<p align="justify">VINCI is the leading French company across the globe in construction and concession industry. The company employees over 211,000 people in over 100 countries. The company headquartered is in Paris. The main objective of the company is to finance, operate, build and design the infrastructure. The company facilitates the customers by improving the mobility for them and improve their life. The projects of the company are all-around the performances according to the financial and economic results. Most of the company’s project is in public interest. The company reach to all the stakeholders and also engage them in the essential operations of the company (VINCI, 2019).</p>
<p align="justify">The company is operating in the competitive industry. It needs to analyze the external factors and consider the new opportunities. Porter five forces analysis helps the company in analysing the strategic position and helps the company in decision making process. The company can also re-examine the strategies, which will improve the profitability. Here is the detailed Porter five forces analysis of VINCI;</p>
<h2 align="justify">Bargaining Power of Buyers</h2>
<p align="justify">The consumers or buyers are the end users for the construction companies. End users can be public sector, individual consumers, government bodies etc. As the companies mostly get the job or project through bidding, or tender, consumer has the equal amount of bargaining power. This is mainly because the consumers will finalise the company on the basis of best price along with the quality. Hence, VINCI is having an advantage in this regard, as it has a good brand name and consumer base. Therefore, it is necessary for the companies to take good care of the consumers and provide them the best quality in best possible price (Barashkova, 2018).</p>
<h2 align="justify">Bargaining Power of Suppliers</h2>
<p align="justify">The bargaining power of the suppliers is low in the construction industry. Due to innovation, advance technology, and changing in the needs and demands, there are substitutes available. New services and products are constantly innovating and introduced in market. The construction industry looks forward towards future and move towards better global trends. High level of substitutes available n the factors of production lowers the bargaining power of the suppliers. Furthermore, many goods or raw materials have the set of non-negotiable prices. this limits the power of the suppliers to great extent (UK essays, 2018).</p>
<h2 align="justify">Threats of New Entrants</h2>
<p align="justify">VINCI is operating in the construction industry, which is highly capital intensive. There are many big companies from across the globe who are well known and well establishes. The threat from the new entrants are low for VINCI. This is mainly because of the high capital requirement. The industry requires economies of scale to have good profit margins, which is quite difficult for new firms. The policies, regulatory approvals, licensing, procedures etc, are difficult and strict to follow. The operational cost is high for the new entrant. Moreover, there is a threat of being squeezed out by the big companies and they will takeover to avoid the threat. VINCI is gaining the advantage in this factor (UK Essays, 2018).</p>
<h2 align="justify">Threats from the Substitute Products</h2>
<p align="justify">Threats of the substitute in the construction industry are low. This is mainly because of the fact that tall building, civil construction, roads, streets, etc are irreplaceable. Mobile-caravan homes, or holiday cabins are short term substitute. Thus, VINCI is facing low level of threat in this regard. However, it faces the substitute threat in the raw material, like use of robots instead of human labour. But still it doesn’t completely replace the human power. The company should be expanding more in order to reduce this threat and increase the consumer base to improve the profitability (Henry, 2018).</p>
<h2 align="justify">Rivalry of Existing Players</h2>
<p align="justify">The competition in the industry is intense. VINCI has to be careful with its strategies and should increase its marketing campaigns. There are many companies who are working for the public sector, however, the downturn of construction work in public sector has dropped by 24% previously seen in 2014. This was the time when big companies grab the global market. Moreover, many companies are expanding and diversifying portfolios in order to lead the industry. Hence, it is necessary for VINCI to bid more as it opens the doors for new offers. Moreover, the company should improve itself in technology, integration and continuous innovation (Barashkova, 2018).</p>
<h2 align="justify">References</h2>
<p>Barashkova, B. 2018. Analysis of Construction Company’s Competitiveness Factors and Development of Its Competitive Strategy. [Online], Available at: <a href="https://dspace.cvut.cz/bitstream/handle/10467/74215/F1-DP-2018-Barashkova-Ekaterina-Analysis%20of%20Construction%20Company%27s%20Competitiveness%20Factors%20and%20Development%20of%20Its%20Competitive%20Strategy.pdf?sequence=-1&;isAllowed=y">https://dspace.cvut.cz/bitstream/handle/10467/74215/F1-DP-2018-Barashkova-Ekaterina-Analysis%20of%20Construction%20Company%27s%20Competitiveness%20Factors%20and%20Development%20of%20Its%20Competitive%20Strategy.pdf?sequence=-1&;isAllowed=y</a>. [Accessed on: 10th December, 2019].<br />
Henry, Z. 2018. Vinci Porter Five Forces Analysis. [Online], Available at: <a href="https://www.case48.com/porter-analysis/13832-Vinci">https://www.case48.com/porter-analysis/13832-Vinci</a>, [Accessed on: 10th December, 2019].<br />
UK Essay, 2018. Developments of the Construction Industry: Economic Analysis. [Online], Available at: <a href="https://www.ukessays.com/essays/economics/the-history-of-the-construction-industry-economics-essay.php">https://www.ukessays.com/essays/economics/the-history-of-the-construction-industry-economics-essay.php</a>, [Accessed on: 10th December, 2019].<br />
VINCI, 2019. About us. [Online], Available at: <a href="https://www.vinci.com/vinci.nsf/en/group.htm">https://www.vinci.com/vinci.nsf/en/group.htm</a>, [Accessed on: 10th December, 2019].</p>