JWI 540 Strayer University Strategy Competition in Market Presentation You will still be using CoreLogic as the company I have also provided the Assignments 1 & 2 that are needed in order to complete assignment 3 for the slides. I will be making the video however I just need the slides prepared for the presentation.If you have any questions please let me know. The instructions for this assignment is the 3rd attachment. Running head: PLAYING FIELD, COMPETITION AND REAL ESTATE
Playing field, competition, and Real Estate
Ashley Murray
Dr. Leo Giglio
JWI540-Strategy
May 3, 2020
1
PLAYING FIELD, COMPETITION, AND REAL ESTATE
2
Playing Field, Competition, and Real Estate
The position of Chief Strategy Officer Role is to discover the next step for the Company.
The real estate is the most innovative industry and functions as the playing field in this strategy.
The competitors in data analytics are small and large, depending on the location to explore. In
the U.S, the competition is intense compared to Canada and the United Kingdom, which makes it
advantageous for CoreLogic to venture into the countries. The globalization move and
acquisition projected will be an advantage, especially in obtaining new customers. The following
table shows the analysis of Real Estate Solutions in CoreLogic and its competitors in the field.
Company Name
Organization
within the
Company
Industry
Market Size
Recommended
Playing Field
Rationale for
Recommended
Playing Field
CoreLogic
CoreLogic Real Estate Solutions.
CoreLogic provides a range of data on consumers, property information,
data analytics, and services. The combination of public and proprietary
makes it suitable to concentrate on Real estate services.
Real Estate Industry.
The industry entails both residential and commercial real estate data.
CoreLogic would provide comprehensive data for multiple listing, real
estate brokerage, and technology.
Market size is estimated to be approximately $27.2 trillion in 2019,
which is almost 12.5% increase from the last peak in the year 2006.
Increasing network base in Canada and the United Kingdom to offer
more real estate solutions since the competitors who provide such data
are not concentrated in these two countries. Besides, acquisition of
Black Knight’s technology, Paragon, which enables real estate agents to
connect buyers and sellers while the agent can observe the interaction
progress on the platform (Bouwman, Nikou, Molina-Castillo, & de
Reuver, 2018). The main clients are real estate agents who would rely
on the data provided by CoreLogic to enable smooth business
transactions.
Real estate is highly innovative, with favorable revenue potential.
CoreLogic revenue would increase from its current $426 million by 5%
contributed to by the expansion in the two countries while employing
the technology invented by Black Knight (Bouwman, Nikou, MolinaCastillo, & de Reuver, 2018).
Currently, CoreLogic has a favorable platform for data with data on
consumer credits, which is rich information, especially when assessing a
prospective buyer in real estate. The ability to present data on real estate
with better consumer deals amid the increasing population in these
regions would generate high revenue. Also, the intervention into Canada
and the United Kingdom prove to profitable move, especially with
CoreLogic’s constant change in technology. Technology plays a
significant role in CoreLogic’s progress in the industry compared to
other companies. Furthermore, with a drop in the real estate revenue in
Canada, CoreLogic diverse technology would help the professional
PLAYING FIELD, COMPETITION, AND REAL ESTATE
dealers in real estate to identify suitable deals provided they obtain rich
information from the CoreLogic platform.
Competitor 1: Dun & Bradstreet
Size
Most
Significant
Strength
Most
Significant
Weakness
Recent
Performance
Major
Developments
The Company has a total of revenue of $1.6 billion, according to the
Company’s 2018 third-quarter report. The revenue on real estate is not
defined clearly.
Partnership with Black Knight’s most significant data source, Reonomy,
in 2019
The Company has a steady free cash flow that enables it to afford
resources to expand into new projects.
The Company has also existed for long and has a strong distribution
network enabling it to reach the mainstream of its potential market.
According to the Company’s SWOT analysis, the Company has poor
product demand forecasting, hence incurring missed opportunities
compared to its competitors.
The Company is only one branch in Canada, which is advantageous
towards CoreLogic in the projected innovation in real estate (Zhong, &
Hui, 2020).
