The Study On The Development Strategy Of Rongqiao Group

Rongqiao Group was founded by Mr. Lin Wenjing, an overseas Chinese leader in Southeast Asia in 1989. It becomes a top brand enterprise in real estate industry of Fujian after a decade of growth. Rongqiao Group was emphasizing on establishing brand and refining products with its moderate development strategy, however, its growing pace was far behind the expectation that was showed by insufficient projects, inadequate entry in regional markets and lacking of influence in national market. In recent years, the China real estate industry has come into a stage of fast developing. Many companies from Hongkong entered mainland market. . Local front line enterprises like Vanke Co.,Ltd, China overseas building Group fasted their expansion into national market. Even regional enterprises like Jindi Goup, Longhu Group started penetration into national market. Rongqiao Group has missed the excellent opportunity for fast development by its reluctance of entering other regions besides Fuzhou and Chongqing and by ignoring its great advantages on brand management and high financing capability. Because of the quick rise of new-generation enterprises, the competitive advantages of Rongqiao Group in local market has been gradually vanished. Maybe non- development is the greatest crisis Rongqiao is facing. The current strategy cannot cope with the trend, therefore, it is necessary for Rongqiao to re-plan its strategy for development.In this article, the development strategy of Rongqiao Group was researched and discussed with integrated theories and analytical tools. Strategic management theories were introduced briefly in the first chapter. After a short summarization on China real estate industry, the internal and external environment of Rongqiao Group were analyzed in Chapter 2. Based on the above results, a further analysis and evaluation were done in Chapter 3. The overall strategy of Rongqiao Group was that it would grow from a leading regional enterprise into a national real estate corporate in 5 years'time by focusing on real estate industry and adopting fast expansion and market penetration tactics. With this overall strategy, the corporate strategic objectives, basic policies and functional strategies were formulated according to the real situation of the company. Lastly, some suggestions were given on changes on organizational structure and corporate culture which may provide enterprises who are facing change on strategy or big adjustment with some ideas and methods.