Toll Brothers Case Summary

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TOLL BROTHERS, In c. – 2007 Toll Brothers was founded in the year 1967, with headquarters situated in Horsham, Pennsylvania. Initially the company started built houses predominantly in the suburbs of Philadelphia, Delaware and southern New Jersey. Toll Brothers became a publicly traded company in 1986 and expanded into Boston, MA, MD and Baltimore in the year 1988 and in 1991 still expanded operations into suburbs of New York City, Connecticut and areas surrounding Washington DC. Toll Brothers entered the adult community market in 1997 and also involved in developing a dozen of new golf communities. Toll focused more on building detached homes for single-family. They expanded their building construction to large high-rise constructions in the year 2003 by acquiring Manhattan building company. Toll launched a major urban initiative with the construction of an 800 unit luxury condominium project in Hoboken, New Jersey. Toll’s four largest manufacturing facilities located in (1) Morrisville, PA, (2) Emporia, VA, (3) knox, IN, and (4) Fairless Hills, PA. New home sales for toll brothers had peaked in april 2005 followed by a significant drop in sales. Contract cancellations for new homes seriously affected profits and revenues of fiscal 2006. Toll was selling homes in 398 communities representing 31,910 home sites during the fiscal year 2006. They also own 41,858 home sites in 300 proposed communities. In its core business single family detached homes, it operates 207 communities at prices that generally ranged from $280,000 to $2.1 million. Toll brothers buyer groups were “move up” market which is typically baby boomers, “empty-nester” market is about 50 years old Americans and finally second-home market for affluent families. They use home brokers to sell their houses. Prospective customers contacted through a variety of marketing channels like newspaper and magazine

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