Find comprehensive SWOT and PESTLE research reports across industries globally

Holistic Analysis Customized Solutions Top Quality

Thanks for downloading our report! X
Check your email for the requested analysis report.
Be sure to place support@swotandpestle.com on your approved senders list to prevent emails from going into spam.

Stockland Corporation SWOT & PESTLE Analysis

Last Updated : 14 Aug, 2017

OVERVIEW

Name of the Company: Stockland Corporation Ltd.

Business Sector: Construction, Realty

Operating Geography: Australia and NZ, United Kingdom

About the Company: Stockland Corporation was founded in 1952. Initially it was named as Stocks and Land. It is headquartered at Sydney, Australia. It deals with the development and management of retail, office, industrial and office park properties in mainland Australia, UK and New Zealand. It also offers services like property trust management and property management. It has a total of 1498 employees as of FY 2016.

Revenue: $A 2.3 billion (FY ending 30th June 2016)

SWOT & PESTLE Analysis

The SWOT Analysis for Stockland Corporation Ltd. is given below:
Strengths
Weaknesses
1. Largest diversified property company in Australia
2. Strong control across the value chain and established relationship with stakeholders.
3. Sustainability and environmental friendly business outlook.
4. High operational efficiency and flexible working environment
1. Deterioration in Stockland’s retail portfolio
Opportunities
Threats
1. Opportunities in residential ‘Re-development’ domain
2. Digital revolution to open new market opportunities
1. Stiff domestic and international competition
2. Affordable housing an increasing challenge in Australia
Get Your Free Copy of the SWOT & PESTLE
Analysis Report
Get the original SWOT & PESTLE.com report delivered straight to your email inbox for free.
Our insightful and holistic reports have helped corporate,academia and researchers to take their research forward. Like us on Facebook to stay updated with the latest published SWOT & PESTLE Report.

Download Analysis Report




Strengths

1. Largest diversified property company in Australia: Stockland is the largest diversified property company in Australia: Stockland is the largest diversified property company in Australia. It has its properties at Mainland Australia, New Zealand and the United Kingdom. It has a huge presence in eastern Australia covering Sydney, Canberra, Brisbane and Adelaide. It also has its presence in Perth, the western part of the country. This gives Stockland an edge over its competitors. It has 42 retail centres, 27 logistic centres and business parks, 56 residential communities, 70 retirement villages and 9 office buildings, which are worth $6.8bn, $2.0bn, $0.8bn, $18.8bn and $1.3bn respectively as of FY16. The sheer numbers speak volumes of the company.

2. Strong control across the value chain and established relationship with stakeholders: Stockland has a very strong control and influence across the value chain. Stockland does vertical integration by working on areas like building materials and building technologies. It also has engaged external providers for downstream services like child care, equipment leasing, warehouse management, cleaning and security, utilities provision, etc. Further, Stockland has maintained superior relations with the stakeholders. Its engagement approach with the stakeholders is very well received by the stakeholders. In this approach, Stockland receives monthly reports and updates on the issues of the stakeholder and then addresses those issues and concerns. In this way, it nurtures the relationship with its stakeholders.

3. Sustainability and environmental friendly business outlook: Stockland has a very environmental friendly approach to its business. It was the first Australian company to issue green bonds to fund greener projects. It was awarded Real estate super sector leader on the Dow Jones Sustainability Index 2015-16 for the third time. It also achieved the first green star rating for a Retirement living village.

4. High operational efficiency and flexible working environment: Stockland has a very high operational efficiency and effectiveness and it strives to ensure that its systems are cost effective and agile to support its diversified business and it has made strategic technology investments in areas of SAP ERP and Salesforce to technologically enhance its processes. Its flexible workplace practices and work/life balance is one of the key strengths and popular reason that makes people stay at Stockland.

Weaknesses

1. Deterioration in Stockland’s retail portfolio: There are significant “signs of weakness” in Stockland’s retail portfolio visible which may impact the overall performance of the group. Stockland has a $7 billion retail portfolio which has been impacted by structural economic challenges and decreasing sales. Further according to CLSA the key underperformers in the retail sub-segment for Stockland were specialty stores and supermarkets which registered a growth of -0.2 per cent and 0.0 per cent respectively over Q4 FY17. The company’s retail portfolio has also underperformed its peers over the last five years and there are longer-term challenges which will continue to impact Stockland’s retail segment.

