Wanda Estate Development Strategy And Business Operation Research

China’s real estate industry, with trillions of scale of the market, directly promotes more than50related industries’development, which has a tremendous impact on the national economy. Especially under the global financial crisis in2008. China’s real estate industry and automobile industry took the lead in China’s economic recovery of the world. But because there was still serious mismatch between supply and demand in real estate market, the basic production "raw materials"---land supply monopoly, needs competition, led to higher and higher price of land and house, which caused a series of livelihood issues and prominent social contradictions. Since2003, the National regulation of the real estate industry came into normalization..Like rowing a boat, not to advance is to drop back, each round of regulation for outstanding enterprises means a chance to expand market share and to be stronger, while for numerous small ones means greater pressure to survive. In future, the centralization of China’s real estate will be inevitable, which means it will face brand competition, customer competition, product competition, and business model competition. More than2/3of over60,000real estate enterprises in China will be eliminated. And there would be many enterprises with annual sales of tens of billions or hundreds of billions emerging in the market of trillion sales.The essential factors that the excellent first-line real estate enterprises in China can stand out from many minor enterprises are clear strategy, unique commercial model of operation and superior operating system and execution.This article studies from the four parts---"the basic theory of the Strategic Management Overview","China’s real estate enterprise development environment analysis","Wanda Group’s development strategy and business model","Wanda Group’s reference for other enterprises", especially from "Wanda Group’s development strategy and business model", to inspire many of China’s real estate enterprises under special regulatory background and fierce competition to find a differentiated road for their own development.Dalian Wanda Group Co., Ltd.(herein referred to as "Wanda Group") was founded in1988, has owned five core industries——commercial real estate, luxury hotels, tourism investment, cultural industries, and department store chain, with enterprise assets of250billion Yuan, annual revenue of140billion Yuan, and with years tax of20billion Yuan. Wanda Group had four major strategic adjustments in the development process, ultimately, it clearly established the strategic positioning with the core of commercial real estate development, found a "commerce&real estate" urban complex business models, got through the best combination road of "commerce&real estate ", which fundamentally solved the project problems of the funds and profits. As for the core, firstly, it focused on a large-scale commercial development, the reconstruction of city’s new center, to get lands, avoiding direct competition in the fierce competitive market, which created Blue Ocean in land market; secondly, it realized the strategy of "selling for developing" on the capital operation mode, solving the capital chain pressure under the rapid expansion, and achieving the high turnover of the commercial real estate development; thirdly, it formed core competitiveness of combining resources of the industry chain upstream and downstream in the commercial real estate operation.Wanda’s success is universally acknowledged by the industry. Although its model cannot be easily copied, the successful development experiences are typical reference for China’s real estate enterprises.Firstly, if the real estate enterprises want to survive in the industry tide, they must develop a differentiated road, establishing their own unique competitive commercial operation and profit model.Secondly, real estate actually is capital intensive finance industry-to-be. Though multi-format combination and operation, Wanda achieves the balance of the cash flow and the high turnover of the commercial real estate development. Wanda’s funds model of operation is worth extensively referencing for other enterprise.Thirdly, land market competition is fiercer and fiercer so as to high price of land, however, Wanda avoids it through its main industry and creates Blue Ocean in land market.Fourthly, developing strategic partners is more and more critical for the enterprises which hope for nationwide, large-scale and virtualized development. It is Wanda’s ability of resources integration that forms its core competitive advantage.Fifthly, focusing on commerce first and then on real estate. Wanda’s commercial real estate development model, such as commercial positioning, merchandizing planning, generatrix organization, is worth deeply learning for other commercial real estate development enterprises, although there’s plenty of room for improvement in the lessee integration and the level of rent.Sixthly, standardized management system is the basis for the survival of a lot of outstanding nationwide development enterprise. It is through standardized management that Wanda has achieved institutionalization and hommization management system to avoid being out of control, truly preventing operational risk and brand risk. Moreover, high attention is another key to achieve the strategy and to survive for a long time.