Industry Analysis: Single-Family Custom Homebuilders

In: Business and Management

Submitted By MumfordT
Words 1049
Pages 5
Industry Analysis: Single-Family Custom Homebuilders

Mumford Tarbuckle

MGT 330

Dr. Snozberry

March 9, 2009 Industry Analysis: Single-Family Custom Homebuilders

In some of the worst economic and housing market conditions in over 25 years, small, single-family custom homebuilders must weather the storm or die. In this paper, I will analyze how forces will affect and impact the general environment and the task environment from the perspective of a small custom home builder.
The housing industry contains many types of builders. Highly capitalized, high production builders construct multiple dwelling units, such as skyscrapers hundreds of feet high, containing tens of thousands of square feet of living area; they build in densely populated, highly regulated urban areas. At the small business end of the housing industry, “mom and pop” contractors construct one-at-a-time, one-of-a-kind single-family homes in rural settings. The industry has a wide range of skills, techniques, environments, and budgets. Despite the gaping differences amongst such diverse builders, there is an interrelation and common influences.
The most acutely felt force affecting all builders in the general environment is the decline in the broader economy. Some analysts believe the political environment, particularly the actions and approach of the new Presidential administration, are also critical. The 66-year old National Association of Home Builders (NAHB) has over 200,000 housing-industry related members who “construct about 80 percent of the new homes built each year in the United States” (NAHB, 2009, www.nahb.org, p. Our organization). Their Chief Economist David Crowe, sums up a prevailing view: “Clearly, the downward pressures that have been exerting themselves on the housing market remain in place, including the weakened economy, ongoing job losses and very low…...

Similar Documents

Industry Analysis

... | CELL PHONE INDUSTRY ANALYSIS by Joshua Chan Zhisui Chen Irene Cormane Nou Her Renie Thomas MGMT 182 May 12, 2006 Introduction 1 Dominant Economic Indicator 1 1. Market Size: 1 2. Scope of Competitive Rivalry: 1 3. Stage in Life Cycle: 2 4. Numbers of Companies in the Industry: 2 5. Customers: 3 6. Technology/Innovation: 4 7. Product Characteristics: 6 Camera cell phones: 6 Downloadable Application: 8 Video (Streaming): 8 Internet Access via PC Card: 8 • Motorola RAZR: 8 • LG the V: 8 8. Scale Economies: 9 • Internal 9 • External 9 9. Learning & Experience Effects: 10 10. Capital Requirements: 10 11. Industry Profitability: 11 Six Forces of Competition 12 1. Threat of New Entrants 12 2. Bargaining Power of Suppliers 12 3. Bargaining Power of Buyers 13 4. Threat of Substitute Products/Services 13 5. Intensity of Rivalry among Competitors 14 6. Unions 14 Competitive Position of Major Mobile Phone Manufacturers 15 Competitor Analysis of Mobile Phone Manufacturers 17 Nokia 17 Motorola 18 Ericsson 19 Other Manufacturers: 20 LG 20 Samsung 20 Competitive Position of Major Wireless Service Providers 21 Competitor Analysis of Wireless Service Providers 22 Verizon 22 AT&T 23 Sprint Nextel 25 Industry Trends 26 Technology 26 Phone Design 27 ......

Words: 5817 - Pages: 24

Industry Analysis

...Industry Analysis Our group realized that the Instant Messaging industry is a very competitive industry. We make this conclusion after doing the Michael Porter’s five forces analysis. In overall, five sections of the industry can be described as below: * The existing rivalries in IM industry is high: By looking through the source of information online, we figured out that there are many competitors within IM industry. Currently, there are at least 12 major players in the market. Among these 12 major players, we found that some of them exist before the founding of LINE apps, which means that they transformed from desktop IM into mobile IM. However, most of these initially desktop IMs are doing so well in the existing market due because they have lack of capabilities to compete with those entrants who target only at the mobile segment. For example, ebuddy was established in 2003 as a light version of desktop IM. They start up as a cross platform IM, which means that if you have user accounts in different IMs platform, you would only need to download ebuddy to chat with friends. For example, you have MSN and Yahoo! Messenger, you need not to download both Yahoo! and MSN chatting tools, instead you can use only ebuddy to chat in both Yahoo! and MSN. They entered mobile segment in 2009 but it appeared that it was not so attracted by the public. Overtime, different player in different geographical region dominates the market of mobile IM industry. Kakao Talk dominates......

