A way had to be brought into place so as to perform an analysis on both the internal and external areas of the business. This was done so as to define the business’s advantages and general strategies that would be introduced according to its specific necessities as a real estate company. This was an analysis which should take into consideration the real estate´s specific characteristics and act according to the market´s characteristics for the area where the real estate is visible.
The method employed for this is referred to as the SWOT analysis (an acronym for Strengths, Weaknesses, Opportunities, and Threats). This methodologic resource is used for the internal and external analysis of organizations. SWOT’s main target for E M Properties was to manage to define the company´s advantages and the general strategies which should be introduced according to the specific necessities of the real estate.
In the field of Real Estate, SWOT analysis is constantly used in order to cure those points that the real estate lacks both internally as externally. It is also an excellent tool for creating a methodologic research for the real estate or for its members. As an analysis methodology, the SWOT model is efficient when we need to define clearly the Weaknesses and the Strengths of a real estate and also for detecting the Threats and Opportunities of it. The real estate´s Weaknesses and Strengths are considered factors and Internal characteristics, while the Threats and Opportunities are the External factors.
? Strengths – These are factors which the company got right and which it can capitalize on. In a way, they are confidence providers if they exist.
? Weaknesses – Shows the major weaknesses within a company which the company needs to work on
? Opportunities – Informs of the opportunities available to the company to increase business and get further customers
? Threats – Determines the major threats for the company, mostly in the external environment.
Through the use of a SWOT Matrix, the following areas were established through a table of double entry, showing points and elements that could either be harmful or helpful to the business.
– Internal analysis of the real estate:
• Strengths (positive/helpful points).
• Weaknesses (negative/harmful points).
– External analysis of the real estate:
• Opportunities (positive/helpful elements).
• Threats (negative/harmful element