SWOT Analysis of Pulte Group
Pulte group is a USA based real estate property developer. The company undertakes construction and design of semi-custom homes, single family detached homes, senior housing facilities, duplexes townhouses and condominiums. Pulte group develops these homes for both individual customers and corporate clients. Home building is company’s core business. Pulte group also involves in acquisition and development of land site within United States primarily for residential purpose and construction of housing. Pulte group also provide financial assistance and home mortgage services to its clients. It’s headquarter is in Bloomfield, Michigan. Company along its subsidiaries operates in 29 states of US.
Strengths
Pulte group operates with 1 parent 2 subsidiaries which are its core strength. Both subsidiaries are related diversified and provide a major support to the business. This group is also a techno friendly. Recently, Del Webb one of its subsidiaries included solar and energy efficient features at its new sun city homes in Arizona. Pulte group’s sustainable acts include finding energy efficient homes, Solar panel and few other actions are keeping its stakeholders satisfied. Pulte group also has a unique team of its designers and engineers, who make things, happen. In its third quarter of 2012, new orders for homes increased by 27% which is a major sign of growth.
Weaknesses
Pulte group is under a high leverage and debt crises. There is also an uncertainty in company’s performance observed. Group is still struggling to overcome the property depression loss of 05-08 and trying to achieve its objective. Pulte group also has weak financial management policies and failed to diversify and maintaining a risk managed portfolio, despite of knowing real estate market uncertainties. Entity failed to hedge or find alternative material for Lumber, which is a key material and labeled with increasing prices daily.
Opportunities
Threats
There are still micro effects of property depression and recession of 2008 on real estate sector of United States. Government is also keeping a high eye through regulators on house building sector to avoid any other depression. Mortgages are also limited for house building. Increasing rates of lumber and other key materials is also a key threat for industry and Pulte group.
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