Corporate Real Estate and Competitive Strategy
AbstractPurpose. The purpose of his paper is to investigate how organisations use a corporate real estate strategy to support their competitive strategy. It provides a theoretical and empirical overview and analysis of effective combinations of firms' real estate- and competitive strategies. Design/methodology/approach. The paper constructs a model that integrates three real estate strategies and three types of competitive strategies. Case studies in ten multinational firms in the Netherlands apply the model, and describe and analyse the combinations of the firms' real estate- and competitive strategies. Findings. A standardisation real estate strategy supports all three competitive strategies: lowest costs, differentiation, and focus. A value-based real estate strategy supports a competitive strategy of differentiation and differentiation-focus, and does not contribute to a competitive strategy of lowest costs, or lowest costs-focus. Finally, an incremental real estate strategy is ambiguous, and does not support any of the three competitive strategies. Originality/value – The paper constructs a literature-based model that combines real estate strategy and competitive strategy. It applies the model in a study of ten cases. Practitioners can use the model to analyse and reconsider the combination of their organisation's real estate strategy and competitive strategy. Academics can use the qualitative research results to design further research that qualifies and quantifies the relationship between various elements of real estate- and competitive strategy.
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Bibliographic InfoPaper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number 0005.
Date of creation: 2007
Date of revision:
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Web page: http://www.feweb.vu.nl
Corporate real estate; Real estate strategy; Corporate strategy; Competitive strategy;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-07-07 (All new papers)
- NEP-BEC-2007-07-07 (Business Economics)
- NEP-CSE-2007-07-07 (Economics of Strategic Management)
- NEP-MKT-2007-07-07 (Marketing)
- NEP-URE-2007-07-07 (Urban & Real Estate Economics)
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