Words: 2266 - Pages: 10

Industry Analysis

...growth and promote the fuller utilization of a country’s resources. Contents 1. 2. 3. 4. 5. 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 Guidelines Introduction & Objectives Economic Overview Industry Overview Market Assessment Market & Demographic Profile Owner Profile Business Linkages Business Cycle Financial Assessment & Profile Financial Information Page No. 1 2 5 5 6 6 7 9 10 11 11 13 13 14 15 16 16 17 17 Indicative Business Requirements Financial Needs Analysis Usage of Banking Products 5.10 Segment Risk Considerations 6. 6.1 6.2 7. Proposed Banking Product Suite Product Features Eligibility Criteria for Asset Products Distribution and Communication Considerations 1. Guidelines This segment booklet provides indicative business and financial characteristics based on the information evidenced from a sample of business owners via primary research survey, it can be used for development of program based lending products for tapping the underutilized potential for providing financing products to business owners. The Manufacturing Segment-Grain Mill Products and Animal Feeds Industry overview is developed using information obtained from secondary and tertiary sources including industry associations and data available in public domain. Market Assessment The section contains analysis based on primary findings of survey exercise conducted in major cities of Pakistan; the information can form the basis of identifying the characteristics of an average business owner in......

Words: 7337 - Pages: 30

Single Parent Family

...A single parent is a parent who cares for one or more children without the assistance of another parent in the home. Being a single parent may occur for a variety of reasons: divorce, adoption, abandonment, or even death. Single parent families suffer from multiple problems including the decline in income and educational level, which consequently lead to economic, social and psychological complications (Essa, 1995). According to research, children of single-parent families suffer from a decline in the level of education when compared to children who are raised in an intact family. Children in single-parent households were twice as likely to drop out of school (Al-Zufairi, 2000). Children from single-parent households were also more likely to take jobs at the bottom of the occupational grade with lower incomes and also have a higher rate of unemployment. The children in single-parent households also suffered economic deprivation, prenatal care and had a higher rate of moving from home to home, which could negatively affect their development. Broken families earn less money, suffer from low educational levels and often pass these conditions on to their children, which often effects other generations. A single care giver will usually develop a sense of loneliness and tension, especially when he/she needs to make important decisions concerning the family. Certain conditions such as mental disorders, special needs and physiological conditions often increase the worry of......

Words: 674 - Pages: 3

Industry Analysis

...Industry Analysis By Week 3 Industry review The pet grooming industry is one that is steadily growing from year to year. According to the American Pet Products Manufacturing Association, an estimated $2.7 billion was spent on grooming and boarding services in 2006 alone. Then again in 2007, the services grew to $2.9 billion. In this industry it is important to be aware of the demographics and the new trends that develop year to year in order to stay up with the times and accurately identify one’s customers and potential customers. With an estimated 74.8 millions dogs in the U.S. this is evidence that pets are a big part of our lives. According to the 2007-2008 APPMA National Pet Owners’ survey, many pet owners spend an average of $127 on grooming and grooming aids. Furthermore, the 2006 Household Spending for pet services shows the following average spending: • Married couples with no children $38.72. • Married couples with children $30.69 • Single Parent $18.88 The middle and older age group also pamper there furry four legged friends. Average spending: • 35-44 years old $29.04 • 45-54 years old $44.50 55-64 years old $26.72 Regulation review and legal concerns Location of business is in New York, however we are mobile. The type of business that will be set up will more than likely be an LLC to protect our personal assets. We would need to contact the New York......

Words: 1875 - Pages: 8

Industry Analysis

...Industry Analysis (Case 1) Paper Instructions and Grade Sheet MAN 4720 Strategic Management Assignment Value - 50 points possible (all team members receive the same grade) Due Date: See syllabus Purpose: Each team will select an industry to study. You will conduct an industry analysis (also called a competitive analysis) of your assigned industry, and to collectively write a paper reporting your results. This paper will require that you apply the concepts that you have learned in the course. This assignment will enable you to learn how to research and analyze the external and competitive nature of an industry. It is necessary to have a thorough understanding of an industry before a firm can develop strategic plans to obtain competitive advantages. Basic Attributes of Your Report: The best reports are the result of a lot of research. There is a direct correlation between research and grades. To earn the highest grade possible, your report should demonstrate evidence of: • Significant secondary research. • Integration of course concepts. • Written in plain English and demonstrating understanding that clarifies and distills the problems and opportunities competitors in the industry are facing. • Precise business writing skills. (You will be penalized for writing mistakes.) The best reports also summarize what you have learned from your research. A great report demonstrates that the student has thoroughly researched the industry,...

