Rivalry And Rivalry In Bahrain

1160 Words5 Pages

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 …show more content…

New entrants are those organizations which usually take a long time in order to analyze the performance of the intended industry, in order to come up with a strategy that would prevent them from getting eliminated or destroyed by existing organizations dominance. This will also help newcomer organizations to gain a market share, for example: when Al Aynati Group entered the Construction industry in the 1980s in Bahrain, it had to differentiate its performance, prices and quality from Projects Construction that has been in the industry since 1976 in order to attract as many customers as possible. This can be positive and negative at the same time. It is negative because it can be threatening the existing organizations because they are new firms with new capacities and knowledge, and they usually propose new pricing system to gain more customers and claim their trust. But it is positive because it gives the existing firms the chance of being prepared, innovative, updated and …show more content…

These alternatives usually exist to replace other products and attract the already existing firms’ customers. The existence of substitutes brings a huge threat for those organizations which are already competing within the industry, because the customers would simply shift to the substituted product and talk to other people about it which can lead to more customers shifting to those alternatives. Nevertheless, substitution is perceived as being very limited within the construction industry due to the lack of substitutes. But there is always an external threat on the construction industry within Bahrain, for example: there are organizations that provide buildings made out of wood rather than cement, or real estate dealers who provide customers with readymade houses. However contractors from neighbor countries may be desired by the customer for building, in such cases these contractors are not seen as potential entrants but alternatives to the existing

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