In March 9th, Vanke Released 2010 annual report, with 108 billion 160 million sales as the first domestic real estate company to break through 100 billion. In addition to winning the global sales of residential enterprises for third consecutive years, the gap between Vanke and second industries has increased from around 20 billion in 2008 and 2009 to around 50 billion.

People in the industry always ask such questions: "why is my product better than Vanke, but it is worse than Vanke?" this question is very interesting. In terms of specific products, the main products of Longhu, Lvcheng and Xinghewan industries are more high-end than Vanke's products, and their praise and reputation are better. But it is Vanke instead of these companies that pioneered hundreds of billions of dollars. The reason is that Vanke has already gone through the stage of making products, and Vanke's success is due to its strategic success.

One fact is that, over the years, Vanke has been able to make money no matter how much housing prices have gone down. And every regulation is like a company like green city, which is the main product of high-end products, and the first news is the tight capital chain. In the frequent regulation of the real estate industry, Vanke is the smallest company affected by the market. Because Vanke's main customer group is rigid demand, according to the annual report Vanke 140 below the small and medium-sized units account for more than 80%. No matter what the market is, this part is an objective and quite huge demand. In 2008, Vanke was not mature enough. Under the influence of macroeconomic regulation and control and public opinion crisis, its performance was the only negative growth. In the interview at the end of 2010, Wang Shi revealed that in 2008, Vanke was also growing, in order to make a warning to Vanke to make negative growth to Vanke on accounting treatment. But in 2010, Vanke demonstrated its skills and standards with 100 billion performance. {page_break}

There are some similarities between Vanke and the top enterprises in the world on the point of not being fluctuated by the market. The world's top companies generally pursue three points: first, the social average profit margin. Second, pursue a sound business strategy. Third, pursue a sense of social responsibility. Never heard that the world-class company's performance will be ups and downs. Over the years of operation and accumulation, they will not seem sensitive to the market. No matter the market is good or bad, their operation will be relatively benign. To achieve this, the requirements for the company strategy are very high. Only when the strategy is right can this happen. Vanke's success proves the success of its strategy.

The 10 year long and long term development of Vanke in 2004 strategic planning "Vanke, after studying the strategic characteristics of the largest Real Estate Company in the United States, chose the same strategy. That is, focus on the development of public housing, by segmenting the customer market, locking lifelong customers. Over the years, the main business revenue of Vanke has increased rapidly, and the rigid demand for self occupation is the cornerstone of the steady growth of Vanke's past and future performance. The accelerated process of urbanization determines that the real estate industry, especially the urban housing industry in the whole region, will still be in the stage of rapid development. Compared with commercial real estate, residential development is a relatively low real estate market with relatively low turnover speed and minimum risk. In residential buildings, Vanke's main product is popular housing, and high-end residential accounts for only a small proportion. Vanke's strategy is undoubtedly to choose the real estate market with the largest demand and the smallest risk.

To a certain extent, companies like Longhu, Lvcheng and Xinghewan, which are the main high-end products, are doomed to be unable to surpass Vanke. Because they choose a relatively narrow market, the market is greatly affected by the market, so it can not show the scale advantage as Vanke does. Vanke's scale advantage will have a dramatic increase in revenue growth - easier access to capital, easier access, control of land resources, lower housing construction costs and so on - all of which have strengthened the competitive position advantage of Vanke as a large Real Estate Company, and has further improved Vanke's market share accordingly. This self reinforcing competitive advantage results in the fact that hundreds of millions of families and larger people are more competitive.