To: Mohan Marette who wrote (123032 ) 5/7/1999 10:02:00 AM From: Boplicity Respond to of 176387
Mohieman, I bet you haven't found this mention of DELL, I live to find news you didn't. Karatz Calls for a 'New Homebuilding Revolution' High-Technology Industry Can be a Model for Industry's Future, Kaufman and Broad Chief Says at Homebuilding Conference LOS ANGELES, May 7 /PRNewswire/ -- Calling for homebuilders to "fundamentally change the way we look at our industry and the world around us," Kaufman and Broad's CEO Bruce Karatz challenged the homebuilding industry to adopt many of the business practices of the high-technology industry - if builders want to be considered among America's elite companies. His remarks were made last night at the Builder 100 Conference in Aventura, Florida where the country's leading homebuilders gathered to plot the industry's future. In his keynote address to the conference, Karatz oulined how Kaufman and Broad has become the country's leading builder by following the new rules of business laid down by leaders in the high-technology industry. That includes: -- Loosening up the corporate culture, in order to attract top talent -- Making strategic acquisitions to make an immediate impact and expand the company's brand in key markets -- Focusing intently on building market share in order to develop economies of scale -- Adopting aggressive marketing campaigns that bolsters the company's brand -- Offering greater consumer choice -- Staying on the leading edge of technology "We'll have to let go of some of our more cherished beliefs about homebuilding," said Karatz. "We'll have to be willing to learn from businesses that are outside the industry in order to keep pace with our customers and our markets." Karatz went on to question the conservative marketing approach adopted by most homebuilders. "We've lulled ourselves into believing that homebuyers crave strength and stability above all," he said. "Many of us think that 'flashy' also means 'flaky' - that if we're revving up our image, we must be cutting back on our quality. Unfortunately, the cult of the boring rules supreme." He noted that when Kaufman and Broad recently launched a promotion that involved giving away a real-life version of The Simpsons' cartoon house, sales and traffic spiked sharply. "It's a different world," he said. "Not only do consumers want the sizzle, they expect the sizzle," Kaufman and Broad was also the first homebuilder to use a nationally recognized spokesman in its print and broad cast advertisements - award winning actor Tom Skerritt.Karatz also compared the direct sales model pioneered by Dell Computers to Kaufman and Broad's KB2000 business operating model. Both are based on giving customers maximum choice, which increases their satisfaction. That's the driving force behind Kaufman and Broad's 16 retail-quality New Home Showrooms. "The priority is to meet the demands of the customer - not to anticipate them," Karatz said. Karatz also said that the consolidation trend that's been a staple of the high-technology in industry will gather momentum in homebuilding industry. "I think there will be a time in the not-so-distant future when we'll see less than five companies dominate the industry. What's more, Kaufman and Broad intends to lead the charge." Kaufman and Broad Home Corporation (NYSE: KBH) is the nation's largest homebuilder with operating divisions in California, Arizona, Nevada, Colorado, Utah, New Mexico and Texas. The company is also among the largest builders in metropolitan Paris, France.