Abstract
Successful strategies are often built upon a robust collection of resources and capabilities, that companies strive to develop continuously. In Gauteng province, the economic hub of South Africa, the increasing population and housing shortage pose significant challenges. Residential property developers (RPDs) must navigate a complex and varied housing market. This study explores the strategic challenges emanating from business environmental forces.
The study aims to identify the challenges faced by RPDs in Gauteng. The study will focus on providing insight into the most important strategic resources and capabilities that enable RPDs to formulate strategies that can successfully overcome these business environmental challenges. In addition, it will put forward recommendations that can advance the ease of developing residential property in Gauteng to meet the current and future demand for housing in this province.
To gain a comprehensive understanding of the topic and objectives, a qualitative study was undertaken. Fifteen participants were selected from residential property development (RPD) companies in Gauteng, based on their involvement in the strategy development and implementation process of their organisations. Semi-structured face-to-face interviews were conducted with each participant after obtaining their consent to record and transcribe the interviews. Directed qualitative content analysis was utilised to analyse the collected data.
The study revealed that RPDs encounter distinct challenges that are specific to the property industry and significantly impact the accomplishment of their strategic goals. These challenges are related to spatial disparities, limited access to suitable land, duality within the property industry, and zoning regulations by local governments. Furthermore, the study identified several resources and capabilities and proposed potential solutions to address the obstacles faced by RPDs.