4. Strengthening our Ability to Replicate our Business Model
Our ability to efficiently and successfully replicate our business model has been fine-tuned
throughout the years, as a result of the continuous expansion of our footprint in the affordable
entry-level and middle income segment in Mexico. Today, we successfully cover 77.0 percent
of the total population in the country, with 140 projects under operations. This experience
has been strategically important to our ability to further expand our business model to other
niches, such as the tourism segment, where we see a long-term opportunity for Homex to
attend this attractive market. Mexico continues to be well positioned as a preferred retirement
location for U.S. and Canadian citizens. Our tourism initiative is concentrated in three strategic
locations: Loreto Bay, Los Cabos and Cancún, where our prototypes and overall product
offering has been adapted to changing market conditions, where affordable price points of
prospective clients has been affected by the recent global financial crisis.
The backbone of our flexible business model, which has been replicated several times in Mexico; since 2009 has been adapted to our business model internationally in markets with
similar general conditions as Mexico including home deficits in the affordable entry-level, stable macroeconomic conditions and political stability, government-sponsored housing policies and liquid mortgage markets. Today, Brazil is our first international project, and as of December 31, 2010 we had three projects under construction equivalent to approximately
6,000 homes in the Cities of Sao Jose Dos Campos, Marilia and Campo Grande.
The replication of our business model is strongly supported by our integrated and proprietary IT system, which strategically supports sales and construction and keeping real-time track of both, helping us to attain more efficient and timely working capital management. Importantly, our proprietary IT platform is used and adapted to each of our divisions and projects.
While our IT systems have helped us support our growth and costs in Mexico and now also in Brazil, as a result of the reliability of our systems capacity, we have also been responsible at both markets, for gathering and uploading all necessary and timely information for the mortgage origination process, thus further controlling efficiency. This also speaks to our innovative spirit, where we always see room for improvement and “doing things better.”
The backbone of our flexible business model, which has been replicated several times in Mexico; since 2009 has been adapted to our business model internationally in markets with
similar general conditions as Mexico including home deficits in the affordable entry-level, stable macroeconomic conditions and political stability, government-sponsored housing policies and liquid mortgage markets. Today, Brazil is our first international project, and as of December 31, 2010 we had three projects under construction equivalent to approximately
6,000 homes in the Cities of Sao Jose Dos Campos, Marilia and Campo Grande.
The replication of our business model is strongly supported by our integrated and proprietary IT system, which strategically supports sales and construction and keeping real-time track of both, helping us to attain more efficient and timely working capital management. Importantly, our proprietary IT platform is used and adapted to each of our divisions and projects.
While our IT systems have helped us support our growth and costs in Mexico and now also in Brazil, as a result of the reliability of our systems capacity, we have also been responsible at both markets, for gathering and uploading all necessary and timely information for the mortgage origination process, thus further controlling efficiency. This also speaks to our innovative spirit, where we always see room for improvement and “doing things better.”