Question

you are an independent real estate agent in the Maryland dc Virginia area.there are many independent real estate agent in the area and many real estate agencies with lots of members agent as members but you do not want to simply join an agency.
your action describes what specific things would you to strengthen your company competitive position in such a crowded and competitive market.this includes any strategic offensive strategic defense vertical or horizontal integration outsourcing alliance or partnership

Answer 1

To develop an effective strategy,you should be ready with the answers of two basic questions:-

1. what’s going on in the industry itself-Real estate isn’t an industry. It’s a whole sector of the economy. It is composed of many distinct businesses, each of which is an industry. So developing shopping malls, putting up prime downtown commercial space, and brokerage are all industries.

So understand how attractive the industries are in which you are competing and you have to understand how they are likely to change over time.

2.with your position within the industry-No matter where you are operating, you are going to have to decide exactly how your company is going to compete and how you are going to position your company to be a superior performer.

Basically in any industry, there are five forces of competition.

1. The first is rivalry amongst competitors- threat of substitute products or services. Example:- In your business, this might be some type of totally new retail space, some new location for office space or rehab instead of new construction.
2. threat of new entrants into the industry. This is always a threat whenever there is something profitable going on.
3. bargaining power of the suppliers, from whom you are purchasing critical inputs,
4. bargaining power of the buyer to whom you are trying to sell.

Strategy

• Your ability to find good deals and to execute is basically a function of your strategy.
• Strategy means saying no to certain kinds of things. Strategy means saying no to certain kinds of deals. Even if they might make some money. Strategy means saying no to certain types of tenants that you are not really interested in. Strategy means making some people unhappy

So,execution is going to be much much more important than it was in the past.

Also, Competitive advantage can be obtained by:-

1. by having a lower cost than the competitors and consequently obtaining higher margins when selling at the market prices.
2. by differentiation, by the ability to use the company’s unique skills and resources in order to obtain higher revenues by requesting a higher price.