Reflections On The Development Of The Real Estate Business Diversification Strategy

The real estate enterprises are keeping developing and their influence on people’s material life are growing accompanied by their increasing status in the national economy. The real estate industry has become one oftheimportantways to promote our national economy. But the real estate industry is facing fierce competition with the globalization of the world economy. The domestic and foreign environment is changing rapidly:the tightening of the macroeconomic regulation policy, the diversity of the consumers’demands and the adjustment of the market’s supply and demand; the invasion of large foreign real estate enterprises and the uncertainty of the external envioronment. However, it is shown that in a rapidly changing environment,the study on strategic management in our real estate enterprises is far from enough, leading to the lack of planning, forward-looking and unity of the blind strategy. The performances of many real estate enterprises strategy show the characteristics of blindness.They do what is popular on the market right now and lack effective research and forecast. They are not very good at develop strategy according to their own conditions. What they have done make it is easy to lose competitive advantage and to lead to business risks. So, enterprises are facing problems such as how to prevent and control the strategy risks and to deepen the strategic management level. This articl is on the formulating, identification, assessment and control of real estate enterprises’ strategy from the perspective of how to complete the diversification strategy.Started with the diversification theory, I cited numerous reseaches on it raised at home and abroad. I analysed the common practice of our enterprises under the guidance of the diversification strategy and the reasons why they prefer to adopt the strategy. Then I discussesd the causes, types and control methods of the risks of diversification strategy. Secondly,I put forward the construction principles of strategic risks from the perspective of strategy and the risk assessment index system in the principle of these principles. Risk-evaluation methods of diversification strategy of real estate enterprises were put forward through the analysis on the current evaluation methods of strategic risk. Finally, based on strategic risk assessment results,risk-controling methods of real estate enterprise were put forward through the study of the strategic risk control system.