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Analysis on Distinctive Competence of Chinese Corporations Based on the Theory of Value Chain

The sustained development of a corporation is solely dependant on its distinctive competence, which comes from the core competence of the corporation, while the breeding of the core competence is a formidable and long-time mission progressing with continuous exploration in practice. Here, based on the law of corporation competition, we analyzed the distinctions between Chinese corporations and their international counterparts mainly from comparisons of value chains of representative enterprises. In addition, we investigated the deficiency of Chinese enterprises based on the value chain theory. From this study, we distinguished and defined the commonly confused concepts of terms, namely competence, core competence and distinctive competence and clarified their relationship. Besides, from the analyzes on data from Chinese and international corporations such as share prices, investment rate on R&D(Research and Development) and person with ability proportion, we summarized the historical and economical reasons behind the forming of two types of value-chains: the "ellipse" value chain and "dumbbell" value chain. Finally, we proposed suggestions aiming for improvement of corporation competence of Chinese enterprises.