Diagnostic for Strategic Analysis

To enable real estate to work strategically, companies should think of the business strategically. Many companies have full time staffs to examine these issues daily. Much has been written about competitive strategy, most notably, in the works of Michael E. Porter. In this exercise we want to identify “key” strategies that companies wish to follow. We then look at property-specific features to see what will propel the business strategy.

The type of thinking that this framework will encourage should resemble the following:

  1. Customers:
    • Who are they? Do we need to move closer? More central? Is it easy to make pick-ups? Deliveries?
    • How is access?
      • On the property?
      • To the property?
    • Do we need visibility?
    • What kind of image do we want to project?
  2. Suppliers:
    • Are we close enough to suppliers?
    • Do we handle materials efficiently?
    • Can we obtain lower prices with another location?
    • Are there other suppliers?
  3. Rivalry:
    • Who are our competitors? What do they do better?
    • Can real estate make us more competitive?
    • Are rival buildings more efficient?
    • Do our customers offer employees a better workplace?
    • Can real estate improve our position over rivals?
      • By productivity?
      • Improving workplace?
      • Improving image?
  4. Work Force:
    • Can we offer employees a better atmosphere?
      • A more productive environment?
    • Can we move to be closer to our employees?
      • To better employees?

You can perform this diagnosis for yourself using the following two pages: