Strategic analysis of a factory built home opportunity in Western Canada

A strategic analysis was completed to determine the feasibility of initiating a factory-built home manufacturing facility in Western Canada. We completed an industry analysis, internal analysis, an opportunity analysis and provide a recommendation on how to proceed. The results indicate a factory built facility is economically feasible if a market of 60 houses per year can be established. The competitive advantages of factory built homes over on-site homes indicate a better quality home can be produced for thirty to forty percent less cost. The value-chain analysis indicates the margin can be most significantly increased during the marketing, sales and engineering phase. The profitability of a firm improves as the size of the factory increases and if it continues to operate at capacity. The factory built home construction opportunity is very promising. A recommendation to pursue this opportunity is suggested.