Study On Financial Strategy Under The Background Of Focused Differentiation Strategy

Our country’s real estate developers are facing the most severe market and policy environment since real estate marketization,also face the double pressure of deleveraging and inventory.Under the macroscopic environment,the real estate industry is facing reshuffle,and enterprises take response measures frequently.As a member of the real estate,LC Group should adjust the strategy.Throughout the development history of LC Group,its times of capital chain crises exposed: its financial strategy and competition strategy does not match well.In addition,the high operational risk and the low net profit margin can’t be ignored,the study on LC Group’s competitive strategy and financial strategy has important practical significance.In this paper,through the PEST analysis model,Porter five model,SWOT analysis model,Dupont analysis and comparative analysis to analyze competitive strategy and financial strategy of the LC Group.The main findings are as follows: ① The LC Group’s financing sources mainly include internal earnings retention and creditor’s rights financing;② Its capital structure has got good control,debt paying ability is improved;③ The dividend policy change is too big;④ Dupont analysis found that LC Group’s positioning high-end focused differentiation strategy can’t result good sales margins;Total assets turnover ratio of Greentown is below the industry’s major listed companies.On the basis of the analysis of competitive strategy,this paper puts forward the corresponding financial strategy of focused differentiation competitive strategy.This paper argues that LC Group should combine the competitive strategy and the financial strategy,from the perspective of competitive strategy to analyze the financial strategy,combined with the development stage of the enterprise to clarify the financial strategy of the enterprise: ○1On the basis of internal earnings retention and bond financing to broaden the financing channel,such as equity financing;○2 Optimizing the capital structure,and controlling the risk;○3 Balancing the zero dividend payment policy and high dividend payment policy to adopt the dividend policy which suits industry and satisfies the shareholders’ willingness to invest.In the process of industry reshuffle,there may be lots of mergers and acquisitions and enterprise alliance,it will inevitably involve repositioning the competitive strategy of enterprise.New competition strategy need to be match with financial strategy.So choosing the financial strategy from the competitive strategy perspective is particularly important.