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Porter’s Five Force of China State Construction Engineering

<p align&equals;"justify">Porter five forces model is used for identifying and analyzing the five competitive forces which shapes the industry&period; It helps in determining the weaknesses and strengths of the industry&period; Many companies used the model to identify the structure of the industry and determines the corporate level strategies suitable for the situation&period; The model is flexible and used in different segment for searching the attractiveness and profitability of the company &lpar;Chappelow&comma; 2019&rpar;&period; <&sol;p>&NewLine;<p align&equals;"justify">China State Construction Engineering was established in 1982&comma; and now becomes the global construction and investment group which features the market-oriented operations and professional development&period; The business it carries is the management initiatives and activities through public company of the group&comma; which is also listed in Stock exchange of China&period; It has more than hundred secondary subsidiaries and seven companies listed in stock exchange&period; The company is doing business across the globe around 100 countries&comma; by covering the development and investment in real estates&comma; construction operations and financing&comma; infrastructure and housing&comma; along with designs and survey&period; In China&comma; the company has built over 90&percnt; of the skyscrapers above 300meters&comma; one-third of the utility tunnels&comma; three-quarters of the airports and satellite launch&comma; and half of the nuclear power plants&period; It is also involved in the construction of houses &lpar;CSCES&comma; 2019&rpar;&period; Here is the detailed Porter five forces analysis of China State Construction Engineering&semi; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Bargaining Power of Buyers&colon;&nbsp&semi;&nbsp&semi;&nbsp&semi; <&sol;h2>&NewLine;<p align&equals;"justify">The customers are the clients of the construction companies&comma; and they can be consortium&comma; government bodies or high-income individuals&period; Bargaining power of the customers are high&comma; as the CSCE has to bid in lowest possible prices to gain the project&comma; or else the competitor will&comma; because the client wants to have the best service in lowest prices &lpar;Blogspot&comma; 2013&rpar;&period; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Bargaining Power of Suppliers<&sol;h2>&NewLine;<p align&equals;"justify">Supplier bargaining power is low in the case of CSCE&comma; because of the huge brand name in the industry&comma; suppliers are willing to work with the company&period; There are many suppliers in the industry for the raw materials needed in the construction industry but few buyers&comma; so the suppliers are willing to work on the prices set by the Construction company&period; New products are entering in market&comma; and construction company wants the updated product for the better quality and hence suppliers have to lower down the prices in order to gain business &lpar;UK Essays&comma; 2018&rpar;&period; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Threats of New Entrants<&sol;h2>&NewLine;<p align&equals;"justify">Threats of entrants in the construction industry are quite low because of multiple obvious factors&comma; which are&semi; huge capital investments&comma; as the construction company does not only need management and staff and projects&comma; but it needs machines&comma; big construction equipment&comma; which are expensive to buy&period; Moreover&comma; the companies like CSCE is also working at global level is leading the China construction industry&comma; it is difficult for the new entrants to compete on such high level&period; For CSCE&comma; threats from the new entrants are very low because it is involved in multiple sector like house construction&comma; infrastructure building&comma; etc &lpar;CSCE&comma; 2019&rpar;&period; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Threats from the Substitute Products<&sol;h2>&NewLine;<p align&equals;"justify">There are basic needs of raw materials and resources in the construction industry&comma; which are not easy to substitute&comma; almost impossible&comma; so CSCE has to not worry about the threats from the substitutes&comma; because there are no such substitutes available&period; Increase demand of Boat-home&comma; holiday cabins&comma; etc&period; are short term&comma; the construction of skyscrapers&comma; houses&comma; civil constructions are impossible to substitute&period; However&comma; some of the factor of productions like human resource can be substitute to robots but not at much higher level&period; So&comma; the this is the weak force for the construction company like CSCE &lpar;UK Essays&comma; 2018&rpar;&period; &NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">Rivalry of Existing Players<&sol;h2>&NewLine;<p align&equals;"justify">Because of the downturn in the economy at global level&comma; majority of the construction companies have shown the contrasting responses towards downturn in the public sector engineering and construction operations&period; This resulted in decrease in the capital investment from the public sector&period; China State Construction Engineering looks forward for acquisition and mergers to reduce the competition in the industry and so are the other big firms like Balfour Beatty&period; The construction companies along with CSCES is also diversifying and expanding geographically and their portfolios to maintain their position&period; The company started to bid in new projects and offer more housing construction&period; The company is also expanding in Middle east to grab more projects and stay in limelight &lpar;MEP&comma; 2018&rpar;&period;&NewLine;<&sol;p>&NewLine;<h2 align&equals;"justify">References<&sol;h2>&NewLine;<p align&equals;"left">Blog spot&comma; 2013&period; Construction development&period; &lbrack;Online&rsqb;&comma; Available at&colon; http&colon;&sol;&sol;tryfinakgokong&period;blogspot&period;com&sol;2013&sol;02&sol;porters-5-forces-applied-to&period;html&comma; &lbrack;Accessed on&colon; 17th July&comma; 2019&rsqb;&period; <br &sol;>&NewLine;Chappelow&comma; J&period; 2019&period; Porter’s 5 forces&period; &lbrack;Online&rsqb;&comma; Available at&colon; https&colon;&sol;&sol;www&period;investopedia&period;com&sol;terms&sol;p&sol;porter&period;asp&comma; &lbrack;Accessed on&colon; 17th July&comma; 2019&rsqb;&period;<br &sol;>&NewLine;CSCES&comma; 2019&period; Company Profile&period; &lbrack;Online&rsqb;&comma; Available at&colon; https&colon;&sol;&sol;english&period;cscec&period;com&sol;AboutCSCEC&sol;Companyprofile&sol;&comma; &lbrack;Accessed on&colon; 17th July&comma; 2019&rsqb;&period;<br &sol;>&NewLine;MEP&comma; 2018&period; MEP Awards 2018&colon; China State Construction Engineering Corporation wins MEP contractor award&period; &lbrack;Online&rsqb;&comma; Available at&colon; https&colon;&sol;&sol;www&period;mepmiddleeast&period;com&sol;events&sol;mep-awards&sol;71613-mep-awards-2018-china-state-construction-engineering-corporation-limited-wins-mep-contractor-award&comma; &lbrack;Accessed on&colon; 17th July&comma; 2019&rsqb;&period; <br &sol;>&NewLine;UK Essays&comma; 2018&period; Developments of the Construction Industry&colon; Economic Analysis&period; &lbrack;Online&rsqb;&comma; Available at&colon; https&colon;&sol;&sol;www&period;ukessays&period;com&sol;essays&sol;economics&sol;the-history-of-the-construction-industry-economics-essay&period;php&comma; &lbrack;Accessed on&colon; 17th July&comma; 2019&rsqb;&period; <&sol;p>&NewLine;

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