| The past two decades have seen rapid development in real estate industry since the free housing policy was ceased in 1998.There are more than 130 industries closely related to real estate.As a result,its development has also provided strong impetus to many upstream and downstream industries and promoted the overall economic development in China.Over the past decade when the whole world was hit by a severe economic crisis,China's economy,with real estate industry and infrastructure construction as the pillar,has still achieved a rapid growth.However,in recent years,excessive investment and fast increase of housing price in real estate industry has imposed great pressure on people's lives.To solve the problem,the government has made it clear that it will not use real estate to stimulate economic development and introduced a series of policies and regulations to stabilize housing price.Under the circumstance that regulation has become the normal state,housing enterprises are facing new challenges.Leading housing enterprises have transformed to diversified development strategies to adapt the new situation.DN Real Estate Co.,Ltd.(hereinafter referred to as “DN”)is a national top-ten real estate development enterprise based on the Yangtze River Delta city cluster,focusing on the development of residential and commercial buildings.As the national macro-control policies become more and more stringent,domestic and foreign bond issuance and trust financing tightens,the competition of large-scale leading housing enterprises intensifies,and the bonus for shantytowns transformation policies are reduced,DN's previous high-debt rapid expansion model is in huge crisis.What makes it worse is that DN's stock price has halved and approached the forced liquidation line of a majority of equities that have been mortgaged due to the Black Swan Incident.In addition,the bond and ABS financing channels of some real estate enterprises including DN have been supervised and suspended,and the repayment of large-scale due debts imposes further pressure.So DN has to take the initiative to carry out a strategic transformation in response to the crisis.This paper refers to the relevant theories and research on strategic management and transformation.Based on the research of experts and scholars in the filed,it uses the SWOT matrix,Michael Porter's Five Forces Model,GE matrix,strategic selection matrix and other analytical tools to sort out China's real estate control policies and the industry's opportunities,and to analyze the internal and external environment faced by DN.In this way,it aims to explore a strategic transformation path that is workable to DN,and to provide some reference for other high-debt rapid expansion housing enterprises,which are also facing transformation difficulties in their strategy transformation development. |
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