Purple Bricks in Malta: A Strategic Analysis using PEST & SOSTAC

This report assesses the viability of Purple Bricks Estate Agency expanding into Malta, a market where it currently does not operate. It employs the SOSTAC planning model to provide a structured analysis. The report begins with a PEST analysis, covering the political stability, economic factors like low unemployment, social aspects such as high disposable income, and technological advancements in Malta. SMART objectives are developed, focusing on profitability, operational effectiveness, customer base growth, and workforce strengthening. Strategies to achieve these objectives are outlined using Porter's generic strategies (cost leadership) and Ansoff's matrix (new market development), considering market entry modes like joint ventures and pricing strategies such as penetration pricing. Tactics to gain a competitive edge are explored through product portfolio expansion, competitive pricing, online and offline distribution channels, and promotional activities using digital marketing. The report also includes an action plan for implementing strategies in Malta, methods for controlling performance, and reasons for choosing Malta as a new market, considering factors like market size, demand, government openness to foreign direct investment, and socio-cultural cues. Porter’s Diamond model is used to understand Malta's competitive edge.

INTRODUCTION PURPULE
BRICKS ESTATE AGENCY TO
MALTA

Table of Contents
TASK 1............................................................................................................................................3
Brief overview of PEST..............................................................................................................3
Developing smart objectives.......................................................................................................3
TASK 2............................................................................................................................................3
Outlining strategies to fulfil objectives.......................................................................................3
Tactics used to gain competitive edge........................................................................................5
TASK 3............................................................................................................................................6
Action taken to implement strategies in Malta...........................................................................6
Controlling performance.............................................................................................................6
Reason behind choosing Malta as new market for Purple bricks Estate Agency.......................6
REFERENCES................................................................................................................................9

TASK 1
Overview-
SOSTAC is one of the best planning models, because it helps to understand the overall
situation that may impact business plans and strategies (Malinoshevska and Korzh, 2020). It
provides a clear framework, which is easy to comprehend and covers all stages that needs to
create an effective plan relate to any kind of venture. Here, below stages is based on this model.
Brief overview of PEST
Political factor-
Political stability in Malta gives new highs to those companies that are running their
venture into this country and those who attempts to do so just like Purple bricks Estate agency
(Gandolfo, 2021).
Economic factor-
Low unemployment rate in Malta put positive impact on success and growth of company,
as it give them chance to hire limited but skilled applicants.
Social factor-
High disposable income of local people in Malta drive their attention towards purchasing
those products or services which they seek to buy from longer time period.
Technology factor-
More than 83.3% population in Malta uses internet and technologies for varied purpose,
which bring benefits to company in term of selling its services or goods.
Developing smart objectives
 To increase profitability up to 50% within 1 year
 To boost operational effectiveness by 40% in 1 year
 To increase customer base by 30% in 9 months
 To strengthen workforce by 50% in 8 months
 To gain competitive advantages in 6 months

TASK 2
Outlining strategies to fulfil objectives
In the world of business, there are varied types of models and concepts as well as
approaches available that many marketers may use to achieve their set aims and objectives. In
the context of achieving above objectives, here Porters generic and Ansoff's matrix, models are
utilized in term of strategies according to SOSTAC model.
Cost leadership-
According to this strategy of Porter's generic model, Purple bricks estate Agency may
offer low cost services to its customers, which allow them to increase its consumer base even
better than the other companies in Malta who has already established their brand image in market
(Al-Khasawneh, 2020). It made company able to lead the whole market and be competitive for
longer period of time.
New market development-
Another tactic that organization may use to achieve above set objective is this one.
According to that, it may enter into new market or in new nation like Malta, where firm may
grab growth opportunities related to its venture (Maity and Singh, 2020). It allows management
to target new customers who are also profitable as earlier are. It is a kind of growth tactics that
determines and creates new market segment for existing services of organization.
Market entry mode-
There are different types of modes accessible that many organizations has been utilized to
enter into new market place, where they are successfully managing and running their ventures
activities and gaining profits (Parameswar and Dhir, 2020). It includes acquisition, licensing,
partnership, joint venture and franchise. In regard to Purple bricks estate Agency, joint venture is
the best entry mode, because it gives organization power to gain the attention of new consumers.
Pricing strategy-
Organization may use penetration pricing strategy, which made it capable to drive the
attention of potential buyers and retain existing as well for longer period of time, which is quite
important.
Positioning strategy-
Company may set its brand image in mind of customers by using specific tactics or
approach. For example, it may offer its services to new consumers by using own applicants

which made things so easy for individual person in the context of taking decision to buy or sell
their properties. With the help of application, people may share their needs and expectations with
organizational management.
Tactics used to gain competitive edge
Product-
Purple Bricks Estate Agency may achieve set objectives and gain benefits while
operating in new nation by enlarging and improving its product portfolio. It is the best strategy
that company may use to gain more benefits within Malta, where everything is new for its
venture including business environment and customers.
Price-
The best thing that organization may do to gain competitive advantages, increasing sales,
profitability, customer base and productivity is setting low cost services by utilizing penetration
pricing strategy.
Place-
In term of location, company may use offline and online distribution channels, which
made it capable to serve effectively and quickly. With the help of both methods, management
may satisfy their new customers and retain current forever.
Promotion-
The most beneficial and useful element of marketing mix model is promotion, because it
gives opportunity to organization related to building strong brand image in Malta, by using social
media and other digital marketing sources.
Summary-
4ps of
Marketing mix
Standardization Adaptation Globalization
Product This P will look in Malta
as a beneficial source,
because it helps to gain
the attention of more
buyers who seek to sell
their old property and
buy new one for
Organization may
adopt this strategy
by improve their
products and adding
more services in its
product portfolio.
It may globalize its
services by choosing
joint venture as
market entry mode.

