Development Strategy Research For Small&Middle Real Estate Companies

After rapid development for nearly 20 years, the real estate industry has met obvious turning point in 2014. Meanwhile the demands for houses have appeared deep changes and the value chain has been extended in real estate industry. New opportunities and strategies also appear due to technology development and demography change.This paper focuses on the development strategy of small and middle real estate companies under this background and takes Jiangsu City Real Estate Group as an example. The first part points out the challenges and opportunities met by small and middle real estate companies. The second part is about the strategy choice and reposition analysis from the industry value chain viewpoint. To better understand the changes in real estate industry value chain, this paper emphasizes some extended demands for house such as senior housing & care and smart home. It is necessary to think and design development strategies from the industry value chain analysis.This paper discusses the specialization focus and strategic alliance strategies of Jiangsu City Real Estate Group in the third and fourth parts respectively. Due to constraints in management, technology and other comprehensive abilities, most of small & middle real estate companies focus on their land resource and ignore the specialization strategy. Based on analysis from the competition strategy and industrial organization theories, this paper emphasizes that small & middle real estate companies could integrate diversified resources and realize differentiated competition to improve profit through combining the specialization focus and strategic alliance strategies. In conclusion, small & middle real estate companies should also insist on human resource development, more innovation oriented culture, and applying more suitable technology advances in the operation of their companies. These are the basis for implementing the specialization focus and strategic alliance strategies. Thus this paper points out how small & middle companies could adopt both specialization and strategic alliance strategies and be innovation oriented to realize the combination advantages.