Swot analysis entails the assessment of both internal and external factors and components that have a great impact on the success of the business or organization. D' Rosa property Management Company is a property management company in Newark New Jersey. Their main objective is management of property on behalf of clients for a fee. They are responsible for handling tenant issues, making repairs, collecting rent, creating monthly reports and inputting information in the database.
This is an analysis of the internal strengths and weaknesses of the company and identification of the external opportunities and threats.
INTERNAL ANALYSIS
Strengths
Internal Strengths espoused by the company are attributed to its management structure and coordination of activities in the company. Some of the strengths include but not limited to; strong management, asset leverage, and financial leverage, pricing power, technology, brand name, size and cost advantages and economies of scale.
Strong management
The company has a strong management and coordination structure. The management structure is based on quality leadership skills and techniques that enhance the proper management of the company and productivity of human resources. It has a management team that has adequate experience in the management of the agency.
Asset and financial leverage.
The company has a relatively adequate asset and financial capability that allows efficient and smooth running of activities in the organization. The asset and financial leverage has made it one of the major competitors in the property management field in New Jersey. The company has qualified and competitive human resource base. The financial leverage allows the company to increase its operation and client base and improve their profit margins. Additionally, the asset leverage allows the agency to use the best operational assets to expand their business and improve their market share.
Weaknesses
The company has weaknesses internally that have somehow reduced its performance in the market. These weaknesses identified in the company include; lack of experience with niche cruises, poor online presence with little website and online traffic, poor understanding of social media, low appropriation of budget on marketing, poor growth patterns, weak supply chain and costing structure.
Poor online presence
The poor online presence undermines the company’s ability to gain clients and improve its earnings. They do not have a website that could enhance their online presence in the market. This reduces its market share among internet users. The majority of clients appreciates the use of the internet to carry out agent recruitment and review, in view of this, the poor internet and online presence is a major weakness in the company.
Poor marketing
Poor marketing also results in a number of shortfalls in the company. It is through efficient and effective marketing that the company client base increases and thus improve revenue collection. Poor marketing not only stagnates the growth of the company but also reduces the client base. The company has not embraced new methods of marketing including online marketing and social media. Additionally, the company allocates fewer funds for marketing which hinders the efforts to have an effective marketing campaign for the company.
Poor growth patterns
This is brought about by several factors inherent in the company. Marketing strategies, online presence, customer satisfaction, supply chain and costing structures contribute greatly to the company revenue collection and company growth. A slack in any of these results in poor growth patterns in the company. The revenue collected is mainly used in the day to day running of the business and the surplus for expansion and growth strategies thus limited revenue collection will eventually result in poor growth patterns.
In addition to the above mentioned internal influences, the company also faces external factors that determine its success in the industry.
Inadequate human resource
The company has only nine employees as its human resource. This limits its operation thus resulting in delays in carrying out its activities. Additionally, it does not have a human resource department that can easily and effectively manage the human resource in the company. This has resulted in several occasions of customer dissatisfaction.
Opportunities
The opportunities inherent in the sector that could enhance the company’s performance include; public outreach, internet technologies, consolidation and reduced competition, international expansion, online market, innovation and fragmented market.
Public outreach
Property management agencies generally face negative public perception from mass media coverage, internet and other sources. This can be addressed by carrying out public outreach programs and activities to educate the public and overcome negative perceptions. There is a great opportunity in promoting public outreach and awareness since it increases the market share and also enhances the inclusion of the young generation.
Internet Technologies
Advancement in technology provides a bigger and better platform to improve services in the company. Internet technology provides an easier way of marketing and fostering customer relationship through social media and the inclusion of the young generation in the market share . Additionally, it provides a marketing platform. Through the internet technologies the company can further improve its online services.
Fragmented Market
The fragmented market currently provides an opportunity for the company to expand and increase the market share. The fragmented market has small competitors with less asset and finance base unlike the company with finance and assets. The company has a higher cost advantage as compared with many companies in the field.
Threats
Threats to the company are mainly external and common to most businesses, they include; competition, government regulations and availability of cheaper and easily accessible options. However unique threats to the company include negative public perception about property management agents.
Negative perception
The negative perception about the property management agencies is a common threat. The negative perceptions are a result of the internet, the negative impact of unqualified agents and the implications of negative coverage by the media.
Competition
The company faces stiff competition from other established agencies in the country. However, the major inevitable competition is from the internet. The majority of the young generation is ardent internet users, thus they can easily find alternatives. This is because of the impression that the internet provides a less expensive and more efficient service .
Unfavorable relations with industry players
The friction and misunderstandings that are mostly experienced with some suppliers’ poses a major threat to the company. This has resulted due to the uncertainty of the supplier’s reliability as business partners. This could jeopardize the future performance of the company. Some of these players include repair companies, suppliers and delivery companies among others.
Recommendations
With the improvement of information and communication technology, the company needs to embrace the use of technology in its operations. The most remarkable application is the use of real time information systems in the company. The company should use the internet for online marketing and communication with clients thus making it convenient and reliable. Furthermore, the company can use advanced technology that allows it to better meet the needs of the clients and customers which will give them a competitive edge in the market.
The company should also establish a human resource department that will be responsible for organizing and deploying human resource. This will enhance efficient operations and subsequent customer satisfaction.
Additionally, the company should enhance the marketing strategies by employing current and efficient marketing strategies. Internet marketing will go a long way in increasing the market share and improving their sales. The first step will be to establish a company website that can allow easy communication and interaction with the clients.
References
John, Smith. Property management Agency SWOT analysis. 22 May 2011. 29 October 2013. <http://www.wikiwealth.com/swot-analysis:property management-agency>.
Laura, Jane, Lawton and Bruce,Weaver David. "Property management Agency Threats and opportunities: A perspective of Successful owners." 2012. Griffith. edu. 29 October 2013.
Richard, Earls. "SWOT Analysis for property management Agencies." 20 August 2009. property management Research Online. Document. 29 October 2013. <http://www.propertyresearchonline.com/blog/index.php/2009/08/swot-analysis-for-property management -agencies-opportunities/>.
Singh, L,k. Management of property Agencies. Gyan Publishing House, 2008.