Words: 3252 - Pages: 14

Industry Analysis

...Team Industry Analysis Paper Overall snapshot of industry The pet care industry entails the comprehensive care of domestic animals. For example, when your pet fish needs food, a consumer purchases the fish flakes from a pet supply store. Another example of a segment in the market is a veterinarian. When your pet is sick, you take it to be treated. The overarching industry also includes buying pets. Since the pet care industry is very broad, and dominated by PetCo and PetSmart, we are focusing on the niche daycare (boarding) segment of the industry. The daycare industry focuses on providing supervision, companionship, and exercise services for a consumer's pet while away. In 2011, 63.2% of pet owners considered their pets to be family members according to the American Veterinary Medical Association.5 The demand for quality care of animals while the “parents” are away is incredibly high. The pet daycare industry provides the supervision and interaction that comforts pet-owners during either a long-term, short-term, or even daily stay. The main reasons pets are dropped off at a daycare are either due to vacations or daily jobs that take owners away from pets. Very often in this industry a pet daycare facility will offer other pet services such as grooming, pet food sales, and pet supply sales as add-ons to the primary service of boarding; however, this makes up a small percentage of total revenue. Industry specific statistics and details re: pet daycare and boarding ...

Words: 3912 - Pages: 16

Industry Analysis

... | | | CELL PHONE INDUSTRY ANALYSIS by Joshua Chan Zhisui Chen Irene Cormane Nou Her Renie Thomas MGMT 182 May 12, 2006 Introduction 1 Dominant Economic Indicator 1 1. Market Size: 1 2. Scope of Competitive Rivalry: 1 3. Stage in Life Cycle: 2 4. Numbers of Companies in the Industry: 2 5. Customers: 3 6. Technology/Innovation: 4 7. Product Characteristics: 6 Camera cell phones: 6 Downloadable Application: 8 Video (Streaming): 8 Internet Access via PC Card: 8 • Motorola RAZR: 8 • LG the V: 8 8. Scale Economies: 9 • Internal 9 • External 9 9. Learning & Experience Effects: 10 10. Capital Requirements: 10 11. Industry Profitability: 11 Six Forces of Competition 12 1. Threat of New Entrants 12 2. Bargaining Power of Suppliers 12 3. Bargaining Power of Buyers 13 4. Threat of Substitute Products/Services 13 5. Intensity of Rivalry among Competitors 14 6. Unions 14 Competitive Position of Major Mobile Phone Manufacturers 15 Competitor Analysis of Mobile Phone Manufacturers 17 Nokia 17 Motorola 18 Ericsson 19 Other Manufacturers: 20 LG 20 Samsung 20 Competitive Position of Major Wireless Service Providers 21 Competitor Analysis of Wireless Service Providers 22 Verizon 22 AT&T 23 Sprint Nextel 25 Industry Trends 26 Technology 26 Phone Design 27 Mergers 27 Market Growth 28 Security......

Words: 5820 - Pages: 24

Single Parent Families

...One of the most striking changes in family structure over the last twenty years has been the increase in single-parent families. In 1970, the number of single-parent families with children under the age of 18 was 3.8 million. By 1990, the number had more than doubled to 9.7 million. For the first time in history, children are more likely to reside in a single-parent family for reasons other than the death of a parent. One in four children are born to an unmarried mother, many of whom are teenagers. Another 40 percent of children under 18 will experience parental breakup. Ninety percent of single-parent families are headed by females. Not surprisingly, single mothers with dependent children have the highest rate of poverty across all demographic groups (Olson & Banyard, 1993). Approximately 60 percent of U.S. children living in mother-only families are impoverished, compared with only 11 percent of two-parent families. The rate of poverty is even higher in African-American single-parent families, in which two out of every three children are poor. Effects on Children Past research has indicated that children from single-parent families are more likely to experience less healthy lives, on the average, than children from intact families. For instance, children growing up with only one parent are more likely to drop out of school, bear children out of wedlock, and have trouble keeping jobs as young adults. Other consequences include risks to psychological development,......

