Imagine you are involved with a real estate brokerage firm. Complete the followi
ID: 430460 • Letter: I
Question
Imagine you are involved with a real estate brokerage firm. Complete the following table.
What do customers want?
How do firms survive the competition?
Key success factors
Your industry
X
X
X
Complete a strategy diamond and five forces analysis.
Arenas
X
Differentiators
X
Vehicles
X
Staging and pacing
X
Economic logic
X
Suppliers
X
Buyers
X
Current rivals
X
Substitutes
X
New entrants
X
What do customers want?
How do firms survive the competition?
Key success factors
Your industry
X
X
X
arenas stagingeconomic vehicles pacing ENTRANTS differentiatorsExplanation / Answer
real estate brokerage firm.
What do customers want?
1) Customers expects honesty and intergrity from the real storage brokerage firm so they can land on most appropriate availabke option.
2) Real Estate brokerage agent must be well versed with the purchase process of the property.
3) Agent should be actively responsive to the client and clear all doubts subject to the purchase of the property.
4) He should be well aware of the real estate industry and can explain the ongoing trend in industry.
5) Communication should be strong in order to leave impact on buyer and seller both.
6) He should be best at negotiation skills which can help in positive closure of a deal with optimum price and services.
How real estate firm survives the competition.
Due to low barriers to entry, real estate industry is marked by regular new entrants which is resulting in intense competition among them. In order to survive in this competition firm should charge competitive commission rates from their clients and should offer some add on services like payment of commission can be done in easy installments which will attract buyers and sellers. They should do an efficient publicity which would reach to the right audience.
Key Success Factors:
They should do the thorough analysis of the market before making any policy. They should strongly work on customer retention by offering differtitated services from their customers. They should also offer after sales services which would definately leave an impressive impact on client.
Five Force Analysis of firm:
1) Suppliers:
Key suppliers for brokerage firm are land or property sellers. It is suggested for a firm to maintain the healthy relations with the sellers which will help them in effective negotitations during the deal.
2) Buyers:
Effect of buyers is generally high on brokerage firms. Buying a property is usually a time taking decision in which buyers generally effects the healthy negotiation. There are also government policies which are buyer friendly so it is mandatory for a firm to comply with all those.
3) Current rivals:
There are no limitations in assigning of property to the number of brokerage firms. There are possibilites other firms are also working on the same property which might charge low commission rates and offer some additional services which might attract client.
4) Substitutes:
Substitue is again related to the competiton in the industry. Due to easy entry of new entrants it is mandatory to maintain regular competitive policies in order to be ahead with competitors.
5) New Entrants:
There are zero complications in registering as a brokerage firm. So threat of new entrants is always high.
Strategy Diamond:
1) Arenas:
Design an effective target location in whicg services to be offered. Targeting the right buyer and working on right property which is favorable for their clients.
2) Differntiator:
Frame effective strategies to survive the competition. Offering competitive commission rates, right product and targeting the right audience and offering add on services to differentiate from competitors.
3) Vehicles:
Firm should be internally strong with all homework done before offering services to clients. They should keep a sharp eye on their competitors and should do the proper analysis of the industry in framing their policies.
4) Staging:
Effectively planning the moves of the firm and taking the right step at the right time. They should also do the proper planning of the initiatives.
5) Economic Logic
Making optimum utiilization of resources and make maximum returns with the less investment, offering unmatchable services at the best prices to ensure client satisfaction.
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