The document analyzes the potential for survival in India's construction industry using Porter's Five Forces model. It finds that while the threats of new entrants and bargaining power of suppliers are high due to shortage of skilled labor, bargaining power of buyers is low due to high demand. Competition is high in some segments but lower in others like airports. The government is taking measures like increasing foreign investment to stimulate growth in the construction industry.
Bangladesh has cheapest labor and tries inviting investors to come with the capital but investors are reluctant to come here. Dhaka is the costliest city to live among cities of Bangladesh and city planners trying to push industrial establishment to other part of the country. Interestingly, in contrast, the business conglomerates from Chittagong, Jessore, Kushtia are shifting their production plants and offices to Dhaka. Historically, some multinationals started business in Chittagong from British period and recently shifted their office and factory to Dhaka. This contradiction lies in fact that Dhaka is cheapest city in Bangladesh for doing business. The cost of living and cost of doing business is two different dimensions of a city.
Bangladesh has cheapest labor and tries inviting investors to come with the capital but investors are reluctant to come here. Dhaka is the costliest city to live among cities of Bangladesh and city planners trying to push industrial establishment to other part of the country. Interestingly, in contrast, the business conglomerates from Chittagong, Jessore, Kushtia are shifting their production plants and offices to Dhaka. Historically, some multinationals started business in Chittagong from British period and recently shifted their office and factory to Dhaka. This contradiction lies in fact that Dhaka is cheapest city in Bangladesh for doing business. The cost of living and cost of doing business is two different dimensions of a city.
A research paper prepared by me on the Manufacturing Sector In India. It contains a SWOT analysis and possible outcomes in the future for the industry.
Kegler Brown and the Ohio Development Services Agency presented "Succeeding in India: Business and Legal Insights" on Tuesday, October 14, with Dr. Manoj Kumar Mohapatra, Deputy Consul General, Consulate of India, New York, as the keynote speaker.
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กลยุทธ์ เคล็ดลับธุรกิจดีๆ มีให้เรียนได้ไม่รู้จบ
คลิก http://goo.gl/t6i0Nw
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A research paper prepared by me on the Manufacturing Sector In India. It contains a SWOT analysis and possible outcomes in the future for the industry.
Kegler Brown and the Ohio Development Services Agency presented "Succeeding in India: Business and Legal Insights" on Tuesday, October 14, with Dr. Manoj Kumar Mohapatra, Deputy Consul General, Consulate of India, New York, as the keynote speaker.
Topics included legal intelligence when conducting business in India, how the Ohio Development Services Agency can help Ohio businesses and a panel of local business leaders provided insight and practical advice from their experiences in India.
China plus one and fdi into bangladeshM S Siddiqui
Bangladesh should come forward with a realistic approach. It may prepare an evidence based comparative statement of all the index of measuring cost of doing business and ease of doing business with different counties in South Asia and ASEAN countries for negotiation and for relocation of industries under China-plus-one policy.
A slideshow highlighting the positive effects of globalisation. India burgeoning middle-class now can take advantage of the many retail outlets, malls, shops, restaurants, cinemas.
Make in india,TURNING VISION INTO REALITYJyothi Gupta
Infrastructure- Has India initiated enough measures to get its infrastructure ready to fulfill its aspirations of a fully developed nation?
Opening up of Critical Sectors for Private Participation like Railways, Ports, Defence, Aviation etc
This presentation describes about insights of real estate/ construction Industry in India. India is one of the biggest market in terms of unbalanced demand and supply. For more info write to me at mailtoparteek@gmail.com
Engineering Procurement & Construction Making India Brick by Brickelithomas202
The EPC market in India has evolved over the last few years with increased project size and complexity. This has increased private clients and entry of several foreign players.
