Strategic analysis of the construction industry in Spain

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Published 15-03-2011
DOI https://doi.org/10.5295/cdg.100193rm
Rodrigo Martín García
UNED -Facultad de Ciencias Económicas y Empresariales
Julio González Arias
Universidad Nacional de Educación a Distancia (UNED) Facultad de Ciencias Económicas y Empresariales

Abstract

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.

How to Cite

Martín García, R., & González Arias, J. (2011). Strategic analysis of the construction industry in Spain. Cuadernos De Gestión, 11(1), 141–161. https://doi.org/10.5295/cdg.100193rm
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