Competitive Analysis

Competitive Analysis 10:00am Team 3 Kaitlyn Thompson, Jess Francis, Anthony Greer, Marcos Acosta

Altus Group: Altus Group is a Canadian Commercial Real Estate services and software company, based in Toronto, Ontario. They serve 3 main functions: • Providing software for large real estate firms(Altus Analytics) • They are a CRE consulting firm • Geomatics Altus supplies 46 out of the 50 top real estate owners with its services.

Altus Total Revenue Trend You can see an upward trend in total revenue from software sales for Altus group. The Altus website confirms that since 2005 they’ve, “had over 50 acquisitions and are continuing to invest in technology and data that provides clients with greater vision to take advantage of opportunities and drive their investment forward.” Altus is working to provide new and innovative technologies for their clients in order to keep this upward trend.

Accenture Revenue Trend Accenture is a global management consulting and professional services firm that provides strategy, consulting, digital, technology and operations services. They provide their services to all sorts of industries all over the world. The reason for their total revenue being so close to Altus group is due to the operation of technology platforms being provided for so many different forms of businesses. The difference between the two is that Altus Group is able to make more than Accenture’s total revenue by providing its service to the Commercial Real Estate industry alone rather than focusing on so many different industries.

Accenture S.W.O.T Strengths: Global Delivery Model, Strong workforce, Leading research & innovation, Long term relationships with clients, Effective marketing & brand recognition Weaknesses: Organizational challenges due to size, Majorly known as consulting group, Favors large-sized projects Opportunities: Growth of enterprise mobility solutions, Convergence of of communications, computing and content, Strategic acquisitions to strengthen growth and drive growth Threats: Volatile and uncertain economic conditions, High attrition rate, Competitive markets, Cybersecurity

IBM Revenue Trend IBM, or International Business Machines Corporation is an American multinational information technology company. They are a company that, again, operates in multiple different forms of industries. They provide technology to the education, chemical, construction, manufacturing, aerospace, and even travel and transportation industries. They offer technology to so many industries yet you can see that they have been on a downward trend since 2015.

IBM S.W.O.T Strengths: High-value brand, Expertise in production processes and materials management, Extensive intellectual property portfolio, High economies of scale Weaknesses: Imitable products, Shrinking product mix, Low degree of diversification Opportunities: Business diversification in various industries, Alliances with firms from different industries or markets, Rapid innovation of new products Threats: Imitation of products, Competition, Cybercrime ,:

Reason for the Downward Trend: Red Ocean Trap Number Two: Trap two discusses the belief that to create blue oceans, you must venture beyond your core business. It is a common misconception that a company must venture into other industries outside of their core in order to break out of a red ocean. Doing this multiplies risk when blue oceans can easily and more readily be created right in the middle of an organization's existing core business. IBM is dipping its toes in too many different industries rather than focusing on a select few and mastering how to cater to them.

CBRE Trends CBRE is a multinational commercial real estate and investment service firm based out of Los Angeles, California. CBRE has had an upward trend since it’s IPO in 2006. In general, Altus and CBRE have comparable trends but do not have equal yearly revenues. CBRE Stock Price (2014-2019+)

CBRE Trends CBRE has a very firm hold on the global CRE market and excels in taking advantage of their upcoming opportunities. Strengths: Large sized company, brand recognition, rising stock price, increasing yearly revenues, growth through acquisition, and creating new business ventures. Weaknesses: Largely based in Americas, and large size could scare smaller customers away. Opportunities: Size growth through acquisition, technology creation, and creation of new subsidiaries Threats: CRE markets are cyclical, foreign policy change, economic recession (foreign and domestic), and competition.

Altus Group S.W.O.T. analysis introduction • Altus is comprised of three business segments: • Altus Analytics - Valuation and appraisals • Real Estate Consulting - property management • Geomatics - energy sector • Acquisition of Argus software solutions • SWOT analysis can be used to figure out a company’s position among its competitors. • This can be crucial in strategizing plans to either establish a competitive advantage, or to re-establish a competitive advantage. • Establish a competitive advantage among competitors • Diversify company in a strategic way • Maintain and expand on blue oceans

Altus Group S.W.O.T. analysis Strengths • Market share • Competition makes for healthy growth: • Accenture- consulting ( industry competitor) • IBM - IT consulting (indirect competitor) • CBRE - RE consulting (direct competitor) • Diversification: acquiring Argus Software • Established a competitive advantage with the CRE industry • Argus is industry standard regarding analysis software, allows Altus Group to maintain competitive advantage by spearheading new innovations

Altus Group S.W.O.T. analysis Weaknesses • Financial institutions: the stability of or lack of stability regarding the economy • Altus Group’s main business could be a potential weakness in the event of a downturn • Market share (within the US) Although Altus Group owns 60% of the Canadian market, Altus must compete with CBRE here in the US. • Altus Group suffers from lack of brand recognition, compared to CBRE • This could affect Altus Group’s ability to tap into new markets, such as residential real estate.

Altus Group S.W.O.T. analysis Opportunities • With its current market share, Altus has real opportunity to expand in new markets • These new markets include expansion in Geomatics • Energy markets could help give Altus a competitive advantage. • Once Altus Group addresses some of its weaknesses regarding brand recognition, Altus could tap into the residential real estate market. Identify the needs of 2nd tier non-customers. -- Residential Real Estate owners

Altus Group S.W.O.T. analysis Threats • The final component to the SWOT analysis tool is any potential threats that may arise either within the industry itself or within the industry competitors. • Altus Group’s biggest competitor and largest threat would be CBRE. CBRE is a large commercial real estate consulting and management company with a significantly large market share within the american CRE industry • Altus uses a decent percentage of CBRE’s valuation tools, showing the close competitive relationship • This relationship could potentially threaten Altus Groups competitive advantage

Competitive Analysis