A Research On JG Group’s Competitive Strategy In Real Estate Section

With real estate and construction as its main business, JG group company should explore suitable competitive strategy options for the sustainable development, so that it could deal with the changes of external environment and achieve dynamic adjustment between the internal factors and the external environment. Through the systematic analysis about JG group company’s external environment and internal resources ability, this paper identificated potential development opportunities and threats which existed in the external environments, mined JG group company’s advantages and disadvantages. Then, taking use of EFEM and IFEM analysis, this paper screened and evaluated these factors. Based on the above analysis, combined with the actual situation of JG group company, a further analysis by using SWOT framework and QSPM strategy matrix analysis, provided the suitable strategic options for JG group company, target concentration strategy.Finally, relevant recommendations for the guarantee implementation were put forward.The main conclusions:first, many factors about external environment, such as economic recovery, rising of real estate demand and dwellers’ income, the still low scale of policy houses, technical advantages can provide potential development opportunities for the JG Group company. However, other factors may constitute potential threats for the development of JG group company, such as the worse of financing environment, the potential impact of policy houses, tightening of industry competition, rising of labor costs and the harsh environmental requirements. Second, many factors about the internal resource abilities, such as operation experience,social network capital,financial ability, reasonable organization structure and regional brand effect, can provide enough power for the development of the company. However, the company also faced many disadvantages in the enterprise culture, the pressure of the main business, design and R&D capability and enterprise atmosphere, especially the main business of JG group company, real estate, is facing severe upward pressure, with the macro-control of government and the competition within the industry. Third, JG group company should implement target concentration strategy and complete strategic transformation. Relying on the in-depth knowledge of the local market and related social capital, JG group company should continue to develope the regional market within Binzhou deeply, so that to achieve the stable development in the regional market. Fourth, in order to ensure the smooth progress of the strategic transformation, JG group company also should adjust product designing (changing the design ideas, which should transform the design idea from the real estate function design to the service design), marketing value-added activities (identify the target customer groups which are the people who were born after 1970 and 1980; the adjustment of marketing strategy), after-sale service (foster the sense of service, achieve the transformation from sale-oriented to service-oriented), and supplement many other adjustments, such as organizational structure (establish customer service group, Design and Research Institute), strengthening human resources management capacity, building the internal information platform, integrating and promoting corporate culture.