Vol. 5, No. 3, 2011, pp. 132-134
DOI:10.3968/j.mse.1913035X20110503.4z495
ISSN 1913-0341[Print] ISSN 1913-035X[Online]
www.cscanada.netwww.cscanada.org
Analysis of the Real Estate Enterprise’s Core Competitiveness based on Sustainable Development
ZHENG Liwen1; ZHANG Juan2,*
School of Economics and Management, Changchun University of Science and Technology, 130022, China
Male, Professor, Dean of Economics and Manage Institute, Changchun University of Science and Technology.2
School of Economics and Management, Changchun University of Science and Technology, 130022, China*
Corresponding author.
Address: School of Economics and Management, Changchun University of Science and Technology, 130022, ChinaEmail: zhangjuan5791@163.com
Received 20 June 2011; accepted 25 July 2011
1
real estate developers speed up a beachhead in China real estate market. Meanwhile, the real estate industry experienced the national macro-control from 2004 to 2005, which affect the real estate industry’s future competitive landscape. The real estate developers which are size small and low concentration how to survive in the new situation and how to be bigger and stronger, it is a major and urgent problem.
Abstract
In China, the real estate industry has attracted great attention which healthy development or is of great of significance to build harmonious society. Otherwise, currently the majority in the industry as a whole is small developers, and there is a big gap in the core competitiveness, which has decisive influence on the future development of this industry. This article analysis the core competitiveness situation of the real estate and put forward the strategy based on the sustainable development for real estate enterprises.
Key words: Sustainable development; Real-estate; Core competitiveness
ZHENG Liwen, ZHANG Juan (2011). Analysis of the Real Estate Enterprise’s Core Competitiveness Based on Sustainable Development. Management Science and Engineering, 5(3), 132-134. Available from: URL: http://www.cscanada.net/index.php/mse/article/view/j.mse.1913035X20110503.4z495 DOI: http://dx.doi.org/10.3968/j.mse.1913035X20110503.4z495
1. REAL ESTATE AND SUSTAINABLE DEVELOPMENTSustainable development is a long-term strategic objective, which is from the view point of sustained development of human height, to pursue the correct balance between the rights and obligations of nature and to change the “black civilization” by the expense of the environment to the establishment of harmony between man and nature characterized by coexistence of the \"green civilization.\" Its core of theory is to make economic development, protecting natural resources and protecting the environment coordinated, so that future generations can enjoy full human resources and natural environment, which needs the joint efforts of generations of mankind.Real estate is a basic carrier for the national economy, promoting the industrialization, urbanization and modernization progress. Because the construction of the real estate industry is of huge cost and involved in a wide range, so the real estate industry is taking the road of sustainable development or not which is key to achieve comprehensive and sustainable development of human society. To promote eco-building, development of green communities, rational use of resources, reduce of waste, which can make the consumers enjoy the natural advantages for the survival situation and reach the aim that people live in harmony with nature. At the same time, the sustainable development of real estate industry is itself own good ideas to circulate good and it is the way to build
With the continued rapid growth of our economy, our country is getting into building a moderately prosperous society and city-based rapid development period, it required a substantial improvement of housing conditions and with the increase of urban populations the consumer demand continue to change. In the context of China’s accession to WTO, world-renowned strength of foreign
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ZHENG Liwen; ZHANG Juan (2011).
Management Science and Engineering, 5(3), 132-134
the core competitiveness for the real estate industry.
2. CORE COMPETENCE ANALYSIS OF CHINA’S REAL ESTATEChina’s real estate industry has a certain scale and infrastructure for 20 years of growth and development. Real estate companies are continuously developing. The emergence of a small number of internationally famous enterprises is promoting economic and social development, expanding employment and improving people’s living standards. However, such phenomena are widespread in our real estate enterprises, especially small and medium enterprises as lack of human resources, small businesses, market competition is limited, low management level, poor project operations, high assets and liabilities. Otherwise, most are in mutual imitation. With the large number of strong Hong Kong, Taiwan and foreign developers landed, and the government’s land policy and real estate credit policy changes, real estate companies are forced to face tougher competitive environment, to enhance the core competitiveness of enterprises. Analysis of its causes, in addition to the competitive environment on the macro reasons, the main reason is from the micro enterprise.
2.1 weak Awareness of Market Competition
Whether an enterprise with core competitiveness or not depends on whether it has a sense of market competition. An enterprise’s core competitive strength depends on the strength of competition in the market sense. Most of the real estate companies lack core competitiveness lies in the lack of competitive business sense or the sense of competition is not strong. In the planned economy, all economic activities are according to plan, plan is market. Thus no sense of competition also can survive or develop, but in market economy, enterprises face a very competitive market. No sense of competition in the market, there can be any nurturing and promoting core competitiveness of consciousness, not to speak of the core competitiveness.
