Abstract: In the era of knowledge economy, the knowledge and the core competence through the integration of knowledge are the key resources to achieve competitive advantage. Strategy business unit (SBU) based on the traditional products- or market-related strategy has been unable to meet the changing environment because of its scattered resources and lackness of innovation. To obtain sustainable competitive advantage, enterprises should integrate knowledge and core competencies to develop new strategic business combinations, and pay more attention to the path-dependent accumulation of knowledge and core competencies rigid.