Industry Analysis of JLL Company in the Global Competitive Environment

This paper provides an industry analysis of JLL Company in the global competitive environment. The PESTEL analysis and Porter’s five forces have been applied to the analysis of the company. The external environment of the company has been discussed with recommendations for improvement.

Running head: GLOBAL COMPETITIVE ENVIRONMENT
Global Competitive Environment
Name of the Student
Name of the University
Author Note

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Executive Summary
The purpose of the following paper is to demonstrate about the industry analysis on the light of
the external environment of the company. The chosen company for this paper is JLL Company
that operates in the real estate industry. The overview of the company has been provided with the
analysis of its external environment. The PESTEL analysis and the porter’s five forces have
been applied to the analysis of the company. The analysis of the competitors has been provided
in this section as well. The recommendations have been provided for the ways the company
would be able to improve its services and products in the real estaste industry. They have to
catch up with the strategies that their rivals imply and beat the strategies to get a better hold in
the concerned industry.

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Table of Contents
Introduction......................................................................................................................................3
Overview of the JLL Company.......................................................................................................3
Strategic analysis of JLL Company.................................................................................................4
Teamwork and motivation...........................................................................................................5
Effective marketing strategies.....................................................................................................5
External environment analysis.........................................................................................................6
Porter’s Five Forces.....................................................................................................................6
PESTEL Analysis........................................................................................................................8
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
The following paper focuses on the various aspects of the analysis on the external
environment of the company that have been chosen. JLL Company, the chosen organization, is
based in USA. The external environment of the company will be discussed in this paper by
following the different sraetegies that are taken by their rival companies. The external influences
are really very critical for the overall success of the organizations. The external environment of
the JLL Company will be very much important to be discussed as the performance of the firm
will depend upon the ways they can be able to cope up with the drawbacks. The economic and
technological factors will be very much important for the organization to focus on properly as
well.
The different issues and circumstances in the business environment are needed to be
identified and the best way for resolving the issues that will likely affect the organization in the
positive ways. The Porter’s five forces will be discussed in this section as well. The PESTLE
analysis will have to be done in this context as well.
Overview of the JLL Company
In this section, a short overview of the JLL Company will be given. The JLL Company is
one of the best investment management companies based In United States of America. It works
in the real estate industry. The headquarters of this company is located at AON Center at
Chicago, Illinois. The CEO of the company is Sheila A. Penrose (Jll.com 2018). Some of the
important services that they provide to the customers are investments in the capital market,
facilities management, Agency leasing, property management, investment management, lease

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administration and others. The full name of this organization is Jones Lang LaSalle (Jll.com
2018). They are considered as the market leaders in their concerned real estate industry.
One of their aims is to redesign the real estate industry in a new way. They are very much
concerned about achieving the proper growth in their industry so they can attain great heights of
success. They stress on providing a better service to their clients so the clients can depend on
them highly. JLL is considered to be a Fortune 500 company (Jll.com 2018). They have more
than 300 corporate offices all over the world. They also have a huge workforce to carry out their
work. The managers of the organization are often inclined to work in a better way to earn the
sustainability in the industry and provide the best services to the people indeed. They are always
focused on building good relationships with the several customers. They believe that their
working capabilities would please the customers and thus they would be able to gain the market
share in a better way. The organization is continuously thriving for the achievement of bigger
accolades in the future. The strategies they use will be discussed and the external environment of
the company will be highlighted in the following sections.
Strategic analysis of JLL Company
The strategies of JLL Company are really unique that have helped them to keep their
position in the real estate industry that they possess now (Rumelt 2012).
Teamwork and motivation
The company is very much determined to bring the best to the real estate industry and
they will need to get the best out of their employees in order to gain the competitive advantage
(Conchie 2013). One of their most adopted strategies is to provide the motivation to the
employees and encourage them to work as a team at first (Turner 2014). The motivation is given

