The study on the competitive status of construction companies based on Michael Porter's five competitive forces (Case study: Armeno Project Development and Management Company)

Abstract

Various companies have been established in the field of consulting, contracting, investment, etc due to increasing needs of human societies to build and construct various development projects in such a way that each one supplies some needs of communities and governments. The construction contractor company is one of these groups which play the main role in implementation of projects. Nowadays, the construction companies compete with each other to obtain more projects and thus make more profit as well as maintaining the company due to the increasing number of contracting companies and thus reducing number of construction projects relative to the number of companies which are active in this field. This paper investigates the impact of Michael Porter's five competitive forces on competitive status of Armeno Project Development and Management Company through simple bivariate regression. According to the obtained results, all Porter's competitive forces except for bargaining power of buyers (employers) have significant effect on the competitive situation of Armeno Project Development and Management Company. In this regard, the competition between existing competitors has the greatest impact on the competitive situation of company applies, and the lowest impact is related to bargaining power of suppliers.