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Canada’s Construction Industry - Porter’s Five Forces Strategy Analysis

Canada construction market: Latest market research analysed

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2014-02-24 20:28:14 - Canada’s Construction Industry - Porter’s Five Forces Strategy Analysis - a new market research report on

The Canadian Construction Industry expects that 2007 will witness the start of a gradual cooling trend in the overall industry, led by a small decline in activity in the residential construction sector. After recording growth in construction investment of 3.2% in 2005 and 3.4% in 2006, the overall Canadian construction industry is expected to witness growth of 1.7% in the years 2007, 2008 and 2009.

We analyze the Canadian Construction Industry in the Michael Porter´s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macroenvironment. They consist



of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.

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Mike King
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