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Learn Jay Thompson's formula for real estate competition

By Robert Hahn, Wednesday, April 28, 2010.

Flickr photo by <a href="http://www.flickr.com/photos/horiavarlan/4273968248/in/photostream/">Horia Varlan</a>.

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."

In this final installment, we turn to an example of Porter's "cost focus" strategy. more...

Let us remind ourselves how a focus strategy differs from generic broad-based strategies ...

Part 2: Small brokerage thinks big

By Robert Hahn, Wednesday, April 21, 2010.

Flickr image by <a href="http://www.flickr.com/photos/dmatos/540688952" target=blank>ThrasherDave</a>.

Where the GoodLife Team differs from differentiators like Chicago brokerage company @properties stems primarily from its focus on a specific type of agent. Its recruitment and training ties in to the company's focus strategy.

Focus strategy, as defined by Michael Porter in his 1980 book, "Competitive Strategy: Techniques for Analyzing Industries and Competitors," "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."

Recruitment can be a time-consuming process for the GoodLife Team. The team has been known to track a particular agent for months on end to ensure proper fit with the systems, the culture and the expectations of the company. more...

Small brokerage thinks big

By Robert Hahn, Wednesday, April 14, 2010.

Earlier, I highlighted two real estate companies that are using "cost leadership" and "differentiation" business strategies, as defined by Michael Porter in his 1980 book, "Competitive Strategy: Techniques for Analyzing Industries and Competitors."

The third major strategy described by Porter is focus: "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." more...

@properties: It pays to be different

By Robert Hahn, Tuesday, March 16, 2010.

In last week's column, "A case study in cost competition," I reviewed Keller Williams Premier Properties of Essex, Union & Morris Counties as an example of "cost leadership" strategy in real estate brokerage.

This week, we examine another strategy: "differentiation." Michael Porter defines differentiation this way:

"In a differentiation strategy, a firm seeks to be unique in its industry along some dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an industry perceive as important, and uniquely positions itself to meet those needs." more...

A case study in cost competition

By Robert Hahn, Wednesday, March 10, 2010.

Flickr photo by <a href="http://www.flickr.com/photos/wheatfields/2587147000/" target=blank>net_efekt</a>.

In a previous column, "The real competition in real estate," I wrote that I will be profiling various brokerage companies that pursue one of the four generic competitive strategies (per Michael Porter's "What is Strategy?") in real estate. First up is Keller Williams Realty Premier Properties of Essex, Union and Morris counties in New Jersey.

(Note: I have no business relationship of any kind with KW Premier.)

The national Keller Williams Realty International franchise pursues a classic cost leadership (an effort to minimize operating costs to gain a competitive advantage) strategy, and KW Premier is a good example of how that strategy is implemented. more...

The real competition in real estate

By Robert Hahn, Friday, March 5, 2010.

Doesn't it sometimes feel like everything is new every 15 minutes? Just when you think you've got a handle on blogging, here comes microblogging and Twitter. And just when you think you're getting the hang of this tweeting thing, here comes blip.fm and foursquare.

While you're wondering how foursquare is going to help you sell more houses, whoa, here comes the Apple iPad and the future of mobile and ... in all likelihood, mind-reading technology is just around the corner.

It's easy to get overwhelmed in the rush of the "New." In those moments, it might help to go back to the classics. more...

House hawker or trusted adviser?

By Robert Hahn, Wednesday, February 24, 2010.

I was recently at a focus group to test some ad concepts for a client's Web site when one of the participants threw out a joke that got the entire room chuckling:

"Well, if you ask a Realtor, then it's always a good time to buy."

Chalk that reaction up to some of the recent advertising efforts of real estate brokers, agents, and even the National Association of Realtors. Fact is, consumers simply don't trust real estate professionals to tell them the truth when it comes to the critical question of whether they should buy a home or not. more...

2020 predictions bound to be wrong

By Robert Hahn, Wednesday, February 10, 2010.

So Inman News is running a series of stories with a theme of "a vision of real estate's future in 10 years," and has asked some of us to pen our thoughts on what real estate might look like in 2020. It's at once a worthwhile enterprise, and one that is doomed to become a subject of punchlines in 10 years.

But I am nothing if not loyal -- and foolhardy and willing to be foolish and hardy at the same time -- so here goes. I'm reasonably sure that most of my predictions are going to be proven wrong, but in case many of them prove to be right, Inman News is guaranteeing your money back! [ED: No, actually, we're not, so that's one thing you're already wrong on.] more...

