Australia’s Construction Industry - Porter’s Five Forces Strategy Analysis
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).
Aruvian Research analyzes the Australian 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.
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