Analysis of The Industry Trends Affecting the Construction Company Special Reference to Constec Company.pptx

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1. Analysis of The Industry Trends Affecting the Construction Company: Special Reference to Constec Company Strategy and the Global Competitive Environment BSS058-6

2. MAIN OBJECTIVE Using appropriate strategy tools PESTEL, Porter’s five forces Analysis, VRIO , Value Chain Analysis, and SWOT analysis are conducted to understand the trends in the construction industry and based on these analyses, ongoing projects about potential future development will be strategically evaluated.

3. Introduction Constec was created in 2010 by acquiring interests in many existing contractors in the UAE. Its primary goal is to provide solutions in the building and engineering sectors. Constec is a well-known building and residential construction firm. Other options include architectural modeling, civil works, project management, and electrical contracting, among many more. The business has ongoing projects of residential construction for private-sector developer and large-scale building construction for a variety of clients, including governmental sector institutions such as the governments of Dubai and Abu Dhabi

4. Strategic Directions and Goals of Constec To counteract intense competition and seize worldwide prospects, the firm has implemented an ambitious regional growth strategy, focusing primarily on markets in Asia and the Middle East. Constec is looking to develop by forming alliances with local market participants. The firm is now working on projects throughout the UAE and the rest of the Middle East, as well as Russia and Pakistan. To maintain its expansion, the business intends to concentrate on surrounding markets like as Abu Dhabi, Qatar, and Saudi Arabia. Furthermore, Constec intends to maintain strong connections with many of its clients in order to capitalize on future prospects. The company's mission is to become the leader in providing exceptional construction services in the UAE, the Middle East, North Africa, and beyond. The company's objective is to create and maintain long-term and valued relationships with its clients and partners by providing exceptional construction solutions while leveraging the finest available resources and latest technology. The company's goal is to provide the greatest quality and service standards in their sector in order to provide the best satisfaction to their clients.

5. PESTEL MODEL Political Factors Requires a safe environment and major construction companies have a tendency to practice monopolistic behavior Operate in a highly controlled political environment that favors the interests of the clients over the companies New taxes imposed by the government may cause a change in the revenue generation structure of the Constec company Economic Factors Fluctuations in the price of building materials Prolonged economic recessions Fluctuating currency rates and changes in trade agreements

6. PESTEL MODEL Social-Cultural Factors Constec should focus on the emergence of 'generation y' in the real estate market Instant gratification and entitlement The number of highly demanding customers demanding better services is increasing Constec is forced to balance its costs with increasing demand from new customers Technological Factors Constec uses a wide range of technologies in the ongoing project. Many innovations have been adopted by Constec to improve performance and increase customer satisfaction. Real estate developers prefer precast technology in building residential and commercial properties. Simulating this process helps the company get more returns for less money

7. PESTEL MODEL Environmental Factors Due to increased social awareness of environmental pollution and safety, the client is aware of the impact of construction projects on the environment. Eco-friendly operations or sustainable activities that are highly responsive to the needs of the environment should be adopted Corporate social responsibility (CSR) initiatives are important because stakeholders and customers eagerly look to Constec Legal Factors The number of lawsuits filed by aggrieved stakeholders and disgruntled customers has increased due to breach of contract, environmental impacts and safety issues. Managers of Contec , must be aware of this heightened legal awareness among project stakeholders. Construction sector regulators like governments are also making strict rules to control

8. Porter’s Five Forces Analysis

9. VRIO ANALYSIS Constec's corporate culture contributes significantly to its ongoing competitive advantage. That component can be replicated throughout all locations of operation. The components represent uncommon qualities that are difficult to imitate. Constec's track record of success also attests to the belief that the company's distinct culture, leadership, and human resource practices are key strategic competencies that provide the organization with a sustained strategic advantage. The corporation enjoys a brief competitive advantage in purchasing since it obtains the same benefits as other purchasers

10. Value Chain Analysis Constec has had extraordinary development in the three decades since its inception, positioning it as one of the leading contractors in the UAE and throughout the world. Because of its success, it has been listed on the financial market. Constec is the country's first and only publicly traded construction firm. The illustrious experience of the organization is being utilized in the development of ongoing project. These accomplishments are attributable to the company's reputation for delivering outcomes within the specified schedules and budget. Because of its great technological expertise, Constec has been able to attain this aim. Constec has maintained best practices in the construction industry as well as unwavering attention to environmental and safety requirements. All of these elements are due to the company's efforts to please its clients while also creating income for its stakeholders. thus, "the company's turnover has seen a five-fold increase within five years" utilized

11. SWOT Analysis

12. Opportunities Threats Growing demand for precast homes Long-term partnerships with top property developers Fragmented construction market Slowing real estate growth Client project suspensions Political instability in the Gulf area An rising number of court disputes in the infrastructure business Buyers have considerable negotiating power Substitute products pose significant dangers Strengths S-O Strategies S-T Strategies Constec has a good financial position, it can fund capital expenditures. It has a unique human capital and corporate culture that cannot be replicated. It has a robust physical infrastructure, allowing it to manage difficult tasks. Constec generates a lot of cash, so it can cover its capital expenditures and debts. The company has a precast concrete facility, so it can fulfill the present market demand. Given the increased need for precast houses, Constec may decide to engage in precast solutions with its solid financial position. When the economy is in a slump, Constec can conserve its cash inflows to fund future operations. Weaknesses W-O Strategies W-T Strategies Constec is linked with big-scale projects from huge commercial developers, which may deter potential clients from middle-class developers. Due to its large-scale operations, its services may be seen as pricey. The business can devise a marketing plan aimed at middle-class investors. The corporation may also create products aimed at middle-to-upper-class investors. Constec works with large-scale commercial clientele. It may maintain relationships with dependable clients who are financially secure in order to avoid project interruption.

13. Competitive advantage of Constec Constec provides high-quality construction services and completes projects on time and on budget. Furthermore, Constec has a large inventory of cutting-edge construction equipment and plants. All of these factors, together with a skilled workforce, guarantee that operations run smoothly. Constec has developed in response to changing client demands. The company's services are adaptable to the diverse demands of customers in the construction sector. As a result, it provides a variety of designs and a large range of building materials. It maintains positive connections with its clients in order to capitalize on future prospects. Constec is recognized as one of the most creative construction businesses in the UAE. It has taken several creative efforts to improve performance and boost customer happiness. The firm has contemporary equipment and factories that allow it to manage a wide range of tasks by combining cutting-edge technology and experienced knowledge. Constec believes that excellence requires the participation of all employees within the company. The company aspires to be the finest customer-driven corporation. To keep up with the project's rapid expansion while also providing solid processes in all divisions, the business created reference guides for its personnel. ISO certifications have also been obtained. Constec is certain that only the devotion of its human resource base would allow it to achieve this aim.

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