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Construction Industry in Canada - Porter’s Five Forces Strategy Analysis

Published by: Aruvian's R'search

Published: Mar. 1, 2009 - 20 Pages


Table of Contents


A. Executive Summary

B. Introduction to the Industry

B.1 Industry Definition

B.2 Industry Profile

B.3 Industry Structure

B.4 Future Outlook

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

Abstract

The construction industry is a major driver of activity in the Canadian economy. It is made up of residential buildings, non-residential buildings, and engineering construction. It includes architectural and engineering services and construction trades such as bricklaying, plumbing, electrical, etc. Construction in Canada is primarily focused on the domestic market and is extremely fragmented.

Aruvian Research analyzes The Construction Industry in Canada 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 macro-environment. 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.

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