Trends Of Product Differentiation In The Development Of Residence Districts In Jinhua City

The real estate in China had reduced sharply since it was influenced by the USsubprime crisis and the early overdraft of Olympic business opportunities. In April2009, the real estate market got warm after a cold spell. The housing price rised rapidlyagain and the supply fell behind the demand, which led to an obvious trend ofhomogeneity in the development of the real estate market. At present the real estateindustry of our country is in the stage of rapid development. With the development ofthe real estate industry, consumers have higher requirements on resident quality. Tooccupy the terget market and to increase the competitive capacity, the enterprise shouldprecisely grasp the market and the real needs of consumers, and develop products ofdifferentiation according to their requirements.Based on the theory of differentiation competition, a theoretical framework ofdifferentiation competition is established in this thesis by integrating theory intopractice. By combining the state of the China real estate market in recent years, thetrends of product differentiation in the development of residence districts in Jinhua cityare discussed in detail. The real estate enterprise can achieve competitive advantagesby offering differentiated products. A differentiation model is constituted, which statesthat the real estate enterprise can have outstanding characteristics of products byimplementing the product differentiation method. At the same time, it is stressed thatproduct differentiation should follows three basic principles: effective, profitable andcustomers’ satisfaction. Due to the limitation on fund, small and medium-sized realestate enterprises in particular are facing a serious challenge. They can win a place forthemselves by combineing their own characteristics and strengths and by setting up a differentiation need-oriented enterprise competition strategy.