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Beazer Homes

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Submitted By joliebean59
Words 22609
Pages 91
AC600 – Summer B 2010

Industry Overview
Beazer Homes belongs to the homebuilding industry, also known as the residential construction industry.
Segmentation is extensive in this industry. By way of service lines, it includes construction services, brokerage services, title insurance services and mortgage services. In terms of product lines, it includes single-family and multi-family housing, both attached and unattached, on an individual basis and as part of planned developments or communities. In terms of sectors served, these products and services are provided for individuals and communities in the residential, commercial, industrial, hospitality, and leisure/resort sectors. These homes are made to appeal to homebuyers at various price points, degrees of urbanization and ruralization, demographic segments and stages of life. Competitive products are differentiated based on factors such as location, reputation, quality, features, design and price.
Competition in the home building industry comes from a number of sources. First, the industry itself is widely fragmented, in terms of the number of players. At the peak of the industry’s prosperity, at the height of the recent housing bubble, the top ten players in the industry accounted for only 35% of its sales in dollars. The actual number of players considered legitimately “in the game” at a nationally-visible level numbers between 1,500 and 3,000 at any given time, depending on the industry’s prosperity level. This is a very large number for any one industry to have at this level. There are also innumerable very small local players. But, competition for the new single-family home building industry does not only come from within. Such competition also comes from the re-sale of existing single-family homes, new and existing condominiums, rental housing, and recently short sales and foreclosures.

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