TOPIC : Mobile Home Property Developer and Manager Research-based Marketing Plan Final Proposal - Product Development and Market Demand Please ping me if you have any questions! Need 1300+ words Assig

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Introduction

Due to the changing trends in the operations of the people of the current century, this paper reports a burgeoning growth in the mobile home industry which has been seeing an attraction from people of all ages. One of the reasons behind the burgeoning of this industry is the growth of the vacation habit among many families in the USA and in the other western countries such as the UK and Australia. Another reason why these houses have grown in popularity and on the market is the increase in the financial ability of the people in the USA and the economic increase of China. This paper does a market analysis of the mobile home industry. Some of the elements that this paper deploys in analyzing the market are such as; current annual sales of the industry in the USA, the competitors in the same market as well as the future market projections of the market, that is the future prices of the mobile homes in the USA and the rest of the world. The market projections in this paper are based on the past and current trends in the price variations of the properties (Gallagher, 1991). The mobile home market is reported to have begun back in the year 1970 and dating back in the debut of the industry, the prices don’t reflect the current prices since there has been a steady increase in the prices of these products. Increased production costs of the products could be reason behind the steadily increasing prices of the products as sellers try to meet the profit margins. Due to the increase in the production cost of the same products over the past decades, this could be assumed for the next decades and thus a judgement passed that the prices of the products would be higher in the coming years than what it is at the moment. Also, if the covid-19 pandemic persists on the face of the world for the next coming years, this paper sadly reports that the prices of the mobile homes would be affected greatly as the producers and the sellers strive to beat the economic constraints.

Porter’s 5 Model Regarding the Market

Judging from the elements which make up the porter’s 5 forces model, this model is a reflection of a given organization’s competitive standing in its market of operation. Among the elements making up the model are; the threats of other businesses emerging and operating in the same line of business, threat of substitute products emerging, the power of the customers, the power of the suppliers as well as the rivalry within the market which has the effect of determining the intensity of competition hence the attractiveness in the business market (Smith, 1976). The latter is quite true from the fact that in the case of competition, players in the market tend to be innovative, coming up with new styles of production and also service production in the attempt to outsmart their competitors in the same market.

The threats of other players emerging in the market is so apparent following the disadvantages or rather the cons presented by the sole use of motor homes. One of the reasons which is inviting the other players in the camping business of the motor homes could be their disadvantage of being quite crude and heavy to carry (Bair, 1967). In fact, most of the people who have a camping experience state that it is hard to set up a motor home in very thick or forested place. A mobile home has to be carried to its camping site and the trucks involved in the transportation process of the motor homes have to be wide. This is to mean that their penetration rate into the deepest forests could be limited. Those camping have to avoid some bushy places which apparently are regarded to be the most adventurous. It is for this reason that chances of other players coming into play widen. For instance, tents are a perfect camping requirement. Comparing the nature of the tents and the mobile homes, there is a great difference in how the two could be transported. Large tents can be folded and made to penetrate the most feared areas by the developers and managers of the mobile homes. Therefore, for those who would like to venture more interior, they are left with no choice than going for the tents. This situation is that which invites the other players who are the produces and managers of tents. The introduction of the tents in the camping program is acting as an emerging threat as well as a substitute. The vacation habit is becoming rampant among many families in the USA and since most of them would love to camp away from their states or home grounds, the best option for them would be tents which could fit in their cars as they travel along.

Due to the increasing demand for substitute products like tents to the mobile homes, the demand of mobile homes is at the risk of declining. This is due to an increase in the demand for tents which are a competing commodity. Increasing the demand of substitute products of mobile homes has an effect of increasing the purchasing power of the clients. In this case it is easy for the clients to determine the prices of the property and as usual, clients will always want to reduce the market price of the products. This situation is dangerous to the developers and managers of the mobile homes since it has an effect of deviating the profit margin in the mobile home industry.

External Factors Affecting the Mobile Homes Industry

Poverty

As much as the developers of the mobile homes would want to spread their products among all populations, it won’t be possible due to the level of poverty among most of the American homes. The average price of mobile homes is about $ 40,000 USD, and this could be the annual earnings of few homes in the USA. The chances of the industry growing are therefore considered slim due to the level of poverty in the American homes and in the rest of the world.

Required Internal Resources and Competencies to Compete in the Market

In order for the industry to strive in the competitive market, the developers have to do it in a way that beats the disadvantages of the homes against the substitute products like tents. For instance, the developers and managers of these homes could make them more mobile. This is in terms of their bulkiness. They have to be easy to carry to all places of camping. Another factor of consideration in the attempt to beat the competitive market is by working on making them accommodative to all the seasons experienced in all parts of the world. It is this way that they will retain their popularity as people won’t have to be shifting from their use to the use of the rivalry products of mobile homes.

The department of housing and urban construction of the USA oversees all the procedures of manufacturing of the mobile homes to ensure safety of the manufactured housing. It is the HUD that has the mandate of setting the standards for manufacturing of the homes which cannot be bend by the local authorities of the USA. Federal standards demand that the nature of the houses is that they are durable, safe and also affordable to the people that they are targeted for. For instance, those homes that have complied with the HUD standards have the insignia of compliance tag. It is this tag that shows the public that the structure is ready for installation. While installing the homes, the local authorities always require that the owners of the structure show them the insignia of compliance tag before they can permit them to proceed with the installation of the structures. It is not only the HUD that has the mandate to set the installation standards of the homes but the state governments could also come with their own installation standards which the HUD has to appreciate.

References

Gallagher, K. A. (1991). Yee v. City of Escondido: Will Mobile Homes Provide an Open Road for the Nollan Analysis. Notre Dame L. Rev., 67, 821.

Smith, R. A. (1976). An Analysis of Black Occupancy of Mobile Homes. Journal of the American Institute of Planners, 42(4), 410-418.

Bair Jr, F. H. (1967). Mobile Homes--A New Challenge. Law & Contemp. Probs., 32, 286.