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Strategic analysis of the construction industry in Spain


Author Info

  • Rodrigo Martín García

    (Universidad Nacional de Educación a Distancia)

  • Julio González Arias

    (Universidad Nacional de Educación a Distancia)

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    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.

    Volume (Year): 11 (2011)
    Issue (Month): 01 ()
    Pages: 141-161

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    Handle: RePEc:ehu:cuader:20111107

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    Postal: Instituto de Economía Aplicada a la Empresa Avda Lehendakari Aguirre 83 CP 48015 Bilbao (Vizcaya) Spain
    Phone: + 34 94 601 3871
    Fax: + 34 94 601 3710
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    Postal: Instituto de Economía Aplicada a la Empresa, Revista Cuadernos de Gestión, Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain

    Related research

    Keywords: Porter´s Five Competitive Forces; civil works; building;

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