Mandalay Homes: Building Sustainable Innovation in Residential Construction

by: Andrew Hoffman

Publication Date: July 7, 2022
Length: 28 pages
Product ID#: 2-070-379

Core Disciplines: Entrepreneurship & Innovation, Social Impact, Strategy & Management, Sustainability

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Teaching Note

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Mandalay Homes, a home builder based in northern Arizona, is a market leader in energy efficiency based construction. The company is now at a crossroads for developing a strategy for the future. Internal leadership is in agreement that quality is better than quantity and wants to focus on innovations to further push the market forward toward sustainability.

The case introduces students to the residential construction industry, climate change as it relates to construction, energy efficiency standards and certification programs, renewable energy market principles, the green construction industry, and potential innovations within the residential construction space. The case outlines the proverbial wall that Mandalay is approaching in terms of the improvements that can be made to sustainable homebuilding withing the current paradigm. The company has identified three frontiers within which Mandalay Homes can allocate priorities: (1) resource management and distributed energy resources, (2) governmental regulation vs. performance-driven building standards, and (3) technology and innovation for building sustainable homes and communities.

Teaching Objectives

After reading and discussing the material, students should:

  • Describe strategies for emission reductions in construction.
  • Develop strategies for continued market leadership.
  • Identify major competitive models in the residential green construction industry.
  • Discuss the pros and cons of market share growth vs. market leadership in innovation.
  • Recap construction industry sustainability standards and certifications.