HADEEQA AJAZ KHAN

SP19/BBAH/008

ASSIGNMENT 1

Q1. Develop a Strategic Group Map for the said industry; considering 6 companies of your choice.

HIGH

PRICE

LOW

LOW HIGH
QUALITY SERVICE/PROJECTS

Q2. Apply the Porter's 5 forces model to the real estate industry in Pakistan

 Lesser difference between the real estate products

COMPETITIV  market oversupply exists, Intense competition
 Price war, Advertising, property management,
HADEEQA AJAZ KHAN
SP19/BBAH/008

 Already existing names have high reputation

and are customer’s preference
 Takes time to reach to the level of
competitors
 Can gain competitive advantage through
innovation, low prices, more quality services

THREAT OF
NEW THREAT OF
ENTRANTS PORTER’S SUBSTITUTIO
(MED-LOW) FIVE FORCES N (MEDIUM)
MODEL  Transformation of consumer attitude and their
changing demands can create an opportunity
for substitution
 Population density is increasing, land area is
limited
 Traffic, overcrowding is changing the
CUSTOMER conception of property investment
SUPPLIER
POWER
POWER  Residential suburbanization trend is growing
(FLUCTUAT
ES) (HIGH)

 High when the customer has more options to choose
from
 Low when the real estate services are limited, land and
property are limited
 Prices are high, customer buying power is low
 The highest bargaining power is with the land provider.
 Lowers the overall profitability of real estate.
 Takes longer to obtain the necessary supplies, plus the
prices has risen for the supplies.
 Due to construction boom, the cost of labor is much
higher as well.
HADEEQA AJAZ KHAN
SP19/BBAH/008

Q3. Develop an EFAS matrix for Zameen.com

EXTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE

OPPORTUNITIES

Influx of new residents 0.20 5 1

Investment opportunity 0.10 3.5 0.35

New market openings 0.05 4.5 0.225

Geographic expansion 0.05 4 0.2

Technological innovations 0.10 2.5 0.25

THREATS

High interest rates 0.20 4.5 0.9

Demographic shifts of 0.10 3.5 0.35

clients
Influx of rentals 0.15 4 0.6

Competitors entry 0.05 3 0.15

TOTAL SCORE 1 4.025