The US construction industry is diverse and huge. It ranges from the plumber or electrician who works alone on residential and small commercial projects to engineering and construction companies that design and build giant, complex projects.
The author analyzes the US Construction Industry in the Michael Porter’s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macroenvironment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.
Table of Contents
A. Executive Summary
B. Introduction to the Industry
B.1 Industry Definition
B.2 Market Segmentation
B.3 Industry Profile
C. Porter’s Five Forces Strategy Analysis
C.1 Bargaining Power of Buyers
C.2 Bargaining Power of Suppliers
C.3 Competitive Rivalry in the Industry
C.4 Threat of New Entrants
C.5 Threat of Substitutes
D. Conclusion
E. Glossary of Terms
