Urgent request: Analyze and analyze an industry that is more familiar with the five -force model

Analysis of the five -force model of the real estate industry
Is as far as the real estate industry is concerned, the industry environment includes such a set of factors; the threat of new entrants, the ability to bargain supplies, the ability of buyers to bargain, and the threat of alternatives (in existing existing There are almost no such threats under the conditions, this article is not analyzed for the time being) and the competition between the current competitors. They directly affect the real estate industry and its competitive behavior. In general, the interactive relationship between these five factors determines the profitability of the industry.
(1) The threat of the new entryrs
1. Enter obstacles. Joining the WTO has led to a decrease in the barriers of foreign investment and foreign companies entering my country's real estate industry, which pose a great threat to my country's real estate developers. Due to the implementation of national treatment for all foreign companies, foreign real estate companies and their associated construction installations, intermediary service companies, and financial and insurance institutions will be entered into China. The comprehensive introduction of market competition mechanism will bring unprecedented pressure on domestic enterprises. For most companies, due to the lack of market competitiveness and scale expansion, it is bound to be forced to withdraw from the real estate market, and the larger market quota may be owned by foreign capital and foreign companies. For most developers, it is not just a challenge, but a very serious survival crisis.
2. Product differentiation. Over time, customers will gradually believe that a company's products are unique. This cognition will bring more opportunities for enterprises to serve, making advertisements effective, and companies will also lead other companies to provide customers with products and services. Generally, new entrants need to allocate many resources to eliminate the loyalty of customers for the original products. They often use lower prices to compete, and the profit of corporate profits will decrease accordingly. Various enterprises in my country's real estate industry, whether they are newly joined or reigned, are particularly important to use differentiation. To achieve a differentiated strategy, enterprises need to pay considerable efforts. If real estate companies want to stand out in the competition, strengthening characteristic operations is the only way. The same commodity, which attach different services, is different, and the degree of attraction to customers is different. Special products, coupled with characteristic services, have transformed into competitive advantages, or further transformed into the core competitiveness of the enterprise.
3. Capital requirements. In the new industry competition, companies are required to have sufficient resource investment. Even if the new industry is very attractive, companies may not have enough capital to successfully enter the market and seek suitable market opportunities. The real estate industry is such an enterprise. It requires companies to have enough and large amounts of resources to invest, otherwise it is also difficult to enter the real estate industry.
4. Government policy. The state has given corresponding provisions of the operation and operation rules of the real estate industry. As a new entry, it is necessary to pay close attention to the government's policies and regulations, weigh the weight from it, and do things in accordance with the policy.
(2) The ability of supplier bargaining
This housing industry is a huge market. Whether it is a foreign real estate developer, or suppliers of materials and products, we pay close attention to this market. After the tariffs are reduced, the import volume of foreign wood will increase for residential construction. During the real estate development process, a large number of building materials (such as reinforced bars), electromechanical products (such as air conditioners, elevators) and sanitary customs are Entering the relaxation of product restrictions, foreign products will be largely full of domestic markets and have a huge impact on domestic products. What is the first is the decline in the price of domestic products. As far as the real estate industry alone, this may be beneficial.
(3) The ability of the buyer's bargaining
The company as a supplier, always trying to increase the price, and the buyer will try to reduce the price as much as possible. At present, my country's real estate market is far greater than supply. In addition, in terms of the characteristics of income distribution in my country, my country's wealth distribution of wealth distribution is very different from the poor, and wealth is concentrated in the hands of a few people. Developers may see the needs of these people. Therefore, my country's real estate market is biased towards customers with high grade. Ordinary low -grade houses are built very little. Even if they are covered with low -grade houses, it is difficult to sell, and low -income people are unable to buy it. These reasons determine that the buyer's bargaining ability is weaker than developers.
(4) The fierce level of competition between competitors
The company in the industry restricts each other, and the behavior of a company will inevitably cause a competitive response. Therefore, in order to pursue strategic competitiveness and excess profits, companies must actively participate in competition. If a company is challenged or has a significant opportunity to improve market position, the fierce competitive behavior in the industry is inevitable. Enterprises in the same industry are rarely the same. They have different resources and capabilities, and strive to make themselves different from competitors. Generally, enterprises will strive to make their products different from those with competitive capabilities in the aspects of the customer's consideration of valuable and competitive advantages. Price, quality, and creativity are the main aspects of competition. Of course, different industries have different competition.
1. The number of peers. There are many companies participating in the competition industry, and competition is usually fierce. But on the other hand, if a industry has only a few companies with equivalent scale and strength, there will be competition. The real estate industry should belong to the latter. Under normal circumstances, the real estate industry in a certain place is monopolized by several giants in the real estate market. Then the ability to lead the cost leading and differentiation is essential for maintaining the competitive advantage of the enterprise. Compared with a company that simply relying on a leading strategy, companies that can successfully implement cost -leading and differentiated strategies will be in a more favorable position.
2. Industry growth. When a market is growing, enterprises will try to use resources as much as possible to effectively meet the needs of the expanded customer base. In the growing market, companies have relatively little pressure to compete for customers. The real estate market is growing, and its pressure in competing for customers is relatively small. The pressure of competition often comes from the location, environment, design, and property management of the real estate, and of course there are prices. People with different income level prefer these factors, so that they determine their choices.
3. High fixed cost. Real estate is a special industry. Its "product" is fixed assets, with great cost and risks. Generally speaking, this prevents the number of companies entering the industry, making the industry less competitive than other industries.
4. High exit cost. The particularity of the real estate industry is determined. Once you enter this industry, especially the real estate development has begun. If you want to retreat halfway, the cost is quite large. This is a dilemma. This is the case, which is often seen, because of this, the reason is multi -faceted. In order to avoid this kind of thing as possible, the feasibility analysis and planning before thorough development must be carried out.
In analysis of the five forces of real estate, the investment entity should be able to judge the attractiveness of the industry to see if there is a chance to obtain enough or even extraordinary investment returns. Generally speaking, the stronger the competitive power, the lower the return that investors in the industry can get. On the contrary, attractive industries usually have high obstacles to enter, suppliers and buyers have no bargaining ability, the competition of alternatives is weak, and the competition between competitors is medium. From the analysis of the five -force model of the real estate industry in the article, it can be seen that the real estate industry is a very attractive industry, which is also the reason for the real estate industry to become a hot spot.

For example, the communication ability of the demand industry (consumer): At present, this industry in China is temporarily monopoly industry, so there is no great bargaining ability, suppliers' bargaining ability (communication enterprise): What price demand party does this type of industry be determined by the demand party. What price should be accepted to replace threats (other communication facilities): there are almost no domestic communication facilities in China. Let foreign companies enter, competition among existing competitors: The current competition is basically strong and developed, and the government regulation is relatively strong, which can reasonably integrate the industry