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by the leaders of the organization who can show the employees the past success of the
organization and ask them to outdo that success and create new records as well. In order to do so,
the employees must have to work with much diligence and in a combined manner (Deci and
Ryan 2014). This will be very much important for the organization to get the best results in the
highly competitive business environment in the real estate industry.
Effective marketing strategies
The implementation of the effective marketing strategies will be very much useful for the
better outcomes (Shackleton 2015). The company deals with the real estate business and they
have to provide the customers with the better services in the capital market and gaining the
knowledge from the market conditions (Armstrong et al. 2015). They have to fix their target
markets based on their services and products. This will also determine their marketing mix as
well. The promotional strategies they use should be upgraded properly so they can gain the
attention of the customers in random. The marketing strategies should be organized properly in
this situation in order to get the positive response from the customers (Baker 2014). They should
also be aware of the current marketing conditions and the ones that are taken by their rival
companies in particular (Johnson and Nandy 2015). They should not target a niche market as
they would not be able to get a high number of customers from that. They should pursue their
target market very selectively and allow the clients to access their services by consulting with the
experts (Baker 2014). This is why the organization will need to focus on their advertising process
as well. If they plan to launch some new products into the market, they will surely need to make
the proper advertisement and let their clients know about their every detail (Costen 2012). They
should follow a proper recruitment strategy and hire the best experts for their works. This will
also fuel up their potential for the initial success (Gordon 2012).

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External environment analysis
Porter’s Five Forces
Competitive rivalry
The competitive rivalry in the real estate industry in the current times is very much high
indeed. There are a number of reasons as to why the organizations are suffering in this scenario.
A number of companies have now become very active in the real estate industry. This is why the
risks of competition are very high (Dobbs 2014).
Many new organizations are providing the customers with good quality services with low
cost. It can be taken into consideration that there are some organizations in this industry as same
size as JLL. Some of the companies are very well managed and the leaders are always working
for the betterment of their services. The costs for the services and products are fixed and high.
The differentiation level is very low (Dobbs 2014). It can also be understood that the exit barriers
are very high indeed. The real estate market is very mature.
Threat of the new entries
The threat of the new entries in this context of the real estate industry is always on the
high.
It is because the new companies are always trying to take the successive position of the
JLL Company. As the concerned company has a large market share, the rival companies will like
to intrude into their market share through proper market growth. There are some barriers in the
market that are already laid up by the established companies in the market. They will have to
overcome these barriers in order to be successful (Gobble 2012). The competition is so high and

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the new organizations must be able to enter the market by throwing down the barriers. They
should always manipulate the differentiation and market penetration costs properly. They should
focus on tne proper organizational learning process so the employees can learn the right process
indeed. JLL must focus on strengthening their supply and distribution channels so they can
perform well.
Threat of the substitutes
Some substitute products are available in the market and they will likely attract the
attention of the customers (Rothaermel 2015).
If the customers decide to switch to these substitute or alternative products, this will
surely work as a great threat to the JLL Company as well. It can be said the price of the
substitute products is definitely lower than the rest of the market. This is why there is a chance
that the customers can switch to these alternative companies indeed. The price/performance ratio
of the products is very high in this section as well. JLL Company must also keep in mind that the
innovative products and services in the real estate industry by the substitute companies should
not be able to overturn their business.
Buyer bargaining power
The buyer bargaining power in the real estate industry is very high indeed. The risk is
very high in this industry and JLL Company will have to face these risks in order to merge as the
best real estate company (Rothaermel 2015). The buyers will prefer low switching costs so JLL
Company must provide them with the low cost services to gain the attraction of their current
customers as well as the new potential customers.

