In the implementation of the strategy to build core competencies.docVIP

 PAGE \* MERGEFORMAT 6 In the implementation of the strategy to build core competencies Rely on big corporate strategy, business and stronger by the core competitiveness. To the two mutually exclusive, they must rely on implementation of the strategy capability. U.S. retail giant Wal-Mart, Kmart and another giant one-hing, a bad example seems to illustrate this truth. Kmart: weak implementation of the strategy failed to establish a core competency Kmart discount department store industry in 1962 after entering the rapid expansion of the mid-80s to the 20th century, became the industry leader. However, in 1985, but after the implementation of the strategy Kmart lack technique, or the implementation of inappropriate or delayed action, as well as in the fierce competition into bankruptcy. Over the years, Kmart has failed to establish a low-cost, highly efficient operation system: 1, store layout, without reasonable plan. The company’s main customer orientation in low-income consumer class, but most choose the outskirts of large cities or business centers shop, strategic ideas and actions are inconsistent. 2, value chain management, divorced from all sectors. The company’s non-plan layout and over-hasty expansion caused by ordering, inventory, transportation, sales and other value chain links out of touch, often resulting in inventory backlog, not timely delivery, etc., often simply rely on price cuts or promotions, resulting in high advertising costs ( accounted for 10.6% of operating costs, Wal-Mart accounted for only 0.4%). 3, the pan-Diversified caused dispersion of efforts. Companies have set up office supplies franchise stores, sporting a giant shop, clothing sales stores, discount drug chain, building materials, square chain, joint bookstore, buffet restaurants, but also constantly trying to giant commercial center, super centers and warehouse clubs, and a variety of retail forms, the results of due to the different services and customer groups, are alwa