A Study On The Influence Of Multimarket Contact On The Competitive Intensity Of Real Estate Enterprises In China

With the rapid development of China’s real estate industry in recent years,various large enterprises expand their business scope by implementing diversification,so as to obtain scope economy.In this process,enterprises meet the same or different competitors in different markets for many times to form multimarket contact,and produce frequent competitive interaction,competitive intensity also changes.So the analysis of the present condition of real estate enterprise competition,not only can make managers realize the enterprises current competition with competitors,to find a suitable for their own development strategic way,at the same time also can let the enterprise to build a can with the change of environment and the competition strategy system,to gain competitive advantage and operating profit.However,the traditional static competitive strategy analysis is difficult to explain the strategic interaction between enterprises,and the strategic decisions made cannot make enterprises maintain long-term competitive advantages.The multimarket contact theory in dynamic competition theory focuses on the discussion of the competitive pattern,interactive behavior and strategic dependence between enterprises and competitors in the market,which is consistent with the current competitive environment faced by enterprises.Therefore,this paper took the data of China’s real estate industry from 2010 to 2017 as an example,based on the multimarket contact theory,measured the competitive interaction and intensity among enterprises by the index of new market entry,and conducted an empirical study using logistic regression and Cox regression model.The results show that there is an inverted u-shaped relationship between multimarket contact and new market entry.When multimarket contact is at a low level,enterprises are more willing to enter the market of competitors to increase deterrence.As the multimarket contact increases and reaches a certain threshold,the enterprises form mutual tolerance and tacit collusion,so the behavioral activities of entering the market of competitors also begin to decrease.In addition,this paper introduces the relative size of enterprises and the similarity of resources to expand the boundary conditions that affect the decision of multimarket contact and new market entry.The results show that the relative size of enterprises plays a regulating role in the relationship between multimarket contact and new market entry.When existing enterprise in the enterprise and the market market more contact with low or medium levels,relative enterprise size can weaken the market more contact to enter new markets,with the increase of contact more market and achieve a higher level,the relative scale can enhance market contact inhibition of entering new markets;The resource similarity can enhance the new market entry behavior of enterprises at a low level of multimarket contact.As the multimarket contact further increases and reaches a higher level,the resource similarity can enhance the inhibition effect of multimarket contact on new market entry.Finally,according to the conclusion,this paper proposes that the strategy makers of real estate enterprises can coordinate the strategic interaction between enterprises and competitors by means of multimarket contact,so as to reduce the competition between them and form a mutually beneficial and win-win situation.