Five Forces Analysis of the Swedish Construction Industry

Five Forces analysis of the Construction Industry in Sweden â€Å"The authors conclude that the less competitive a market environment, the higher will be the amount of corruption by giving public servants the incentive to extract some of the monopoly rents through bribes.† (Lambsdorf, 1999) Industry background: The Swedish construction business consists of four main actors namely JM, NCC, PEAB and Skanska that historically have had exclusive rights to bid on large-scale governmental projects. This is not a result of corruptive and lobbying activities but rather a result of the sheer size and financial budgets of these projects and firms with the ability to finance them. (Hà ¥dell and Uveborn, 2004). This in terms cause extensive†¦show more content†¦The power they posses might grow even bigger as the reputation and trust of the market has decreased over the last couple of years causing mistrust towards some firms and making them fight even harder to win a bidding (Hà ¥dell and Uveborn, 2004). Supplier power is generally low due to the competitive nature of the market. Nevertheless medium- and small-sized suppliers influence is of both high and low level, many times depending on at what stage in the process of a project they are. If it is in the beginning stages and there is a demand for material or service the medium sized actors have the negotiating power and can mark up prices, because the main actors want and need to get started as soon as possible often choosing the first and best sub supplier. In the latter stages of the process, the large-scale firms can use their power discounts to bargain for prices (Hà ¥dell and Uveborn, 2004). Gothenburg corruption case During the last 5-year period several corruption cases have surfaced in the construction industry in the municipality of Gothenburg. Cases that show that local medium- sized actors have used network skills and foul play to secure the acquiring of governmental projects. This has been attained in a number of ways, by carrying out personal construction jobs for officials free ofShow MoreRelatedVsm Group: Examination of Strategic Position and Development of a Competitive Strategy4519 Words   |  19 Pagesmodels will be used to analyse both the internal and external environment of the company, namely, PESTEL, Five Forces Model, and the SWOT analysis The examination of the strategic position of VSM will involve analysing the strategy of the company with emphasis on the environment it operates in, its strategic capabilities, and how expectations affect organisational purposes and strategies. 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