"SME สร้างแบรนด์อย่างไรให้ดัง" SME Webinar สัมมนาออนไลน์K SME
SME Webinar สัมมนาออนไลน์
หัวข้อ "SME สร้างแบรนด์อย่างไรให้ดัง"
ชมคลิปสัมมนา - https://youtu.be/kynrQbuu2O0
กลยุทธ์ เคล็ดลับธุรกิจดีๆ มีให้เรียนได้ไม่รู้จบ
คลิก http://goo.gl/t6i0Nw
K SME ช่วยเต็มที่ SME มีแต่ได้
Presented in the classroom at XIMB (Xavier Institute of Management, Bhubaneswar), this presentation is a synoptic view and critical analysis of the most epic movie ever made in the history of Indian cinema. It breaks down the characters in the movie and is a satirical take on the world of Bollywood - the "other" type of movies. *Ahem*
Please note - the videos are not supported. They have been uploaded as pics here. For the relevant videos, refer to "Gunda - Parts 1 to 15" on youtube. :D
Have fun. ;D
Challenges Faced in Indian Construction Sectorijtsrd
The Indian construction industry is known to be inefficient and highly resistant to change. Even with a changing market and increasing competition, there are no obvious signs of commensurate changes in methods and approach. Project management, on the other hand, seems to offer what is needed in terms of tools and techniques to raise industry standards. Little is known of the extent to which project management as a discipline exists in India. The aim of this paper, therefore, is to investigate the current level of application of project management and the obstacles that have prevented its introduction in the Indian construction industry.The purpose of this study is to provide business leaders, government, policy makers and nodal agencies with an outline of suggested structural reforms required to de-bottleneck infrastructure implementation in India. It also tries to throw light on various factors or issues which are hindering the development of construction sector of India. This work is independent and has not been commissioned, sponsored or endorsed by any business, government, or other institution.In India Construction has accounted for around 40 per cent of the development investment during the past 50 years. Around 16 per cent of the nations working population depends on construction for its livelihood. The Indian construction industry employs over 30 million people and creates assets worth over ? 200 billion Danish Shakeel | Mr. Zeeshan Khan"Challenges Faced in Indian Construction Sector" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-1 | Issue-5 , August 2017, URL: http://www.ijtsrd.com/papers/ijtsrd2328.pdf http://www.ijtsrd.com/engineering/civil-engineering/2328/challenges-faced-in-indian-construction-sector/danish-shakeel
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International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
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Sentiment for the construction industry is somewhat optimistic and the outlook for 2018 is relatively positive, with further increases in activity expected across a few strategic sectors.
However, there are a number of challenges currently facing the industry, and of these, the country's currency value and access to finance/funding for activities is causing the greatest concern.
BusinessDay Research & Intelligence Unit (BRIU) is delighted to present the results of our Construction Survey which reflects the views of 114 professionals from segments of the Construction Industry, as well as Finance and the Public Sector.
Our report provides in-depth analysis of the construction industry including trends and challenges being
experienced on the ground.
Sentiment for the construction industry is somewhat optimistic and the outlook for 2018 is relatively positive, with further increases in activity expected across a few strategic sectors.
However, there are a number of challenges currently facing the industry, and of these, the country's currency value and access to finance/funding for activities is causing the greatest concern.
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Potential survival after entering the construction industry
1. Potential Survival After
Entering the Construction
Industry
Presentation in the subject of
Managerial Economics
By – Divpriya Chawla
2. Objective
By means of this presentation, the researcher
aims to analyze the potential survival after
entering the construction industry in India with
the help of the Porter’s Five Forces Analysis.
The researcher will also look into the status of
the construction industry in India, its recent
risks, challenges and developments.
3. Porter’s Five Forces
Analysis
►The Five Forces were
Porter’s conclusions on the
reasons for differing levels of
competition, and hence
profitability, in differing
industries.
►They are empirically derived,
i.e. by observation of real
companies in real markets,
rather than the result of
economic analysis.
► Porter’s Five Forces is a
useful generic structure for
thinking about the nature of
industries.
4. Construction Industry in India
►The construction industry is the second largest
industry of the country after agriculture
accounting for 11 percent of India’s GDP.
►Indian construction industry employs 35 million
people and its total market size is estimated at
US$ 126 billion.
►Construction activities in India are largely
fragmented with only about 250 firms
employing more than 500 people.
5.
6. Construction Industry Characteristics
►The Financial Year 2012-13 had a growth of
6.0% for the Indian construction sector.
►The industry is characterised by a mix of
organised and unorganised players in all sub-sectors
encompassing everyone from
construction workers to supervisors,
contractors and material
manufactures/suppliers etc and has grown
slower than the overall Gross Domestic
Product (GDP) during the year.