Words: 3003 - Pages: 13

Industry Analysis

...THE MANUFACTURING INDUSTRY ANALYSIS On top of almost every economy usually stands the Manufacturing industry and has always been the source of growth of most economy. However, for Jamaica this sector's has been impeded by a number of factors including crime, high energy costs, reduced access to affordable raw materials and thereby resulted in a decline in the industry. THE FOUNDATION Jamaica possesses a highly diversified manufacturing industry whose development has been based on continuous investment from other countries, which has produced high-quality products and dominated the country’s export over the last 50 years. A primary force behind the increase in the manufacturing industry resulted from the shortage of goods after World War 11, therefore a lot of the international goods were produced locally. In its early stages of development of the manufacturing industry was overwhelmed with opportunities. With the support of Government, an entrepreneurial class, a local market that could facilitate over 1 million individuals, and labour in abundance, the manufacturing industry was unstoppable. The company was moving so rapid that sectors quickly diversified from sugar and rum into producing a wide range of manufactured products such as garments, processed foods, machinery, and electrical equipment, and this resulted in an impressive growth. Real value increased for the sector increased at an average of 7% annually between 1938 and 1950, and its contribution to GDP......

Words: 3464 - Pages: 14

Single Parent Families in Russia

...One parent families in modern Russia The family pattern has changed through the years not only in Russia but in other developed countries too. The main family pattern once used to be a nuclear family where a mother stayed at home raising the children and a father worked to support the family. Yet, the situation has changed as more and more marriages tend to end in divorce which causes increase of the number of one parent families. The other reason of this drastic increase is that women are able to support themselves and their children as their income now can be equal to that’s of men, that is why nowadays some unmarried women to have a child without even considering getting married. Besides, the attitude towards single mothers in modern Russia has also changed and nowadays having a child without a husband is not considered to be such a disgrace as it used to be. Though the question of getting custody is quite important, the most urgent questions are what difficulties single parents face in everyday life and how living with only one parent affects a child. As for adults, the main problems are lack of money and time, poor relations with a child, constant pressure and inability to create a healthy atmosphere at home. Yet, these are children who suffer more in such families. A divorce itself may cause a lot of psychological issues, even if a child seems to accept it well. Another problem is that a child lacks observing different patterns of behavior as males and females......

Words: 309 - Pages: 2

Industry Analysis

... | CELL PHONE INDUSTRY ANALYSIS by Joshua Chan Zhisui Chen Irene Cormane Nou Her Renie Thomas MGMT 182 May 12, 2006 Introduction 1 Dominant Economic Indicator 1 1. Market Size: 1 2. Scope of Competitive Rivalry: 1 3. Stage in Life Cycle: 2 4. Numbers of Companies in the Industry: 2 5. Customers: 3 6. Technology/Innovation: 4 7. Product Characteristics: 6 Camera cell phones: 6 Downloadable Application: 8 Video (Streaming): 8 Internet Access via PC Card: 8 • Motorola RAZR: 8 • LG the V: 8 8. Scale Economies: 9 • Internal 9 • External 9 9. Learning & Experience Effects: 10 10. Capital Requirements: 10 11. Industry Profitability: 11 Six Forces of Competition 12 1. Threat of New Entrants 12 2. Bargaining Power of Suppliers 12 3. Bargaining Power of Buyers 13 4. Threat of Substitute Products/Services 13 5. Intensity of Rivalry among Competitors 14 6. Unions 14 Competitive Position of Major Mobile Phone Manufacturers 15 Competitor Analysis of Mobile Phone Manufacturers 17 Nokia 17 Motorola 18 Ericsson 19 Other Manufacturers: 20 LG 20 Samsung 20 Competitive Position of Major Wireless Service Providers 21 Competitor Analysis of Wireless Service Providers 22 Verizon 22 AT&T 23 Sprint Nextel 25 Industry Trends 26 Technology 26 Phone Design 27 ......