The Company’s recent progress in the identification of risk and
opportunity for companies, with the entry of the COVID-19 impact
index. They assessed the location impact, industry impact, company
health impact, and network impact. The Company recently had a
proposed partnership agreement that would see its data section increase
in value. The partnership between Dun & Bradstreet and QOMPLX
could expand the database with enhanced cybersecurity, credit scoring
and decision system, data management, and data services.
The Company has branches in China, which is a fast-growing economy.
Since it has many branches to the East, the Company recently launched
a Cloud Database Repository in India. This allows users to access
organized data with a complete view of any company present on the
platform.
Competitor 2: Black Knight
Size
Most
Significant
Strength
The total revenue for the Company in 2019 is $1.2 billion, according to
the quarterly report on the Company. The revenue in real estate is not
defined.
The Company has over 14 bases in the U.S, which gives it a more
excellent market value. It has a record of good performance in new
markets. The partnership with Dun & Bradstreet also increased the
company value.
The Company also has a strong distribution network enabling it to reach
its potential markets according to its SWOT analysis.
3
PLAYING FIELD, COMPETITION, AND REAL ESTATE
Most
Significant
Weakness
Recent
Performance
Major
Developments
4
The Company does poorly in marketing, which leaves it in an inferior
position in the market, giving competitors an advantage over the
Company. The Company has zero branches in Canada, which is also
advantageous for CoreLogic.
The launch of Paragon Connect, a mobile solution enhanced for real
estate agents to interact with sellers and buyers of real estate. The
technology gives the Company a competitive advantage over others in
real estate.
Reonomy, platform enriched by Black Knight, has vast data networks
from both proprietary and public sources that help professionals acquire
more businesses in real estate by making better decisions (Viriato,
2019).
The extensive network the Company has in the U.S with over 14
branches makes it highly developed.
Conclusion
To sum up, CoreLogic Real Estate Solutions has several platforms such as Matrix that
give it a competitive edge in real estate. With the acquisition of the Black Knight mobile
technology, data would be secure for the real estate professionals to acquire without necessarily
seeking to update the value of houses. Currently, data on the platform is only estimated and is
not the actual value, and the agent on the ground does the updating. The new acquisition makes
the process easy and fast. The venture into a new environment is also profitable following the
drop in real estate revenue in Canada. CoreLogic is a data and analytics company that solves the
problem of bulk data and presents tailored needs to the clients. The estimated value of the real
estate is about $27.2 trillion, which is the investment market value. Upon employment of the
venture strategy, CoreLogic revenue would increase significantly.
PLAYING FIELD, COMPETITION, AND REAL ESTATE
References
Bouwman, H., Nikou, S., Molina-Castillo, F. J., & de Reuver, M. (2018). The impact of
digitalization on business models. Digital Policy, Regulation, and Governance.
Viriato, J. C. (2019). AI and Machine Learning in Real Estate Investment. The Journal of
Portfolio Management, 45(7), 43-54.
Zhong, J., & Hui, E. C. (2020). Depreciation, Building Age, and Market Price Statistics for
Reference in Urban Redevelopment Option Pricing. Journal of Urban Planning and
Development, 146(1), 04019031.
5
TO:
CEO, Frank D Martell
FROM:
Ashley Murray
DATE:
May 30, 2020
RE:
How to Win: Strategic Options Assessment and Recommendation
This brief provides an insight into the key strategy in winning more revenue for Core Logic
and aligning it to become one of the next global firms in its category. This is through narrowing
down on three of the most realistic and viable strategic options for the company with emphasis
placed on creating a lifelong solution to the prominent issue of the influence of competitors in
the market. From the three options, it is key to identify the most appropriate one as focus on all
of them at the same time will split resources and attention and this is a precursor of failure in
strategy implementation. Therefore, the fundamental emphasis will be in perfecting the best
strategy to ensure that it works against all the odds in achieving the company’s goals. The three
Game-Winning Moves I considered are in rank order:
1. Geographic expansion is the primary means that would best suit Core Logic’s ambitions
of becoming more successful and productive than it is at the moment. Presently, the
company mainly operates in the US and Australia, where the bulk of the clients are in
Real Estate. These markets are saturated especially in Australia, where individuals are
taking longer than before to release their houses for sale (Kusher, 2019). This is a bad
sign for real estate agents, especially those who broker the transfer of ownership. Core
Logic operations are heavily reliant in this area. An emerging market is the African
continent where there is massive potential for real Estate (“Billions poised for Africa’s
real estate sector | Africanews”, 2012). Core Logic should consider venturing into this
market and establishing its roots in countries such as South Africa where growth has
been promising over the recent years.