7. ►The industry is currently on the cyclical
uptrend. Deciphering past data, indicate
periods of 3 to 4 years of cyclical peaks and
troughs.
►The year 1990-1991, recorded a growth rate of
11.8% and has been low for the past decade
owing to the slow market for construction.
►The next peak of the cycle is likely to be
experienced in the year 2014-2015 by reaching
11%.
8.
9. Segmentation of the Industry
►Residential, industrial, commercial, and other
buildings.
►Sewers, roads, highways, bridges, tunnels,
and other projects.
►Specialized activities such as carpentry,
painting, plumbing, and electrical work.
10.
11.
12. Threat of New Entrants
►New entrants to an industry add capacity and if
the capacity added is greater than growth in
demand, this reduces profitability.
►Threat of new entrants is very high across
segments like road construction, housing and
urban infrastructure development.
►Threat of new entrants is relatively low in airport
and port development.
13. Bargaining Power of Buyers
►The prices a business can obtain has the single
biggest impact on the profitability of your
business. In most cases buyers shop around for
best prices and thus exert downward pressure
on prices.
►Bargaining powers of the buyers is low in the
Construction Industry, owing to the huge
demand-supply gap in the present economic
scenario.
14. Threat of Substitutes
►The threat from substitute products is particularly
severe if the substitute product is cheaper or more
cost effective.
► Whole industries have been wiped out by
substitutes, for example in Europe the
replacement of silk by viscose rayon.
►As such, there is a very little threat of substitutes
in the Construction industry as the inputs cannot
be substituted easily.
15. Bargaining Power of Suppliers
►The balance of power between suppliers and
the supplied industry is a function of the
relative fragmentation.
►In industries where inputs are commoditised
and where there is ample availability of
substitutes, the ability of suppliers to raise
prices is limited and vice-versa.
►The bargaining power of the suppliers is high
keeping in view the shortages of labour and
the constantly rising prices of the inputs.
16. ►Construction costs have shown a clear 15%
increase with input costs of materials and
workforce. There is a critical shortage of over
30% of skilled workforce and supervisors.
17. The constantly rising input prices
and the acute labor shortages in
the construction industry lead to a
very high power in the hands of the
suppliers to affect the price.
The same surveys point to the need
to hinge on project management,
mechanization and pre advanced
technology to handle the situation.
18. Rivalry among Existing Firms
►The intensity of competition, or rivalry, will have
a significant impact on the ability to generate
adequate margins.
► High competition in cases of road construction,
housing and urban infrastructure development.
►Relatively less competition in airport and port
development.
19. Risks to the Construction Sector
►Construction majors are currently
experiencing liquidity constraints due to
tightening funding norms being employed by
institutional financers.
►The industry is also facing squeezing margins
due to increasing commodity prices.
20.
21. The Way Forward
►Due to monetary issues and other elated
policies the Indian construction industry
showed a lacklustre performance in 2012-13.
►The government is also making pertinent
efforts to remove bottlenecks that are
delaying infrastructure projects in India.
India's construction sector is to reach 7.6%
growth in Financial Year 2013/14.
22. Efforts by the Government
►In 2012 the Asian Development Bank (ADB) and
India Infrastructure Finance Company Limited
(IIFCL) have launched the first version of the
credit enhancement scheme or infrastructure
bond guarantee scheme.
►This risk-sharing facility will partially guarantee
INR7.2bn (US$128mn) of rupee-dominated bonds
issued by Indian companies to finance
infrastructure projects.
23. ►The government announced the proposal to set up a
National Investment Board to ensure speedy clearing of
projects.
► The Indian Government has decided to allow 100%
Foreign Direct Investment (FDI) in the real estate
industry, thereby stimulating construction activities
throughout the country.
►The Indian real estate industry is likely to grow from €7
billion or Rs. 490.03 billion in 2005 to €58 billion or Rs.
4,060.24 billion in by 2015.
►Foreign direct investment alone might see a close to six-fold
jump to €19 billion or Rs. 1,329.96 billion over the
next 10 years.
24.
25. Conclusion
Therefore, after experiencing a decade of slow
growth, the construction industry is expected to
experience a major upsurge leading to huge
profitability and reaching the peak of its cycle
again owing to the various revival measures
taken by the government.