Case Study Description of HomeZilla: Attracting Homebuyers through Better Photos
In November 2014, the founder and chief executive officer of HomeZilla, in Toronto, Canada, was considering how to provide value-added services to his business. One of the company's main services was to work with real estate agents to provide web listings to attract home shoppers. Many Internet companies were analyzing web-browsing data in an effort to better understand user behaviour and thus improve their business. Inspired by this trend, the founder considered how his company could use web-browsing data to better attract home shoppers on the company's website and thereby add value to his business.
Swot Analysis of "HomeZilla: Attracting Homebuyers through Better Photos" written by Gregory S. Zaric, Hongmei Sun includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Homezilla Browsing facing as an external strategic factors. Some of the topics covered in HomeZilla: Attracting Homebuyers through Better Photos case study are - Strategic Management Strategies, Financial analysis and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the HomeZilla: Attracting Homebuyers through Better Photos casestudy better are - – cloud computing is disrupting traditional business models, increasing commodity prices, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, increasing household debt because of falling income levels,
increasing energy prices, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of HomeZilla: Attracting Homebuyers through Better Photos
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HomeZilla: Attracting Homebuyers through Better Photos case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Homezilla Browsing, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Homezilla Browsing operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of HomeZilla: Attracting Homebuyers through Better Photos can be done for the following purposes –
1. Strategic planning using facts provided in HomeZilla: Attracting Homebuyers through Better Photos case study
2. Improving business portfolio management of Homezilla Browsing
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Homezilla Browsing
Strengths HomeZilla: Attracting Homebuyers through Better Photos | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Homezilla Browsing in HomeZilla: Attracting Homebuyers through Better Photos Harvard Business Review case study are -
Learning organization
- Homezilla Browsing is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Homezilla Browsing is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in HomeZilla: Attracting Homebuyers through Better Photos Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Homezilla Browsing digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Homezilla Browsing has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Successful track record of launching new products
– Homezilla Browsing has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Homezilla Browsing has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to lead change in Leadership & Managing People field
– Homezilla Browsing is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Homezilla Browsing in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Effective Research and Development (R&D)
– Homezilla Browsing has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study HomeZilla: Attracting Homebuyers through Better Photos - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Homezilla Browsing
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Homezilla Browsing does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Ability to recruit top talent
– Homezilla Browsing is one of the leading recruiters in the industry. Managers in the HomeZilla: Attracting Homebuyers through Better Photos are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High brand equity
– Homezilla Browsing has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Homezilla Browsing to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Homezilla Browsing is one of the most innovative firm in sector. Manager in HomeZilla: Attracting Homebuyers through Better Photos Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of Homezilla Browsing in the sector have low bargaining power. HomeZilla: Attracting Homebuyers through Better Photos has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Homezilla Browsing to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Homezilla Browsing is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Gregory S. Zaric, Hongmei Sun can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Diverse revenue streams
– Homezilla Browsing is present in almost all the verticals within the industry. This has provided firm in HomeZilla: Attracting Homebuyers through Better Photos case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Weaknesses HomeZilla: Attracting Homebuyers through Better Photos | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of HomeZilla: Attracting Homebuyers through Better Photos are -
Slow decision making process
– As mentioned earlier in the report, Homezilla Browsing has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Homezilla Browsing even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Need for greater diversity
– Homezilla Browsing has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Products dominated business model
– Even though Homezilla Browsing has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - HomeZilla: Attracting Homebuyers through Better Photos should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Homezilla Browsing has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study HomeZilla: Attracting Homebuyers through Better Photos, in the dynamic environment Homezilla Browsing has struggled to respond to the nimble upstart competition. Homezilla Browsing has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Homezilla Browsing, firm in the HBR case study HomeZilla: Attracting Homebuyers through Better Photos needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High operating costs
– Compare to the competitors, firm in the HBR case study HomeZilla: Attracting Homebuyers through Better Photos has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Homezilla Browsing 's lucrative customers.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Homezilla Browsing is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study HomeZilla: Attracting Homebuyers through Better Photos can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study HomeZilla: Attracting Homebuyers through Better Photos that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case HomeZilla: Attracting Homebuyers through Better Photos can leverage the sales team experience to cultivate customer relationships as Homezilla Browsing is planning to shift buying processes online.
Lack of clear differentiation of Homezilla Browsing products
– To increase the profitability and margins on the products, Homezilla Browsing needs to provide more differentiated products than what it is currently offering in the marketplace.
No frontier risks strategy
– After analyzing the HBR case study HomeZilla: Attracting Homebuyers through Better Photos, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Opportunities HomeZilla: Attracting Homebuyers through Better Photos | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study HomeZilla: Attracting Homebuyers through Better Photos are -
Creating value in data economy
– The success of analytics program of Homezilla Browsing has opened avenues for new revenue streams for the organization in the industry. This can help Homezilla Browsing to build a more holistic ecosystem as suggested in the HomeZilla: Attracting Homebuyers through Better Photos case study. Homezilla Browsing can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Homezilla Browsing to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Homezilla Browsing in the consumer business. Now Homezilla Browsing can target international markets with far fewer capital restrictions requirements than the existing system.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Homezilla Browsing can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Homezilla Browsing can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, HomeZilla: Attracting Homebuyers through Better Photos, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Homezilla Browsing has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study HomeZilla: Attracting Homebuyers through Better Photos - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Homezilla Browsing to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Homezilla Browsing to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Homezilla Browsing to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at Homezilla Browsing can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Homezilla Browsing is facing challenges because of the dominance of functional experts in the organization. HomeZilla: Attracting Homebuyers through Better Photos case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Homezilla Browsing can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Homezilla Browsing can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Homezilla Browsing can use these opportunities to build new business models that can help the communities that Homezilla Browsing operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Homezilla Browsing can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Threats HomeZilla: Attracting Homebuyers through Better Photos External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study HomeZilla: Attracting Homebuyers through Better Photos are -
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Homezilla Browsing will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Environmental challenges
– Homezilla Browsing needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Homezilla Browsing can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Homezilla Browsing.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Homezilla Browsing with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Homezilla Browsing in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Shortening product life cycle
– it is one of the major threat that Homezilla Browsing is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Homezilla Browsing can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study HomeZilla: Attracting Homebuyers through Better Photos .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study HomeZilla: Attracting Homebuyers through Better Photos, Homezilla Browsing may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Consumer confidence and its impact on Homezilla Browsing demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Homezilla Browsing needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Stagnating economy with rate increase
– Homezilla Browsing can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Weighted SWOT Analysis of HomeZilla: Attracting Homebuyers through Better Photos Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study HomeZilla: Attracting Homebuyers through Better Photos needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study HomeZilla: Attracting Homebuyers through Better Photos is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study HomeZilla: Attracting Homebuyers through Better Photos is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of HomeZilla: Attracting Homebuyers through Better Photos is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Homezilla Browsing needs to make to build a sustainable competitive advantage.
