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Porter Five Forces Analysis of China Communication Construction Company Ltd.

<p align&equals;"justify">China Communications Construction Company ltd is the publicly traded and state-owned multinational company&period; The company specialized in construction and engineering primarily operating in construction&comma; infrastructure&comma; designs including bridges&comma; highways&comma; tunnels&comma; subways&comma; railways&comma; marine ports&comma; and airports&period; Along with the subsidiaries&comma; the company has complete EPC capabilities by actively pursuing the P3 projects&period; The company also provides the dredging services&period; It also engages in the oil platform construction and design&period; CCCC is the biggest port design and construction company in China&period; It is a leading company in bridge and road construction company&period; It is also one of the leading container crane manufacturers&period; The company is operating 34 completely controlled or owned subsidiaries &lpar;CCCCltd&comma; 2019&rpar;&period;<&sol;p>&NewLine;<p align&equals;"justify">Porter five forces model help the company in identifying the strategic position of the company&period; The model also determines the external factor analysis of the company&period; The industrial analysis helps the company in making competitive decision and re-examine the strategies&period; Here is the detailed Porter five forces analysis of China Communications Construction Company Ltd&semi; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Bargaining Power of Buyers<&sol;h2>&NewLine;<p align&equals;"justify">The buyers of the construction industry have limited bargaining power&period; This is mainly because of the availability of many construction companies as compare to buyers&period; However&comma; in case of China Communication Construction&comma; customers are mainly government or big clients&period; They have little control over prices charge by the company&period; It is necessary for the company to increase the customer base and expand itself in other areas to mitigate the risk&period; The company is highly specialized in its operations and should have competitive edge over it&period; Moreover&comma; customers always want high quality service in lowest possible prices&period; The company should keep it in mind while making strategies &lpar;Halak&comma; and Reinke&comma; 2011&rpar;&period; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Bargaining Power of Suppliers<&sol;h2>&NewLine;<p align&equals;"justify">The bargaining power of the suppliers have limited power&period; This is mainly because the equipment involves in the construction industry in highly specialized&period; There are few suppliers of it as compare to the buyers&period; Hence&comma; they use their control over prices&period; Moreover&comma; the human force is expensive with the technicalities involved in the work&period; Regardless of this&comma; the company maintains good relationship with its supplies&period; It maintains efficient supply chain to have smooth operation and processes &lpar;Blogspot&comma; 2013&rpar;&period; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Threat of New Entrants<&sol;h2>&NewLine;<p align&equals;"justify">Threats of the new entrants are moderate to low in the Chinese Construction industry&period; This is mainly because the construction industry requires high capitalization cost&period; The company needs high quality and specialized equipment which are too expensive and difficult to arrange&period; New entrants have to compete with such big names in the industry&comma; which are way too difficult&period; The development of strong brand name&comma; marketing and promotional techniques requires a lot of time and funds&period; Moreover&comma; it will be difficult for the company to have efficient supply chain networks&period; The new entrants have to follow the strict rules and regulations set by the government &lpar;Halak&comma; and Reinke&comma; 2011&rpar;&period; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Threat from the Substitute Products<&sol;h2>&NewLine;<p align&equals;"justify">The threat of the substitutes is low in the Chinese construction equipment is low&period; This is mainly because of the specialized machinery produced in the country&period; The substitutes are available in human labour&comma; however&comma; heavy capital and plenty of time is required for performing the functions&period; There is no such alternative equipment which can perform the same operations as the construction equipment&period; CCCCLtd is one of the leading companies in the industry and working on all the areas and strategies that can be substituted&period; The only threat it has of losing consumers to the rival companies for least prices &lpar;Halak&comma; and Reinke&comma; 2011&rpar;&period; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Rivalry of Existing Players<&sol;h2>&NewLine;<p align&equals;"justify">The construction industry in China is highly competitive&period; Some of the major competitors of China Communication Construction Company are APL&comma; MCC&comma; CNYD&comma; etc&period; The company is leading the market&comma; but still have to face tough competition from domestic and international construction companies&period; There are many customers who prefer the services in lowest possible prices&period; This may attract them towards competitors&period; It is necessary for CCCC ltd to have efficient pricing strategies&period; The company has also set its quality bar with the help of effective and efficient equipment and procedures &lpar;Owler&comma; 2019&rpar;&period;&NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">References<&sol;h2>&NewLine;<p>Blog spot&comma; 2013&period; Porter five forces of construction&period; &lbrack;Online&rsqb;&comma; Available at&colon; <a href&equals;"http&colon;&sol;&sol;tryfinakgokong&period;blogspot&period;com&sol;2013&sol;02&sol;porters-5-forces-applied-to&period;html">http&colon;&sol;&sol;tryfinakgokong&period;blogspot&period;com&sol;2013&sol;02&sol;porters-5-forces-applied-to&period;html<&sol;a>&comma; &lbrack;Accessed on&colon; 30th December&comma; 2019&rsqb;&period; <br &sol;>&NewLine;CCCCLtd&comma; 2019&period; About the company&period; &lbrack;Online&rsqb;&comma; Available at&colon; <a href&equals;"http&colon;&sol;&sol;en&period;ccccltd&period;cn&sol;aboutcompany&sol;introduction&sol;">http&colon;&sol;&sol;en&period;ccccltd&period;cn&sol;aboutcompany&sol;introduction&sol;<&sol;a>&comma; &lbrack;Accessed on&colon; 30th December&comma; 2019&rsqb;&period; <br &sol;>&NewLine;Halak and Reinke&comma; 2011&period; Internationalization of Chinese Construction Equipment Firms&period; &lbrack;Online&rsqb;&comma; Available at&colon; file&colon;&sol;&sol;&sol;C&colon;&sol;Users&sol;CC&sol;Dropbox&sol;Business&percnt;20Law&sol;FULLTEXT01&period;pdf&comma; &lbrack;Accessed on&colon; 30th December&comma; 2019&rsqb;&period; <br &sol;>&NewLine;Owler&comma; 2019&period; CCCC&&num;8217&semi;s Competitors&comma; Revenue&comma; Number of Employees&comma; Funding and Acquisitions&period; &lbrack;Online&rsqb;&comma; Available at&colon; <a href&equals;"https&colon;&sol;&sol;www&period;owler&period;com&sol;company&sol;ccccltd">https&colon;&sol;&sol;www&period;owler&period;com&sol;company&sol;ccccltd<&sol;a>&comma; &lbrack;Accessed on&colon; 30th December&comma; 2019&rsqb;&period; <&sol;p>&NewLine;

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