By Friday at 11:55 p.m. PT, make one post in the Business Strategy Discussion Forum that addresses the following questions. By Sunday at 11:55 p.m. PT, respond to at least two of your peers.
A. Generic Business Strategy
1. What is the generic business strategy of your organization/business unit?
In the commercial real estate world, the generic business strategy that we use is Cost Leadership. In our centers, we are trying to keep shopping center related cost low so that our tenants pay a lower rent. For instance, some costs that are associated with our shopping centers are porter services, landscaping, security charges and mechanical maintenance. These charges are thereafter passed on to the tenants via something called “pass-through” or “CAM charges”. If we manage to keep these costs down, our …show more content…
How is the strategy influenced by the stage of the industry life cycle that best represents your organization/business?
Because of the nature of our industry, the life cycle for the service we provide it quite interesting. Generally speaking, the real estate life cycle is as follows: absorption of excess supply, low vacancies, increased rent and prices, accelerated new construction, oversupply, high vacancies and declining prices, rent and construction1 . We are currently in the low vacancy cycle as we have 99% vacancy rate at our shopping center. However, since we are close to this stage in the life cycle, we will be experiencing lower vacancy rates because we need to increase rent and prices, due to wear and tear of the center.
3. What specific value chain competencies and functional strategies enable the generic business strategy?
I believe the specific value chain competency that enables us to run a price differentiated generic business strategy is our operations. We run our operation in such a manner where costs are managed efficiently so that our tenants are not affected.
B. Porter article & video
1. What are your key take-aways from the Porter article &
A. Generic Business Strategy
1. What is the generic business strategy of your organization/business unit?
In the commercial real estate world, the generic business strategy that we use is Cost Leadership. In our centers, we are trying to keep shopping center related cost low so that our tenants pay a lower rent. For instance, some costs that are associated with our shopping centers are porter services, landscaping, security charges and mechanical maintenance. These charges are thereafter passed on to the tenants via something called “pass-through” or “CAM charges”. If we manage to keep these costs down, our …show more content…
How is the strategy influenced by the stage of the industry life cycle that best represents your organization/business?
Because of the nature of our industry, the life cycle for the service we provide it quite interesting. Generally speaking, the real estate life cycle is as follows: absorption of excess supply, low vacancies, increased rent and prices, accelerated new construction, oversupply, high vacancies and declining prices, rent and construction1 . We are currently in the low vacancy cycle as we have 99% vacancy rate at our shopping center. However, since we are close to this stage in the life cycle, we will be experiencing lower vacancy rates because we need to increase rent and prices, due to wear and tear of the center.
3. What specific value chain competencies and functional strategies enable the generic business strategy?
I believe the specific value chain competency that enables us to run a price differentiated generic business strategy is our operations. We run our operation in such a manner where costs are managed efficiently so that our tenants are not affected.
B. Porter article & video
1. What are your key take-aways from the Porter article &