Real estate is more of a multidimensional industry then a singular entity. It comprises of many aspects like property management, investment, legal services, brokerage, appraisal, and development. Furthermore, one can break down those different parts of the industry further into retail, residential, industrial, and commercial real estate. This is why the real estate market is such a large part of a country’s GDP.
I have learned that many things are involved in the entire process, for example, it takes time to acquire land then to get government approval to develop the land. This is not possible until research has been conducted to make sure that it is feasible to build in the area. Then one must pay for materials to build the property and get investment to pay for those materials. Then managers come into the picture to maintain occupancy rates by selling units, and over time the properties will depreciate or appreciate and must be redeveloped starting the whole process over again.
As you can see, at all times the market is in flux and there is a lot going on. Working with the DELSK Group has really opened my eyes as to the potential one can gain from being involved in such a large industry. There are so many ways to tackle and issue that it becomes a fun game, and only the best come on top.
The DELSK Group is a strong force in the international market. Their biggest strengths include their network, working population, and leadership, all of which are important in maintaining status in the industry. Their network is their biggest strength of the three because of their reputation in China. They can facilitate deals based on their name alone which is why a lot of the company’s partners choose to work with them.
As far as their weaknesses, (I believe this is due to the overall culture) DELSK takes a long time to move forward with their business. Time is a transaction cost that hinders the potential of many companies but this is especially true for DELSK. If they can shorten the time it takes to close on deals it will help them grow moving forward. Also, communication seems to be an issue between the upper management and the workforce that is handling day to day tasks. I believe it will be important for the company to strengthen those ties to become a more efficient company.
The firm has an opportunity to make a large impact in facilitating properties all over the world to Chinese investors. They just need a platform to do this which is why they are creating an APP to promote their partnerships and properties that they have acquired across the globe. Though this is an opportunity it is also a threat to the company in my opinion. This is because by using an APP as the company’s platform and working directly with developers, it eliminates the use of many of the company’s partners. If the APP fails, so do the previous relationships that the company worked so hard to acquire and maintain.
As the DELSK Group continues to grow it is their goal to obtain an IPO and become a public company on the stock market. This will help them expand further internationally and give them a strong grasp in the U.S. markets. To do this they are working on expanding their portfolio and establishing relationships all over the world to promote their company image. They want to compete with the likes of UHouzz and Student.com to become the main source for student housing all over the world among other endeavors. It will be interesting to see how they approach this situation moving forward.