The global trend of forming strategic alliances to the real estate function: A dissertation submitted in partial fulfilment of the requirements for the degree of Master of Property Studies at Lincoln University

Abstract

This paper examines the global trend of forming strategic alliances or partnering as part of the real estate management function. As organisations seek to add value to strategic core competencies, management needs to focus on ways of improving competitive advantage. One way of doing this is strategic alliance/partnering. This type of alliance can provide an opportunity for partners in the form of increased revenue, and the vendors in the form of cost efficiencies, improved performance and global competitiveness. The property sector is dynamically evolving away from the traditional landlord/tenant way of doing business towards a more customer focused solutions orientation where customers are demanding cost effective and efficient spatial elements. In dynamic environments, inter company cooperation can be a way of providing short cuts in terms of time and cost to maintain and improve competitive advantage. This research examines the core competencies of a listed real estate investment company and a service company providing an operational based alliance. The capabilities and competencies that would be co-ordinated in relation to the building services market are technical expertise, access to technology, improved brand perception, reduction of risk, faster turn around with service delivery, access to skills and capabilities, customer satisfaction, marketing and distribution capability for services or utilities sector and competitor advantage and leverage of resources. The ultimate value of coordinating the capabilities and competencies of services is the positive impact it is perceived to have on the organisations competitive advantage. This would be measured in terms of increased product and service availability and market differentiation at a lower cost than the organisation's could achieve alone, increased product &/ or service and market knowledge, improved customer satisfaction due to improved operational efficiencies and cost effective options and the potential to enhance the perception of the brand indirectly positively impacting on shareholders earnings. The research investigates this in relation to strategic alliance.