SWOT Analysis, PESTEL Analysis, Competitor

Analysis and Porter’s 5 Forces Model on FYRO

SWOT Analysis, PESTEL Analysis and Competitor Analysis are an important
analytic tool used to analyze internal and external factors affecting businesses for
strategy development. The SWOT Analysis, PESTEL Analysis and Competitor
Analysis on FYRO(Find Your Room Online) are discussed further.

SWOT Analysis
We used SWOT analysis (or SWOT matrix) to identify strengths, weaknesses,
opportunities, and threats related to business competition and project planning.
Strengths and weakness are frequently internally-related, while opportunities and
threats commonly focus on the external environment.

Strengths
1) Low capital requirements
2) Uniqueness: in terms of Loan system and
digital wallet.
3) Committed workforce
4) Customer-Centric Mindset
5) Real-time updates about rooms
6) IT/Software expertise and a good
understanding of customer journey
because most of our friends from outside
kathmandu valley have gone through this
problem.
7) Business adaptive to change and room for
growth.
Opportunities
1) Growing market: Buildings are increasing
day by day and landlord are in search of
tenant and tenant in search of the room
and this is where FYRO comes. It acts as
the bridge between the landlord and the
tenant.
2) People nowadays are technologically
sound enough to use smartphones and
search what they need and with proper
marketing strategies, FYRO has a lot of
opportunities in this fast-growing market.
3) The market needs: There is an increasing
number of people who seek this kind of
application.
TABLE I. SWOT ANALYSIS
Weakness
1) New: No reputation yet. We have not
established ourselves as reputable brands
or something and no consumer connection
to the brand
2) Missing expertise in some areas like no
previous project planning experience,
Marketing expertise and management
experience.
3) Convincing landlord can be pretty tough.
4) Server error: This type of error can easily
discourage customers from returning to
our application.
Threats
1) Fluctuations in rent: Fluctuations in rent
may occur and we should consider that
while depositing rent on a digital wallet.
2) Competitive market: Although our idea is
diversified enough, still there are already
existing brands and we should be
spending more on marketing campaigns.
3) Permission for implementing Digital
wallet.
4) More people prefer traditional way of
finding room(i.e. through friends and
relations)
5) Some issue might generate from house-
brokers (middle man person) if our app
launch into the market.
PESTEL Analysis
PESTEL Analysis is an analytical tool that stands for Political, Economic, Social,
Technological, Legal and Environmental analysis. We used PESTEL analysis or
PESTLE analysis (formerly known as PEST analysis) as a framework or tool to
analyse and monitor the macro-environmental factors that may have a profound
impact on our business performance. Since this tool is especially useful when starting
a new business or entering a foreign market. Therefore we used it to conduct
Political, Economic, Social, Technological, Legal and Environmental analysis. It is
used in collaboration with the SWOT analysis, Competitor analysis and Porter’s Five
Forces to give a clear understanding of a situation and related internal and external
factors.

