Porter's Five Forces Analysis - Retail/Real Estate Industry
Porter's Five Forces Analysis - Retail/Real Estate Industry
Porter's Five Forces Analysis - Retail/Real Estate Industry
Submitted to – Finlatics
18/05/2020
• Legal Authorization
As there is no legal authorization required to start the business there is always threat for
new competition.
• Technology
As the products are standardized there is no specific need for technological advancements
as many of the work in this industry can be outsource to other supplier companies like
designing, furnishing, and many agents, consultant, property managers and employees
can be hired on contractual basis.
• Capital
Capital can be consider the main barrier to enter the sector as there is huge amount of
investment involved, the companies require large amount of capital or funds. Capital
accumulation also consider how big player you are and how big is the brand name and
also the previous projects in order to get easy funds. Moreover the ability to obtain
banking financing also limits small players from scaling up their projects.
The profitability margin is very low due to current economic condition so the companies with
high cash reserves will be able to survive. Thus the companies will try to get the maximum
market share and lure the consumers with more offers and services at a very competitive pricing.