Growth Point Properties Porter's Five Force Model
Growthpoint Properties can use the Porter’s Five Force Model to develop the cooperation’s strategy with in the real estate industry, giving them a strategic advantage including the opportunity to increase their profitability within the real estate sector. The model will be as follows:
Competitiveness in the industry- High
Growth Point Properties Ltd operates in a very competitive Real Estate Sector, which could have an overall long-standing effect on the profitability of the entity.
Their competitors are companies such as Redefine Properties Ltd, Fortress REIT Ltd, Vukile Properties Ltd, SA Corporate Real Estate Fund, and Emira Property Fund Ltd just to name a few. This is the reason for rating competitiveness in the industry as being high.
However, this can still be counterbalance by changing Growthpoint Properties’ strategic planning. This can be done via building a sustainable differentiation between Growthpoint Properties and its opposition. Another method would be to increase its scope and capacity in order to be a superior from its other …show more content…
However, fortunately the threat seems to be relatively low. However methods could still be put prepared to ensure it is kept at a low level. Growthpoint Properties needs to ensure that they always have a clear understanding of what their customers want and need.
It is evident that the Porter’s five forces model can have a positive effect on Growthpoint Properties, as these forces can be used in their favour. It will give them a clear and better understanding of the forces impacting its profitability in the Real Estate Sector. In hindsight, this will allow them to adjust and fine tune their Cooperation strategy accordingly; addressing any weaknesses found and take advantage of all the opportunities that may
Competitiveness in the industry- High
Growth Point Properties Ltd operates in a very competitive Real Estate Sector, which could have an overall long-standing effect on the profitability of the entity.
Their competitors are companies such as Redefine Properties Ltd, Fortress REIT Ltd, Vukile Properties Ltd, SA Corporate Real Estate Fund, and Emira Property Fund Ltd just to name a few. This is the reason for rating competitiveness in the industry as being high.
However, this can still be counterbalance by changing Growthpoint Properties’ strategic planning. This can be done via building a sustainable differentiation between Growthpoint Properties and its opposition. Another method would be to increase its scope and capacity in order to be a superior from its other …show more content…
However, fortunately the threat seems to be relatively low. However methods could still be put prepared to ensure it is kept at a low level. Growthpoint Properties needs to ensure that they always have a clear understanding of what their customers want and need.
It is evident that the Porter’s five forces model can have a positive effect on Growthpoint Properties, as these forces can be used in their favour. It will give them a clear and better understanding of the forces impacting its profitability in the Real Estate Sector. In hindsight, this will allow them to adjust and fine tune their Cooperation strategy accordingly; addressing any weaknesses found and take advantage of all the opportunities that may