2. Vertical integration is also a game-winning move that would aid Core Logic’s cause of
increasing productivity. Presently, the firm works on the provision of investment advice
through conducting thorough research on the market. Data analytics is a key instrument
in Core Logic’s operations. The firm, therefore, has immense volumes of data as well as
expertise in the undertakings of industries such as real estate. Therefore, instead of
providing real estate advice to clients, the firm can choose to be directly involved in
house development, especially in areas where research indicates that investment is
highly viable. Vertical integration would be key in ensuring that the company reaps from
the advice that it provides to clients who end up making massive profits.
3. Forming mergers with competitors is also a means of ensuring that their influence in
neutralized and Core Logic makes more from the market. Among the potential partners
in case, Core Logic decides to get into a merger is Dun & Bradstreet which recently
became a private company following its merger with three other firms (“Dun &
Bradstreet to go private for $5.38 billion”, 2018). Dun & Bradstreet is a direct
competitor, and therefore having it onboard is a significant means of lowering its
influence on the market. It also has a notable market share which would largely benefit
Core Logic in the case of a merger. Other potential partners include Transunion and
Verisk Analytics. However, while this move is among the most suited for Core Logic, it
is potentially risky as it involves an immense capital outlay to implement in
compensating the shareholders and many other processes. It would also require intense
deliberations of the partners, and the talks might drag for long, especially if there are
hitches in the discussion.
Recommendation
Developing a strategy can be a confusing activity, and this is because of the wide range
of options that are generated during the brainstorming stage. However, following narrowing
down on a particular one which in this case is geographical expansion, implementation is easier.
The median age of Africans is projected to be at 25.4 years by 2050, according to World Bank
(“Pwc.co.za”, 2015). This means that the continent will be least affected by the imminent
domination of an ageing population that is set to encounter other continents. With a young
population, the demand for housing is set to soar with emphasis on students and residential
buildings (“Pwc.co.za”, 2015). It is therefore viable for Core Logic to invest in the continent as
the cash flows that are expected to stem up from this expansion are attractive and dependable in
the long run. The profitability of Core Logic largely depends on clients’ engagements. With the
geographical expansion, more customers will be brought on board, and therefore there is
potential for incremental profit.
Alignment and Investments
Core Logic has a reputation of being one of the best companies in the provision of real
estate advice to its clients. The move of venturing into the African real estate market is one that
aligns with its key strength of operating well as a multinational company with its success in
Australia and the US proving this assertion. However, this move would require immense
financial investment in setting up the infrastructure and hiring of employees. This is not expected
to be a key impediment to the company as the costs of operations of businesses in Africa are
relatively lower as compared to other continents where Core Logic is based. The major
challenges, in this case, is infrastructural development in the continent which is below par when
compared to other continents (“Addressing Africa’s Infrastructure Challenges”, 2020). With
Africa being considered as a key area of development in the coming years, infrastructural
expansion is necessary, and companies are required to invest more in this area to increase their
chances of succeeding. For Core Logic, this is a key area where financial investment will be
highly necessary to facilitate its operations.
Risks and Competitive Response
Risks are inevitable in any strategy implementation process, and the case of geographical
expansion of Core Logic to Africa is not expected to be any different from that of other firms.
Fundamentally, there is a risk of slow reception by potential customers. Also, there is the risk of
the cost of implementation, especially in the case of developing infrastructure and employing
workers being higher than the projected profits. Such risks are probable, and the key means of
overcoming them lies in early planning. For example, adequate research is required to ensure that
the company is are of the availability of the skilled workforce in the continent. This will be
essential in determining whether it is imperative to work with the local individuals, which is a
cheap option or outsourcing employees from abroad. Also, analyzing the strategies of other
successful foreign companies in the same scope of operations as Core Logic is critical in
determining the perfect means of overcoming the poor infrastructure development challenge.
