Analysis on real estate industry in China based on the theories of market boundary and industrial value chain

This paper reconstructed the real estate industry value chain from static, dynamic, lateral and longitudinal dimensions based on an in-depth analysis of the elements consists of the industry value chain and its structural property. Then, this study proposed the real estate industry value chain system, and based on which an optimal design of this value chain has also been presented so as to contribute to the literature research as well as practices.

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STRATEGIC BUSINESS MODEL TYPOLOGIES EVIDENT IN THE CHINESE REAL-ESTATE INDUSTRY

International Journal of Strategic Property Management ◽

10.3846/ijspm.2018.6275 ◽

2018 ◽

Vol 22 (6) ◽

pp. 501-515 ◽

Cited By ~ 4

Author(s):

Guiwen Liu ◽

Kaijian Li ◽

Asheem Shrestha ◽

Igor Martek ◽

Yang Zhou

Keyword(s):

Real Estate ◽

Asset Management ◽

Value Chain ◽

Business Models ◽

Core Competency ◽

Real Estate Industry ◽

High Turnover ◽

Commercial Property ◽

The Real Estate ◽

Work Done

The Chinese real estate industry has emerged over recent decades as one of the key drivers of Chinese economic growth and attracted thousands of players nationwide. Yet, despite the continuing importance of the real-estate industry in China, there has not been any work done to identify nor describe the strategic business models used by enterprises within the sector. This study fills this gap in the literature. This paper begins by building a framework for studying the strategic business models used within the Chinese real-estate industry, and then goes on to identify the generic models that exist in the industry. A two-step cluster analysis of 117 Chinese real-estate companies was carried out over seven parameters identified in the literature as impacting business models: 1) clients, 2) products offered, 3) market locale, 4) financial structure, 5) value chain embeddedness, 6) core competency, and, 7) revenue source. Five generic strategic business models that characterize the Chinese real-estate industry were identified: 1) commercial property model, 2) government servicing model, 3) cost efficiency model, 4) asset management model, and, 5) high-turnover model. The findings will assist industry practitioners in evaluating and informing their own competitive positions within the Chinese real-estate industry.

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