For the survival in a cutthroat market competition, enterprises must maintain and develop their businesses with outstanding competitive advantages over a long period of time. This thesis was motivated by two kinds of goals and reasons as follows. First, we assess the competitive advantages and disadvantages through the analysis of the core competence in the level of strategic business unit of an enterprise. Second, on the basis of analyzed core competence, we propose ways to improve the competitive capabilities of its business.
We used two different methods for assessing core competence, value chain analysis and competence and process analysis technique. Following the results of competence analysis, we propose two kinds of generic competitive strategies to strengthen the competencies and improve the weak areas capabilities. First one is cost leadership strategy and second one is focus strategy. As for cost leadership strategy, we consider economies of scale, learning effect, vertical integration and location as improvement alternatives. As for focus strategy, we suggest two ways ; One is to focus on production and technology development capabilities to secure long-term profit and higher margin. The other one is to focus on supporting business customers through custoemr database construcion, establishment of service enter and real time network service.
In conclusion, to maintain and develop business continuously, enterprises must have core competence, such as core products and core technology of competitive advantages. Weak capabilities are to be reinforced within a short time. We tired new ways of assessing core competence of the strategic unit level and propose the strategic alternaives such as cost leadership and focus strategy to reinforce and improve capabilities of aircraft engine business.
