Company resources and competitive dynamics as sources of success: Evidence from Finnish real estate agencies

Abstract

This Master's Thesis studies competition in the Finnish real estate brokerage industry.

Objective of the study The purpose of this study is to identify the competitive actions and company resources vital for real estate agencies operating in Finland. Moreover, this thesis aims to find the specific company resources and competitive actions that might help the case company to improve its competitive position in the target market of Oulu.

Methodology This thesis combines three levels of analysis. The first level is the theoretical level, which comprises of the theoretical analysis in the literature review. The extensive literatures of competitive dynamics and the resource based view (RBV) are at the center of the focus for this study. Additionally, the literature concerning the industry of real estate brokerage is closely reviewed.

The second level, the empirical analysis of the real estate brokerage business in Finland, studies the competitive actions and critical resources used in this market. The research method was chosen to be qualitative, and the empirical data was collected using semi-structured interviews. Triangulation was used in order to achieve the highest possible objectivity.

Finally, the third level of analysis delves into the practical objective of the study, i.e. the specific market of Oulu and its competitive environment. At this stage, three of the highest performing competitors in this specified market were taken to be further analyzed. The data analysis was conducted using thematic analysis method.

Findings The findings of this thesis indicate that there are several distinct company resources and competitive actions that have the potential to affect the success of real estate agencies. The results imply that the most valuable resource for real estate agencies is their personnel, as the employees were seen as a driving force of the company. The agents that have strong technical knowledge and skills, a favored personality and extensive social network are unique resources for real estate agencies. Moreover, the reputation was seen as an important success factor for real estate agencies.

Many of the interviewees emphasized expanding scope, when describing why specific companies in the market have been successful in the past. Furthermore, service innovations and marketing campaigns were seen as effective competitive actions, as well as pricing strategies.