The Factors Influencing Companies' Competitive Strategy
Companies' Competitive Strategy
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The construction industry in the UK is dominated by a competitive business environment that is being driven by a lowest price mentality. The pressure on companies profit margins has further decreased during the present prolonged downturn (recession) in this sector which has seen construction demand and output shrink significantly. Arriving at cost leadership strategy in the construction industry is a critical decision which is mostly done through experience and intuition. Construction companies are faced with two critical decisions. They have to decide whether to bid for works, or not. If the ...
The construction industry in the UK is dominated by a competitive business environment that is being driven by a lowest price mentality. The pressure on companies profit margins has further decreased during the present prolonged downturn (recession) in this sector which has seen construction demand and output shrink significantly. Arriving at cost leadership strategy in the construction industry is a critical decision which is mostly done through experience and intuition. Construction companies are faced with two critical decisions. They have to decide whether to bid for works, or not. If the company decides to bid, they must decide on the proper mark-up size in order to be the lowest bidder and realise a reasonable profit. This book examines companies' attitude to competition strategies and the attributes affecting companies' cost leadership strategy (lower bid strategy) in competing for construction works in the UK. The understanding of the key factors of a bid process will contribute to identifying an effective competitive strategy.
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