NVR Firm Analysis Essay Example | Topics and Well Written Essays - 500 words

NVR Firm Analysis - Essay Example Its scope of activities though is wide ranging. It not only deals with home construction and marketing of homes, but also other related things such as financing programs, settlement, and title services care of its NVR Mortgage Finance subsidiary. It therefore seeks to cater to every need of the homebuyer. The types of homes NVR builds include single-family detached homes, town homes and condominium buildings. It offers a variety of home designs. It sells about 15,000 homes annually. The sizes of the homes range from 900 sq. ft. to 7,300 sq. ft. The prices range from $60,000 to $2.5 million with an average of $373,000. NVR went through a difficult period in the 1990s when it had to file for bankruptcy. But since then the company has restructured itself and in the 2000s is once again a leading company. In 2004 the company reported solid gains including revenues of $4.3 billion, which was a 17% increase over the previous year. Its big competitive advantage is its branching out into providing financial services because this has really helped the company increase its revenues. In 2005 it was the 10th largest homebuilder firm in the United States. (builderonline.com) NVR now has a 1.32% share of the market compared to Pulte Homes’s 3.61%. (builderonline.com) â€Å"We believe that we operate our business with a conservative operating strategy. We do not engage in land development and primarily construct homes on a pre-sold basis. This strategy allows us to maximize inventory turnover, which we believe enables us to minimize market risk and to operate with less capital, thereby enhancing rates of return on equity and total capital. In addition, we focus on obtaining and maintaining a leading market position in each market we serve. This strategy allows us to gain valuable efficiencies and competitive advantages in our markets which management believes contributes to minimizing the adverse effects of regional economic cycles and provides growth opportunities within