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.
History
Journal
International journal of strategic property management