British Land: Extended Business Project on Competitive Strategies

This extended business project report examines British Land, a major UK property investment and development company. The report begins with a company overview, detailing its history, operations, and current market position within the real estate sector. It then analyzes the company's competitive advantages, utilizing Porter's Generic Strategies (cost leadership, differentiation, and focus) and Porter's Five Forces model to assess its market position and identify key competitive strengths. A significant portion of the report explores the application of the marketing mix (7Ps) to understand how British Land positions itself in the market. The report provides recommendations for maintaining and enhancing its competitive position, including improving service quality, attracting customers, and fair business practices. The report concludes by emphasizing the importance of continuous improvement in the dynamic real estate market to sustain long-term success and grab advantages over more than 5 years.

EXTENDED BUSINESS
PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Company overview.................................................................................................................1
Competitive advantage...........................................................................................................2
Exploration Of Marketing Mix (7P's) That Is Relevant For The Organization's Competitive
Position ..................................................................................................................................7
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Real estate sector has become global assets and segments into residential real
estate, industrial and commercial real state. All the three section feature publicly traded
real estate investment trusts and portfolio of geographical area whose market price
investors often used to analyze and determine industry trends (Popli, Ladkani and Gaur,
2017). The present report is base on British Land organization that is one of the biggest
property investment and development companies in UK. The company became a real
estate finance trust when REITs were present in country. This study explain about
company functions and activities of business and current practices. It also clarifies
competitive advantage in marketplace and explain about the activity of organization for
achieving it for betterment. This study justify market competitive position of company
through some relevant aspect. Furthermore, it explicates recommendation that would be
try by the firm for maintaing its competitive position and garb the advantages over more
than 5 years.
TASK
Company overview
British Land create places where people prefer to work, live and shop and do
other things that make them happy and satisfied. They are one of the largest property
development and investment firms in UK. Company work in a real state sector which
headquarters is established in England and London. It was founded in 1856 as an
offshoot of National freehold land society ordained in 1849 with two chief architects
John Bright and Richard Cobden. Company buy land and resell it on the good price or
term to its customers who want to buy it and pay good prices for the same. With
enlargement of franchise this reason give to govern operations of firm and it start to
manage or operate as normal business in UK (British Land, 2018). In 2005 organization
declared that they are purchasing Pillar property Plc for £811 million to boost up their
position in retail property sector.
In 2018 firm owned portfolio that total worth is £12.7 billion in which they include
Meadowhall shopping center in Sheffield which is one of the biggest in UK and huge
amount of property. In 2011 British Land is placed at number one position in real state
sector with operating 135 subsidiaries on a list of FTSE 100 organizations that use tax
1

havens for its operations. 122 leadenhall street open in 2014, 4 Kingdom street at
Paddington, Harmsworth quays etc. are its main projects. Sir John Ritblat was Honorary
president of firm and John Gildersleeve was the chairman and many other people play
their important role in development of British Land and make it at the higher position in
the same sector. Organization mainly focuses on creating places that meet with the
needs of its clients and respond to their dynamic lifestyles. They are concentrate on
making good environment both outside and inside in their buildings. Firm properties
worth around £18 billion and are home to over 1,200 various companies, reaching from
international brands to local start ups businesses. More than 65,000 employees are
working across its office portfolio while its retail sites get 310 million visits a year with
actual to reach 60% of population. They are currently driving its force behind exciting
development as Broad gate, regent's place and leadenhall building.
Competitive advantage
Competitive advantages is a situation or circumstances that place an
organization in superior or favorable position that reflect it success in business world. In
businesses it is the attribute that permit a company to give tough competition to its
competitor (Nisel, 2014). By adopting analytical tools such as Generic strategies and
Porters Five Forces model British Land grab the high position in marketplace. Both the
models help to gain competitive benefits that increase its profit margin more than
another.
Generic strategies-
Porter's generic strategies model is base on three basic strategic options like,
cost leadership, differentiation and cost focus that help British Land for gaining
competition benefits.
Firm relative place within retail industry determines whether firm's profitability is below
or above industry average.
 Cost leadership: In this stage British Land sets out to become the low cost
producer in its real state industry (Cohn, Fehr and Maréchal, 2014). Organization
invest and develop property in UK and set best prices for the places that will
raise their position in marketplace better than other companies in industry. They
offer good and affordable costs to its customers while different form another. The
2

origin of cost advantage are depended and varied on its structure of industry
which include the pursuit of economies of scale. Company purchase Pillar
properties in real state industry to boost up its position in business world.
 Differentiation: In this strategy British Land seeks to offer unique products in
real state industry along some attribute that are widely state valued by clients
more than else. Organization outlets properties portfolio to its customers with the
support of skilled architects. They select many dimensions that customers in real
state industry perceive as essential and different positions themselves to meet
those requirements. Company reflects their uniqueness with in setting premium
price of properties. Through applying this strategy organization's will build strong
customer base that help to increase its profitability more than others.
3
Illustration 1: Porter's Generic strategies
(Source: Porter's Generic Competitive Strategies, 2017)

