BrokerageIndustry News

Learn Jay Thompson’s formula for real estate competition

Brokerage model gives agents freedom
Published on Apr 28, 2010

Earlier columns have examined different strategies for competition, per Michael Porter's much-cited business tome, "Competitive Advantage: Creating and Sustaining Superior Performance." I described Keller Williams Premier as an example of "cost leadership," as defined by Porter, @properties of Chicago as an example of "differentiation," and The GoodLife Team of Austin as an example of a "differentiation focus" (also see related article). In this final installment, we turn to an example of Porter's "cost focus" strategy. Let us remind ourselves how a focus strategy differs from generic broad-based strategies: "This strategy is quite different from the others because it rests on the choice of a narrow competitive scope in the industry. The focuser selects a segment or group of segments in the industry and tailors its strategy to serving them to the exclusion of others," Porter wrote. The "cost focuser," then,...