Michael Porter’s Five Forces Model in Civil and Building Construction Industry

MICHAEL PORTER’S
FIVE FORCES MODEL
IN CIVIL AND BUILDING
CONSTRUCTION
INDUSTRY

EXPLANATION OF FIVE
FORCES MODELS
 The five forces include
competitive rivalry, supplier
power, threat and
substitution, buyer power
and threat of new entry.
 Through the five forces
model, organizations keep a
close view on their
competitors as well as look
beyond their actions.
 They help the organizations
to examine factors than can
impact the environment of
business. limitations- thus
model assumes a market to
be classic perfect. Image 1: virtual reality in
construction industry
(Source: Hilfert and König
2016, p. 135)

LIMITATIONS OF FIVE
FORCES MODEL
 Assumes a relatively
static market structure.
 Does not take into
account strategic
alliances.
 This model helps the
construction industry to
detect the entry of
competitors.
 This helps organizations
to find ways to bargain
the powers of buyers
and suppliers. Image 2: virtual reality
in construction industry
(Source: Zhao and Lucas
2015, p. 15)

LITERATURE REVIEW
 According Safari, Farhang and
Rajabzadehyazdi (2016),
virtual reality can be used in
order to shift the idea of
construction using mobile
devices to drone technology.
 This technology in
construction industry solves
various problems that arose
previously.
 As per Hilfert and König
(2016), various problems that
can be solved include scale
up quickly, streamline
collaboration, improve
customer experiences and
many more.
Image 3: virtual reality in
construction industry
(Source: Safa, M., Shahi, A.,
Haas 2015, p. 154)