Wednesday, June 19, 2013

Quicken Loans is Redefining the Mortgage Space

Immediately after reading the Harvard Business School article, entitled “Blue Ocean Strategy” I thought to myself what company has set an industry standard? Then quickly it came to mind, while visiting Detroit Michigan, Quicken Loans. This company has created a new model of business in the mortgage industry. Most companies in the mortgage industry are downsizing due to the sluggish economy. However, Quicken Loans continues to invest in new technology, training, and infrastructure. As a result of dominated the market, economist are even baffled by their future possibilities.

According to PR Newswire, “Detroit-based Quicken Loans Inc. is the nation's largest online home lender and the country's third largest retail home mortgage lender.--- The company closed a record $70 billion of volume across all 50 states in 2012.” 1 Today Quick Loans has differentiated themselves from their competition. They have separated themselves as the blue ocean article, by redefining their current industry and changing the rules. In the past, mortgages were processed in a bank with multiple processes while personal communication was necessary.  Quicken Loans has reinvented the mortgage industry by processing home and retail mortgages online causing everyone else in the market to adapt to the changes.
                
  
Quicken Loans Founder and Chairman 
Dan Gilbert

Now, Quicken Loans has distanced themselves further from their competitors by developing real estate in financially cash strapped communities and cities such as Cleveland and Detroit. Founder and Chairman Dan Gilbert, a Detroit has made a commitment to the City of Detroit and is now reinventing the landscape of this economically challenged Metropolis. Quicken Loans has purchased over 20 building in Downtown Detroit and moved over 1500 employees from one of the surrounding suburbs. They have also begun hiring over 2,000 new employees for Quicken Loans and various subsidiaries. In addition, Quicken Loans provides housing vouchers for apartment residents and future homeowners to encourage employees to live in the City of Detroit to collectively stimulate the local economy.  Quicken Loans has reinvented themselves and has become an advocate for community development, employee relations, innovative business practices, and promoting growth from within.   


References: 



2.)    "So Cheap, There’s Hope." The Economist. The Economist Newspaper, 22 Oct. 2011. Web. 19 June 2013.


3.)    Kim, Khan W., and Renee Mouborgne. "Blue Ocean Strategy." Harvard Business Review. Harvard Business Review, 25 Sept. 2006. Web. 19 June 2013.

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