Strategies for Developing Countries to Expand Their Shares in the Global Construction Market: Phase-Based SWOT and AAA Analyses of Korea

Title
Strategies for Developing Countries to Expand Their Shares in the Global Construction Market: Phase-Based SWOT and AAA Analyses of Korea
Author
김주형
Keywords
Korea; Developing countries; Developing countries; Competition
Issue Date
2011-06
Publisher
ASCE AMERICAN SOCIETY OF CIVIL ENGINEERS
Citation
Journal of Construction Engineering & Management, Jun 2011, 137(6), p460-470. 11p
Abstract
Korea's level of competitiveness in the global construction market has significantly improved over the years; from being an underdeveloped country in the 1960s, Korea is currently one of the top ten countries in terms of revenue in the global construction market. In general, an international construction business entails various risks and requires advanced financing and managerial and technical ability to become competitive. Therefore, it is challenging for developing countries to expand their share in the global construction market. In this regard, the case of the Korean international construction business (KICB) may serve as a benchmark for other countries aspiring to enter or reinforce their status in the global construction market. To this end, the strategies to achieve and maintain competitiveness need to be analyzed chronologically rather than focusing only on a particular period, especially the current status. This paper details the history of KICB, showing its evolution over the past 40 years, divided into four major phases that correspond with significant events. Moreover, the important aspects for securing competitive advantage in the market are clarified using four sets of strength, weakness, opportunity, and threat (SWOT) analyses. In addition, the strategic evolution over the four major phases is explored by introducing the adaptation, aggregation, and arbitrage (AAA) framework. The research findings indicate that the strategies adopted by KICB for achieving competitiveness included presenting a memorable performance in a primary country of a particular region (adaptation) during the initial phase, achieving economies of scale in a few regions during the development phase (aggregation), developing international specialization during the depression phase (arbitrage), and adapting to receive orders in a severely competitive market while coping with the local industry protection policy during the resurrection phase (adaptation).
URI
https://ascelibrary.org/doi/abs/10.1061/(ASCE)CO.1943-7862.0000316http://repository.hanyang.ac.kr/handle/20.500.11754/72849
ISSN
0733-9364
DOI
10.1061/(ASCE)CO.1943-7862.0000316
Appears in Collections:
COLLEGE OF ENGINEERING[S](공과대학) > ARCHITECTURAL ENGINEERING(건축공학부) > Articles
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