Research On Development Strategy Of W Real Estate Company Under New Economic Norm

With the arrival of the new economic normality, the Chinese government has unveiled a series of macro-control policies on real estate, straightened out the real estate market, and adjusted the industrial structure, in order to curb the rising housing prices, and promote the healthy and sustainable development of the industry. Large real estate enterprises are affected less, enjoying an increasingly greater market share. In contrast, SMEs in the industry are greatly challenged, faced with shrinking market share and development room, and some of them are merged or even expelled from the market. Wuhan W Real Estate Development Company is a small one with a Level Ⅲ development qualification, and a registered capital of RMB 18 million, which is also adversely affected. As a result, the sales volume is on the decline; therefore, the operation adjustment and the development of suitable steady growth strategy are in urgent need, so as to facilitate its survival and growth in the macro-control context.This paper illustrates the research background and significance; introduces the status quo of domestic and foreign research on the real estate development strategy, in particular for the SMEs; summarizes and analyzes the theories related to the development strategy; emphases on the in-depth interpretation of the recently issued macro-control policies; sums up the development situation of the real estate industry (especially the SMEs) in the macro-control context. Inevitably, as an SME in the industry, W Real Estate Company is also subject to the adversely impact. Different to other SMEs in the industry, Company W is a local company affiliated to a large construction enterprise, with a stockpile of land resources and a non-reproducible geographic advantage. This paper adopts SWOT analysis on the opportunities and challenges faced by W brought about by the macro-control, as well as the own strengths and weaknesses of Company W. As a conclusion, Company W should adopt the steady growth strategy. Specifically, Company W should take advantage of its favorable location to cooperate with the government, and adopt the specialization strategy focusing on the public cultural infrastructure development and the shanty town transformation. In addition, Company W is expected to attract foreign funds and adopt the alliance strategy based on its land resources and demolition advantages. Besides, this paper performs a market positioning for Company W from the perspective of the strategies selected, and establishes a systematic implementation and evaluation system for capital, talent, risk and other factors in the implementation process, to ensure that the expected goals of the strategies can be achieved in a smooth manner.This paper discusses how to develop the strategy suitable for the survival and growth of W Real Estate Company based on the local industrial economic environment and combined with its own characteristics by means of the analysis on the new economic normality background. The research topic can facilitate the survival and growth of Wuhan W Real Estate Company in the macro-control context, provide reference for other similar SMEs in the real estate industry, and enrich the industry trend, to offer consumers more choices.