A Case Study Of Country Garden's Asset-light Operation Model

In recent years,with the tightening of purchase and loan policy,the rising of land prices,the increasing of the project development costs,China's real estate industry is facing more and more serious living pressure.Problems such as overstocked inventory and overcapacity have seriously affected its development prospects and squeezed its development space.Enterprises must also realize that the traditional real estate business model must be changed in order to regain its superior development position under the new economic growth model.In the environment that the real estate industry downturn in the context,part of China's real estate business began to explore the road of transformation.The try to get rid of de dilemma,and access to new development.Some real estate business began to transform from the heavy asset operation model to light asset operation model.And they have made some achievements,such as Country Garden.Transformation is both an opportunity and a challenge,the smooth transition will promote the efficient development of enterprises,but the failed transition will obstructed enterprises' development.How the effect of transition about the real estate business transition? How should the real estate business transition path go in future? China's real estate business must be face to these real problems.First of all,in this paper,the author summarizes the concept of light assets and light asset operations by reference to the relevant literature.Secondly,the author introduces the real estate industry's status and predicament before the transition,which led to the reasons of the real estate industry's transformation.According to Wanda,Vanke,Greenland,Fantasia and other typical real estate enterprises in light asset management in the process of the implementation of behavior to sort out,summed up the implementation way of asset light strategy transformation of China's real estate enterprises.Thirdly,the author studies the case of Country Garden transform to light asset operation mode.Introducing the reasons for the transformation of Country Garden,and the implementation of light asset operation.According to choose some financial indicators and EVA analyze and evaluate the transformation effect.Finally,the author makes recommendations.Studies have shown that,Country Garden is real estate company under our asset-light operations,Country Garden not only makes its own brand output effect is obvious,but also significantly reduce the business risks and operational costs,enhance the stability of cash flow,is more successful real estate industry business transformation stories.Through the research of this problem,in theory,to draw more attention of the academic model for light assets operation in real estate industry,so as to further perfect the study of light asset operation mode.In practice,according to the case of Country Garden,provides reference for real estate industry and other heavy asset companies,and promote the healthy development of China's real estate industry.