 Focus: Company focus on cost of their products that will impact its
differentiation strategy on some points but still they generate profit not as much
as earlier. They chose segments in real state sector ad tailors their strategy to
serving them to exclusion of others. This strategy is base on two variants a) in
cost focus British Land only concentrate on property prices that lower down its
customer base due to high prices. b) on the other side they are also focusing on
differentiation in its target segment. By taking up both the strategies company
will maintain their position in marketplace and raise it at higher place better than
other organizations.
Porter's Five Force Model-
It is a tool for analyse competition of business and help to gain competitive
advantages to British Land in real state sector.
4

 Threats of new entrants: New entrants in real estate convey new ways and
innovation of doing something different and put pressure on British Land
organization through lower pricing strategy, provide new value propositions and
reduce costs. By reducing costs on products company will retain old customers
and attract the new ones.
 Bargaining power of suppliers: Powerful provider in Financials sector are
using its negotiating power to extract high prices from British Land in real estate
industry. The all over impact of high suppliers bargaining power is that it low
overall profitability of company. By establishing efficient chain of supply company
5
Illustration 2: Porter's Five Forces Model
(Source:British Land Company Plc Porter Five Forces
Analysis, 2016)

will tackle bargaining power of suppliers that build their position in marketplace
and help to maintain it.
 Bargaining power of buyers: Buyers are often demand lot that put pressure on
organization profitability in long run. British Land tackle bargaining power of
buyer by build large customer base this will help in two ways like, reduce their
power plus it will give an advantage to organization to streamline its production
and sales procedure
 Threats of substitute service or products: when a new service or products
meets similarly clients need in different ways, British Land profitability suffers. In
that case by company being facility oriented more than just products oriented.
 Rivalry among existing competitors: In real state sector rivalry among existing
companies in industry is intense then it will lower down costs and decrease profit
margin. To deal with this change firm build sustainable differentiation that help to
tackle rivalry among existing competitors.
6

Exploration Of Marketing Mix (7P's) That Is Relevant For The Organization's
Competitive Position
Components of Marketing
Mix
Explanation With the help of marketing
mix to gain competitive
position
Product Product means goods and
services provided by
company to the end users.
British Land current
products are London offices
and retail. Company can do
diversify their products by
doing expansion to another
countries. Company do
property analysis for which
they need various
techniques so company can
innovate techniques for
analysis. This will lead
company to grow more and
gain competitive position.
Price Price is that amount which
consumers need to
exchange for the goods and
services.
British Land can use
affordable price strategy for
normal customers and
premium price strategy for
entrepreneurs or
businessmen to gain
competitive position in the
market. Also, company
should deal in fair price so
that they can win the trust of
its customers.
Place Place is that access where British Land can open its

consumers get goods and
services (Khandamova,
Shchepakin and Bazhenov,
2017).
branch in commercial areas
of various countries so that
whenever consumers think
of real estate office, British
land should be first name
come in their mind. Like
this, company can gain
competitive position.
8

Promotion Promotion means marketing
communication to increase
sale and aware consumers
about goods and services.
Using promotion strategy,
company create brand
image. Company can use
various promotional mix
strategies so that
consumers get to know
more about company and
increase its brand
awareness. This will help
company to gain
competitive position.
People People are all those
humans who play role in
goods and services delivery
to the consumers.
British Land's People are
supportive and always try to
do best. Also, company do
motivate people by
conducting motivational
activities and giving benefits
and rewards like
Discretionary bonus, Share
incentive plan, Pension
scheme, Medical and life
assurance, Interest-free
season ticket loans,
Childcare vouchers,
Flexible working
opportunities, Private
healthcare insurance and
Voluntary annual medicals
etc. This will lead
employees to be satisfied
which help company to gain
9

competitive position.
Process Process refers to the
procedures and
mechanisms through which
goods and services are
being accessible.
Here, Company should
focus on the speed, quality
and formalities of delivering
of services. The process
and procedures should be
fast and clear with fewer
formalities so that
consumers can satisfied
with the services provided
by British Land. This will
lead company to gain
competitive position.
Physical Evidence Physical evidence is the
feeling, experiences and
environment in which they
use services and perceive
quality of services.
Company can improve its
logo and website. Company
can improve its business
environment. Company can
make flexible policy to
improve its operations. This
all lead company to gain
competitive position (Miles
and Darroch, 2015).
10

