Back Issues 11-20

THE EFFECT OF STRATEGY ALLIANCE ON PROPERTY VALUES

Nan-Yu Chu

Department of Land Management, Feng Chia University, Taichung, Taiwan

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Yu-Tuan Chang*

Department of Land Management, Feng Chia University, Taichung, Taiwan

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*Corresponding Author

Abstract

A brand has premium value to a property, the development of brands has become one of the important strategies of property operators, which calls for resources and time investment. Thus, businesses start to seek the strategy alliance mode for the purpose of enhancing competitiveness, developing a brand, and increasing its value in the short term. However, will this mode bring about dual-brand (or multiple-brand) premium effect, and what effect does it have on property? These issues are yet to be resolved. Therefore, this study probes into the effect of strategy alliance, and its impact on property, in combination with brand premium and strategy alliance theories through case analysis. The findings can serve as reference to property operators for their operation strategies and value appraisal. 

The empirical results suggested that strategy alliance cooperation calls for mutual reliance and corporate policy support of partners in the initial stage to maintain the long-term partnership, while the setting of the target category of a strategy alliance decides the intensity of the premium effect. The learning-based or knowledge transformed strategy alliance mode has more premium, particularly those of substantial knowledge application, while the purely resources-based cooperation mode has lower brand premium. In general, a strategy alliance has positive impact on property value and corporate brands, whose extent of premium is dependent on the strategy alliance mode. As a result, property owners could apply the means of a more active strategy alliance to create property interest.

Key words: Strategy Alliance, Brand Premium, Property Value