Residential

Construction
Industry Analysis
October, 2020
Billy Derr, Kelly Dicks, Andrew Flood & Tina Goodwin

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Industry Overview & Trends

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 Driving Forces

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 Industry Attractiveness Measures

Industry Attractiveness Measure Importance Score Weighted

Weight Score
Market size and projected growth .15
Intensity of competition .25
Emerging opportunities and threats .10
Resource requirements .15
Seasonal and cyclical factors .10
Social, political, regulatory, environmental factors .05
Industry profitability .10
Degree of uncertainty and business risk .05
Overall Attractiveness Score

Rating Scale: 1=Very Unattractive; 10=Very Attractive

Opportunities and Threats

OPPORTUNITIES O
O TT THREATS

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 PESTLE

P E S T L E
Political Economic Social Technological Legal Environmental

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 Porter’s Five Forces

Threat of New Entry Buyer Power

Threat of
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Competitive
Rivalry
Supplier Competitive Buyer
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Supplier Power Threat of Substitution

Threat of
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 Competitive Analysis

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 Value Chain Analysis

Firm Infrastructure
Support Activities

Human Resources

Technology development

Procurement
Primarily Activities

Inbound Outbound Marketing Service

Operations
Logistics Logistics and Sales

Sourcing and Customer

Procurement Systems
Industry Value Chain Relationship Management Systems

Suppliers’ Costomer
Suppliers FIRM Distributors
Suppliers s
 Simple Supply Chain

Develop Deliver
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Plan Make Return

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 Industry Attractiveness Measures

Industry Attractiveness Measure Importance Score Weighted

Weight Score
Market size and projected growth .15 7 1.05
Intensity of competition .25 3 .75
Emerging opportunities and threats .10 5 .50
Resource requirements .15 3 .45
Seasonal and cyclical factors .10 5 .50
Social, political, regulatory, environmental factors .05 5 .25
Industry profitability .10 6 .60
Degree of uncertainty and business risk .05 2 .10
Overall Attractiveness Score 4.2

Rating Scale: 1=Very Unattractive; 10=Very Attractive

Conclusion
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