Words: 5817 - Pages: 24

The Danger of a Single Story Analysis

...The danger of a single story Stine Krog 2.u Risskov Gymnasium. Boom boom. The sound of drums beating. The tribal music. African people dancing. Disguised behind the music and festiveness lies hunger and despair. This is Africa. In the meantime cars are driving through a city filled with lights, technology and well-educated people. This is Africa. There are two stories of Africa represented here. One is not more truthful than the other. Some people unfortunately only define Africa by a single story. This is a topic Chimamanda Ngozi Adichie(CNA) addresses with her TED-talk “The danger of a single story.” This essay will contain an account of the phrase “The Single Story”, and an analysis of the way CNA engages the audience. It will furthermore discuss the term cultural ignorance. CNA defines the single story as a term used when individuals define other individuals by a single story. She uses her own life experience to define the phrase. She starts by explaining how “…vulnerable we are in the face of a single story.” She refers to the single story she had of Fide’s family. She had always been told how Fide’s family was poor and didn’t have anything. Therefore she was very surprised when she went to Fide’s village, and discovered that Fide’s family could actually make something. Later in CNA’s life, she went to a university in the United States and found that the people had a single story of Africa and therefore thought that she was uneducated, and not even able to use...

Words: 1024 - Pages: 5

Industry Analysis

...3 Industry Analysis: The Fundamentals When a management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact. —Warren Buffett, Chairman, Berkshire Hathaway The reinsurance business has the defect of being too attractive-looking to new entrants for its own good and will therefore always tend to be the opposite of, say, the old business of gathering and rendering dead horses that always tended to contain few and prosperous participants. —Charles T. Munger, Chairman, Wesco Financial Corp. OUTLINE n n n n n INTRODUCTION AND OBJECTIVES FROM ENVIRONMENTAL ANALYSIS TO INDUSTRY ANALYSIS THE DETERMINANTS OF INDUSTRY PROFIT: DEMAND AND COMPETITION ANALYZING INDUSTRY ATTRACTIVENESS Porter’s Five Forces of Competition Framework Competition from Substitutes Threat of Entry Rivalry Between Established Competitors Bargaining Power of Buyers Bargaining Power of Suppliers APPLYING INDUSTRY ANALYSIS Describing Industry Structure Forecasting Industry Profitability Strategies to Alter Industry Structure 66 INTRODUCTION AND OBJECTIVES 67 n n n n DEFINING INDUSTRIES: WHERE TO DRAW THE BOUNDARIES Industries and Markets Defining Markets: Substitution in Demand and Supply FROM INDUSTRY ATTRACTIVENESS TO COMPETITIVE ADVANTAGE: IDENTIFYING KEY SUCCESS FACTORS SUMMARY NOTES INTRODUCTION AND OBJECTIVES In this chapter and the next we explore the external environment......

Words: 14781 - Pages: 60

Industry Analysis

...3 Industry Analysis: The Fundamentals When a management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact. —Warren Buffett, Chairman, Berkshire Hathaway The reinsurance business has the defect of being too attractive-looking to new entrants for its own good and will therefore always tend to be the opposite of, say, the old business of gathering and rendering dead horses that always tended to contain few and prosperous participants. —Charles T. Munger, Chairman, Wesco Financial Corp. OUTLINE n n n n n INTRODUCTION AND OBJECTIVES FROM ENVIRONMENTAL ANALYSIS TO INDUSTRY ANALYSIS THE DETERMINANTS OF INDUSTRY PROFIT: DEMAND AND COMPETITION ANALYZING INDUSTRY ATTRACTIVENESS Porter’s Five Forces of Competition Framework Competition from Substitutes Threat of Entry Rivalry Between Established Competitors Bargaining Power of Buyers Bargaining Power of Suppliers APPLYING INDUSTRY ANALYSIS Describing Industry Structure Forecasting Industry Profitability Strategies to Alter Industry Structure 66 INTRODUCTION AND OBJECTIVES 67 n n n n DEFINING INDUSTRIES: WHERE TO DRAW THE BOUNDARIES Industries and Markets Defining Markets: Substitution in Demand and Supply FROM INDUSTRY ATTRACTIVENESS TO COMPETITIVE ADVANTAGE: IDENTIFYING KEY SUCCESS FACTORS SUMMARY NOTES INTRODUCTION AND OBJECTIVES In this chapter and the next we explore the external environment......

Words: 14708 - Pages: 59