DLF BUILDING INDIA
INTRODUCTION
DLF was a real-estate developer in India primarily into development of residential, commercial and retail properties. They spanned all aspects of real-estate development, from the identification and acquisition of land, to the planning, execution and marketing of projects, through to the maintenance and management of completed developments. Since the founding in 1946, the business focused on real estate development in the National Capital Region, including Delhi and Gurgaon Realty Giants DLF was incorporated as a company before INDEPENDENCE on September 18, 1946.It was started by Chaudhary Raghvendra Singh. He built landmark residential colonies like Greater Kailash, South Extension & Hauz khas, also developed 21 colonies in Delhi between 1947 and1961 by persuading farmers to sell their holdings on credit .Later on , all development in Delhi was taken over by DDA which forced DLF to diversify into batteries and cables, electric motors in a joint venture with Universal Electric USA & car batteries.
Retail Development
The retail business line, established in 1940s, focused on developing, managing and leasing or selling shopping malls, including cinema complexes. Since 2001, they were developing air-conditioned mega malls and other retail spaces.By2006, they became one of Indias leading developers. DLF had six-retail real-estate development formats catering to the entire spectrum of the retail market to serve the needs of customer with different buying patterns and purchasing power. These formats were standalone stores, shopping centers, prime downtown shopping districts, neighbourhood malls, destination malls and super luxury malls having aesthetic design, high quality infrastructure ,leisure and
entertainment options viz. cinema complexes, food courts and restaurants. DLF had MOU with TRENT, retail business of TATA GROUP and with Metro Cash& Carry for joint development. The firm also planned to diversify into development of SEZs ,infrastructure construction through joint venture with Laing ORourke plc. and development of hotels
Strategy
DLF had a mission to build a world-class real-estate development co. with the highest standards of professionalism, ethics & customer service and to thereby contribute to & benefit from the growth of the Indian economy. The 7 key elements of business strategy included: Increasing land reserves in strategic location: For growth strategy, DLF identified 62 cities & by APRIL 30,2006,they had partial payments to acquire 2,893 acres of land across the country. Expand core business lines nationally: DLF evaluated projects throughout India, involving the development of residential, commercial & retail developed area of approx.96 million sq. ft., 16million sq. ft., & 6million sq. ft., resp., totaling over 118m. Sq. ft. Diversify into SEZ development: SEZs were a new concept in India , & provide attractive fiscal incentive for both developers & tenants. Each SEZ would be developed as an integrated township & include residential, commercial & retail space as well as schools, hospitals & hotels
5 FORCES STRATEGY
RIVALRY AMONG INDUSTRY DLF has a high ratio of market share(almost to monopoly). DLF is differentiated because it is continuously implementing innovations in the construction & booking. High concentration ratio that indicates a high concentration of market share. With only few firms holding a large market share, the competitive landscape is less competitive (closer to monopoly) NEW ENTRANTS DLF PAT is already high in comparison to its competitors. This characteristic protects the high profit levels of the firm in the market which prohibits rivals from entering into the market. SUBSTITUTES No close substitute. Demand is inelastic. Threat of substitute mainly has an impact on the industry through price competition
BUYERS DLF has acquired a significant portion of land for construction. So buyers are concentrated because there are fewer buyers with significant market share. SUPPLIERS The suppliers to the DLF are also getting benefits by rising of the industry. Many other industries were also depend on this industry.
STRENGTH
Employment &Training opportunities in the field of construction. Private sector housing boom & commercial buildings demand. Construction of the multi building projects on the feasible locations in the country. Low cost well-educated & skilled labour force is now widely available across the country. Sufficient availability of raw material & natural resources in the country is supportive for the industry.
WEAKNESS
Chances of Natural disadvantage are there. Distance between construction projects reduces business efficiency. Training itself has become a challenge. Changing skills requirements & an ageing workforce may accentuate the skills gap. Improve in long-term career prospects is highly required to encourage staff retention & new entrants. External allocation of large contracts becomes difficult. Lack of clearly define processes &procedures for construction & its management. Huge amount of money need to be invested in this industry.
