Description
SWOT ANALYSIS OF DAIWA HOUSE INDUSTRY
Daiwa House Industry
Parent Company
Daiwa House Group
Category
Construction Services
Sector
Real Estate and Construction
Tagline/ Slogan
Co-creating values for individuals, communities and people’s lifestyles
Builds houses to tough crime-prevention standards; also provides USP quake-dampening systems in areas that are earthquake prone
STP
Based on type of business: construction of apartments, office buildings, large scale residential development, managements of resorts and golf courses, etc. Based on Geography: Japan, Europe, Rest of Asia, Latin America, Africe Segment and middle east
Predominantly single family housing, though it has presence in other segments Based on geography: dominant presence in Japan with negligible Target Group presence in other parts of the world
As a company to trust when it comes to providing housing solutions Positioning that adhere to tough crime-prevention standards
SWOT Analysis
1. Strong position in single family housing – The company builds more than 10,000 houses per year. It became the first manufacturer in the industry to build all houses to tough crime-prevention standards. 2. Diversified operations leading to expanding customer base – Daiwa operates in rental housing, single family houses, commercial facilities, condominiums, and health and leisure segment. This ensures limited fluctuations in revenues 3. Innovation through new technologies - the company launched SMA×Eco ORIGINAL smart house, fitted with lithium ion storage batteries, a photovoltaic power generation system, and the company’s proprietary D-HEMS home energy management system 4. One of the largest Japanese construction companies which Strength specializes in fabricated homes
1. Lack of significant overseas presence - Daiwa House generated almost negligible revenue from international markets. As a result, revenue of Daiwa House is more susceptible to domestic markets 2. Low efficiency leading to low margins – Compared to competitor Sekisui House, Ltd., the revenue and profit per employee have been less over the past few years. This may lead to sustained lower margins Weakness for the company
1. Renovation business as a new growth business ,the size of the home renovation market which is expected to increase in the coming years 2. Market expansion opportunities in eco housing - The environment and energy business is expected to become a high worth in the market 3. Fiscal initiatives/incentives could boost demand for real estate Opportunity construction by the govt
1. Decline in population and ageing of society could lead to contraction in revenue - Japan has been experiencing negative population growth 2. Rising cost of construction likely to restrict margins - The prices of raw materials used to manufacture cement such as coal, limestone, clay are increasing 3. Intense competition may erode market share - With maturing Japanese housing sector and economic downturn, the Japanese house builders are facing pressures to retain market share at home and are Threats scouting for opportunities abroad
Competition
1. Sekisui House, Ltd. 2. Shimizu Corporation 3. Asahi Kasei Competitors 4. Kajima Corporation
doc_378579507.docx
SWOT ANALYSIS OF DAIWA HOUSE INDUSTRY
Daiwa House Industry
Parent Company
Daiwa House Group
Category
Construction Services
Sector
Real Estate and Construction
Tagline/ Slogan
Co-creating values for individuals, communities and people’s lifestyles
Builds houses to tough crime-prevention standards; also provides USP quake-dampening systems in areas that are earthquake prone
STP
Based on type of business: construction of apartments, office buildings, large scale residential development, managements of resorts and golf courses, etc. Based on Geography: Japan, Europe, Rest of Asia, Latin America, Africe Segment and middle east
Predominantly single family housing, though it has presence in other segments Based on geography: dominant presence in Japan with negligible Target Group presence in other parts of the world
As a company to trust when it comes to providing housing solutions Positioning that adhere to tough crime-prevention standards
SWOT Analysis
1. Strong position in single family housing – The company builds more than 10,000 houses per year. It became the first manufacturer in the industry to build all houses to tough crime-prevention standards. 2. Diversified operations leading to expanding customer base – Daiwa operates in rental housing, single family houses, commercial facilities, condominiums, and health and leisure segment. This ensures limited fluctuations in revenues 3. Innovation through new technologies - the company launched SMA×Eco ORIGINAL smart house, fitted with lithium ion storage batteries, a photovoltaic power generation system, and the company’s proprietary D-HEMS home energy management system 4. One of the largest Japanese construction companies which Strength specializes in fabricated homes
1. Lack of significant overseas presence - Daiwa House generated almost negligible revenue from international markets. As a result, revenue of Daiwa House is more susceptible to domestic markets 2. Low efficiency leading to low margins – Compared to competitor Sekisui House, Ltd., the revenue and profit per employee have been less over the past few years. This may lead to sustained lower margins Weakness for the company
1. Renovation business as a new growth business ,the size of the home renovation market which is expected to increase in the coming years 2. Market expansion opportunities in eco housing - The environment and energy business is expected to become a high worth in the market 3. Fiscal initiatives/incentives could boost demand for real estate Opportunity construction by the govt
1. Decline in population and ageing of society could lead to contraction in revenue - Japan has been experiencing negative population growth 2. Rising cost of construction likely to restrict margins - The prices of raw materials used to manufacture cement such as coal, limestone, clay are increasing 3. Intense competition may erode market share - With maturing Japanese housing sector and economic downturn, the Japanese house builders are facing pressures to retain market share at home and are Threats scouting for opportunities abroad
Competition
1. Sekisui House, Ltd. 2. Shimizu Corporation 3. Asahi Kasei Competitors 4. Kajima Corporation
doc_378579507.docx