SWOT analysis is a simple tool yet critical for all companies, including top-performing companies like AppFolio, who need to keep checking on areas of improvement to ensure they go on performing highly. SWOT analysis gives insights into the company’s strengths and weaknesses so that the company is able to keep working on its weaknesses to turn them into more strengths. It reveals the continuous opportunities in the market so that the brand is able to continuously take advantage of them for more growth. It identifies threats in the market and works to eliminate them or even turn them into opportunities.
Appfolio is a company that focuses on cloud-based business management solutions tailored for the real estate industry. It includes the provision of data analytics and innovative software services to the real estate industry. The brand’s cloud-based business management solutions are geared towards enabling customers to digitally transform their businesses, enhance customer services and business operations. The company’s product portfolio consists of AppFolio Property Manager, AppFolio Investment Management, and AppFolio Property Manager Plus.
AppFolio – At a Glance
| Name | AppFolio, Inc. |
| Website | www.appfolioinc.com |
| Founders | Klaus Schauser, Jon Walker |
| Chief Executive Officer (C.E.O.) | Jason Randall |
| Headquarters | Santa Barbara, CA |
| Type of Corporation | Public |
| Year Founded | 2006 |
| Revenues (2020) | $310.1 million |
| Key Products/Services | AppFolio Property Manager, AppFolio Investment Management, and AppFolio Property Manager Plus |
| Key Competitors | Yardi Voyager, Yardi Breeze, Buildium, TOPS, Buildium, Condo Control, Hemlane, MRI Commercial, Propertyware, TenantCloud |
AppFolio’s Strengths
Strong Brand
AppFolio brand is highly rated in the market. In 2020, AppFolio ranked position 1 among the fastest-growing companies on Fortune’s list.
Strong Product
AppFolio offers an all-in-one solution for property management. The product is continuously improved according to user needs. It has shorter development cycles in delivering improvements on the platform. The solution is integrated with accounting, leasing, marketing, and management functionality to serve single-family, multi-family, student housing, commercial associations, and mixed portfolio properties. It is this versatility that makes it one of the best options for managing mixed portfolios. Its product is liked for its strong CAM features, online payment options, and customized reporting, among others.
Great Customer Satisfaction
Customers have given AppFolio a high rating for a great customer experience. On GetApp.com, the brand has a 4.6/5 stars rating from 1,688 reviews. Some of the reasons for the high rating include great functionality and features, boosts efficiencies, and their developers are keen to listen to customer needs and keep evolving the software to meet the customers’ changing needs. Through listening to customers and data analytics, the brand can continuously identify challenges facing the users and innovate solutions ahead of users. It, therefore, becomes a pleasant notice for users.
Specialization
One of the brand’s biggest advantages is a focus on the real estate market. With a keen focus on one niche, the brand is able to develop its core competencies, stretch its expertise to greater heights and become the best in the industry. This could explain why the brand is top among the fastest-growing companies globally. It covers tenant communication, inspections, and maintenance requests, among other real estate-specific functions.
Strong Employee Team and Management
AppFolio was recognized in 2020 by Glassdoor as the best place to work for. Employees at AppFolio are the main driving force behind the continuous development of the platform that continuously grows to satisfy client’s needs. A highly specialized and trained workforce is a major strength for AppFolio and any other app development company.
AppFolio’s Weaknesses
Costly for Small Scale Property Managers
The software solution charges a minimum of $250 per month. This could serve up to 200 properties. If that is the case, the cost of management per unit property is slightly above a dollar per month. The fewer properties one is managing, the higher the cost. Additionally, if one is managing only one type of property like commercial properties only, they are not able to maximally use all the features in the software.
Gap in Customer Service
The company has an impressive score in its customer service. However, there are still gaps with regard to customer support response times and some recurring problems. The brand still has more room to keep closing such gaps and grow its rating upwards for more customer satisfaction.
Appfolio’s Opportunities
Growth in Real Estate Market
The real estate property market is projected to grow at the rate of 2.9% through 2027. There are, therefore, growth opportunities for real estate and related services due to increasing purchasing power. As a result, the property management software market is expected to grow even much more.
Changing Needs in the Market
Every problem arising in the marketplace is an opportunity for growth. The modern user has evolving needs and preferences. Companies that are able to identify these changing needs and come up with solutions stand higher chances of growth in their product and gain more revenues.
Technological Innovation
Technology keeps on evolving and brings more opportunities for innovation and the creation of new experiences for the customers. It brings in more efficiencies and effectiveness, thus reducing costs. Technological innovation remains the bedrock for innovation in the software industry.
Top Talent
Human capital is a great need in app development companies. With every passing day, there is more growth in the discovery and growth of new talent. AppFolio should invest in identifying top talent, nurturing growing talent, and retaining top talent.
AppFolio’s Threats
Stiff Competition
Competition in the software development market is very stiff with existing companies and also with new entrants getting into the market. With low barriers to entry, the market keeps on flooding with more companies that keep the market shrinking.
Rapid Technology Advancement
The rate at which technology is evolving is quite high. Some of these technologies cost a fortune to acquire. It becomes a challenge if, before the company realizes returns, the technology becomes obsolete, and the brand has to acquire a more appropriate technology to facilitate enhanced services. AppFolio needs to be keener in their choice and acquisition of technology.
Time Limitations
The pressure of time on software developers sometimes leads to the release of products into the market without enough testing and tying up all possible loopholes. This could lead to big security issues and even more stress on users when there are gaps in features and service delivery.
Conclusion
AppFolio has already posted impressive performances in the market with great ratings and recognitions in the industry. Its rapid growth creates a good momentum for more growth, given there is goodwill in the market and appreciation for the brand. The brand has a great strategy for the continuous development of their product; we encourage the company to go on with the strategy as it will ensure more growth.
