Dynamic capabilities? Dynamic Capabilities the key role of strategic management to match the requirements of a changing environment. the capacity to renew competences Dynamic Capabilities

14. What is Dynamic capabilities? (continue) • Dynamic capabilities is the firm’s ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environment.

15. The essence of Dynamic capabilities Dynamic Capabilities Processes Positions Paths

16. processes Coordination/ integration Organizational processes Learning Reconfiguration/ transformation

17. Coordination/integration 3 Competence/ capability is embedded in distinct ways of coordinating 2 The way production is organized by management inside the firm is the source of differences in firms’ competence 1 How efficiently and effectively internal coordination or integration is achieved is very important. (Aoki,1990) The replication may be difficult

18. Characteristics 1 Characteristics 2 Learning is a process by which repetition and experimentation enable tasks to be performed better and quicker, and new opportunities to be identified. What is learning? • Learning involves organizational as well as individual skills. Learning characteristics • The organizational knowledge generated by learning activity resides in new patterns of activity, in “routines”, or a new logic of organization.

19. Reconfiguration/transformation Constant surveillance of markets and technologies and the willingness to adopt best practice Adopt the changing environment and sustain competence method eg. Benchmarking Reconfiguration /transformation In rapidly changing environments, how to sustain competence? Competitive advantage impaired(削弱) Narcissistic （自恋的） organizations

20. Position Financial Reputational Complementary Institutional Specific assets Market Technological Position

21. Path Technological opportunities A firm’s current position is often shaped by the path. And a firm’s previous investments and its repertoire of routines (its history) constrain its future behavior. Technological opportunities are often fed by innovative activity itself. And the recognition of such opportunities is affected by the organizational structures that link the institutions engaging in basic research to the business enterprise. Path dependencies

22. Entry decisions must be made with reference to the competences and capabilities which new entrants have, relative to the competition. Identifies likely entrants and their timing of entry. Emphasizes on the internal processes that a firm utilizes and how they are deployed and how they will evolve. Conclusion

23. Conclusion The competitive advantage is stemming from high-performance routines operating “inside the firm”, shaped by processes and positions. Distinctive competence is generally cannot be acquired; they must be built.

24. Thank You !