The building and construction industry is a major driver of activity in the Australian economy. It is comprised of residential building (houses, flats, units and alterations to existing dwellings), non-residential building (shops, offices, hotels, factories, educational facilities, and hospitals) and engineering construction (roads, sewerage, energy, etc). It includes architectural and engineering services and construction trades (bricklaying, plumbing, electrical, etc).
The author analyzes the Australian Construction Industry in 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
