Growth strategies of real estate companies in a

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Growth strategies of real estate companies in a mature market Ed Nozeman Stockholm, 25

Growth strategies of real estate companies in a mature market Ed Nozeman Stockholm, 25 June 2009

Growth strategies of real estate companies Content Introduction Methodology Analysis Conclusion/further research

Growth strategies of real estate companies Content Introduction Methodology Analysis Conclusion/further research

Growth strategies of real estate companies Which strategies are followed by real estate organizations,

Growth strategies of real estate companies Which strategies are followed by real estate organizations, how are these related with each other, are there clear differences between these organizations as to their choice of strategy and what causes those differences ?

Growth strategies of real estate companies 1 Company strategies From what basis From what

Growth strategies of real estate companies 1 Company strategies From what basis From what direction Competition strategy Porter Growth strategy Ansoff - Cost leadership - Differentiation - Focus - Market penetration - Market development - Product development - Diversification Which type of implementation Development strategy Johnson & Scholes - Internal or autonomous development -- Acquisition -- Joint development

Growth strategies of real estate companies 2 Competitive advantage C O M P Concur

Growth strategies of real estate companies 2 Competitive advantage C O M P Concur E rentieb er. T eik I T I O N R A N G E Total market One segment Position of low cost Unique characteristics acknowledged by client Cost leadership Differentiation Focus

Growth strategies of real estate companies 2 Producten Products Huidige Present Huidige Nieuwe New

Growth strategies of real estate companies 2 Producten Products Huidige Present Huidige Nieuwe New Market penetration Product development Market development Diversification Present Market Nieuwe New

Growth strategies of real estate companies 3 Development strategies Internal development strategy Acquisition strategy

Growth strategies of real estate companies 3 Development strategies Internal development strategy Acquisition strategy Joint development strategy

Growth strategies of real estate companies Defining medium sized developers and housing corporations Methodology

Growth strategies of real estate companies Defining medium sized developers and housing corporations Methodology Sample at random 2 x 15 respondents Face-to-face interviews

Growth strategies of real estate companies Type of market focus At present Near future

Growth strategies of real estate companies Type of market focus At present Near future N=15 number % Residential 14 93 Offices 11 73 10 67 Industrial 7 47 Retail 5 33 Recreation 1 7 Market focus developers

Growth strategies of real estate companies Type of market focus At present Near future

Growth strategies of real estate companies Type of market focus At present Near future N=15 number % Social rent (<€ 339) 15 100 Medium priced rent (€ 339 -520) 4 27 Expensive rent (>€ 520) 4 27 3 20 Free sector 2 13 Market focus housing corporations

Growth strategies of real estate companies Recent past N=15 numb er At prese nt

Growth strategies of real estate companies Recent past N=15 numb er At prese nt Near future % numb er % Cost 11 leaders hip 73 6 40 Differe ntiatio n 7 47 13 87 14 93 Focus 3 20 Applied competition strategy developers

Growth strategies of real estate companies Recent past N=15 numb er At prese nt

Growth strategies of real estate companies Recent past N=15 numb er At prese nt Near future % numb er % Cost 12 leaders hip 80 9 60 10 67 Differe ntiation 8 53 13 87 Focus 4 27 Applied competition strategy housing corporations

Growth strategies of real estate companies Type of growth strategy Recent past At present

Growth strategies of real estate companies Type of growth strategy Recent past At present number % Market penetration 14 93 13 87 12 80 Market development 2 13 3 20 5 33 Product development 9 60 12 80 0 1 7 Diversification 0 Near future Growth strategy developers

Growth strategies of real estate companies Type of growth strategy Recent past At present

Growth strategies of real estate companies Type of growth strategy Recent past At present number % Market penetration 9 60 4 27 5 33 Market development 1 7 3 20 Product development 7 47 14 93 0 0 0 Diversification 0 Near future Growth strategy housing corporations

Growth strategies of real estate companies Type of development strategy Recent past At present

Growth strategies of real estate companies Type of development strategy Recent past At present % number Internal Near future number % 13 87 14 93 0 0 1 7 3 20 6 40 9 60 12 80 development Acquisition Joint development Applied development strategy developers

Growth strategies of real estate companies Type of development strategy Recent past At present

Growth strategies of real estate companies Type of development strategy Recent past At present number Near future % number % Internal development 14 93 10 67 Acquisition 3 20 4 27 6 40 Joint development 5 33 11 73 Applied development strategy housing corporations

Growth strategies of real estate companies Threats for developers Threats for housing corporations

Growth strategies of real estate companies Threats for developers Threats for housing corporations

Growth strategies of real estate companies Proven validity of most strategy concepts Conclusions Revision

Growth strategies of real estate companies Proven validity of most strategy concepts Conclusions Revision of Ansoff’s growth strategies in times of crisis Path dependency in case of product development

Growth strategies of real estate companies Implications for further research Comparison with other types

Growth strategies of real estate companies Implications for further research Comparison with other types of real estate companies Relation between strategy types and success indicators International comparison Impact of financial crisis on company strategies

Questions ?

Questions ?