Research On The Competitive Strategy Of KL Real Estate Company

The Golden Period of high speed development and expansion has passed for domestic real estate industry; the subsequent ten years will be times of refined management and increasing profits, to survive in the cracks of Silver Age. Opportunities are becoming scarce, while challenges are becoming more and more.China’s economic "new norms" period, is also the base tone for future development. Up until 2015, GDP growth rate of 6.9% means that as the economic lifeline, the real estate industry has officially bid farewell to the brutal way of developing, but the "three high" (high stock, high debt, high cost) development trend will continue.The pains of economic structure transformation, upgrade of market demands, intensified competition, changes in financing structure and capital environment puts real estate industry standing at the crossroads of China’s economic development, and force them to find the next growth pole or fade out in the old mode. No matter which path is taken for business model and strategy management, the challenge will remain unabated; the time has came for value innovation, resource integration, specialization, soft service, finance, unloading the industry "weight" and establish the core "muscle group" for the entire industry,2.0 version of industry is here, and it’s not just a slogan for transformation and upgrading, but a necessary process in the industry development.KL estate uses traditional real estate business model as the main theme, commanding the all inclusive "investment-land acquisition-development-sale-operation process. By obtaining high turnover, high leverage, high land premium bonus, and relying on more mature operation of secondary development mode, they were able to achieve a leaping expansion and periodic success through high leverage, time value of land, appreciation value of industrial operations and good interaction.But after entering the Silver Age, above opportunities are gradually fading, whether it’s the land and real estate policy, market environment or the local industry fierce competition, it has brought to KL estate company great pressure, and the need to study competitive strategy to plan the KL estate’s coping strategy.Based on above situation, this paper analyzes the internal and external environment of the KL estate company, including newest policy of real estate industry, economic and social demand, supplier bargaining power, new entrants to the threat, and a new era under the background of industry trends as well as the existing enterprise competition status analysis, using the macroscopic environment PEST analysis method and the competition environment analysis theory of the industry.This paper uses the theory of value chain to analyze the company’s internal environment, from the acquisition of land, capital operation, design and development project management, marketing and brand building, and internal operation and management, to summarize the advantage of KL estate company of having relatively low cost of land and industrialization drive, as well as the disadvantage of having the project development cycle too long, insufficient standardization of each division and lack of brand influence.According to the results of the analysis, using the SWOT analysis method, comprehensive evaluation and analysis of the internal and external factors are taken to gain the conclusion that the KL estate company, under the new competition environment, uses a differentiation competitive strategy. Also a detailed explanation of how in order to realize the implementation of the competitive strategy of differentiation, including the landing of accelerated spa industry as the core competitive advantage, strengthen channel construction of capital operation in order to reduce the cost of financing, reinforce research and development of products, build up the brand construction, adjust business ideas and fortifying the company’s internal operation and management. The specific implementation plan ensures that in the new round of competition, KL will be in an invincible position.