Who is the customer? What does the customer value? How does the company make money ?:
TMH is a large volume selling retailer of manufactured homes targeting low-cost single section segment organized along geographic and operational lines. The potential market for TMH includes individuals seeking a single-family residence but lcking the means to purchase conventional housing. These single family homes that cost below $38,000 are not as sensitive to the economic conditions as the multifamily homes and are greatly valued by customers. The company has been able to achieve remarkable growth in revenue(see graph 1), even during a downturn in sales across the industry, primarily by focusing their sales efforts on single-wide home units and acquiring other small retail sales facilities in their geographic area of operation. TMH’s key strategy is to expand through acquisitions, new sales centers, agreements with independent retailers, or a combination of these methods. Along with buying homes from other manufacturers, the company made a strategic move to manufacture its own specialty homes to create new growth opportunity and safeguard the company during periods when demand for homes outpaced supply. This strategy is not intended to compete with other major manufacturers. The company also generates revenue by establishing TMH financial services corp. to “facilitate” financing agreements with the company banks – so the company can earn the spread between what it charges its customers and what it gets charged by the bank.
Capabilities that define resources necessary to execute strategy: The company has a decentralized business model through 114 retail centers, 92 of which are company owned. All of the company’s nine subsidiaries are profit centers with its own CEO. The company’s long range plan for growth is by strategic acquisitions, expanding market share, and developing top class management talent through a salesperson training program, all to meet the need of...