Study On Zhengzhou A Real Estate Company's Competitive Strategy

Taking full advantage of China's rapidly growing economy and the sound macroeconomic conditions, and making good use of the opportune time of the Zhengzhou real estate market, Zhengzhou A Real Estate Company(hereinafter referred as Company A), a share-holding enterprise focusing on real estate development, has maintained a sound and rapid development since its establishment. However, under the circumstances of aggravating global financial crisis and the deeply changing market situation, many real estate enterprises are facing the problems of insufficient funds, the stagnant sales, and the competitive marketing situation, the real estate industry is entering a period of readjustment. For survival and development, it becomes even more important and urgent to conduct the study on the competitive advantage of companies.Based on the strategic management theories and the characteristics and the competition of the real estate industry in China, this essay concludes that the Overall Cost Leadership is applicable to Company A by systemically analyzing and studying the internal and external environment that the company is facing. This conclusion is of important practical significance to the correct decision-making in the future, the cultivation of the core competitiveness and the launch of the future new programs. Meanwhile, this essay expects to offer some valuable references to the real estate enterprises in the hope that they can formulate or adjust their own strategies for competition and development, thus to make their contributions to the sound development of the real estate industry in China.Firstly, the essay outlines the relevant theories on competitive strategies, such as the PEST analysis, Michael Porter's Five Forces Model, the Value Chain theory, the Competitive Strategy theory, the sustained competitive advantage theory and the core competitiveness-resources competence theory.Secondly, based on the above mentioned theories, this essay analyzes the external environment that the company is facing in light of political factors, economic factors, socio-cultural factors, technological factors, the industrial structure and the market competition by PEST analysis and the Five Forces Model, followed by the analysis on the internal conditions such as human resources, the organizational structure, the marketing competence and the technological competences by resources competence theory and the analysis on the competitive strategy by SWOT. Based on the three typical strategy theories from Michael Porter and the characteristics of the real estate industry, this essay focuses on the analyzing the basis for Company A's selection of competitive strategy and selects the right strategy for the Company A and thus to generalize a conclusion that Company shall select the "Competitive Strategy"-Overall Cost Leadership.Thirdly, in order to further promote its competitive advantages, this essay analyzes the measures that Company A should adopt in various aspects, such as funds raising, products innovation, optimization of development, diversifying of sales channels, HR management, information construction, etc., in the hope of providing some value references to Company A's sustainable development.