Rightmove PLC: Strategic Analysis and Digital Marketing

This assignment analyzes Rightmove PLC, a leading UK property portal, through the lens of Porter's Five Forces model to understand its competitive environment. It then delves into Rightmove's digital marketing strategies, examining successful campaigns and the importance of online presence in the real estate industry.

E- Business Strategy
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Table of Contents
INTRODUCTION ...............................................................................................................................4
MAIN BODY.......................................................................................................................................4
Analysis of business model of Rightmove PLC..............................................................................4
Analysis of digital marketing strategies of Rightmove PLC...........................................................8
The benefits and limitations/challenges associated with a contemporary e-business theme or
application(s) for Rightmove PLC.................................................................................................10
RECOMMENDATION .....................................................................................................................11
CONCLUSION .................................................................................................................................12
REFERENCES...................................................................................................................................13
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Illustration Index
Illustration 1 Porter's five force model for Rightmove PLC................................................................6
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INTRODUCTION
Electronic Business or e-business is a process of conducting business through the internet. It
is channel of buying and selling of the good and services via internet. Technology makes the
business more easy and faster as compare to traditional methods (E Business Needs E Organization.
2016). In the competitive environment, companies are now facing the high pressure of perform well
in the market place and deliver the good services to the customers . To achieve the business
objectives and gain the success, e-business is a good option for the organizations to explore the new
markets, new distribution channels, beat the rivals and cut down the extra expenses (Deborah,
2013). Getting starting of e-business is not a simple and single day work. It takes lot of time and
investment as well as a good strategy. E-business strategy is a new way of doing the business in the
present world. It is now a necessary component of the enterprises and facilitate the businesses to
reach out the customers in more effective manner (E Business Strategy -e commerce business
strategies. 2010). The present research is based on e-business strategy and to understand its
importance, Rightmove PLC of UK is taking into the consideration. It is number of one property
websites for selling of the properties in entire UK. It runes its online real estate portal on the
internet and listed on London Stock Exchange. The objectives that will cover the current study is
benefits and limitations associated with a contemporary e-business theme.
MAIN BODY
Analysis of business model of Rightmove PLC
The impact of the internet on commercial world is it is easy to gather the various
information from every corner of the world. In the present time, every business model is moving the
direction of adapting of internet and e-commerce to grow the business in more effective manner.
The property industry is now also using e-commerce for selling the property to the buyers (Bak,
2016). From the research, it has found that the residential property market values in UK is about £
5.75 trillion. In this sector, Rightmove PLC is one of the company which is dealing in property
market with the help of internet. It is number one portal in the UK where is also providing
marketing services for estate agents (Islam, 2015). It can be consider as a good platform for those
agents who wants to sales the property or take it on lease. 10 million users view the company
website per month. Rightmove PLC organization website and mobile applications generates
thousands of leads per day for its listing agents (Landwehr, Voigt and Zech, 2013).
Generally, estate agents have used traditional methods to advertise their properties via local
newspaper and office windows. But the popularity of the internet has enabled the agents to increase
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the reach to the buyers in more appropriate manner. Website of Righmove PLC makes possible this
thing and help the agents to advertise their property not into the local market but also at
international property market (Muller, 2012). The analysis of business model Rightmover PLC can
be conduct with the help of Porter's Five Force model. The following method evaluates the five
factors that assist in determining industry competition. The theoretical assumptions that is taking
under this technique is industry profitability not on the basis of attributes of products but on the
basis of the industry market structure (Porter's five force model. 2012). The five competitive forces
jointly explore profitability and competitive strength of a particular sector. The explanation of
Porter's Five Force model within the context of Rightmover PLC is as follows:
Threats of new entrants
It defines the level of competition in the specific industry or a sector. It depends on barriers
to new entries, government policies and initial investment. Other parameters that can be taken into
the consideration at the time of measuring the threats of new entrants within in the industry are
economic of scale, brand identity, customer switching cost, distribution channels, market exit cost
etc (Real Estate Industry Analysis. 2015). It will be high for those new companies if the restriction
level on distribution channle, licensing costs and investment are high. But if the initial investment is
low and distribution networks are easily accessible than it will be easy for the new organizations to
enter into the market.
In the case of Rightmove PLC, threats of new entrants for the company is low because
although it is simple to create a website on the internet similar to Rightmove but it requires lot of
marketing and promotion to attract the agents which is not simple. So, in this situation, firm is safe
from the threats of new entrants (The real estate industry five forces model analysis. 2008). The
areas that can help the company to get the success in real estate sector is huge amount of views,
good marketing, effective strategy to compete with the competitors and last and important thing is
services which is offer from organization is something better than the other rivals.
