Case Solution

Marco Di Maggio, Julia Kelley
Harvard Business School ()

Redfin, a technology-driven real estate agent, was founded in 2002 with the intention of using technology to revolutionize the real estate industry. Over the next 15 years, Redfin made several changes to its business model. Initially, the company offered less support than a traditional real estate agency, but it helped home buyers and sellers save more money. Over time, in response to customer feedback, Redfin has increased the level of customer service it provides while decreasing the amount of savings for customers. In July 2017, Redfin went public with a valuation of $ 1.73 billion. Now, in late 2017, CEO Glenn Kelman had to decide what Redfin’s top strategic priority should be. Redfin could look to increase its market share, which is currently less than 2% even in the company’s main markets, or focus on offsetting costs and improving profits.

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