🧊SWOT Analysis of the Emerging PropTech Companies
The PropTech market in India has seen lots of movement within the last few years and even months. In 2020, $551 million have been invested into the national industry to help companies grow and expand.
NoBroker- They are the first unicorn in this industry with a valuation of $1.01 billion in November 2021. NoBroker was founded in 2014 by Amit Agarwal, Saurabh Garg and Akhil Gupta. NoBroker has received $426 million in funding, with their latest series E round adding around $210 million. As the name suggests, their goal was to create a peer-to-peer real estate transaction platform that eliminates fees from the common middlemen, such as brokers or agents. They are engaged in buying, selling, as well as renting all kinds of residential and commercial properties. To provide the appropriate money supply in the financial system, central bank announced in March 20, the purchase of government bonds and bills from all banks.
SWOT Analysis:
Strengths:
The geographic presence in different regions can act as one of the major strengths of the organization. It determines the business’s reach to the target market and ensures the easy accessibility.
The wide product portfolio can allow the organization to expand the customer base and offset the losses from one product category with benefits obtained from the other.
Strong online presence on different social networking sites and efficient social media management can enhance the effect of positive e-WOM and develop strong relationships with customers.
Strong financial position and health can allow the firm to make further investments.
Access to the suppliers that offer raw material at a lower cost can improve the overall business efficiency.
The locational advantage can improve the competitive positioning of the firm in various ways, such as- lower cost, improved accessibility or enhanced brand image.
The well-developed and efficiently integrated IT infrastructure can improve the operational efficiency and increase knowledge of the latest market trends.
Competent and committed human capital can act as a powerful source of competitive advantage, particularly when business is service oriented in nature.
High product quality increases brand loyalty and improves NoBroker The Real Estate Disruptor's performance in a competitive market.
Workplace diversity can also act as a major business strength, particularly when the organization intends to operate in the international market.
The horizontal and/or vertical integration can increase the control over whole value chain, result in improved access to raw material and quick product delivery to the final customer.
An organization may own different intellectual property rights that can make the product offerings unique and exclusive, making it difficult for competitors to imitate.
Weaknesses
The organization can draw the criticism from the environmentalists for its poor waste management practices and inability to integrate sustainability in business operations.
The company may lose efficiency due to poor inventory management practices. The shortage or excessive inventory can either result into
The cash shortage or insufficient current assets negatively affect the liquidity position and harms the overall business performance.
Insufficient budget for the marketing and promotion activities weakens the firms’ ability to expand the customer base and encourage repeat purchase.
Less expenditure on the research and development activities can weaken the company performance due to poor local/international market knowledge.
The inability to understand customers’ needs and expectations lead to an ineffective strategic decision-making process. With this weakness, the organization may not be able to identify the potential improvement seeking areas in product/service mix.
The prices charged by the business may not be perceived as justified when compared to the product/service characteristics. It indicates the need to revise the pricing strategy.
The poor customer service (such as inefficient customer complaint handling) can trigger the negative word of mouth about the business and affect business growth.
The decision making in the NoBroker The Real Estate Disruptor takes too much time, causing expensive delays in introducing new products in the market.
Poor project management practices can internally weaken the ability of the organization to successfully open new branches or expand the product line.
Lack of organizational commitment and high employee turnover can increase recruitment costs and reduce organizational productivity.
High job stress and consequent low workers’ morale makes the workforce less productive.
The misalignment between the organization’s leadership style and its core strategic objectives can make the business organization directionless.
Organizational culture also becomes a big internal weakness when it does not align with the strategic/business objectives. For example, the main strategic objective of the chosen business organization is to launch innovative and new products in the market. But there exists a risk averse attitude prevailing in organizational culture, which discourages employees from thinking creatively.
Opportunities
The exponential growth in the population, and particularly in the existing or potential customer segments is a great growth opportunity for the business organization.
The changing customer needs, tastes and preferences can act as an opportunity if the business organization has good market knowledge.
The development of new technologies to assist the product/service production and delivery process can be exploited to embed the innovation in business operations. The advanced technological integration can decrease costs, improve efficiency and result in the quick introduction of innovative products.
Rise in the customers’ disposable income and increase in the affluent customer base can be taken as an opportunity to introduce more high-end products.
Reduction in the interest rates makes the fund raising and financing at lower cost easier for the business organization.
Customers may start preferring new and creative products/services as a result of changing tastes.
The emergence of e-commerce and social media marketing as a trend can be a great opportunity for NoBroker The Real Estate Disruptor if it can ensure strong online presence on different social networking sites.
The emergence of new market segments and new niches provide business and product line expansion opportunities.
The diminishing boundaries and rising global interconnectedness allow the organization to get into the international market, target geographically dispersed customer base and increased profitability.
The subsidies provided by the government and other policies to make the business environment more friendly is a positive external environmental factor for NoBroker The Real Estate Disruptor.
Improvement in the customers- lifestyle and standards mean more consumption on consumer goods and services, and more opportunities to encourage the purchase.
Threats
The changing regulatory framework and introduction of new stricter regulations impose a major threat to the NoBroker The Real Estate Disruptor. It makes compliance with legal standards more complex and challenging for the business organization. Inability to comply with changed regulations raises the risk of expensive lawsuits.
Shortage of skilled labor in the market can make it difficult for the organization to attract talent with the right skills set.
The increasing number of direct and/or indirect competitors affects the organization’s ability to sustain and expand the customer base.
The deteriorating economic conditions affect business performance when they directly influence the customers' spending patterns and purchasing power.
The rise in inflation increases the cost of production and affects the business profitability.
The growing environmental sustainability trends act as a major threat when offered products/services are not environment friendly. It draws negative publicity and criticism from the environmentalists and affects the brand image in a competitive market.
The globalization pushes the organization to cross national boundaries and deal with cultural diversity, which may have a detrimental impact if the organization lacks the cultural intelligence.
2. NestAway- NestAway’s rental marketplace has received $109.1 million in funding. The latest Series D round in 2019 has added around $4.7 million by Goldman Sachs. NestAway was founded by Amarendra Sahu, Deepak Dhar, Jitendra Jagadev and Smruti Parida in 2015 and is located in Bengaluru, Karnataka. Their vision is to simplify the search for a new home when relocating to another city and make it more accessible for young people as well as families. NestAway is a rental marketplace that operates in 32 Indian cities and has successfully found more than 200,000 tenants. The company offers services for landlords to easily put their properties on the market which included marketing, house tours, legal assistance and collection of rent as well as deposits. Increasing the Bank rate will decrease the money demand in the market and the economy will get a chance to be normal in terms of the money supply.
SWOT Analysis:
Strengths:
Quality Meals & Product Innovation
Reliable Suppliers
Strong Captured Marketing& Promotional Advertisement
Quick & Fast Delivery System
Pricing Range
Internal Dough Manufacturing
Customer Services
Strong Brand Equity
Highly Skilled Employees
Strong Distribution Network
Proven Business Model
Investment In Technology & Innovation
Goods Return On Capital Expenditure
Weaknesses
Low Number Of Outlets
Complex Structure
Operational Difficulties
Need Of High Technology
Net Income
Opportunities
New Environment Policies
Low-Calorie Menu
The Real Estate Disruptor
Demographic Changes
Population Of Asian Countries
New Preferences In Nobroker The Real Estate Disruptor
Changes In Economic
New Trends In The Consumer Behaviours
Lower Inflation Rate
Threats
Direct And Indirect Competition
The Real Estate Disruptor Is Dine-In Facility
Regulated Pressures
High Cost
Lack Of Long Term Contracts With Suppliers
Health Awareness And Consciousness Trends
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