Response strategies to the competition in the Chinese construction market

Abstract

The Chinese construction market is composed of 31 local markets which differ from each other in various aspects such as competition intensity. Contractors moving from one market to another need to consider the competition strategies and make due response to new competition situation in order to survive. Nevertheless, the research into response strategies to competition situations has been limited. Effective response strategies can assist contractors to respond to different competition environments. Based on the data collected from major cities in China, five typical competition situations are identified and six strategies are found effective to guide contractors’ response to various competition situations. For instance, a closer cooperation between main contractors helps contractors respond effectively where safety accidents occur frequently in the market. The research findings present new perspectives of developing competitive strategies in the Chinese construction market and provide recommendations for adopting a conduct–performance approach for examining response strategies in other construction markets.

Keywords:

• Competition
• response strategies
• market performance indicators
• coefficient analysis
• China