CASE STUDY ON REAL ESTATE ALLIANCES, A

Abstract

Inter-firm collaborations have emerged as a popular business strategy in the face of globalization and intensity of competition among firms. Rationales for forming alliances stem from the many constraints created by the size of operations and a lack of resources. The nature of strategic alliances was sought and presented in this research. The literature review identified issues and factors which formed the basis of the framework of this study. This dissertation offers to examine the benefits and disadvantages of real estate alliances as well as factors that contribute to its success and failure through a case study. Information was gathered through interviews and surveys with the companies' directors and agents in the case study. Much focus was also given to the perceptions of these respondents. Through the surveys, it was found that main benefits include economies of scale, prominent image and learning between partners while the main disadvantages consist of a loss of identity and a difficulty in reconciling objectives. Failure factors identified include a lack of precise roles of each partner, differences in business strategies and the pace with which changes in these strategies take place, corporate structure and culture. Those which constitute success factors are similar business directions, receptivity to changes and a balanced dependency between the companies. Establishment of alliances in the real estate industry is relevant in the future as players in the industry seek to gain competitive edge and improve their professionalism and image.