A Case Study of Differentiation Strategy and Competitive Advantage for Construction Firms
Date Issued
2009
Date
2009
Author(s)
Hsieh, Fang-Chun
Abstract
The construction industry has been forced two major impacts, lack of labors and cost competition, because of its well-practiced technology. To resist such impacts, the traditional construction firms usually transfer the construction costs to their vendors or reengineer the corporation. These actions can only solve the above-stated impacts for a while. Therefore, the most construction firms pay much attention on increasing their competitive advantage and their earnings during facing the impacts. This study attempts to find a novel thought not only to leave the price war in construction industry but also to increase meaningful and additional value for buyer through a case study. his study uses the case study procedures proposed by Kathleen M. Eisenhardt (2008) (“Building Theories from Case Study Research”) in progress. A firm, Ruentex Engineering & construction Co., Ltd., is chosen in the case study research because the chosen firm is well-known in breaking through the price war in construction industry. To investigate this company, it is observed the differential strategy is adopted to increase the added value of buyers. This study analyzes and compares the collected data (records of visiting talk, financial information, literature review and direct observation) interactively to find the strategy logical and background of interested case. Two assumptions are observed as follows:1) The traditional industry (construction industry) can make earnings and keep competition advantage by choosing “differential strategy”. 2) The cost down is still important and should be considered even that a firm owns its successful differential strategy.
Subjects
Construction firms
Differential strategy
Competition advantage
Case study
Precast technology
Cost plus
Type
thesis
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