100% Real Estate Hot Sale Mastery Techniques

Author: Li Zhanhong / Country:
Publisher:
Publish Date: 2006-02-01
Features:
1. Reconstructing the Real Estate Value Chain in the New Policy Landscape
Currently, China's real estate industry is facing unprecedented challenges and opportunities. The process of real estate operation is a complete value chain. From a professional perspective, simple price wars or performance comparisons, as well as establishing a local advantage in a specific professional link, are no longer the winning strategies for developers. Effectively integrating the four major resources—capital, land, brand, and professionalism—will create greater value for developers. Due to the numerous links in the entire development process and its involvement in multiple disciplines and specialties, the core value of a real estate project will decrease during the transmission process due to node losses. Ordinary development models ignore the node losses in information transmission among companies, leading to increased implicit project costs. To reduce such implicit costs, developers should fully integrate the strengths of various professional companies, tailor operational processes based on the project's unique characteristics, break the traditional constraints of professional links in terms of time and space, and create greater possibilities for enhancing competitiveness and profitability. To win in fierce competition, real estate developers must establish a leading operational system covering the entire process—from preliminary market research to investment analysis, conceptual design, schematic and landscape design, material procurement, construction, landscape construction, model home design, finishing construction, marketing and promotion, and property management.
2. The Game-Changing Strategy in the Blade Model
Real estate development is a complete value chain integration process. The profit source of real estate companies is customers, and the value paid by customers will be distributed among contractors, developers, designers, and agents. The distribution ratio is crucial in this process. Excellent developers can maintain their competitive advantages in the competition with rivals because they possess specific advantages on specific value chains. If a company has strong capabilities on every value chain, the wealth wave generated by the entire enterprise and the entire project will be sufficient to cause the developer's profits to grow exponentially. Since the real estate industry spans multiple disciplines, companies can only allocate their limited resources to their own specialized areas to deliver perfect moves. However, when utilizing industry resources, communication costs between multiple professional companies may increase due to differing goals, thereby delaying the project development cycle. Ordinary development models subcontract different links of real estate to various professional companies and coordinate their work through the developer's control. On the surface, the company's resources are used reasonably, but in reality, due to the short collaboration period between professional companies, there are significant communication costs. Moreover, since the interests of each professional company are biased, the project's value will be eroded due to the competition among their interests. The Blade Model emphasizes the comprehensive acquisition and application of information and the integration of resources among professional companies. Through seamless connections between the thirteen key professional links in the entire real estate development process, it controls the developer's cost investment in the project, highlights the value-creation links, and thus creates higher profits for developers.
3. The Complete Execution Process of the Blade Model
A complete execution process of the Blade Model: Intelligence Acquisition – Preliminary Planning – Product Design – Project Execution of Enterprise Strategy.
1. Intelligence Acquisition
Rapidly developing enterprises need a strong information platform, especially in China's real estate industry, where the ever-changing ideological transformations lead to the emergence of new development ideas and models. Therefore, having a panoramic industry vision and information resources to form a strategic perspective is the key to this step.
2. Project Execution Planning
For a project, the project manager is like a conductor in an orchestra. Whether there is a confident grasp of the market and a far-sighted strategic vision is the key to the success of the project planning.
3. Product Design
Product competitiveness is a critical component of the project's core competitiveness system. Only by effectively integrating the resources related to product design can a high-energy product value chain be created.
4. Project Execution
This step emphasizes "goal value consistency" among related departments. Through closer cooperation, the development cycle can be shortened, and development costs can be controlled.
P14-15