I. EXECUTIVE SUMMARY
BJ Marthel International, Inc. is a company that engages in trading of heavy equipments and providing contractual services. From its incorporation during April 16, 1984, it has now established a strong reputation as one of the leading distributors and most reliable service contract providers in the country.
Over the years it has achieved a competitive advantage taking into account its core competencies and the generic strategy it employs to maintain its current position in the industry.
An analysis of the industry structure is given by presenting Porter’s five competitive forces such as barrier to entry, buyer power, supplier power, threat of substitutes, and degree of rivalry. Furthermore, there is an assessment of the nature of its current and potential competitors wherein their strengths and weaknesses are identified.
Accordingly, a demand-supply analysis is used as an evaluation of BJ Marthel’s products and services on the basis of factors affecting its supply and demand. In addition, an apparent problem of the company is discussed along with identifying the alternative courses it should take to solve the issue. The proponents then made a recommendation in consideration of the results showed in the matrices and charts.
This industry analysis seeks to bring forth information and knowledge to the players in the industry, to their managements, to BJ Marthel International Inc., to the proponents and to the readers of this paper.
BJ Marthel International, Inc. is operating relatively under the construction industry since it has construction heavy equipment and parts as its primary product line. The following excerpts provide the overview of the history of the construction industry.
The construction industry dates back to ancient civilization, when the prime mechanic is the trade of strength and ability to build basic infrastructures. As years went by, skilled architects started to exchange services and perform construction works for compensation. For the past 200 years, the account of the construction industry has been rapidly changing due to technological advances significantly influenced by Industrial Revolution and the drastic growth of population. However, the progress of the construction industry was seriously affected by the recent years’ global economic downturn but a foreseeable increase is expected along with economic recovery.
In the late 18th and early 19th century, construction of factories and industrial buildings and improvements in metal works came largely into picture. These advancements suggest less manual labor and a faster rate of completion. Modern architectures had also heavily contributed to this boom.
The introduction of steel and concrete also played a major modification in the construction industry. Compared to old-school materials like bricks, concrete is a relatively cheap material that can be used to almost all types of constructions. In addition, the material is proven strong and durable. On the other hand, steel provides firm interior of large infrastructures and are also less costly.
Another noteworthy event in the history of the construction industry was when the American interstate highway system was instituted. This has offered easier access to cities and as a result creation of borders and walls dramatically increased. This has led to the expansion of housing activities with the use generic designs and cheap materials. From then on, the residential building has continued to grow. But another downfall of home building market occurred on the early 21st century when the home loan activities collapse. The trade of construction equipment also slowly entered the industry due to the increasing trend of massive constructions and growing demand for quick completion.