Although, Rightmove PLC is not putting its focus on all the areas of market and due to this,
the potential of a threat of new entrants of small niche website may be high. They can expand their
business to other areas of the market and slowly increase the market share (Wright, Paroutis and
Blettner, 2013). With the time, they can started to use new technologies to become a market leader.
It can be said from the above mention statements that Rightmove PLC have build barriers to
succeed but not for entry.
Threats of substitutes
Threats of substitutes affects the price elasticity of the service or a product which make the
demand curve more elastic. Because the more options have available to the customers in the market
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for the particular goods. As the alternatives of the product in the market increase, the price elasticity
becomes high (Beynon-Davies, 2013). The result of this is the competition level in the industry
become increase and decrease their profitability. The parameters that can be considered during the
threats of substitutes are customers willingness towards alternatives, switching cost of substitute
goods and price comparison of the available options of the commodities.
In the case of Rightmove PLC, the threats of substitute becomes low because of switching
cost of the customers low. They feel comfortable with the operations and layout of the websites of
company (Guffey and Loewy, 2012). So they think that it is not good to invest the time on the other
real estate websites to understand and know the functions for buying or selling of the properties.
Along with this, Rightmove PLC did not charge from its clients to list properties on website for the
starting of two years of business (Gora and Bauer, 2013). So due to the low risk option for the
clients, the threats from the substitutes become low for the company.
Bargaining power of buyers
Bargaining power of buyers affects the price elasticity of the services and goods of the
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Illustration 1 Porter's five force model for Rightmove PLC
(Source: Porter's five force model. 2012)

particular industry (Leamerand Storper, 2014). If the bargaining power of the customers is high than
it may lower down the pricing of the goods in the market. When the number of alternatives options
of the commodities available in the market are high than bargaining power of the buyers are high.
This situation increases the competition in the industry which many affect the profitability of the
companies and they lose their attractiveness (Migdadi and et.al., 2016).
The parameters that are needed to be considered during measuring the bargaining power of
the buyers are high number of suppliers available in the market, high demand of the particular
goods, low switching cost and low brand identity and products are standardized in nature. In the
case of Rightmove PLC, the bargaining power of the clients are moderate because the offer
properties are standardized in nature and contain high cost (Cunningham and Fröschl, 2013). The
poor economic condition people can not buy the properties or take them on lease. Along with this,
the property rates are too high in UK and sellers are not ready to bring down the prices.
Bargaining power of suppliers
Here, also bargaining power of the suppliers affects price elasticity of the products in the
specific industry. Higher bargaining power of the vendors leads to increase the prices of the good
and make the demand curve less elastic (ShawBlanning, Strader and Whinston, 2012). If the
number of available alternatives present in the market is less in amount than it bargaining power of
the supplier becomes very high. This situation significantly affect the profitability level of the
companies. The aspects on which bargaining power of the vendors of the specific industry can be
assess are few dominant suppliers in the market, high switching costs, threat of forwards integration
by the suppliers etc (Chesher, Kaura and Linton, 2013).
In the context of Rightmove PLC, bargaining power of the agents are low because there
negligible threat of forward integration from the suppliers and their switching costs becomes low.
Although the number of property agents are high in UK and most of them are connected with
Rightmove PLC because company help them to give them right value of their properties (Jun,
2012).
Degree of rivalry between existing competitors
The intensity of rivalry between the competitors may decrease the attractiveness of the
industry. Due to this, they start fight with each other for the survival in the market. There are
various conditions by which the degree of rivalry between existing competitors are high fixed cost,
high switching cost, low industry growth etc (Talamo and et.al., 2013).
In the case of Rightmove PLC, the property market is very competitive. There are not only
direct companies but also huge number of niche companies that are trying to gain market share with
the time (Chaffey, 2011). The degree of rivalry between existing competitors for the organization is
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high. The first reason is Zoopla is main rival of Rightmove PLC. The property market of UK is
duoloply for both the companies. The features of the websites of both the organizations are similar
and offer same products and services to the clients (Laudon and Traver, 2012). But there are
number of niche websites which are working in the sector of property like Find a Hood, Property
Network, Unmodernised and Property Snake.
Therefore, from the above analysed business model of Rightmove PLC with the help of
Porter's Five Force model, it can be concluded that company has conducted its business operations
within the property market more effectively (Applegate, Austin and McFarlan, 2007). The industry
attractiveness of the his sector has high and organization has earned huge amount of profitability.
