Centex Corporation is based in Dallas and is one of the largest companies in the residential construction industry in the United States. Traded on the New York Stock Exchange under the symbol CTX, the company has international as well as domestic operations, and participates not only in construction, but also in financial services and services ancillary to home construction such as pest control and lawn care. The company has grown through the creation of subsidiaries that serve specific markets, and it has used this strategy to considerable success. This research considers the company's business organization, strategy, competitive position in the residential construction industry, and its future prospects.
Founded in 1950, Centex was ideally positioned to take advantage of the explosive growth in homebuilding that took place during the 1950s and 1960s. Building on that early success, Centex became a publicly traded company in 1969, and today employs more than 15,000 employees in 1,000 offices across the United States as well as in the United Kingdom ("About" 1). The company is divided into six major business units: home building, home services, financial services, contracting and construction services, construction products and investment real estate.
Within the residential construction industry, Centex has a variety of different product lines and brands. Centex Homes builds and sells homes in 85 geographic markets based in 25 states. Centex Homes builds single-family homes that target buyers moving up from existing homes. Another Centex brand, Fox & Jacobs homes, builds affordable housing that targets first time home buyers emphasizing value. At the other end of the price spectrum, Centex also supports the Wayne Homes brand, which builds on customer lots, and Marquis Homes, which specializes in resort and second homes. CityHomes builds urban townhomes in the Dallas market. Fairclough Homes is the brand that serves ...