Competitive advantage
Introduction
The construction and engineering industry in Sweden has emphasized the attention of project managers to focus on achieving a competitive advantage over competitors. The operations strategies and management actions were taken by project managers to manage construction sites are described. With construction contractors’ decisions, the gap between operational level and tactical levels has decreased. The operation strategy and the factors that influence competitive advantage to affect the construction organizations in maintaining a market share and considering positive growth in the construction industry. The construction industry is characterized by considering the goals of individuals and focusing on value chain analysis. The complexity of products and supervision of the overall project is dependent on construction workers. The work is subcontracted with the help of project execution that assembles specific artifacts with permanent and organized plans.
Competitive advantage provides total value competitiveness that enables a contractor to assess the level of competition in the construction industry and ensures the contractor’s competitiveness. The most established framework that is applied by construction contractors and engineers in the construction industry is The Diamond Framework. Porter introduces the Diamond Framework, and firms have used it as the base to achieve, create, and sustain competitive advantage in the business. The power that the organization considers while using the framework is useful as it includes a wide range of factors that influence international success and determines the level of competitiveness in the organization. The international success is categorized with four determinants in terms of the shape of the diamond. The first determinant is factor conditions that cover the major factors such as knowledge resources, human and physical resources. The demand condition is described with the structure, size, and sophistication of market demand and services in the construction industry. Related and supporting industries include the reflection and presence of internationally and supporting industries in the construction industry. The fourth determinant is a firm strategy that consists of the structure of the company, nature of domestic competition, and procedures used by the companies to focus on growth. A comprehensive description framework ensures criticism, credits, and debate using Diamond Framework. This is the most appropriate framework that ensures competitiveness in the firms and provides a framework that is suitable for engineers and contractors in the construction industry.
Factors that influence competitive advantage
The factors that create and influence competitive advantage for engineering and construction contractors when operating overseas are
Process technology
Capacity
Facilities
Vertical integration
Human resources
Organizations
Quality
Production planning
Performance management
Product development
These are the factors that ensure the competitive advantage of an organization and ensure operational management to be handled efficiently. The primary focus is on the planning and execution stage to which the organization controls the work tasks. The executive management aspects extend to productivity level and gain practical business aspects to be handled with customer value. The alignment of project strategy is another aspect to be considered in achieving the overall business strategy with an essential factor in ensuring project success and finding the contractor’s policy. The factor that form operations strategy were described to which significant decisions are made by organizations to achieve competitive advantage. As per the resource-based view, the firm’s strategic level and operation strategy help to formulate resources that are used at the tactical level. The aspect of resources and environmental concern is a significant aspect of the decision category to consider the management of the firm and ensure operations strategy in the business. The list of ten factors that influence competitive advantage provides the construction company’s competitive advantage. The direction of planning and evaluating overall factors ensure excellent performance of the firms and achieve a competitive advantage. This is the new business aspect that firms use in terms of considering consistency in an organization with operational strategy as an essential means of project expectations. The process is one such factor that ensures the firm’s competitive edge.
Process technology: Process technology consists of a production method that ensures the selection of machines and equipment used by construction firms to obtain the overall advantage and performance of the company.
Capacity: Capacity is one such factor that determines the level of potential that an organization has to achieve a competitive advantage. A construction company considers 80% of work to subcontractors to which an increase in capacity is observed.
Facilities: Facility includes buildings and plants where construction takes place for an organization to which it is often noted as construction sites.
Vertical integration: Vertical integration is a concept in which other firms outside the company participate in considering competitive advantage and ensuring market share for the business.
Human resources: The competencies and skills of the workforce affect and influence competitive advantage.
Organization: the culture of the company, process, and staff are the major factors that influence the completion and success of the projects.
Quality: Customer satisfaction rate is based on the degree of acceptance of products and services managed by the organization.
Production planning: One such factor that influences competitive advantage is production planning that ensures construction methods and focuses on an increase in production in the construction industry.
New product: The new solutions that the business takes effect the competition level.
Performance measurement: An organization uses an effective method to evaluate the performance of the business, which ensures construction performance measurements taken to achieve a competitive advantage.
Conclusion
The report provides detail of factors that create and influence competitive advantage in the engineering and construction industry. The factors that were mentioned in the report are capacity, process technology, production planning, vertical integration, organization, human resources, quality, and new product development.