2.2 Management Model Rigid
In the traditional business management model, with the expansion of enterprise scale, management level and organizational structure will be more and more, which will result in complex management processes, increased management costs and reduced competitiveness of enterprises advantage. As the rigid management model, business decisions are often failures or mistakes, resulting in missed opportunities, or not see the situation and blindly launched a number of projects. Not flexible organization management and decision-making, there can be no competitive advantage and core competitiveness.2.3 Low Innovation Ability
Business innovation itself is the key and core part of core competitiveness. A major reason for real estate lack of core competence may be that most companies lack the spirit of innovation. Because of the less importance of innovation and inadequate investment, the majority of companies can not develop a competitive new brand, not to talk about to improve the core competitiveness. For the real estate business, the brand is the key to competition, no brand would be any competitive advantage and without innovation the brand will lose its source.
3. STRATEGY TO ENHANCE THE CORE COMPETITION OF CHINA REAL ESTATE ENTERPRISES
As the market changing, the policy adjustment and competition intensifies, the meaning of core competitiveness are bound to change, enterprises must continuously adjust and improve by corresponding, to nurture and enhance the core competitiveness has become an important part of enterprise development .
3.1 Emphasis on Branding and Creating Brand Advantage
Valuable promise is the essence of the real estate brand, through commitment to overcome the asymmetric information between developers and users, and on this basis to build awareness and reputation. The role of real estate is to create brand differentiation in this the real estate industry highly vulnerable to imitate, such as Vanke brand created the differences in the development of residential areas, in the management of urban site development for middle-aged white-collar workers. Real estate is a series of external manifestations of the brand identification symbol. The brand symbol can be a corporate symbol. This will help establish the brand image, make full use of business impact of enterprise and help to control the brand.
3.2 Speed up Technological Innovation to Create Technology Advantages
Real estate is a knowledge-intensive industry, with high technology content, high technical standards and technical requirements. Because when real estate companies is in the development of products, planning is rely on planning and design units, construction must rely on construction companies, so many of real estate companies almost have no technology concepts in developing product. Most companies are only general to meet market needs and design services unit, to make decision on development projects and do preparatory work. Few enterprises make research on products with customer segmentation and consider the significance of technical problems.
3.3 The Development of Human Resources and Create Talent Advantage
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Analysis of the Real Estate Enterprise's Core Competitiveness Based on Sustainable Development
The so-called market competition is enterprise competition, and it is talent competition. Excellent corporate culture and fringe benefits are the way to unite and motivate employees and it is the formation of core competence elements, so that talent is the first strategic resources of real estate enterprises. Enterprise product innovation, the creation of successful brands, the performance of market value and interests goals are not only strategy decisions but also the crystallization of human resources integration. Modern enterprises need modern people, production-class products, and first-rate talent. Real estate companies should attach human resource development to strategic height importance to understand and to implementation. The enterprise should strengthen the integration of human resources, develop a good atmosphere, and establish an integration mechanism of human resources to enhance the core competitiveness of enterprises laid the talent advantage.
3.4 To Improve the Management System and Create a Management Advantage
The real estate industry is prominent characterized by a very longer building and product delivery cycle especially residential. Therefore, the predictability of real estate development is the decisive factor in decision-making. This is reflected in the importance of real estate planning to share a great respect for project success. General commercial and industrial projects in the implementation process, construction and operation can be separated,
so which leaved room for revision and change. And real estate construction project is the start of operation, when construction and operation has been completed there is little room for change. This can not simply rely on the operator’s intuition betting on luck. To base on the customer segmentation for the operation will be the key of the supporting of core competitiveness. This requires beginning from the real estate market planning, through the construction and sale of systems coordination and management, until the after-sale management must meet the actual needs of consumers.
The face of increasingly mature and regulated real estate market, and the increasingly fierce competition, the real estate business suffer pressures to enhance their core competitiveness. In an open market economy, real estate enterprises only pay attention to analyze their own business enterprises and other differences exist, continue to cultivate and enhance with their own characteristics of the core competitiveness of enterprises, and then the sustainable competitive advantage will form.
REFERENCES
[1] LOU Rong (2005). The Core Competence of Real Estate
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[2] HAN Tao (2006). Major Survey of Chinese Real Estate
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[3] JIA Wei, LIN Kejiang (2006). Real Estate Core
Competitiveness Under the New Economic Changes. China’s Information Management.[4] SHI Dongming (2004). Successful Models to Cultivate Core Competence. Beijing: Beijing University Press.
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