Research on Key Factors of Core Competence of Chinese Group-Buying Websites

Abstract

China has witnessed a vigorous development of Group-buying Websites (GBWs) in recent years. Along with the rapidly growing number of GBWs is the increasing competition among them. How to become a final winner of thousands of GBWs? The answer lies in core competence. Each GBW must have its own core competence. Core competence is the competence that enables a GBW to maintain its long and sustainable competitive advantages so as to gain a stable and superior profit. After having systematically analyzed competitive factors of successful GBWs in China, the author found some distinct differences in the sources of core competence between traditional firms and GBWs. The source of core competence of GBWs can be derived elsewhere from their merchants and customers. Heterogeneous GBWs have different core competence factors while homogeneous GBWs have the same or similar core competence. In order to gain everlasting core competence, GBWs in China cannot afford to rely on a single core competence; on the contrary, they must establish their multi-facet core competence before an oligarchy monopolized market is formed.