1. INDUSTRY SITUATION ANALYSIS
1.1 Dominant Economic Char. of the Industry Environment
· Market size and growth rate
The residential housing industry accounts for more than $325 billion and is increasing quarterly (1.). This is due partially to a constantly increasing population and increasing immigration. This industry is in the beginning stages of maturity with a slightly declining growth curve.
· Scope of competitive rivalry
Most major players in this industry compete on an international level. However, some of the smaller competitors focus on specific regions to keep costs low. Having an international presence makes it easier for a building company to gain a sustained competitive advantage. When the industry lags in one country it may be booming in another. In essence an international company has an effective way of hedging their investments around the world.
· Number of rivals
The industry has several major competitors seeking national and international markets, with many smaller companies trying to tap smaller local markets.
There is a growing trend of the smaller competitors being bought out by some of the larger companies in the industry.
· Buyer needs and requirements
Residential home buyers are looking for a reliable, well known company with a professional face and a quality product. Customers often want to know the specifics of where the building supplies come from to ensure a quality end result in their home. Price is also a factor in this in ...