Scribd
Upload
72 views4 pages

Remax SWOT TBV

- Remax has strengths in its financial performance, experienced agent base, extensive locations and customer diversity, and strong brand recognition. - Weaknesses include low income flow, low asset rotation, and high costs related to negotiations. - Opportunities exist in the condo-dominated construction industry, low interest rates, increasing household demand, and new technologies. - Threats include new competitors with advanced technology, intense industry competition, an aging population with shifting needs, and declining home inventory.

Uploaded by

Rodrigo Mora Cerquetti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
72 views4 pages

Remax SWOT TBV

- Remax has strengths in its financial performance, experienced agent base, extensive locations and customer diversity, and strong brand recognition. - Weaknesses include low income flow, low asset rotation, and high costs related to negotiations. - Opportunities exist in the condo-dominated construction industry, low interest rates, increasing household demand, and new technologies. - Threats include new competitors with advanced technology, intense industry competition, an aging population with shifting needs, and declining home inventory.

Uploaded by

Rodrigo Mora Cerquetti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Remax

Strength

- Financial Performance
- Increasing number of experienced agents
- Extensive diversity of locations and customers
- Strong brand and name recognition

Weakness

- Low income flow


- Low asset rotation
- High costs related to commercial, financial and legal aspects of the negotiation

Opportunity

- Construction Industry dominated by condos


- Low interest rates and sustainable macroeconomic factors
- Demand of household Increased
- New technologies development available for companies

Threat

- New competitors with higher technology development


- Intense competition among the industry leaders
- Population aging rate and new trends developed by younger generations
- Decline in the inventory of homes for sale
Strength

Among the several strengths we can find on this company, the main ones are related to the its
financial performance. Liquidity and cash ratios allow the company to meet short terms
liabilities to support their operations. At the same time, even though the company is not a
leader on revenues, company’s net and operating margins allow the company to maintain a
steady growth, which is an integral element of this company’s mission.

Secondly, an increasing number of experienced agents represents a relevant strength to allow


this company to reach and keep new territories with different cultures and tendencies. This
strength allows the company to support the growth and development of their organization.

As a result, this second point will be translated into an extensive, as well as diverse number of
locations and territories, which represents many clients trying to fulfill their housing needs.
Although this can be seen as an intense labour work, this can also be identified as a vital
challenge for the company.

As outcome, these three previous strengths result, in a strong brand and name recognition
despite the diversity of locations that make part of this franchise. That could be interpreted as
an opportunity from a marketing perspective to assure the type of value that can be render to
customers making business whit agents from this company.

Weakness

Although most financial indicators make part of the strengths met by the company, flow
revenues, are not necessarily related to the strength and exposition known by the brand. While,
this number has known a relevant evolution, the spread from other important companies
leading the industry from this key factor.

Consequently, to the company’s first weakness, total asset rotation is another weak element
among the financial factors presented by the financial statements of this company. This item is
mainly shown by the relation between current assets and incomes achieved by the company.
Also, this financial underperformed ratio is not rendered into the return over asset, where the
company is achieving a relevant high performance.

Although, this item is almost a characteristic of the industry, the evolution of this expense
account for this company can not be unseen when the performance of this company is being
observed. Also, and while the returns of this company still can be included as a financial
strength, the importance of the financial effort required by the negotiation and transactions of
this company can still be seen as a weakness for this company.

Opportunity

The expertise of the agents on the sale of condos, which currently represent the dominant
product from construction companies can embody an advantage for this company. Also, the
low interest rates as well as sustainable macroeconomic factors create the support to increase
the number of customers having access to fulfill this need.

Simultaneously, the demand of household Increased should be also considered as another


opportunity that can represent the evolution of this activity sector.

Furthermore, new technologies still mean a deep impact on the way companies are approaching
clients, although this element is not currently among the key factors for the development of this
company.

Threat

The lighter structure from new competitors entering the industry allows them to find new and
more performing technologies than the leaders of the market. Even though, so far new
businesses didn’t get to take sustainable advantage from this perspective yet, it still represents a
relentless threat on this industry.
At the same time, the intense competition among the industry more influential companies lead
to a relentlessly rivalry in the industry. This position forces continual dispute from different
stakeholders trying to make profit on the industry and representing high entry barriers for
starters companies.

Lastly, an aging population with opposite tendencies face to younger generations with different
tendencies to fulfill housing needs. Accompanied by a declining inventory of homes for sale
across the territory, this also symbolizes a current threat for the industry.

You might also like