DLF is India's largest real estate company with a vision to become the world's most valuable real estate company. It operates across six business lines - development, annuity, hotels, and others. The real estate industry in India is highly attractive due to strong growth and profitability. DLF has strong brand value and access to finance, though its distribution network and R&D performance could be improved. As a leader in a growing industry, DLF's strategy is to seek dominance, grow, maximize investment, and defend its position while identifying and building upon strengths and weaknesses.

1. DLF LTD
(BUSINESS STRATEGY)
By:
Hitesh Gupta

2. DLF STATEMENTS
Vision Mission
To build world class
To contribute real-estate
significantly to businesses across
building the new six business lines
India & become with the highest
world’s most standard of
valuable real-estate professionalism
company ethics, quality&
customer service.

3. BUSINESS UNITS
Development Annuity Hotels
Business Business • On way to set up
20,000 business hotel
• Involved in development • Mainly based on rental
rooms in next 5 years
of homes & commercial of office space to
in partnership with
complexes. various companies &
Hilton
• Mainly caters to super- retail outlets.
• Acquisition of
luxury, luxury and • Has developed and
domain expertise &
middle-income segment lent some of the major
assets with buy-out of
in home development. global brands their
Aman Resorts
• Also develops workspaces in India.
business.
commercial complexes • Was one of first
for other businesses. companies in India to
• Building commercial come up with concept
complexes in vicinity of of shopping malls.
residential complexes.

4. INDUSTRY ATTRACTIVENESS
The vertical axis of the GE / McKinsey matrix is industry
attractiveness, which is determined by factors such as:
 Market growth & size
 Profitability
 Technological Development
 Market rivalry
 Pricing
 Global opportunities
Industry Attractiveness (Scale :1 – 5 from very unattractive to
attractive)

5. BUSINESS UNIT STRENGTH
The horizontal axis of the GE / McKinsey matrix is the
strength of the business unit, which is determined by
factors such as:
 Market share
 Brand value and Customer Loyalty
 Distribution network
 Promotional effectiveness
 R&D Performance
 Access to finance & other investment resources
Business strengths ( Scale: 1-5 from 1- very weak and 5- very
strong)

6. INDUSTRY ATTRACTIVENESS
Factors Weight Rating Value Comments
Market Growth & 0.2 5 1  India’s real estate market is on high
Size growth curve.
 Industry is US$ 72 billion at present and
the growing at an average rate of 20%
(Constructionweekonline).
 Very less bargaining power of suppliers
Profitability 0.1 4 0.4 Operating profit margin has remained high
at 40 % while net margins stand between
18-20 %. (Business Standard)
Technological 0.2 4 0.8  Increase in quality of building due to
Development innovation in structural design.
 Delivery of services using IT systems (e.g
MS projects).
 Use of CAD/CAE software has enabled
engineers to model and remodel designs.
 Availability of modern equipments &
machines.
Market Rivalry 0.2 4 0.8  Almost 20 strong competitors and many
small players.
 Threats of new entrants is high but high

7. INDUSTRY ATTRACTIVENESS
Factors Weight Rating Value Comments
Pricing 0.25 5 1.25  Monopolistic competition exist in
market and so very high competition.
 Brand Value helps a lot.
 Promotional campaigns &
advertisements to kill competition.
 Can earn above normal profit in
long-run with differentiation being
most important factor.
Global 0.05 3 .15  Very less opportunities available for
Opportunities Indian developers globally.
 Opportunities can be availed in
countries like Maldives, Srilanka,
Pakistan or Bangladesh.
 Globally giving low cost and better
technological real-estate solutions
Total 1 4.4

8. BUSINESS STRENGTHS
Factors Weight Rating Value Comments
Market 0.10 4 0.4  Total market share is 20% approx.
Share  Huge Land Assets.
 Profits going down.
(icmrindia)
Brand value 0.20 5 1  Has been there since 1946.
and  Excellent brand value.
Customer  Brand hurt due to debt burden, timely
loyalty delivery, corruption, competition, etc
 Customers and Businesses still very
loyal to DLF because of product
differentiation.
Distribution 0.15 2 0.30 Good but operates only in North India
Network
R&D 0.10 3 0.30  Started the Mall culture in Delhi.
Performance  Unique residential properties.
 Didn’t perform good globally with
Aman resorts & in luxury brand segment

9. BUSINESS STRENGTHS
Factors Weight Rating Value Comments
Promotional 0.20 4 .80  Very Effective and innovative
Effectiveness promotional deals (e.g IPL).
 Highest exposure of
advertisements through different
media.
 Best POP, through quality products
and style statement
Access to 0.25 5 1.25  Govt. has allowed ECB for
finance & other integrated townships.
investment  Excise duty cuts on cement and
resources steel bring down construction costs.
 Better links with banks and private
players.
 Public Company Huge land bank to
avail debt from banks.
 Rent lease financing option
Total 1 4.05

10. GE MCKINSEY MATRIX
Grow/Penetrate:
Businesses here are in
very attractive industries.
Business strength are
good but can improve on
them
They should be invested
in to improve their long-
term competitive
position.
Should receive financial
and managerial support
to maintain their strong
position and to continue
contributing to long-term
profitability.

11. STRATEGY OVERVIEW
 Seek dominance
 Grow
 Maximise investment
 Defend their position
 Identify weaknesses
 Build strengths

12. COMPETITIVE ADVANTAGES
Threat of established Rivals
 Competition in real estate sector is increasing by leaps
and bounds.
 Other major Players are Unitech, Ansals, etc
Threat of new entrants
 Profitability decreasing due to increase in the number of
new entrants like Sobha developers, Tata etc.
 Though new entrants are coming in this sector, but due
to high initial capital it is not much alarming.
 DLF has experience & expertise advantage over new
players.

13. COMPETITIVE ADVANTAGES
Bargaining Power of Suppliers:
o Large number of organized & unorganized suppliers
providing required material for the real estate industry,
like, cement firms, steel firms, eg, ACC cement, TATA
steel etc.
Bargaining Power of Buyers:
 Forces of demand and supply will always apply,as
Indian population is way too large with respect to the
infrastructure developed in the country.

14. RECOMMENDATIONS
Concentration of bottom of the pyramid –
 Increase in competition.
 Target ever increasing middle class.
 Brand equity will help.
 Huge demand for cheap but quality residence
Penetrate outside North-India
Build on strengths to grab the opportunities and work
on the Weaknesses
Shift from construction and real estate to other projects like
infrastructure development

15. THANK YOU