Figure 1. PESTEL Analysis

Political Factors
These factors are all about how and to what degree a government intervenes in the
economy or a certain industry.
1) FYRO app should consider about the proper housing guidelines.
2) Political instability might result into the change of law towards the rental
payment through app.
3) During Covid-19, Government has ordered the house owner not to take rent
from the tenant users, so if no transaction is done then there is some chances of
app dissolvement.
Economic Factors
Economic factors are determinants of a certain economy’s performance.
1) The house owner can receive the rental money at exact end of the month.
2) Initiation of Digital Wallet on the app, so that accurate transaction can be done
between house owner and tenant users.
3) Providing the loan at minimal interest rate to the tenant users, only if they have
 shortage of money for paying to the house owner at the end of the month.
4) Government can be benefitted easily for looking into the tax details of house
owner as we can have all monetary transaction record between house owner and
tenant users.
Social Factors
This dimension of the general environment represents the demographic
characteristics, norms, customs and values of the population within which the
organization operates.
1) FYRO are supposed to design with a interactive and user friendly manner with
easily accessible to everyone.
2) Users like students , couple , family can easily get the number of rooms they
want with affordable price.
3) Establish the good relation between house owner and tenant users as owner
supposed to see the users details through app.
4) Facilities for tenant users with new scheme like providing rental discount
facilities at yearly basis.
Technological Factors
These factors pertain to innovations in technology that may affect the operations of
the industry and the market favorably or unfavorably.
1) Users can see the available room using nearby location operating with FYRO
app.
2) Users can have smart chat system and instant video call features with house
owner.
3) FYRO app is supposed to be design with digital wallet payment system where
tenant users and pay the rental charges to house owner.
4) Use of social media for promotion of FYRO app as if the services of FYRO app
get effective , then users themselves act as a promoter through social media.
Environmental Factors
Environmental factors have come to the forefront only relatively recently. They
have become important due to the increasing scarcity of raw materials, polution
targets and carbon footprint targets set by governments. These factors include
ecological and environmental aspects. We don’t have any environmental factors.
Legal Factors
Although these factors may have some overlap with the political factors, they
include more specific laws such as discrimination laws, antitrust laws, employment
laws, consumer protection laws, copyright and patent laws, and health and safety
laws.
1) Need to take the legal permission from Nepal Rastra bank for the implementation
of digital wallet system in the app.
2) Might contain some legal issue for the loan system with minimal interest rate
features on the app.
Competitor Analysis
We used Competitor analysis as a means of an assessment of the strengths and
weaknesses of current and potential competitors. Profiling combines all of the
relevant sources of competitor analysis into one framework in the support of efficient
and effective strategy formulation, implementation, monitoring and adjustment.
Competitor analysis is an essential component of corporate strategy and therefore
used to analyze the functioning and operation of competitor. The major exisiting
competitors for FYRO are Gharbeti, RoomFinder Nepal and Rental Nepal and the
competitor analysis is shown in TABLE II.
TABLE II. COMPETITOR ANALYSIS
Features / Company FYRO GharBheti RoomFinder Rental Nepal
Nepal

Company Profile and Founded 2020. Founded on Founded on Rental Nepal is a

Key Competitive Revenue driven August 1, 2017 September 29, Complete Real
Advantage from ads, certain by Rajan Dahal. 2019. It’s an app Estate Solution f
percentage of The product is where people can Nepal. It is
commission from developed by find or post info approved by Rea
landlord and Softech about new Estate Agent
investing the Foundation. It is rooms / flats/house Association Nep
deposited money an intelligent or any kind of open (REAAN).
by tenants. solution for rent, space.
Implement Digital lease and sale of
wallet to provide properties i.e.
loan. Building, Flat,
Room, Space,
Apartment and
Land.
Target Market Tenants who It deals with Tenants who People who wan
wants to find rent, lease and wants to find to buy, sell, rent
rooms according sale of rooms according lease.
to their properties i.e. to their
requirements and Building, Flat, requirements and
landlord who is in Room, Space, landlord who is in
search of tenant. Apartment and search of tenant.
Land.
Marketing Strategy Facebook ads and Blog Posts None None
Blog Posts
User Engagement - 5000+ installs 1000+ installs Medium
 Social Media Facebook, Facebook, None Facebook, Twitt
Presence Instagram, Twitter, and YouTube
Twitter, LinkedIn LinkedIn,
YouTube
User Interface User Friendly and Pleasing to some Good Not so Us
Eye catching extent friendly
Number of years in - 3 years 1 years -
business
Customer Feedback - Mostly Negative Positive Positive

IT/Software 3 years in 3 years in business, Long enough in

expertise, business, Project Project planning market to sustain
Business adaptive planning expertise and Highly
to change, expertise and management professional,
Committed management experience. dedicated a
workforce, experience. experienced
Strengths Customer-Centric people in team
Mindset, real time updates
Diversified
enough to sustain
in market, real
time updates
New to market, UI is not that No regular UI is not user
lack of experience user friendly and updates, lack of friendly and no
on project reviews are committed marketing strateg
planning, mostly negative. workforce and no implemented yet
Weakness management marketing strategy
and marketing, implemented yet.
Convincing
landlord

