Earn construction company enough? The answer to this question has probably not only young architect, but all of which have to do with business results. A quick response is given: No
Enough would be a return on equity, including Risk premium of around 10% annually. A size which is achieved by very few companies actually. Despite still good construction, the actual margin of articles or below the target. Listening to pure in the industry to find an answer on the grounds of the margin problem, this is the tenor that the intense competition is responsible, among market participants. This answer is not wrong-ahead, but it takes much too short, is partly responsible who have things to yourself!
The construction industry in Switzerland is at the beginning of a change. Changing needs of society, further changing the economy by offering field service rather than production, immigration in cities and urban areas, but also declining land reserves in changing market needs arise. The only constant is his SBB-faster, better, cheaper. The margin of the product "construction" will continue to worsen, ensures free competition, increased mobility and cut correspond limits.
Back to the question about sufficient merit. The prevailing explanation regarding poor margin is based on an outdated model. The construction industry is supportive, while not explicitly aim at, but the parallels are clear of the argument, which, unfortunately, speaks not just for the industry. The model has its roots in industry structure analysis according to the five-forces model (Porter). The Economics said that until the early 90s, if a company makes money or not. It was examined after 5 forces acting on the industry. Entry and exit barrier of market participants, substitute products, supplier power, customer power, and rivalry among the competitors. The sole supports this analysis is fatal, since it restricts the entrepreneurial horizon. It cements a persisting way of thinking, creating a much needed development remains on track. Accordingly, the discussion is open to initiate the construction industry in a paradigm shift.
Just imagine the following question: What would be missing the mark were it not for my company? This question is answered above all to be difficult when only include properties that can stand by what one competitor from the clear and long term. The deal with this issue, which is itself to be honest, can already be the first step in a new way of thinking.
early 90's was replaced in economics, Porter's model by the resource-based view (Prahalad / Hamel). No matter how intense the competition in an industry is to find companies that extraordinary abilities within them, develop them and use are, on average success. Each company and has its own extraordinary skills, or at least the opportunity to develop such. For this assignment "from the inside out" theory in U.S. companies industry-wide investigation was conducted. The result which resulted in the process showed that 44% of the Unternehmenscharistika and only 4% of the Branchencharistika successes, failures due respectively (Rumelt). Provocative, one could therefore answers to the question enough merit: there is no margin problem, there is more than the positioning errors or omissions. In order to achieve displacement in markets such as the construction sector continued success, and in order to tackle the challenges is need to rethink.
The step is a microeconomic and has to do with strategic management. It is the search for extraordinary skills within the firm. They have to find core competence must necessarily following characteristics: first
It must be valuable for the customer and provide added value to him
second The capacity has to be rare in the market area
third It must be difficult to imitate or substitutability
4th The ability to be used in various business fields. Basically, it goes
simple but crucial things the customer and the differentiation from competitors.
at the customer should be recognized in its purchasing criteria. The more intense the competition and the more open the markets, the lower the barriers to switching to convince the customer, the more important it is the customer from the customer value. What moves the customer to buy? What is its value? This can be quite different, varying motives respectively. Survey your customers and find the answer. More value means not necessarily be the lowest price! The belief that the customer is purely rational thought and its only criterion is the price is wrong.
differentiation through the core competence of rare and hard to imitate. The core competence is only long-term success! The value of a core competence increases, the it is difficult to imitate. Each company has its own strengths and weaknesses, but take it for virtually any industry in which entrepreneurs, can be leveled in such a way as do those of the construction industry. A lack of differentiation of the customer is almost forced to take only the Best. Those who missed it to differentiate themselves, deserve no more than that resulting from the price outlook.
The reason that the ability to be used in various fields of business is located must be to provide that today most enterprises in various business services. History knows no enterprise, which was large by downsizing. Therefore important is that one finds the core competencies, which provide added value in various business fields.
Having found its core competence, the company is fully aligned to it. The successful implementation is possible if strategy, corporate culture, structures and processes are congruent.
It is clear that the writing is not simply a matter of course. It is also clear, requires the rethinking his time. We are pleased in this context, however, the last question, can afford the industry, like today to go on? How long?
take the members of the connection, incidentally, in any way from this, not mitzuschwimmen also in the stream of problems. To get feedback, we would be pleased. You are cordially invited to place their opinion!
Sincerely "link-builder Future