Research On Development Strategy Of Real R Real Estate Group

The real estate industry has played a pivotal role in the development process since China’s reform and opening up,especially in the past 20 years,which has played a huge role in China’s economic development and urbanization process.As the locomotive of China’s rapid economic development,the real estate industry has driven the development of more than 50 upstream and downstream industries.However,with the rapid development of the real estate industry,the economic bubble growth has led to overheating of the economy.The negative evaluation brought by the high housing prices has followed,and the accumulated financial risks and livelihood problems.After entering 2017,the real estate started the longest cycle,broadest range and strongest regulation policy in history.Adhering to the regulation concept of "houses are for living,not for speculation",the government accelerated the construction of a long-term mechanism and basic system that adapt to the laws of the real estate market.In order to better measure the relationship between real estate and economic growth and prevent the real estate market bubble from further expanding,the government issued a series of regulation policies,It has played a very obvious cooling role in the real estate market.The "dividend" of the real estate industry has gradually disappeared and is facing a huge turning point.In particular,in 2020,the normalization of real estate regulation and control superimposed on the impact of epidemic,leading to economic weakness,the decline of people’s income,the increase of uncertainty risks,and the inhibition effect of high housing prices on the demand for housing,leading the real estate industry into a downward cycle,leading to the building of the industry scale,the decline of profits,the increase of financing difficulties,and the thunder default of some real estate enterprises,leading to the lack of overall market confidence and the deterioration of the operating environment,As a result,the industry clearing has intensified and the competition pressure has further increased.R Real Estate Group was established in Tianjin in 2003.Every development node of its rapid expansion can better grasp the development cycle of the market.Through the combination of its development and the development history of the overall real estate market,it can be found that the beginning of R Real Estate Group coincided with the vigorous development of the real estate market.However,it is more obvious that the rapid expansion of the company and the adoption of the national strategy are more accurate in stepping on the "super node" of the real estate market.Through public market bidding,auction and listing,as well as large-scale mergers and acquisitions in the secondary market,the scale of its land reserves has been greatly expanded,thus promoting a substantial increase in sales and ranking among the top real estate enterprises,which is typical of many real estate enterprises in the current real estate environment.Such real estate enterprises have a common feature.Their rapid expansion development model benefits from the rapid expansion of the real estate industry,but also has hidden dangers of high leverage and high debt.This paper takes R Real Estate Group as the research object,and uses PEST model,Porter’s five forces model and other relevant research methods to analyze the internal and external environment of the enterprise.In combination with the current strategic choices and problems faced by R Real Estate Group,in-depth discussion and research were carried out to find out the development strategy model in line with the new background.Through the SWOT analysis of R Real Estate Group,the WO strategy(turnaround strategy)suitable for its development was found as its current preferred strategy.The core needs to adjust the focus of business structure,reduce the proportion of investment in the heavy asset business model,continue to reduce liabilities,and maintain the safety of cash flow.Strengthen self construction,improve and continuously optimize existing resources,so as to enable R Real Estate Group to better adapt to the complex external environment and ensure the stable and sustainable development of the company.The implementation of the strategy is guaranteed through corporate culture,system,human resources,capital,risk control and other aspects.