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

NVR Firm Analysis - Essay ExampleIts scope of activities though is wide ranging. It non only deals with home construction and market placeing 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 inquire 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 direct 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. exactly since then the company has restructured itself and in the 2000s is once again a leading company. In 2004 the company report solid gains including revenues of $4.3 billion, which was a 17% increase over the previous year. Its big comp etitive 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 steadfast in the United States. (builderonline.com) NVR now has a 1.32% share of the market compared to Pulte Homess 3.61%. (builderonline.com)We believe that we operate our backup with a conservative operating strategy. We do not engage in land development and in the first place construct homes on a pre-sold basis. This strategy allows us to maximize inventory turnover, which we believe enables us to background market risk and to operate with less capital, thereby enhancing rates of return on equity and come up 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