Analysis of digital marketing strategies of Rightmove PLC
Digital marketing refers to different digital promotional techniques that used by a firm to
reach customers. With the any form of it, it can be easy to promote brands and their products in the
market and influence target customers. It is faster, powerful and cheaper method as compare to the
traditional marketing techniques (Metcalf, 2016). It enhance accurate insights of information and
improve the campaigning of the products. Digital marketing can be consider as a set of strategies
that deigns for the people to gain their attention to the website and transform them into the
customers. It play an important part in the organization to promote and market the particular goods
and services among the set target market (Beynon-Davies, 2012). It is new, unique and best
approach to understand the perception of the consumers and develop the products and services
according top it. It can be easy to influence them because many of the persons are using internet on
daily basis and visits lots of websites for buying or selling goods and services. The ability of digital
marketing is it help in establish the direct interaction with potential customers as compare to
traditional marketing methods.
In the case of real estate, digital marketing gives power to property industry in terms of
influencing the agents and the clients to sell or buy the property. In the UK, the values of residential
and commercial properties are increasing day by day (Piccoli, 2012). In this context, Righmoves
PLC is one of the major company which help the property agents to sell their properties by giving
them right value. Along with this, the it also assist the buyer to deliver the best property deal to
them in UK. Entire business of Rightmove has done with help of e-business where company has
prepared own website to help both buyers and sellers (Ward and Peppard, 2002). Organization has
delivered the facility to the estate agents to marketing their property on firm website free of cost for
two yeas of joining company website. In this regards, enterprise has used various digital marketing
strategies to attract and influence the customers.
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In 2011, Rightmove PLC set up owns social media part of their website which is called
RightmovePlaces. This is the strategy and the aim of this is bring the users together. It is a kind of
blog where the followers and users of the company write their suggestions, asking for advice, find
best restaurant place or shopping place (Bak, 2016). Although, this idea have not been got more
success. From the research, it has found that there are only nine blogs related to RightmovePlaces.
In 2012, July 2nd, it has wrapped up and showed in the news that it was only for the experiments.
Along with this, it has also stated in the news that company has learned lot of the new things form
new experiment (Islam, 2015). Still, it has been not found that whether it was an experiment or not,
but it was clear that Rightmove PLC was facing various issues with using social media as a digital
marketing strategy. If it consider as a part of experiment than it may be hard to gain any useful
information from nine blogs.
In the present time, Rightmove PLC has used several digital marketing strategies to deliver
the valuable information to the buyers about properties. Social media is one of the most appropriate
digital marketing strategy of company. Nowadays, organization has activated on Twitter. It has
scored Klout score of 80 and 41,577 followers have followed firm. It has mainly build on the back
conversational and for general interest tweets. With then help of this, company got succeed in
increased the engagement of the customers in right manner (Hughes, 2013).
On the other hand, Rightmove PLC has created a page on Facebook social media and make
it as a part of digital marketing. Company knows how to use this platform for gain the high market
share and attract the customers by knowing their perceptions. Organization gets 57,155 likes on the
Facebook where they get the information about how to set up own home after buying it. Beside this,
on YouTube, Rightmove PLC has 514 subscribers. Here company uploads wide range of TV
advertisements, firm's news, news stories related to the property and press mentions. Similarly, on
Pinterst, enterprise has 982 followers where it has helped the users to get the designing of new
home (Goolding, 2014). In this context, Rightmove PLC also active on Google + where firm has
more than 3,743 followers and it has delivered the good platform to the company to deliver the right
content to buyers and sellers.
From the above mentioned statements, it can be concluded that Rightmove PLC has used
social media as a digital marketing strategy which is now more effective. With the help of this, the
clients have got proper and right information about the property. Now, it has needed to maintained it
with the time (Landwehr, Voigt and and Zech, 2013). If the company set up Facebook page or active
on Twitter and does not monitor or update it then it may put the negative impact on the organization
image. So, firm have to good use of various social media websites and update the posts and
information on them time to time.
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The benefits and limitations/challenges associated with a contemporary e-business theme or
application(s) for Rightmove PLC
In today’s globalized world organizations are looking for advanced ways to attract more
number of customers and enhance their market share as well. Rightmove plc is real estate firm of
UK but mainly they are leading their business through online services. Nowadays it is regarded as a
most effective ways to maintain better relations with customers. www.rightmove.co.uk is an online
real estate portal (Muller, 2012). Company is highly famous for its property portal where home
hunter can immediately identify their preferred property.
