| In 1992 when the late Deng Xiao Ping visited the southern coastal cities, he made an important speech that has contributed greatly to Pudong's development and which has since created a great influx of capital into the real estate sector. CapitaLand China Holdings Group is a subsidiary of CapitaLand Group, which is based in Singapore. Since entering the Shanghai market in 1994, it has focused on its core business areas of real estate development, serviced apartments, real estate funds management, and property management. As the country went through a period of macroeconomic changes, the real estate sector had subsequently experienced a phase of structural adjustments that lasted for 6 years. Furthermore, during the 1997 Asian Financial Crisis, many real estate companies that were ill financed, improperly run, and those without good business strategies had been squeezed out of the market, leading to a period of market low which had stalled the development of many real estate companies. However, CapitaLand has remained resilient throughout this period and has successfully developed numerous properties, including Parkvale, Springdale, Manhattan Heights, Chrysanthemum Park (4 phases), Raffles City Shanghai, La Cite, and Oasis Riviera. A total of more than 5 billion RMB have been invested to develop more than a million square meters of property. The exceptional quality of its products has helped CapitaLand build a very reputable brand name for itself in Shanghai.As it enters the twenty first century, CapitaLand faces an unprecedented amount of competition. As the country's economic success achieves a soft landing, the real estate sector has also been improved with better regulation and legislation. On the other hand, to counter the effects of the Asian Financial Crisis, the country has adopted a series of proactive monetary and fiscal policy to stimulate domestic demand. Real estate demand has since been reenergized and brought about the steady and robust growth of the economy for the past 2 years. Residential property has become a new engine of GDP growth and entered a stage of steady growth. As the market picks up, the government introduced a series of measure to further stimulate growth. Continued growth of the real estate sector in other parts of the country further stimulated growth in Shanghai. With the increased competition, many players in the market have introduced fresh and innovative marketing methods and strategies, focusing on holistic considerations, and hence further increasing the fierce competition of the sector. With the improvement of living standards and the advancement of technology, newer and better methods and ideology have been increasing applied in the development of real estate. Consumers have become increasinglysophisticated and demanding. With WTO entry and the convergence of the global economy, China has become the most promising market globally. How will CapitaLand China deal with the immense competition from all around the world, and how will it strategize to stay ahead of the competition?This study recounts the success of the company against the backdrop of the Shanghai real estate market, and concludes with the reasons of its success, including its accurate prediction of the market changes, and its implementation of a correct development strategy, at the same time utilizing scientific and creative methods to develop good marketing strategies and products that the market demands. The PEST (political/ economy/ social/ technological) analysis method and asset structure analysis model are used to analyze the company's political, economic, legal, technical, asset policy, asset structure, market structure, and such external factors. Further analysis is made on the company's human resource, physical resource, technical resource, organizational structure and its effectiveness, its non tangible assets, and such internal factors. Assessment is made about the company's internal effectiveness and its opportunities and challenges in the competitive market. The SWOT analysis model and large str... |
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