Competitive Strategy of Real Estate Development Firm base on the Theory of Structural Contingency

Abstract

This article attempts to apply the ideas of competitive strategy and the theory of structural contingency to the different environments that each firm or sub unit is confronting. The combination of these concepts yields an interesting perspective because while competitive strategy focusses on the competency of the firm, structural contingency theory focuses on the adaptation of each part of the firm to changes in its external environment. The article shows that real estate development firms’ strategy must be fitted to the cycle of the real estate business as well as its various structures in order to obtain better performance. The paper concludes that a real estate development firm should customize its strategy not only at the level of the whole organization, but also at the level of its constitutent parts. Strategies can be implemented not only in cost leadership or product differentiation, but also in terms of taxonomy of services, innovation and quality.