7 rules for doing battle online

By Robert Hahn, Wednesday, February 3, 2010.

Flickr photo by <a href="http://www.flickr.com/photos/joelogon/3365044394/">joelogon</a>.

A series of recent events on the Web made me realize a couple of things about real estate people on the Internet.

First, you Realtors are all so nice. I mean it -- Realtors are so nice to each other on the Internet that it strays close to the Land of Care Bears.

Second, most real estate people don't know how to fight on the Internet.

If you're an active blogger, a participant in the loose online community sometimes referred to as the RE.net, then your concern right now is mostly about how to argue (or not argue) with each other via various Web sites and on Twitter and such. more...

Consumer protection vs. competition

By Robert Hahn, Wednesday, January 27, 2010.

In last week's column, I wrote about the so-called "raise the bar" movement for real estate professionals and the call for higher licensing requirements and stricter standards to become a member of the National Association of Realtors.

I offer suggestions here on exactly how high the bar should be set and why a bar should exist, if at all.

Why a bar at all?

The ostensible reason -- given by every industry that cajoles or threatens or in some other way convinces the government to create licensing schemes limiting the number and types of people who can practice that profession -- is consumer protection. more...

Raising the bar for real estate

By Robert Hahn, Wednesday, January 20, 2010.

Well, 2010 is here ... and I don't see any black monoliths or a second sun. But then, I have it on good authority that the world will end in two years, so what's the point of worrying? Now, it's still very early, but 2010 is looking like a year that could be interesting in all sorts of horrifying ways.

The commercial real estate meltdown is nigh upon us, with unpredictable impact across the board. And those who think we're out of the woods in residential real estate are probably the same people who like to play the proposition bets in craps: incorrigible optimists. more...

Android, analytics and politics

By Robert Hahn, Thursday, January 7, 2010.

I would like to discuss three seemingly insignificant things that I believe most people haven't paid much attention to, but contain the seeds of enormous change.

The first seed is Google Android, which just released the 2.0 version, marketed primarily on the explosively popular Verizon Droid phone by Motorola. As I am one of 100,000 to 300,000 estimated buyers of the Droid in the first week of release, I've personally had the opportunity to play with the phone quite a bit. more...

2010: Google, RPR and the economy

By Robert Hahn, Wednesday, December 16, 2009.

As 2009 draws to an end, I can't help but think how incredible this year has been for me, personally. It was only May when I launched my own business and, and also this year I started writing this column. I've met fantastic new people and made some incredible new friends.

At the same time, 2009 was something of a sleepy year for the real estate industry ... until November, when the National Association of Realtors introduced RPR to the world. The innovations this year seemed to me to be few and far between. The conferences were fun, as usual, but in my opinion mostly lacking in energy and buzz, and flat was the new up for most practitioners. more...

Mobile: Forever the 'next big thing'?

By Robert Hahn, Thursday, December 10, 2009.

Flickr image by <a href="http://www.flickr.com/photos/skreid/3909760297/">skreid</a>.

From time to time, two separate but somewhat related zeitgeist memes cross like the positronic streams in "Ghostbuster" and cause a big to-do of sorts. This week, Marc Davison of 1000watt Consulting wrote about social media snake oil salespeople: "The snake oil of waves of social media gurus in real estate is truly well greased. It's time to stop being so gullible and clutching at straws."

Marc was referencing a BusinessWeek article warning people about "social media consultants." The subhead of that story is: "Hordes of marketing 'experts' are promoting the value of wikis, social networks, and blogs. All the hype may obscure the real potential of these online tools." Interesting.

Later, Jeff Turner, a respected commentator on things technology and real estate, tweeted: "Mobile is the next frontier for brand engagement." more...

The 5 W's and your Web site

By Robert Hahn, Wednesday, December 2, 2009.

Flickr photo by <a href="http://www.flickr.com/photos/marcobellucci/3534516458/">Marco Bellucci</a>.

2010 is around the corner. Real estate companies have known for years that the vast majority of consumers use the Internet. If a real estate agent or broker is not redesigning his Web site right now, he's thinking about redesigning his Web site real soon. And as soon as the Web site is finished and launched, he's probably planning the next one he wants to launch.

The Web site can be thought of as the real storefront of the modern real estate practice. There are successful companies in real estate today that have a great Web site but no physical offices. There are none that I know of who have a swank marble-floored office but no Web site. more...

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