Construction Industry Analysis

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Abstract

The construction sector has, in Spain, a remarkable importance, due to the contribution to GDP, around 10%, and employment (10%) and the wide business network it includes. The present economic situation and the residential market saturation have led to a sharp contraction in building activity, after a long period of growth. This is, therefore, a good time to perform a structural analysis to identify the determinants of profitability and assess the projection of the companies operating therein. This paper identifies the rules of competition and reasonable business expectations for coming years, using the Model of Five Competitive Forces. This analysis will show opportunities and difficulties for constructors as a tool in making decisions. The success of the strategy will depend on the management of strengths and capabilities, especially in times of change in the competitive environment.

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Bibliographic Info

Article provided by Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE) in its journal Cuadernos de Gestión.

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Q&A

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What Is Construction Industry Analysis?

Construction industry analysis provides builders and investors with financial and performance information about the construction industry. This information helps builders and investors makes important decisions about when and how to spend money or invest in a new project, and also gives the public insight into the health of the economy overall. Each construction industry analysis may cover state, regional, or global performance. The reports generated during construction industry analysis provide information on current conditions, historical trends, and even predictions for the future o…