Comparative analysis of strategic planning in construction firms

Abstract

The dynamic nature of the construction industry, rapidly changing global market environments, and lowest cost competitive bidding make it difficult to survive in global construction markets. To understand global construction markets and find success factors regarding a firm's growth, this study was conducted to develop basic data related to establishing future business strategies for Korean firms by analyzing their current business strategies as well as other advanced firms in the global construction market. To select construction companies for a case analysis, construction firms listed in the ''Top 225 Global Contractors'' from Engineering News-Record from 1995 to 2007 were reviewed. The model of change of business structures was examined by selecting and classifying such firms using two analysis standards in terms of the size of revenues and competitors. It was found that those firms were proactive and responsive to changing markets by increasing their overseas revenues and enhancing their competency through more diversified products in order to stabilize their revenue structure.