Putting core competencies into market: Core competence-based platform approach

Continuous and quick delivery of new products to the market is key to achieve competitive advantage. In order to make the users pay money for their products, firms should successively renewal their products. It is necessary for the firms to build and leverage their core competence. Many Chinese firms have realized this. To some extent, Chinese firms are toward competence-based competition. This is right the theme of this paper. Core competence of corporation is the source of competitive advantage. Core competence-based platform approach can translate core competence into practical advantage. It can integrate cope competence and market needs. In the first, this paper introduces some theory and practice about platform approach. Based on a product platform, a set of products can be extent. It can be: st set of designs and components which be commonly shared; a commonly shared subsystem; a base product or platform product; a core product. Then core competence theory is briefly introduced. Based on these, a framework of core competence-based platform approach is discussed in detail. Core competence-based platform approach can speed the product renewal, shorten product development cycle, reduce product development cost as well as the product manufacturing cost. And it can also satisfy the different demands of different consumers. Finally, a. case study on Hangzhou Serene Refrigerator Manufacturer (Serene) is conducted. In order to win the market, Serene built and leveraged its competence in the last several years. Based on its competence, Serene adopted the platform approach in the new product development. Five serials of new products were advance to the market. This led it to one of the leading refrigerator manufacturers in recent years.