The Analysis Of The Realty Industrial Organization Of China Based On The SCP

The realty industry of China has been in a stage of swift development these years, it contributes a lot to the country's economic growth with driving other related industries to develop and became one of the pillar industries in China. However, it's the high price of real estate that makes many residents headache. In this thesis, the SCP of Western Industrial Organization Theory is used to seek out the root causes of our problems in the real estate industry. At first, the Industrial Organization Theory and the key features of realty industry are introduced, which is the preparation for the analysis of following chapters. Secondly, the market structure of realty industry, market conduct and market performance in this industry are analyzed step by step through the SCP. When referred to the market structure, it can be concluded that in China the enterprises of realty industry exist with small scale, but they make a regional oligopoly structure, which is analyzed by market concentration, entry barriers and product differentiation. For market conduct, the main use of case study and game analysis is applied to research the collusive, advertising, mergers and product strategies of the corporations of realty industry. Now, the market performance, here, through the empirical data analyzing, the conclusion is that the whole realty industry is running with a lower performance. Finally, basing on the preceding analysis of the SCP, some recommendations are supplied as organization policy to settle down the problems of Chinese real estate industry.