Porter's 5 Forces Model

We used Porter's Five Forces as a framework for analyzing a company's
competitive environment. The number and power of a company's competitive rivals,
potential new market entrants, suppliers, customers, and substitute products influence
a company's profitability. Therefore, market and industry feasibility analysis of
FYRO is done using Porter’s five forces model which includes Rivalry among
companies, Bargaining Power of Suppliers, Bargaining Power of Buyers, Threat of
new entrants and Threat of Substitutes.
1. Rivalry among companies
The rivalry among companies in case of FYRO can be considered as medium to
high. As shown in TABLE II. The major competitors of our business model FYRO
are GharBheti, RoomFinder Nepal, and Rental Nepal. When looking at the room
finding service provider, we see that the industry is quite competitive because of a
number of reasons which include high loyalty of customers for existing room finding
services like Rental Nepal and GharBheti. The switching costs for customers are also
very low and many players in the industry are similar in size, leading to extra fierce
competition. Taken altogether, it can be said that rivalry among existing competitors
in the room finding service medium to high. Entering the market of providing room
finding services, the business would definitely not be a new service but it should be
able to provide a better form of service to its users to be a step above the competitors.
Therefore we have introduced the concept of digital wallet which provides loan at the
lower interest rate than existing rate in the market and the tenant is supposed to
deposit the rent of the month at first of every month and we pay a certain percentage
of the rent at the last month of every year. Therefore, with proper marketing
strategies, introducing innovative cost-cutting business models, we can shake up the
original players like Rental Nepal and GharBheti and have chances of thriving in the
market along with the rivals. 
2. Bargaining Power of Suppliers
The bargaining power of suppliers in our business model FYRO can be considered
very high. When looking at the major inputs that our business model needs, we see
that it is dependent on the house owner. House owner might be skeptical about our
business model, they don’t understand and believe the platform. They might not be
comfortable listing their properties on our application and might respond like the
tenant will come searching for space themselves. There is no switching cost involved
at all so they might prefer using an existing, already reputed business model like
GharBheti and  Rental Nepal. Due to the presence of its direct rivals in the market
and ultimately adding to this number, the power of service providers is bound to fall,
leading to higher bargaining power of suppliers.
3. Bargaining Power of Buyers
The strong bargaining power of buyers lowers the Profitability and make more
competitive environment to sustain in the market . So, in our case the existed
competitors like Gharbeti, Rental Nepal have the high bargaining power of buyers as
their services or room to be rent is not so reliable as customers are facing many
difficulties to know the exact room and the prices of room to be rent. So to overcome
the Bargaining power of Buyers, we can build the following strategies for tackling
the bargaining power of buyers faced by other competitors:
1) Building loyalty with the customers i.e rewarding loyal Tenant users
monthly/yearly basis which may ultimately reduce their bargaining power.
2) Taking every review and rating from the app available in Play Store and picking
every customers review weekly as a feedback, and publishing their brutal or
negative review on a Facebook page by mentioning them about an improvement
done in our app as well fixed the service based problem which obviously
enhances positive response from our customers and that might be helpful to
reduce the bargaining power of customers in futures by providing excellent
service.
4. Threat of New Entrant
The threat of new entrants could be high in our case if anyone can come up with
high initial capital investment for providing extra features and support to what we
and the currently existing products are providing as customer place high importance
to new and unique products. Although, we can minimize that psychological switching
if we can establish a strong loyal customer base by working on customer-company
relationships. A good relationship will definitely raise the psychological switching
cost and then we can also work on restricting access to the distribution channels
causing difficulty for any new player in making any connections. Continuous
improvement will be key as we can fend off any new players and rivals by
continuous improvement and by introducing new innovative products or services.
5. Threat of Substitutes
In terms of room finding service providers, it can be said that the general needs of
the customer are finding the perfect room to stay. It may be clear that there are many
alternatives for finding room besides using room finding applications. The substitute
in case of room finding service providers could be agents or middlemen and family
relations, friends, etc. who might have information on room on rent. The potential
customers could opt-out for using traditional room finding service as mentioned
earlier like through agents and friends. Though customers might find the room, they
might not find the room they want. FYRO helps tenants find the room as per their
requirements. Taken this altogether, the threat of substitutes in case of room finding
service can be considered low to medium.