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  • February 2018
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Redfin

By: Marco Di Maggio and Julia Kelley
  • Format:Print
  • | Language:English
  • | Pages:28
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Abstract

Redfin, a technology-powered residential real estate brokerage, was founded in 2002 with the intention of using technology to disrupt the real estate industry. Over the next 15 years, Redfin made several changes to its business model. Initially, the company provided less support than a traditional real estate brokerage but helped home buyers and sellers save more money. Over time, in response to customer feedback, Redfin increased the level of customer service it provided while decreasing the amount customers saved, instead relying on its unique online tools to differentiate itself from other real estate brokerages. In July 2017, Redfin went public at a $1.73 billion valuation. Now, in late 2017, CEO Glenn Kelman had to decide what Redfin’s top strategic priority should be. Redfin could try to increase its market share, which was currently less than 2% even in the company’s top markets, or it could focus on balancing costs and improving its bottom line.

Keywords

Business Model; Strategy; Decision Making; Real Estate Industry

Citation

Di Maggio, Marco, and Julia Kelley. "Redfin." Harvard Business School Case 218-051, February 2018.
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About The Author

Marco Di Maggio

Finance
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More from the Authors
  • Breaking Barriers: How Brex is Shaping the Future of Financial Services for Startups By: Marco Di Maggio, James Barnett and Susie L. Ma
  • The Credit Supply Channel of Monetary Policy Tightening and Its Distributional Impacts By: Joshua Bosshardt, Marco Di Maggio, Ali Kakhbod and Amir Kermani
  • The Effects of Cryptocurrency Wealth on Household Consumption and Investment By: Darren Aiello, Scott R. Baker, Tetyana Balyuk, Marco Di Maggio, Mark J. Johnson and Jason Kotter
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