Research On Longhu Group's Competitive Strategy

The status of the real estate industry in Chinese modern economic and social life plays an important role and is of great significance to the healthy and sustainable development of our national economy.After decades of rapid development,Chinese real estate companies have attracted a large amount of resources and capital investment.Recently,the industry competition has intensified and homogenization has become prominent.In addition,the country has continuously issued relevant policies and regulations to strictly control the overheating of real estate development.And actively regulate in financing channels,real estate tax,environmental protection and other fields,which makes Longhu Group face huge threats and challenges.In order to stand out from the fierce market competition,Longhu Group must formulate and implement a reasonable market competition strategy to achieve future sustainable and healthy development goals.Based on the results of theoretical research and practical exploration of market competition strategies at home and abroad,this article uses the PEST and Porter Five Force models to analyze the macro environment and industry environment of Longhu Group's market competition.Besides,the internal environment of its market competition was analyzed from following aspects such as the organizational structure,brand and product layout,human resources,research and development capabilities,and financial management,etc.And SWOT was used to analyze the opportunities and threats,advantages and disadvantages of Longhu Group's market competition.After that,it proposed the choice and tactics of Longhu Group's market competition strategy to ensure its market competitive strategy go smoothly and effectively.The main conclusions are:(1)Chinese has the stable and harmonious political and social environment,the constant growth of GDP and the per capita disposable income of residents have created a good economic environment.What's more,the rapid development of digital economy and green environmental technology has formed a superior technical environment.All these have created a good market competition environment for Longhu Group;(2)Longhu Group have a strong bargaining ability,comparing with the buyers who have not strong bargaining ability of it.Based on the characteristics of real estate industry products,the probability of facing the threat of alternatives or potential entrants is very small.The competitions are more exists in the game among peers in the major real estate industries;(3)Longhu Group have already been given many development opportunities--continuous and stable growth of the national economy,accelerated urbanization,increased investment demand from the people,broadening financing channels of real estate and the protection of relevant national policies.However,it also face challenges such as continued tightening of policies,strict credit policies,disappearance of shed reform dividends,emerging technology challenges,and real estate tax is about to be legislated……Longhu Group both have reasonable capital structure,low financing cost,excellent corporate culture,first-and second-tier cities basically completed the layout and other advantages,there are also less than three or four lines of urban layout,cash flow,excessive consumption,high product concentration and other disadvantages;(4)The market competition strategy of Longhu Group should follow scientific principles and so on.Combining Longhu Group's market competition environment,its own advantages and disadvantages,and the opportunities and challenges it faces,Longhu Group should implement a cost-leading competitive strategy in the short term,but with its own transformation and upgrade,deep cultivation of its main business,diversified development,and emergence and application of new technology.Based on the long term,Longhu Group implements a differentiated competition strategy.Therefore,Longhu Group should implement a market competition strategy combining cost leadership and differentiation;(5)The implementation of Longhu Group's market competition strategy should focus on broadening financing channels,innovative marketing models,integration of emerging technologies,and expansion of the industrial landscape.And to ensure security from organize,plan,fund,internal control,manpower,culture and other aspect.