Research On Development Strategy Of A Real Estate Company

Real estate is one of the important supports of China’s national economy.Affected by the national macro-control policies,we adhere to the main tone of "no speculation in housing".In the face of further adjustment and optimization of industrial structure,the process of new urbanization is changing from high-speed growth to high-quality development.The way on how to maximize economic benefits with limited land resources,how to break through the current situation and seek new profit growth points,has become an urgent problem for Chinese real estate enterprises since the traditional development path of industry is unable to adapt to the current policy and economic environment.While the major real estate enterprises fiercely seize the market share,the real estate is facing unprecedented severe challenges.Real estate company A,has rooted in Guangdong and distributed over the national market.It is facing an increasingly complex and competitive environment while seizing the opportunity of national real estate reform and vigorous development.Subsequently,large well-known real estate enterprises such as country garden,Wanda and Vanke entered Guangdong Province one after another,as well as the rapid expansion of small and medium-sized real estate enterprises,which had a great impact on the real estate market in Guangdong Province,and caused a decline on the operating income and profit of real estate Company A.Under the new environment changes,how to adjust the company strategy of a real estate company to achieve the dynamic balance between internal and external environment,is an urgent problem to be solved.The purpose of this study is to design an appropriate transformation strategy for a real estate company,help the company deal with the complex environment,reshape its core competitiveness and realize the sustainable development of the enterprise.Firstly,this thesis comprehensively evaluates the existing strategy of a real estate company A from both quantitative and qualitative aspects.Secondly,it comprehensively analyzes the internal and external environment that Company A faces by using research methods such as PEST analysis method,Porter’s five forces model and SWOT matrix,and selects the appropriate strategic direction.Thirdly,the alternative competitive strategy scheme is designed.By using the quantitative strategic plan,QSPM matrix method,the scheme is analyzed and scored by experts.Finally,the defensive strategy is selected as the transformation strategy of real estate Company A through the comprehensive analysis and comparison of scores and the experts put forward the implementation measures of the transformation strategy and formulates the guarantee measures for the implementation of the transformation strategy to implement the company’s transformation strategy.This study also complements the current research on the development of local real estate in small and medium-sized cities,and provides experience for the transformation of real estate enterprises in second and third tier cities.The research shows that the revenue of a real estate company decreases and the proportion of liabilities continues to rise,which has threatened the stable development of the enterprise,and its disadvantages outweigh its advantages.Through expert comparison and scoring,it is concluded that wo strategy(defensive strategy)is the best choice;On this basis,formulate specific strategic plans,including harvesting strategy,stripping strategy and focusing strategy.Reduce labor costs by reducing bad industries,improving management information system,stripping real estate business,raising funds for strategic acquisition and filling debts,reduce the operating losses and liabilities of real estate company a,focus on the development of financial industry,and formulate corresponding guarantees,Ensure the implementation of strategic transformation and realize the sustainable development of the enterprise.