Opportunities

1. Opportunities in residential ‘Re-development’ domain: Stockland hasn’t ventured into ‘Re-development’ domain in the Residential space which are offering promising returns. These projects would transform into affordable housing opportunities, a segment which is expected to outperform in otherwise difficult market conditions.

2. Digital revolution to open new market opportunities: The digital revolution is rapidly affecting consumer behaviour and opening up opportunities on new fronts which Stockland can leverage upon. Technology integrations and enhancements including online residential and retirement living engagement opportunities will help in developing business growth. Stockland can transform its retail centres as community hubs by providing e-enabled services and digital solutions. Further, internally in the organization it can encourage a culture of employee innovation through crowdsourcing of ideas.

Threats

1. Stiff domestic and international competition: Stockland’s biggest threats are its national and international competitors. The case in point is a Singapore based Fraser Centre Point Ltd, which took over Australand in an all cash bidding against Stockland in 2015. This lead Stockland to lose an opportunity to acquire a domestic company. Further the acquired entity is giving stiff competition to Stockland.

2. Affordable housing an increasing challenge in Australia: There is an increasing demand of affordable housing in Australia however Inflation in increasing the development cost for realtors like Stockland. The also the rising prices of real estate in Australia is eroding the profits of Stockland, and making it difficult for it reduce its property spaces impacting the affordable housing segment.

Stockland Corporation Ltd. SWOT analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.

References

1. Stockland Corporation Half Year Review 2017: https://www.stockland.com.au/~/media/corporate/pdf/investor-centre/reports-and-presentations/reports/stockland-half-year-review-1h17.ashx?la=en

2. Investor Day 2017 Presentation: https://www.stockland.com.au/~/media/corporate/pdf/investor-centre/reports-and-presentations/presentations/2017-investor-day-presentation.ashx?la=en

3. Stockland Corporation Shareholder Review FY16: https://www.stockland.com.au/~/media/corporate/pdf/investor-centre/reports-and-presentations/reports/stockland-shareholder-review-fy16.ashx?la=en

Download Analysis Report




The PESTLE Analysis for Stockland Corporation Ltd. is given below:
Political
Economical
1. Transparent political policy followed by Stockland
2. Imposition of surcharge on the non-resident buyers of real estate property
1. Affordable housing becoming a major challenge
2. Uncertain macroeconomic outlook with looming risks
Social
Technological
1. Baby boomers to spur demand for an increase in need for villages 1. Technology transformation to help streamline systems and processes
Legal
Environmental
1. Real estate deals vulnerable to money laundering1. Stockland – a leading global player in sustainability
2. Stockland is the Australia’s first issuer of green bonds to fund greener projects
Get Your Free Copy of the SWOT & PESTLE
Analysis Report
Get the original SWOT & PESTLE.com report delivered straight to your email inbox for free.
Our insightful and holistic reports have helped corporate,academia and researchers to take their research forward. Like us on Facebook to stay updated with the latest published SWOT & PESTLE Report.

Download Analysis Report




Political

1. Transparent political policy followed by Stockland: Stockland follows a transparent policy for all political parties in the country. The company since 2008, has been following an organizational wide mandate of not making any donations to political parties or at any levels of government. It expects that the projects it undertakes are judged solely on merit basis and there is complete transparency regarding the same with all its stakeholders.

2. Imposition of surcharge on the non-resident buyers of real estate property: Foreign investment in realty has been a contentious issue for long in Australia. The Australian government imposed 3% surcharge to foreign property buyers who buy apartments, houses and vacant residential-zoned land in Victoria. This came into effect from July, 2014. This was expected to raise about $330mn to the exchequer in the upcoming four years. In addition to these, an absentee land tax of 0.5% is levied on the foreigners who have their property in Australia, but don’t occupy it until 2016. Moreover in 2017, NSW, Queensland and Australian federal governments have imposed additional tax hikes for foreign property owners. This move is seen as a measure to check Chinese property buyers which are the major investors in the Australian market. This will have a tremendous effect on the sales of residential spaces of the Stockland Corporation.

To get the complete detailed PESTLE report on Stockland please mail us at: support@swotandpestle.com. or contact us here.

Download Analysis Report




Copyrights and Disclaimer

Copyright of Stockland Corporation Ltd SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions page for usage guidelines.