Real Estate Development Enterprise Alliance Study

The competence theory of the firm, or the resource-based view, is a theory new to the classic strategic or the competitive advantage theory. The competence theory focuses on the internal resources or capabilities of the firms, compared with the theories focusing on the product-market analysis of a firm. According to the resource-based view it is the heterogeneity of the resources or capabilities inside the firms that explains why firms are deferent in their competitive advantages. And the core competences are the key to the firm's sustained competitive advantages in the long- run.The ways to improve a firm's competences are various, among which the alliance as a new approach to enhancing the firm's competences has been accepted widely.China's real estate developers have managed to obtain mid-term competitive advantages in the local market in recent decade by successfully avoiding irrational investment risks. However, the globalization of the world economy and the revolution of the information industry are now challenging the real estate developers' already established competitive advantages. Faced to the fierce competition, the real estate developers have little time enhancing their competences simply by inner development. And the best thing they can do to avoid being left behind is to carry out alliance strategy.By doing so, the real estate developers may take advantages of the environmental opportunities and successfully compete in the world market instead of being washed out by their competitors.Although china's real estate developers have tried to implement allied strategy to materialize scale of economies and low cost development, there are still malpractices during the implementation of the allied strategy. It is imperative for the real estate developers to change their traditional strategic alliance models and find a new one that makes their competitive advantages sustainable.Therefore, the author is trying to make a careful study on the alliance strategy,based on the resource-based view, as well as the classical strategic and competitive advantage theory. There are five parts in the article.Part one reviews the development of china's real estate developers in the recent decades and dwells on the deferent characteristics of the real estate developers in deferent periods;Part two studies the concept and characteristics of the alliance, together with the necessity of the alliance strategy;Part three discusses the status quo of the real estate developers' alliance, trying to find out the strength and weakness of such alliance strategy;Part four dwells on the key factors to the implementation of the real estate developer alliance, and they are:1. the complementary of the capabilities and resources the capabilities rely on, as well as learning in the organization;2. an appropriate organizational structure.A data envelopment analysis is introduced for a better elucidation of the complementary of the capabilities and resources in part four, also for the purpose of a quantitative analysis of the resource utilization of the potential co-opetitors.As finality, part five is about some new ideas of the management and evolution of the real estate developer alliance.