Malpo: Building the Future

CASE TITLE: Malpo: Building the Future (PDF)

AUTHORS: Victor Nocetti and Patricio Sanchez

UNIVERSITY: Universidad de Talca

BABSON FACULTY ADVISOR: Mary Gentile

PUBLICATION DATE: 2010

PAGE LENGTH: 9 (plus appendix)

ABSTRACT: With twenty-five years of experience, Malpo Construction Company has built a reputation for building public housing. Its receives funding from the Solidarity Fund for Housing (SFH) to develop projects subsidized by the Chilean government through a program called the D40. Malpo is known for the efficiency, speed, and high quality it brings to its projects. Malpo operates primarily in Chile’s Region VII but has recently completed projects in neighboring Region VI. The company is now evaluating whether to focus on public housing and maintain current profit levels or to enter the private housing market, which is more profitable but would entail tougher competition and greater uncertainty.

TOPICS: Strategic decisions, market opportunities, market segmentation, financial analysis, distinctive competencies, environmental analysis

COURSE POSITIONING: In management courses dealing with planning and decision making, also in a strategy course, particularly for an environmental analysis Overall teaching objective: To present a decision-making situation that implies entering a new market segment and facing tougher competition