Most of the companies nowadays are using internet as a tool for attaining several benefits
over traditional marketing. The use of internet made it easier for them to appeal to a world-wide
market (Wright, Paroutis and Blettner, 2013). It has also made it so easy for customers to get any
type of information about the product and service at any time. 24/7 services are the major benefits
of using contemporary e-business application. By the way of running website Rightmove has
developed its online presence. There are several benefits associated with the e-business such as
convenience, 24/7 services, benefits to society as well as consumers (Beynon-Davies, 2013).
However, all those firms who work on online platform face several challenges and limitations.
As per the past information of e-commerce development it has been founded that it is easy
to manage an online store than brick and mortar store. The invention of faster internet connectivity
as well as powerful online tools has resulted in a new e-commerce online arena. It has founded that
with the changing time and traditional ways e-commerce offered several advantages to organization
(Guffey and Loewy, 2012). Rightmove is able to operate huge base of consumers worldwide with
having their little running applications in their mobile phones. They are able to go through the fast
buying and selling process on the basis of which they can easily find any type of products. Due to
no theoretical geographic limitations there is a long and more reach to customers (Gora and Bauer,
2013).
Rightmove can easily develop its positive brand image in the mind-set of consumers by
providing them high quality and speedy services. They want to be the place for all UK home
hunters in order to find details of all properties available to buy or rent (Leamerand Storper, 2014).
With the help of their website and mobile platforms they are able to provide an easy reach to
property search. Consumers can go through this search option at any time and easily develop their
existing presence as well. By providing them 24/7 services they can develop healthy and better
relations with their customers. Moreover, this type of sophisticated property online search has
provided a huge convenience to people which also doesn’t requires any physical set ups for
company as well (Migdadi and et.al., 2016). It is the more smooth process which firms can acquire
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within the low operational cost and easily provide the better quality of services as well.
However, with some basic benefits of e-commerce organizations might leads to face various
challenges. Due to several fraud websites which eat customer’s money it is becoming highly
difficult for firms to maintain trust among consumers. Company should create positive impression
in the mind-set of customers as first impression is always the last impression (Cunningham and
Fröschl, 2013). However, there is no guarantee of product quality due to which customers are not
able to trust online sites and most of the time they prefer to shop from physical outlets. With the
changing time companies are providing guarantee with their products and services just to improve
their impression.
In addition to this, another major challenge faced by e-commerce users is mechanical
failure. Due to this factor company may cause unpredictable effects on their total process. Customer
loyalty is regarded as a major issue associated with the use of e-commerce development as there is a
minimum chance of direct customer to company interaction (ShawBlanning, Strader and Whinston,
2012). For the same, www.rightmove.co.uk has provided a personal login system on the basis of
which only a consumer can visit his/her profit or ordered items. It keeps all their selection and order
protected from other users. It also keeps security from hackers who look for opportunities from
payment gateways. Keeping securities over here is the best way to grab the attention of customers
and maintain their trust level as well (Chesher, Kaura and Linton, 2013).
RECOMMENDATION
Some of the major recommendations to overcome with such problems faced by company are
just to make their impression wide and positive among worldwide consumers. For the same, it is
essential for them to deliver quality service with guaranteed products (Jun, 2012). Property requires
a huge investment due to which it is highly essential to develop positive brand image of company.
Further, from the above whole discussion it has been clearly identified that by keeping customers
trust on a high pace company requires adopting various strategies. However, e-commerce platform
requires efficient technical employees within the workplace so that they can promote better
innovation and creativity (Jun, 2012). Rightmove has provided some of the most common options
to better lead customers and attract them such as they can find agents over there. They must be
connected with their customers at the time of requirements. Keeping in touch with customers and
providing them high quality services makes them happy and satisfied. With the help of using
attractive themes on their website with attractive images also company can easily attract huge base
of customers (Talamo and et.al., 2013). Due to all such security and privacy issues company
requires adopting some of the best security tools and software. It helps them in keep their services
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protected from hackers and maintain their customer’s data safe and secure as well.
CONCLUSION
From the above study, it can be concluded that e-business trend has grown with the time.
Many of the organizations have used this for run their business via online for trading of the
commodities. In this context, Rightmove PLC which has real estate company has also used e-
business concept for its business. With the help of this platform, firm has helped the property agents
to sell or lease the properties. The analysis of this business model has done with the help of Porter's
Five Force model where the competitiveness of property industry has determined. Along with this,
Rightmove PLC has used social media platform as digital marketing strategy with the aim of
attracting the clients and other customers. On the other hand, company has faced various limitations
and gain benefits from e-business concept. By adopting the recommendations, organization have
improved its business and take competitive advantages against the major competitors such as
Zoopla etc.
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