A Study of the Effectiveness of Competitive Strategies Employed by Real Estate Organisations in Lusaka
Abstract
The real estate industry is a positive contributor to the Zambian economy, accounting an average of 3.4% of GDP in 2019. However, real estate players have been faced with challenges in the recent past such as vacancies, businesses closing down, defaults on loans resulting from a poor performing economy and the Covid-19 pandemic. Moreover, the industry generally has low barriers to entry resulting in increased competition. The above have necessitated the need for effective strategy formulation and implementation by individual firms if they are to survive and outperform their competitors. The purpose of this research was to analyse the effectiveness of strategies real estate firms are using to gain competitive advantage. A quantitative survey was conducted focusing on the real estate firms registered with the Zambia Institute of Estate Agents (ZIEA) in Lusaka. Results indicated that real estate organisations were using Porters competitive strategies to gain competitive advantage in the real estate industry, with differentiation strategy being the most utilized generic strategy. Correlation and regression analyses indicated that the use of these strategies was not effective in leading to competitive advantage as variables were not statistically significant at 95 per cent confidence level.
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