Description
SWOT ANALYSIS OF SEKISUI HOUSE LIMITED

Sekisui House Ltd

Parent Company

Sekisui House

Category

Construction Services

Sector

Real Estate and Construction

Tagline/ Slogan

Quality and affordable new home solutions

Only housing company in Japan certified as an eco-first company by USP the ministry of environment

STP

Based on business type Based on geography – Japan, Rest of Asia, Australia, Africa, the Segment Americas, Europe

Targets construction, sale, purchase and administration of residential properties. Residential projects in Japan, Australia, China, Singapore, Target Group and the US

A eco-first company that promotes environmentally-conscious Positioning technology

SWOT Analysis

1. Eco-friendly detachable homes are a driver of growth - the company has been promoting environmentally-conscious technology since 1999 when its Environmental Future Plan was introduced 2. Wide range of product portfolio and sales network - Sekisui provides services ranging from planning and scheduling to construction and management of projects. The company conducted its sales through 120+ sales offices, 30 customer service centers, and 400+ display homes 3. It is one of the largest construction companies in Japan 4. Over 2.2 million houses have been sold Strength 5. 15,000+ employees form a part of the company

1. Excessive dependence on Japan - Japan accounted for more than 90% of the total revenues of the company 2. Weakening trend in financial strength contributing to increased Weakness business risks - Sekisui’s debt-to-equity ratio increased unfavorably

1. Japanese recovery and reconstruction process – Japanese government allocated a huge sum remaining from the budget towards the country’s rebuilding package 2. Overseas expansion in Australia - The company chose Australia for their first overseas expansion due to the clarity of their legal system, Opportunity the ease of the building environment, and political stability

1. Rising cost of Construction - increase in the costs of key raw materials would bring in pricing pressures at a time when the economy in which the company operates is still gloomy 2. Intense competition erodes 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 scouting for opportunities abroad 3. Government regulations - It is possible that increasingly stringent requirements will be imposed on developers and homebuilders in the future. This could result in time-consuming and expensive compliance programs and substantial expenditures, which could cause delays in home building process and also increase the company's cost of Threats operations

Competition

1. Daiwa House Industry Co. 2. Asahi Kasei 3. Sumitomo Realty & Development Co. 4. Sumitomo Forestry 5. Daikyo Incorporated Competitors 6. Haseko Corporation



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