themselves.
Price Just like above P, price
also looks perfect in
Malta. As it help to grab
competitive edge and
increase customer base,
because people prefer to
buy quality services with
low price tag.
Organization may
adopt this tactic, by
offering affordable
charges upon their
services related to
selling properties.
The main reason
behind entering into
new market with this
tactics is to increase
profitability.
Place Majority of population in
Malta are internet users.
So, this P work well
according to that,
company attempts to
serve their services
online as well offline.
It is adaptable and
beneficial too.
By using these two
sources, organization
may globalize its
services and serve at
all over the world.
Promotion This p is perfect because
everyone in this whole
world, such social media
sites to collect
information about
specific topic.
It is acceptable and
useful as well.
It gave chance to
generate brand
awareness in the
whole world.
TASK 3
Action taken to implement strategies in Malta
Task Name Duration Start Finish
Market research (Research
and development
department)
5 days Mon 4/12/21 Fri 4/16/21
Strategy development 6 days Mon 4/12/21 Mon 4/19/21

(Marketing department)
Strategy implementation
(Operational and marketing
team)
10 days Mon 4/12/21 Fri 4/23/21
Monitoring outcomes 12 days Mon 4/12/21 Tue 4/27/21
Changes 15 days Mon 4/12/21 Fri 4/30/21
Final implementation 20 days Mon 4/12/21 Fri 5/7/21
Controlling performance
To measure the performance against set objectives, data is gathered by using effective
methods such as group meetings and discussion.
Reason behind choosing Malta as new market for Purple bricks Estate Agency
Malta is the best nation for organization where they may enter, because the income level
of local people is much better than the other citizens who live in another region. It brings benefits
for company as well as customers. For example, just because of high disposable income,
individual customer may able to buy property according to needs. Along with this, there are
many reasons defined below in the context of choosing Malta as new market for the company.
Size of market-
The size of market in Malta is vast. Its population is estimated at 441,543 people at mid-
year. This nation is included in list of those countries who has the lowest unemployment rate in
the world.
Demand of residents-
Demand related to property selling and buying is high. People want to buy a place where
they may live with family. Organization as an online real estate agent help customers to sell,
purchase and let their properties. The demand relate to this service is high, and just because of
these, organization may sustain for longer.
Government openness to foreign direct investment-
Malta is well-known in terms of foreign direct investment appeal. It fuelled by a
progressive and welcoming regulatory circumstances and a strong iGaming sector. The
government in this country has established a global pro-investment policy. It has highly

interested to FDI. There are no legal regulations against foreign direct investment oriented sales
in nation's domestic market
Do average earnings of citizens make firm's offering affordable or realistic-
It is fact that the average earning or disposable income of citizens in Malts make Purple
bricks estate agency offerings affordable, because people are able to buy a property, which made
them happy and highly satisfied. It drives the attention of local people towards buying a
profitable property that may match according to their dreams.
Social or cultural cues-
In Malta, most of the people prefer to buy well-furnished home or property for
themselves as well as their family, because it is time and money saving decision. Instead of
taking decision to build a new house, citizens like to buy a flat or apartment, where they may live
happily.
Porter’s Diamond to comprehend competitive edge-
This model is used to determine the competitive edge that countries like Malta posses due
to certain elements accessible.
Firm strategy, structure and rivalry-
In Malta, organizations attempts to gain competitive edges by conducting varied practices
in term of investing in the context of strengthening ventures and buying new resources as well as
improving existing. The domestic rivalry in sector where Purple bricks Estate agency operate is
high, which drive their attention towards offering something better than the other companies.
Factor conditions-
Highly skilled people in Malta provide great benefits to company as it allow them to
strengthen workforce by hiring new people from talent pool, who have all the skills, knowledge
and experience that employer requires. It allows firm to gain competitive edge.
Demand condition-
Sophisticated demand condition from citizens in Malta may push company to progress,
innovate and enhance their service quality standard.
Related and supporting sectors-
The support of other industries like technology, may permit company to achieve desire
outcomes.
Government-

As discussed above, government in Malta play vital role in growth and success of
company by taking interest in FDI.
Chance-
In Malta, organization have great opportunities which it may grab to be competitive
forever and gain competitive advantages as well.

REFERENCES
Books and journals
Al-Khasawneh, R.O.H., 2020. Cost-Driving strategy Under the use of e-business to achieve a
Competitive advantage in a Digital Economy Environment. International Journal of
Economics and Finance. 12(1). pp.1-70.
Gandolfo, L., 2021. Navigating Trust and Distrust in the Refugee Community of Malta. Journal
of International Migration and Integration. pp.1-23.
Maity, M. and Singh, R., 2020. Market Development and Value Creation for Low
Socioeconomic Segments in Emerging Markets: An Integrated Perspective Using the
4A Framework. Journal of Macromarketing. p.0276146720960221.
Malinoshevska, K. and Korzh, M., 2020. MARKETING STRATEGIES OF DEVELOPMENT
ON THE EXAMPLE OF GREEN TOURISM. Three Seas Economic Journal. 1(2).
pp.25-34.
Parameswar, N. and Dhir, S., 2020. Interpretive ranking of choice of interaction of parent firms
post-international joint venture termination using TISM-IRP. Global Journal of Flexible
Systems Management. 21(1). pp.1-16.