The Importance Of Rivalry In The Construction Industry

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To begin with, firms within an industry play a major role in making the industry alive due to their rivalry. Although the competition between established organizations is always expected, organizations yet will have to ensure that they have the right attributes in order to be differentiated amongst the others, which can basically lead to a fierce rivalry. In Bahrain there are some well-known construction firms such as Delta Construction, Gulf Construction and Japan Construction. Each of the previously mentioned organizations has the option to either expand its marketing; which is known to be costly, or to lower its prices; which can increase the demand in order to maximize their income, therefore compete and survive. Rivalry among existing firms has its strengths as it helps to keep the organization updated and innovative; some of the organization might use 3D Art while others do not, create a competitive…show more content…
Although suppliers play an important role in the succession of an organization, it is extremely important to understand the level of power they express on those organizations. The suppliers can have a bargaining power as they determine the prices of their supplies; they are also able to convince organizations to buy their required supplement with the exact same price, timeline, and quality because they have the upper hand in setting them all. Despite the power the suppliers express on firms, they form strength; like if the material provided by the supplier is highly-differentiated and cannot be obtained from other suppliers, or when there are few numbers of suppliers for a particular industry. Usually the number of substitutes is limited in the construction industry which also gives more power to the supplier because there is a huge reliance and demand on what they

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