Real Estate Competitive Corporate Strategy - Research Paper Example

? Real E Competitive Corporate Strategy Real E Competitive Corporate Strategy Workplace Business Intelligence is a business intelligence tool for executives in real estate, and different facility management staff, to reduce costs by maximizing asset utilization and real estate space in the organization. It is a management tool that offers valuable real time data analysis, and trending current information through interactive, real estate business intelligence visualization. Workplace Business intelligence tools give organizations an opportunity to get space utilization data from various devices. This gives a more comprehensive analysis of how real estate is getting used organization wide. Successful leading organizations put goals and targets, and measure their performance from these tools to ensure continuous improvements. Workplace Business Intelligence gives the organization an ability to compare progress against the set targets by monitoring vital metrics to remove existing organizational inefficiencies. They get used to compare the performance of different locations within the organization (Peoplecube, 2010). Workplace Business Intelligence is not only a real estate management tool, but a service designed to help recognize and remove inefficiencies in little small organizations to global enterprises. Every Workplace Business Intelligence engagement includes professional services not only to help with the installation of the solution, but to help in analyzing and improving the visualizations for the consumers’ different real estate business intelligence data, and develop new visualization required by every organization (Peoplecube, 2010). Porter’s five forces model theory Real estate is a leading is a leading industry in the United States national economy. Porter’s five model analysis tries to reveal the real estate industry and the reasons behind these phenomena. According to the analysis of the relevant state departments, there should be quick development of property management, a real estate industry that is growth oriented from quantity to quality and the growth and upgrading of consumption structure in order to give a high speed real estate industry development (Childress, 2004). Porter developed a structure and on the competitive environment and introduced the five forces model of competition, that is, the five forces model (Porter, 2000). According to Porter, the five forces determine the attractiveness of an industry. These forces include; threat of those who enter the market, threat of the substitute product, buyers bargaining power, suppliers bargaining power and the intensity of rivalry. Of The five forces, model determines the degree of competition in an industry; its basic assumption is the profitability of the industry, not only by the attributes of the product but the market structure decision of the industry. The five forces determine the real estate’s competitive strength and profitability. United States Real Estate Five Forces Model The threat of new entrants, buyers bargaining power, threat of substitutes and the intense competition among rivals directly affect the real estate industry and its competitive nature. The different interactions between the five forces determine the levels of industries profits. Threat of new entrants Foreign investors who have access to the to America’s Real Estate industry pose a significant threat. Foreign real estate enterprises and their related constructions and installation will create unprecedented pressure on the domestic enterprises. For a number, of these industries, the lack of ability to compete will force them to withdraw from the industry, and a large market share of the real industry market will be foreign owned. For most developers in America, this is not a challenge but rather a serious crisis of survival. The new entrants use a lot of resources to eliminate the original product; they provide their product at low prices reducing corporate profits of other real estate firms. Nevertheless, enterprise can lack the sufficient resources to enter the States real estate market (Childress, 2004). Bargaining power of suppliers America’s real estate industry is a tremendous market; both the real estate foreign developers and suppliers pay attention to the market. When there is a reduction in tariffs, there will be an increase in the foreign timber imports for the housing construction industry. With a reduction in these tariffs, a large number of building materials will flood the domestic market and have an important impact on the domestic products. This will affect the prices of the domestic goods at the benefit of the real estate industry (Porter, 2000). Buyers bargaining power As the suppliers look for, a way to raise the prices, buyers try to bring them down. The demand for housing in the States has outstripped the supply. With the income disparity in the country, the wealth becomes concentrated only on a few hands, but the real estate developers have identified the different needs of the people. America’s real estate market favors the high end consumers, while the normal low end housing cover remarkably little. It is hard for developers to sell this low end housing because the low income earners cannot afford them. The buyers bargaining power relative to the developer’s power is weak, due to the reasons provided above (Childress, 2004). Intensity of rivalry The behavior of the industry is likely to trigger competitive responses. Firms in pursuit of the strategic competitiveness and large profits will form an active part in the competition. Few companies in the same industry are the same; they both have different capabilities and resources to make themselves different from the competitors. Firms have a competitive advantage to make their goods competitive with the other, different ones. With the growth in the real estate markets, there is little pressure for the competition for customers but the location of the real estate. The high fixed costs in the real estate industry make it difficult for competitors to access the market (Porter, 2000). The five forces analysis of the real estate market in America, gives the investors an opportunity to judge the industry attractiveness, and to see if there are adequate returns on their investments. Real estate industry is an attractive industry, and that is the reason for its high developments. Technology and global trends in real estate market There is an increased use of email, websites and social media in the promotion and running of real estate industry. Social media according to a global survey are no longer a fad but a norm that gets seen as a natural way of doing things. Social media are increasingly getting used in marketing by the agents in real estate. Real estate web applications on Smartphone’s has made easier for agents to share information with clients, house presentation and has also made it easier for agents to carry information with them (Mely, 2012). Another technology trend in global real estate is the cloud storage. It has a number of useful purposes such as keeping key documents organized and readily available, and also enables the sharing of individual files (Mely, 2012). In conclusion, the agents involved in the Real estate industry should keep up with the technological trends in real estate. These will make it easier for them to connect with a number of customers in search of real estate. The government should also reduce strict regulation on the importation of construction tools to make it easier and cheaper for developers to develop the industry (Mely, 2012). References Childress, B. (2004). Porter's five-forces model . Encyclopedia of Business, 2nd ed , 20- 23. Cube, P. (2010). Workplace Business Intelligence – Advanced Business Management Technology. People Cube , 12-14. Meily, R. (2012). Realtors keep up with latest technology trends. Silicon Valley Community Newspaper , 4-6. Porter, M. (2000). Michael Porter on Competition. Boston, MA: Harvard Business School Press. Read More