Value Chain Analysis In The Application Of Real Estate Development Company

China’s real estate industry since the late 90s of last century’s rapid development is largely a process of urbanization and the enormous rigid demand, as well as the domestic economic structure defects caused by inflation expectations. Like the real estate to do business in high-risk capital-intensive industries, do not have much to do feasibility study, at very high debt ratio under the effect of the formation of highly leveraged, almost industry-wide profits, and even profits, thereby attracting a large number of social capital influx, so that real estate companies to hoard land alienation from the Sellers. Moreover, this quantitative growth, and guide the management level there is no corresponding increase in quality. Therefore, this development is unhealthy, and it is not sustainable. The outbreak of the financial crisis, the real estate industry value chain, the structural defects can be seen·Michael Porter, the United States in 1985 first proposed the concept of the value chain. Porter said:an enterprise has a lot of resources, capabilities and competitive advantage, if considered as a whole, would be unable to identify those competitive advantage. It must break down business activities, through the study of these individual activities themselves and their mutual relationship to determine the enterprise’s competitive advantage. With the development of information technology in 1995, Jeffrey·F·Leibao Te and John·J·Sviokla proposed development of the virtual value chain of the view that every enterprise today to compete in two worlds, that managers perceived the physical world and from information constitutes a virtual world. Future information technology will ultimately affect the real estate value chain into the direction of the virtual value chain, thus companies must cultivate more excellent staff to implement the business strategy. In this paper, the use of value chain theory of the theory and method at the present stage of China’s real estate industry’s value chain analysis of studies to explore the integration of China’s real estate enterprises in the strategic resources to enhance competitive advantage in the road. The article first emphasized the analysis of the importance of value chain deconstruction, and then traces the value chain theory and related theories of academic origin. The third part of the article is the actual combination of the characteristics of the real estate business processes, build up the value chain model of the real estate business, and the real estate business activities and value creation exist in the value chain of the internal and external contacts for recognition. The fourth part, the authors of a real estate development firm’s value chain approach for the specific application made presentations and with the current number of companies such as Shenzhen Vanke and other domestic and foreign cases, like on the real estate business value chain optimization and promotion, raise such as outsourcing, real estate, commodities, standardization, industrialization and intensive production, and several other business activities can be differentiated or low-cost to bring a viable direction.