UK Property Market Media

Boghiu, Zinaida
University of Roehampton London

INTRODUCTION METHODOLOGY CONCLUSION

Key terms: brand value; competitive advan- Method: Porter’s five forces. Overall, this research covered next main
tage; cost; fundamentals; market share; The Objectives: ideas:
five forces; real property, value chain. • To identify the main sources of competitive pressure • Market size
Property portals or property market media in • To appraisal how strong each of the forces is. • Major competitive players
the UK includes lots of websites advertising
• Key issues
properties for sale or rent. However, there
are three main players, RMV, ZPG and Figure 1. Porter’s five forces in the UK property market media versus the main players. • Future direction
OTM (Baum, 2018). According to Brooks As the results of the Porter’s five forces
(2010), real property or real estate refers to a analysis imply:
particular type of good, land or resources STRATEGIC POSITION • To penetrate the existing market it is
that is not physically movable. All materials required:
needed for this study were accurately  High capital requirement
evaluated and selected through literature SUPPLIERS – LOW (Baum, 2018).
 Brand recognition
reviewing of reliable sources that are listed. Threat of some segment of suppliers to merge, low
Porter’s five forces analysis has been market share players; OTM.  Price retaliation
applied. This tool exposes the strength of • The portal with low market share faces
each force and the nature of the competitive the threat of suppliers to merge.
SUBSTITUTES – LOW.
pressure; it provided the research sufficient • Overall the industry barriers are HIGH.
information to meet objectives. Approximate Low differentiation of services, TV, other social
perspectives of the industry are shown. media are not a threat to property portals; OTM.
PERSPECTIVES
COMPETITIVE RIVALRY - HIGH.
Industry Overview In order to growth property portals should:
High competitive rivalry – RMV – ZPG,
• Invest in technology; according to Baum
Purpose: significant difference in market share. (2018), RTM and ZPG are “late-stage
• Property research services tech1.0.”
• Property marketing BUYERS – HIGH. • Evolve from search to service engines
Low switching cost to internet but, low
Customer segment:
differentiation of products, minor number of
RESULTS (DelPrete, 2018).
• Estate agents; Lettings Agents substitutes. • Move across the value chain
• New home developers. (Thenegotiator, 2017).
RMV: NEW ENTRY -HIGH (Rightmove, 2018).
• 47% of UK agents High capital requirement, brand retaliation, REFERENCES
• 1.1million portfolio recognition, proptech.
• Baum, A. (2018). Proptech: Future of the
• 2/3 audience of the current property
portals? Available at:
traffic (Baum, 2018; DelPrete, 2018; Porter, 2004).
http://www.propertychronicle.com/propte
ZPG: 927,000 portfolio, 38% agents. ch-the-future-of-real-estate/ (Accessed
OTM: 15% agents (Thenegotiator, 2017). 26/06/18).
Formulas applied: • Brooks, C. & Tsolacos, S. (2010). Real
(Brooks, 2010).
Figure 2. 5 days volume history for OTM. Estate Modelling and Forecasting
Cambridge: Cambridge University Press.
Share price, p/ 4:55,22/06/2018 • 𝐶𝐴 = 𝐵𝑟𝑎𝑛𝑑𝑉𝑎𝑙𝑢𝑒 𝑉 − 𝐶𝑜𝑠𝑡(𝐶) • DelPrete, M. (2018) The Future of Real
𝑆𝑎𝑙𝑒𝑠 𝑜𝑓 𝑡ℎ𝑒 𝑏𝑢𝑠𝑖𝑛𝑒𝑠𝑠
494.55 487.98 (Lseg, 2018) • 𝑀𝑎𝑟𝑘𝑒𝑡 𝑠ℎ𝑎𝑟𝑒 = ✖️100% Estate Portals. (Online). Available at:
𝑇𝑜𝑡𝑎𝑙 𝑠𝑎𝑙𝑒𝑠 𝑖𝑛 𝑡ℎ𝑒 𝑚𝑎𝑟𝑘𝑒𝑡
Figure 10. (Theneg, 2017) (https://www.slideshare.net/MikeDelPret
167.5
e/the-future-of-real-estate-portals-
preview-100670304 (Accessed
RMG ZPG OTM ECONOMIC FUNDAMENTALS 25/06/18).
Figure 10. Operating margins. • Lseg. (2018) lseg. (Online). Available at:
(Lseg, 2018)
Figure 3. 5 days volume history for OTM. 80.00% http://www.londonstockexchange. com
60.00%
(Accessed 10/06/18).
(Lseg, 2018) 40.00% • OTM. (2018) otm (Online). Available at:
20.00% https://www.onthemarket.com/
0.00% (Accessed 15/06/18).
2013 2014 2015 2016 2017
Figure 6. 5 years volume history for RMV. • Thenegotiator. (2017) How did the big
RMV ZPG (Lseg, 2017)
property portals take over the industry?
Figure 4. Share price performance, RMV. (Online). Available at:
(Lseg, 2018) Figure 11. Market share.
https://thenegotiator.co.uk/looking-
through-a-portal/ (Accessed 25/06/18).
(Lseg, 2018) • ZPG. (2018). zoopla. Available at:
https://www.zoopla.co.uk/ (Accessed
(Baum, 2018) 16/06/18).
• Porter M.E. (2004) How competitive
Figure 7. 5 years volume history for ZPG. RMV, % ZPG, % others forces shape strategy. Business policy
and strategy. The Free Press: New York.
Table 1.
Value • Rightmove. (2018) rightmove. (Online).
Figure 5. Market capital, £m – 2018. Available at: www.rightmove.co.uk
chain.
Market capital, £m (Accessed 18/06/18).

OTM 102.66 (Lseg, 2018)

ABBREVIATIONS
ZPG 2,139.5
RMV – Rightmove; ZPG - Zoopla; OTM -
(Thenegot OnTheMarket; FTSE - Financial Times
RMG 4,987.0
iator, Stock Exchange; LSE – London Stock
0.00 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00 6,000.00
Figure 8. RMV vs ZPG. (Thenegotiator, 2017) 2017. Exchange.
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