Question

1. Conduct external research and create a SWOT analysis for Redfin of the 2020 real-estate industry.

2. Zillow and Redfin are two very different ‘disruptors.’ How does each of these companies create value?

3. What are the most important limiting factors affecting Redfin’s growth? Should Kelman do national advertising? Should Kelman reconsider the full-time agent model?

Answer 1

REDFIN'S STRENGTH =

Distribution & Scope - Redfin has a large number of retail outlets and has a strong distribution network that ensures product availability to a large number of customers.

Cost structure = Low cost structure enables Redfin to produce low cost products that can be convenient for customers.

Dealer Community: Redfin has a strong relationship with their dealers who not only gives them distribution but also focuses on product promotion and company training.

Weakness of Redfin =

Research and Development : Although Redfin costs more than average R&D in the industry, it costs less than a few players in the industry.

Day-to-Day Inventory: The time it takes to buy and sell a product is higher than the industry average, which means that REDFIN gathers extra stock, adding unnecessary business value.

Rental Properties: An important part of the property that REDFIN owns is leased and not purchased.

Chance of Redfin =

Internet: There is a growing number of internet users worldwide. This means that Redfin has the opportunity to expand its presence online. Using the Internet to connect with their customers.

Electronic = IT means that many people are shopping online. Redfin can earn a living by opening and selling stores online.

Social media: The number of social media users worldwide is increasing. Three social media platforms; Facebook, Twitter and Instagram show the highest growth in monthly active users. Redfin can use social media to promote their products, engage with customers and provide feedback.

Threats to Redfin =


Technology development by competitors; New technology developments from many competitors in the sector pose a threat to Redfin, as customers attracted by the new technology could lose out to competitors by reducing Redfin's total market share.

Supplier: Supplier bargaining power increases with the year when the number of suppliers declines. This means that the cost of humidity can be increased by Redfin.

New entrant: newcomers to the market.

Redfin's USP aims to help home sellers and sellers. Their main goal is to help clients earn and save money in the real estate market.

USP Zillow is customizable and accessible. They deal with homes for living, buying, selling, renting and repairing.

Determining the growth factor of Reminem is a cash flow problem = a lack of financial planning which leads to lower cash flow. This is why companies borrow money.

The company also has a lower level of current assets compared to current liabilities. This can cause fluid problems.

There is also a failure to integrate due to its structure and culture.

Yes, Kelman has to do national promotion because it will increase net profits as there will be more sales revenue. It will help open new markets. People who don't know or are potential customers will be attracted. It will also help maintain your reputation.

Yes, Kelman should consider a full-time agent model that will help integrate social processes and non-monetary influences on decision making, as well as develop social relationships and environmental processes.