Illustration 3: 7P's of marketing mix
(Source: How to use the 7Ps Marketing Mix, 2019)
RECOMMENDATIONS
Company improved its service quality, attracted customers, focused on
customers services, operated business fairly and rewarded employees for better
performance. Like this, company's position has changed (Friedman, Harris and
Lindeman, 2017).
Recommendations for maintaining British Land's competitive advantages over
the next 2 to 5 years are as follows -
 Company can use Fair Price Strategy. It means whenever company analysis
the property and its price. Company should not say the price draw the longbow
just for profits. Company can be honest with its customers and work. This will
lead the company to maintain its competitive advantages and sustain in long
term.
 Company can now focus on its Digitalization Strategy to maintain its
competitive advantages and sustain more than 2-5 years, in which company can
focus on 2 things -
11

1. Company can do its E-marketing by E-advertising, Email marketing and implementing
E-Positioning and E-Targeting strategy.
2. Another thing, company can focus on online stores and website so that they can
easily attract customers and interact with them at less time.
 Company can conduct Research to get to know about the market trend, market
preferences, market strategies, competitors and its adopted strategies and also
about themselves from the customers, employees and another stakeholders so
that company can improve according to the results. This will help company to
maintain its competitive advantages.
 Company can focus on Employee Engagement Strategies in which they can
conduct various employee activities, focus on employee participation in decision
making process and management team, conduct employee interview to get to
know more about him/her and his/her view about the company, adopt various
employee motivational activities and events, conduct activities which strengthen
their relationships with employers, managers and customers and give him
rewards, recognition and promotion on the basis of his/her past performance.
Keeping employee happy and satisfied help company to maintain and sustain its
business and competitive advantages for long period (Christensen and et.al.,
2015).
 Company can Enter Into Another Industry By Opening Another Service Line
so that company can expand and grow more which help company to create
brand image, earn more profits, attract more customers and beat the cut-throat
competition at local, national and international level. This will help the company
to not only maintain but also enhance its competitive advantages.
 Company can improve its service quality by bringing innovative techniques and
also can focus on its Marketing And Research & Development Strategies to
attract potential customers, to make access strong and to improve its internal
business environment and business policy on time to time according to change
happening in external business environment so that company can gain and
maintain its competitive advantages over next 2 to 5 years (Van Der Aalst, La
Rosa and Santoro, 2016).
12

CONCLUSION
From the above study, it has been summarized that British Land Company PlC is
a Real Estate Investment Trust, working in Real Estate Industry. Company is using
generic strategies to gain competitive advantages over its competitors and do evaluate
these strategies by Porter's 5 forces model. Company also focusing on its competitive
position along with competitive advantages so that company can sustain in future for
long time. For that company is implementing new strategies like cost leadership
strategy, differentiation strategy, cost focus strategy, differentiation focus strategy and
digitalization strategy etc. which is beneficial for the company and its position in the
market.
13

REFERENCES
Books and Journals
Christensen, J., and et.al., 2015. Do corporate governance recommendations improve
the performance and accountability of small listed companies?.Accounting &
Finance. 55(1). pp.133-164.
Cohn, A., Fehr, E. and Maréchal, M.A., 2014. Business culture and dishonesty in the
banking industry. Nature. 516(7529). p.86.
Friedman, J.P., Harris, J.C. and Lindeman, J.B., 2017. Dictionary of real estate terms.
Simon and Schuster.
Khandamova, E.F., Shchepakin, M.B. and Bazhenov, Y.V., 2017. Managing the
competitive position of the enterprise by activating the tools of its marketing
behavior. Экономика и предпринимательство. (3-2). pp.1168-1175.
Miles, M.P. and Darroch, J., 2015. Competitive advantage.Wiley Encyclopedia of
Management. pp.1-7.
Nisel, S., 2014. An extended VIKOR method for ranking online graduate business
programs. International Journal of Information and Education Technology.
4(1). p.103.
Popli, M., Ladkani, R.M. and Gaur, A.S., 2017. Business group affiliation and post-
acquisition performance: An extended resource-based view. Journal of
Business Research. 81. pp.21-30.
Van Der Aalst, W.M., La Rosa, M. and Santoro, F.M., 2016. Business process
management.
Online
British Land Company Plc Porter Five Forces Analysis. 2016.[ONLINE].Available
through:<http://fernfortuniversity.com/term-papers/porter5/lse/651-british-land-
company-plc.php>
British Land. 2018.[ONLINE].Available through:<https://in.linkedin.com/company/british-
land>
14

Porter's Generic Competitive Strategies. 2017.[ONLINE].Available
through:<https://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-
competitive-strategies/>
15