1. How should traditional realty companies compete in the digital economy?

The New economy or Digital Economy based on new Technology has almost changed the way in which people used to buy or sell their properties. The competition in the realty industries getting increased because of lower margin of profits and faster delivery. Now websites and Credit cards are doing the role of real estate agents. It’s very difficult to survive here for the Traditional companies, however internet do not provide all the needs to the customers. The traditional companies have to take those limitations of internet as their competitive advantages.

· New economy reduced cost of doing business. Traditional companies also should reduce their profit margin (commission).

· Internet provides less customer Service. So providing good Customer Service can improve the sales.

· Internet is anonymous and lack of security is also a major drawback.

2. As the commission rates fall due to pricing pressure, what the real estate industry will look like in five years? Can the industry survive in the present form? If not what might replace the industry.?

The study of the case examines the way the real estate may become in future due to drastic fall in commission rates.Real estate using technology such as internet & e-commerce eliminates the job of middleman.The customers can find out their actual requirements easily online.But the major hurdle of privacy & safety is always there in internet.

People still prefer to negotiate a deal in presence of middleman as a matter of trust.After 5yrs or so, people may use internet to find their needs or keys of interest, but still like to have a deal done manually ( face to face ) in presence of a mediator.There has to be a bigger change in internet's security, safety & privacy which can change the overall picture of "Real Estate" , other than as it is now.

Yes, I personally feel, real estate still retains it's image as of it is now. Only a dramatic change in internet's safety in online trading may influence a change in real estate.

Raghavendra K C

1MS07IS074