A strategic analysis of U.S. development opportunities for spectrum seniors housing

Spectrum Seniors Housing is interested in expanding its development operation into the United States. This project investigates its opportunity by using Porter’s Five Forces Framework to analyze the industry and by assessing Spectrum’s internal capabilities. Various market entry modes are considered and recommendations provided. The U.S. marketplace appears promising due to a growing aging population, strong occupancy rates and an insufficient supply of housing. However, it presents challenges which include a shortage of construction labour and affordable land. Spectrum is also challenged by the transferability of some of its operating competencies. Despite the challenges, the opportunities support expansion. Spectrum should enter the United States with a mixed mode approach of establishing itself as a sole venture subsidiary and then partnering on individual projects through joint venture company creation. It should seek partners with complementary capabilities and initiate ten projects as soon as possible in locations where project returns are greatest.