Strategy for the Millennial brokerage

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To be successful, a broker’s business strategy, internal infrastructure, and strategy deployment requires synchronization. When strategy is aligned with a “lifestyle” approach, it retains and motivates agents and appeals to the generation of “wired” home buyers and sellers.

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Strategy for the Millennial brokerage

  1. 1. What brokers often fail to do is examine their business models for adaptability to the evolvingenvironment. This type of reflection helps determine under which scenario you should revampyour model and whether you have the capability to support it.There are 3 approaches we have adopted to help maintain our position in the market with thenew consumer. These approaches include:• leveraging our core competencies across all segments of the business model,• interpreting information and data strategically to create foresight and prioritize actions,and most importantly,• tap the leadership skills of our managers to affect change and flexibility within theorganization.Hyundai adopted a similar approach to help establish their goals for adaptability in the highlycompetitive automobile market. They successfully exploited products, processes, and conceptsthat significantly transformed the demand and needs of the existing automobile industry.It disrupted former key players like Toyota, Honda, and GM creating a completely new businesspractice focused on customer experiences and service quality. During the global recession thatfollowed the financial crisis of 2008, Hyundai was the only automaker that expanded its sales inthe U.S. market and has overtaken Toyota in the Initial Quality Studies in North America.To be successful, a broker’s business strategy, internal infrastructure, and strategy deploymentrequires synchronization. When strategy is aligned with a “lifestyle” approach, it retains andmotivates agents and appeals to the generation of “wired” home buyers and sellers. Thistranslates into optimal organizational performance and subsequently a competitive advantage.Successful organizations don’t benchmark against the competition. As in Blue OceanStrategy, innovative brokerages don’t subscribe to conventional strategies of benchmarkingcommissions, cost, or value to the competition. The core belief of Blue Ocean Strategy is thatorganizations should create new approaches that behaviorally differentiate them with theconsumer rather than wasting resources on trying to out-market the competition.Strategy for the Millennial BrokerageBy Oscar GonzalesApproaches to strategy are competitively driven.A broker’s strategy typically includes growingtheir geographic footprint, farming for newcustomers, recruiting new agents, and streamliningoperations. Unfortunately, following this modeldoesn’t accommodate realignment strategies ifdisruptive products or services enter the space (i.e.,Zillow, Trulia, discount brokerages, etc.).Tracking, monitoring, and managing strategy isimperative to keeping the organization’s goals andobjectives in alignment.Copyright 2013 Oscar Gonzales

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