The real estate market in India is experiencing rapid growth. The primary aim of the paper is to analyze the real estate industry in India through the example of the Urban Plus Company using Porter’s Five Forces and the PESTEL framework. In addition, it seems essential to analyze the case and provide alternatives and recommendations.
First and foremost, it should be stated that Porter’s Five Forces include five fundamental aspects, namely:
- Threat of new entrants;
- Bargaining power of buyers;
- Bargaining power of suppliers;
- Intensity of Rivalry; and
- Threat of substitution.
The real estate industry has experienced impressive growth during the last few years. Huge investments into the real estate market stimulated high competition and rapid development of a sector. That is why there is a great threat of multiple new entrants: among these, companies such as AllCheckDeals, Homeseek Realtors, or Agni Property might provide their services, increasing the level of rivalry. This threat is also influenced by the significant buying power of people residing in India as the state experiences rapid growth. At the same time, the bargaining power of sellers is increasing due to great demand for new dwellings. The combination of these aspects may create a threat of substitution, as any of the above-mentioned companies could replace Urban Plus.
As for the PESTEL framework, the company and industry could be characterized by considering the following aspects:
- Political. The current situation could be considered beneficial for the development of Urban Plus.
- Economic. Urban Plus has stable incomes that have been achieved due to its focus on the great opportunities in the residential sector.
- Social. A wide target market and experienced employees led to the firms efficiency and success.
- Technological. The company uses traditional approaches to find new customers. This could be regarded as its weak point.
- Environmental. There is a tendency towards further development of the real estate market, which provides good opportunities for Urban Plus.
- Legal. The company obviously functions within all relevant laws.
With the consideration of the described situation, some recommendations can be outlined. First and foremost, it should be stressed that Urban Plus set ambitious goals and objectives and aim to do their best to get to the goal. However, not every employee is honest and acts in accordance with ethical principles and behavior. However, the misconduct of such employees can consequently lead to the fact that the company will fail to compete with the rivals. Additionally, avoiding modern technologies results in a deterioration of the company’s image.
In these regards, there are several possible alternatives. First, the company should resort to major branding activities to improve its image and remain the premium player. The Internet should be used for all operations, contacts with clients and advertising companies to promote Urban Plus services. The usage of this technology could also help to deprive AllCheckDeals of its competitive advantage. Second, it is crucial to introduce employee training to improve competence and general performance. Moreover, it will help to increase employee devotion and honesty. Finally, the company could also be recommended to devote attention to other segments of the real estate market as the current level of rivalry will affect the importance of any single client type and source of income.