Title Selection and Strategies of New Leading Businesses in International Construction Market
Authors Choi, Seokjin ; Lee, Kang-Wook ; Han, Seung Heon
DOI http://dx.doi.org/10.6106/KJCEM.2012.13.2.025
Page pp.25-36
ISSN 1229-7534
Keywords International Construction Market ; New Leading Business ; Business Evaluation Framework
Abstract As the international construction market is rapidly expanding, Korean contractors have the need for having new leading businesses for their sustainable growth and high performance. Thus, this research tried to explore new leading businesses with two questions: ‘What can be the new leading businesses?’and ‘How can Korean contractors implement new leading businesses?’To this end, based on Porter's five forces framework and the resource-based view (RBV), we first derive three evaluation criteria (possibility of market entry, possibility of profit earning, and possibility of value-added earning). Next, we developed a framework for business evaluation which considers external market condition, internal competitiveness, and spin-off effects toward domestic market. Based on the framework, we defined green-energy plant, environmental plant, desalination plant, nuclear power plant, new urban development, and high-rise building as new leading business. Then, we selected green energy plant, environmental plant, and new urban development for the purpose of prior occupation of the market, consolidation of the competitiveness, and expansion of the ripple effect, respectively. Finally, we deduced market entry strategies for each business by investigating experts' opinions.