| After20years of rapid development, the Chinese real estate industry has made great contribution to the city development and national economy, improved people’s living environment, promoted life quality and created wealth for many people by developing and constructing a variety of real estates. Meanwhile, it has been seen in some cities that real estate is overheated, speculative investment prevails and house prices keep soaring. To maintain the robust development of the national economy and real estate industry, the government has carried out a series of macro-control policies of regulation that have great impact on the real estate market with particular density and intensity in the recent2years. These policies have brought about on-going decrease in the sales of the property market, and strongly influenced the sales of high-end and improved-type houses by means of tightening housing credit, restricting endemic buyers, cracking down speculation, increasing the proportion of down payment, limiting prices and raising the cost of housing transfer, namely "3limits and1plus" measures. Sales in first-tier cities have dropped more than50%since enforcing the Sales Order.While the residential real estate is dampened by cooling measures, commercial real estate, low-income housing, cultural&tourism real estate and old-age care real estate are enjoying a vigorous increase. Outstanding sales achievements are scored by projects like Chengdu Global Center, Jinniu Wanda Square and so on. Also, in light of "The Sales Ranking of Enterprises in the First Half of2011", under macro-control, the leading real estate enterprises maintain their fabulous performance. Vanke Co..Ltd ranked the first with the total sales of64.42billion yuan. Compared with the sales of35.5billion yuan in the first half year of2010, Vanke enjoys a growth of81%. At the same time, Evergrand Real Estate Group not only achieves the goal of42.9billion yuan, a year-on-year increase by103%, but also approximates the sale of50billion yuan last year.Company A is a typical real estate enterprise playing a leading role in Sichuan Province but it is intensely affected by the prolonged dismal under macro-control. However, it is believed that there is no teetering market but teetering product. Given that inflation keeps soaring and people’s voice of curbing unbearable housing prices gets louder, it is crucial for company A to cautiously diagnose the market trend, clearly understand the challenges and threats it confronts, and explore the chance for exploitation in the next10years. In addition, the company should keep a sober mind about its strengths and disadvantages, find the right position in the real estate market, set long-term strategic goals and then take effective and proper measures to tackle various situations.Aiming to help company A embark on the road of sustainable development under the macro-control policy, the present paper is based on research approaches such as trend analysis, comparative analysis, SWOT analysis and analysis combining theory and practice. The present paper analyzes the external environment as well as the competition of the core business in the industry applying comparative study, and recognizes the extrinsic opportunities and threats. Considering the resources and capability of company A, the present research is also directed toward a survey of the company’s strengths and insufficiencies in the core business sector. Combining policies and the present situation of the company, the paper provides concrete methods to cope with macro-control policy.Through the detailed analysis of macro policies and systematic analysis of the company, the present paper pins down that company A has five core advantages including brand awareness, nationwide layout under implementation, rich experience in residential construction, a mature team and a considerable storage of commercial land. It is able to embrace opportunities including low-income housing project, commercial estate project and cultural tourism real estate project. Disadvantages are reflected as the lack of rigid demanded and fast-moving consumer goods, onefold funds flow and immature project development ability. This paper submits a systematic coping strategy for Company A, of short-term, medium-term and long-term, based on the principles of exercising advantages, reducing disadvantages, making use of opportunities and avoiding risks.Short-term strategies: To revolve rapidly and accelerate funds withdrawal; To establish financing channels with consistency, stability and diversity; Medium-term strategies;To seize the tempo of exploitation and strengthen cash flow management;To seize the opportunities for getting land, enlarge land storage in second-and third-tier cities;Long-term strategies:To diversify development covering residential, commercial and tourism real estate, and balance between return and risk;To distribute in first-tier cities coupled with second-and third-tier cities", and hedge regulation risks;To optimize the structural combination of high-end, medium, and low-end products, and avoid cyclical risk in real estate market. Through a series of coping strategies, the company will be able to safeguard the efficiency of developing strategy, uplift the company’s overall competitiveness and realize sustainable development. |
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