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Supplier bargaining power
The supplier bargaining power in this real estate industry is very high as well. It has to be
remembered that the suppliers are very much concentrated indeed. It will be very much
expensive for the JLL Company to change their suppliers since the switching costs will be very
high indeed.
PESTEL Analysis
The PESTEL analysis will be one of the most important attributes for evaluating the
organizations of the real estate industry. JLL Company is no different in this case at all.
Political factors
The political factors are very important for the analysis of the external environment of the
organizations. USA is considered to be a politically stable country. The new tax reforms and the
new legislations are very useful for the real estate industry (Jurevicius 2013). The inflation rates
in the worldwide aspects can have a huge impact on the different issues related to the industry
and on the JLL Company, to be precise. The political stability of the countries will also be
helpful for the success of JLL Company as well (Jurevicius 2013).
Economic factors
The economic factors are also very important in this section as well. The interest rates in
the business are very important to match the profits of the business. JLL Company will look to
hire many qualified people in their organization and this could work effectively for the
eradication of the unemployment problem in the society (Johnson 2016). The economic growth
and the growth in the GDP of the concerned country can be increased by the good performance

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of JLL Company. In the mid-2000 era, there was a huge crash in the housing market. This had
completely ruined the real estate industry as well. The recruitment process of the JLL Company
has helped a lot in the solution of the employment problems in the country (Johnson 2016). One
of the biggest problems of the firm is the lack of a steady and regular income for the firm. The
credit risk can also be considered as a major drawback for the firm indeed. The organization will
have to look after this problem and find solutions for the problem indeed. They must strengthen
their financial background and make sure that their financial history can convince their
stakeholders to invest in them. The capital market for the company is needed to be developed
and this is the place they will have to develop on indeed. The global inflation rates have been
very much on the rise and the company should take proper steps to cope up with these things. If
the labor rates go up, JLL Company must make proper strategies to combat with this as well.
Social factors
The changes in the cultures of the employees as well as the customers are significant
facts in this section. The ways the people would be interested in buying the properties or selling
them are highly important for the rise and growth of the JLL Company.
Technological factors
The technological factors are also very important factors for this context as well. The
employees will have to be technologically very strong and they must be trained to use the
electronic gadgets to keep updated about the market share price and other issues. The use of the
online property buying and selling can be encouraged as well (Kogan et al. 2017). This is why
the organization like JLL Company should give training to their employees about it properly. It
can be said that the technological issues can be very interesting for the development of the firm

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indeed. The new and latest technologies should be used for the betterment of the company. They
must be updated about the latest news about the real estate industry. As the ups and downs are
very regular in the real estate industry, the managers of the organization should be aware of the
risks all the time. One of the drawbacks in the company has been their less use of the latest
technologies. The company can be able to get the best benefits if they employ the social media
marketing strategies. Thus they will get the all the updated news through the application software
and be able to make their strategies accordingly. The house building process should reach the
interior regions of the countries so they should make the people aware of their projects through
the use of the social media. Thus the technology will surely uplift their morale to be successful in
the industry.
Environmental factors
The environmental factors should be given much priority as the ‘go green; initiative
should be one of the most important factors in this context. The environment protection rules and
regulations should be obeyed by the organizations.
Legal factors
The legal factors should be maintained as the JLL Company operates in the real estate
industry. They will have to maintain and obey all the relevant environmental factors since the
legal regulations are extremely useful (Makos 2015).
Recommendations
Some useful recommendations can be made in improving the quality of the service
providing for the JLL Company.

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The HR department should always select the employees after going through the
interviews with number of rounds. Thus the effective and skillful employees can be found who
will work very sincerely for the JLL Company (Hendry 2012).They should thrive to work with
the design teams with much effectiveness. They have to keep an eye on the project pricing as
well.The company should be responsible for making out the demographic profiles of their
customers. This will really be effective since this will lead them to attain the goals of the
company (Hendry 2012).The expectations of the customers will have to be met as well. JLL
Company should be highly responsible executing their projects in the best manners and satisfy
the customers (Bratton and Gold 2017).
Conclusion
It can be concluded that the JLL Company should always keep themselves updated about
the strategies of the competitors and make their strategies powerful enough to beat the rivals. The
external environment of the company has been discussed here in this paper by using the two
important tools like Porter’s five forces and PESTEL analysis. The probable strategies of the
competitors have been discussed and the recommendations have been given for the improvement
of their services and products. Thus JLL Company would be able to meet the expectations of the
customers and satisfy them.

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Appendices

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