Competitors could also copy the strategy and move faster than Core Logic. This means that the
company ought to move with speed and build an unmatchable reputation with the clients before
the entry of competitors.
Conclusion
Core Logic is presently a highly ranked firm in the provision of advisory services with
the support of data analytics, especially in the Real Estate sector. However, staying competitive
is a key thing that the company cannot afford to ignore especially in the market that is getting
flooded by competitors and accompanied by a shrinkage of the number of clients. This calls for
undertaking a different strategy quickly before competitors react. There is a variety of strategies,
but the most viable is that of geographical expansion into a new market. Africa is the present
untapped arena where Core Logic would enjoy immense success if the process is performed
perfectly. This move should be accompanied by financial support to enhance the employment of
staff and infrastructural development. Risks are probable as it is in many such projects, and one
of them is the escalation of the labor costs together with the underdevelopment of infrastructure.
However, researching the cost of labor, availability of the required skilled human resources and
the mode of operations of companies similar to Core Logic is fundamental in overcoming these
risks. This move is necessary and should be fruitful and therefore supporting it with the
necessary research, and financial investment is a process that cannot be ignored. The risk of
competitors means that a swift course of action is imperative and therefore availing of the
necessary resources should be a key priority of the company.
References
Billions poised for Africa’s real estate sector | Africanews. Africanews. (2012). Retrieved 30
May 2020, from https://www.africanews.com/2019/08/07/billions-poised-for-africas-realestate-sector//.
Addressing Africa’s Infrastructure Challenges. Www2.deloitte.com. (2020). Retrieved 30 May
2020, from https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Energyand-Resources/dttl-er-africasinfrastructure-08082013.pdf.
Dun & Bradstreet to go private for $5.38 billion. CNBC. (2018). Retrieved 30 May 2020, from
https://www.cnbc.com/2018/08/09/dun–bradstreet-to-go-private-for-5point38billion.html.
Kusher, C. (2019). Length Of Home Ownership Continues To Rise. Corelogic.com.au. Retrieved
30 May 2020, from https://www.corelogic.com.au/news/length-home-ownershipcontinues-rise.
Pwc.co.za. (2015). Real Estate Building the future of Africa. Retrieved 30 May 2020, from
https://www.pwc.co.za/en/assets/pdf/real-building-the-future-of-africa-brochure-2-mar2015.pdf.
JWI 540: Strategy
Assignment 3
Assignment 3: Strategy Presentation
Due Week 10, Sunday, midnight of your time zone (Weight: 20%)
Introduction
“In order for strategy to be effective, it has to be clearly communicated.
Everybody in the organization has to understand why we are doing what we’re doing,
and what they need to do in order to execute the strategy.”
– Jack Welch –
Time to Shine! You’ve done the hard work to evaluate the playing field and competition. You’ve looked at
seven potential Moves and debated the pros and cons of each. Finally, you have arrived at the Game Winning
Move that can help your company beat competitors and generate significant shareholder value – and create a
sustainable competitive advantage. All you need now is a “yes” from your CEO!
You know that one of the most important skills leaders must develop is the ability to sell their ideas. They need
to understand their audience, craft their presentation appropriately, have poise, and communicate clearly. But
they also need to show their passion and demonstrate executive presence!
Now that you have identified you Game Winning Move, it is time present it to your CEO. You know your CEO’s
time is valuable and you have only five minutes to “sell” your Move and explain the key rationale. You will
synthesize your previous briefs to create a short, well-organized presentation based on Jack’s 5 slides and then
present these during your five-minute slot.
The presentation is focused on selling the Move and your rationale – and this probably means that some of the
slides are going to be more important than others. Your CEO wants you to touch on each slide during the 5minute presentation, but doesn’t mind if you spend only a brief amount of time on some slides and more time on
others.
You have a great Move. You have been perfecting your Executive Presence at JWMI. You have confidence.
You are ready to impress!
Instructions
1. Distill the work you have done in Assignments 1 and 2 to create Jack’s 5-slide strategy deck (which can
be found in Chapter 11 of Winning and is also included in summary form below).
Be aware that information needed for some of Jack’s questions would be available to a company’s
strategy team leader but may not be in the public domain for our use. Therefore, your content in each
sl…
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