1. Zillow 3.0 – Amazon of Real Estate?
Vadim Kukharchuk
02/03/2020
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2. Our market position is under threat
Trends - Solution - Success factors – Competitive strategy
2
• NPS* of customers<0
• NPS* of our realtors is twice lower than competitor’s
• Our iBuying doesn’t grow quicker than Redfin’s or
Opendoor’s
• Beta of Zillow’s stock increased from 1.5 to 2
• ROE went from -4% to -9%
COVID makes harder to win
in real estate
Zillow is more susceptible to
market risks
*Net promoter score=% promoters - % detractors
3. Let’s be “winner takes all” in iBuying platforms rather
than a leader among iBuying players
Trends - Solution - Success factors – Competitive strategy
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• 10% EBIT margin (lossmaking)
• Sales CAGR 60%
• Competitors are competitors
Product Platform
• 2% commission (profitmaking)
• Sales CAGR 100%
• Competitors are partners
• Return to direct sales after winning
4. Winning in platforms is about obsession with
c-experience and creating business for partners
Trends - Solution - Success factors – Competitive strategy
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• More seamless c-journey
• More services from third party applications
• Bring competitors to the site
• Let realtors take leverage for resale
Focus on customer
experience
Become pipeline for others
5. Zillow can win in platforms because no one tries to
complete through network effects
Trends - Solution - Success factors – Competitive strategy
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• Thousands of iBuying companies of all sizes can participate
• Mortgage, renovation, insurance, payment processing
• 3rd party apps allow to create unique, niche products
• Lower M&S costs and lower complexity for partners
Scale
Provider
ecosystem
Product
customization
Transaction
costs
