Win the Competition
Competitors Concept: Investors in Saudi Arabia attempt to do a feasibility study for any market they intend to invest in. They will explore the market and identify their potential competitors in the future, to decide whether to invest in the field or to look for another opportunity. The contracting field is one of those fields, that deserve to be examined before moving ahead.
Based on the results of the study, financial and funding abilities of the investor, he can decide, which contracting field suits him, mostly. Some contracting fields need a big working capital, while the others need a small one.
The sewer contractor may contract in this field as a main contractor or as a subcontractor. The former has a direct relation with the owner, and in this case, he needs a big working capital to meet his contractual obligations such as:
A) Issuing the primary bond.
B) Issuing the performance bond.
C) Issuing the advance payment bond.
D) Site preparation expenses.
E) Purchasing of materials.
F) Purchasing or renting of equipments.
G) Mobilization expenses.
H) Arranging the project initial expenses (operating expenses, salaries. etc) until he receives the amount of the first bill).
The subcontractor has a direct relation with the main contractor, and in his case he needs a smaller amount of money to meet his contractual obligations, which are normally associated with the signed contract such as (performing the work without the need to supply of material).
Who is your competitor?
He is any business or person who competes with you or may compete with you. Of course, it's difficult sometimes to study all of them. Therefore, study the major ones and try to emphasis on the most notable companies for the (same field and same geographical area).
The potential rival may be a company from abroad, that performs the same business and wishes to expand to invest in your country.
It is necessary to study the major potential competitors. Sometimes we may know about a rival more than the others. If we fail to know all what we want, then this should not prevent us from analyzing the current information to create a better idea about the available ones.
In small cities, it's easy to find out your competitors because the place is limited and the companies' numbers are few, while in the big cities, it's difficult to know all of them.
The Public Relations Department plays an essential role in gathering the necessary information. For example, knowing who is planning to bid for a project is an important thing that helps the cost estimator in his pricing process to estimate the right price for the project.
What is your source of information? Information can be taken from anything such as:
B) General and specialized magazines.
C) The international network.
D) The competitor site on the internet.
E) Feedbacks from the customers.
F) Financial Reports.
G) Your personal experience.
H) The commercial advertisements.
I) The commercial exhibitions.
J) Sales brochure.
K) Economic analysis reports.
L) Government reports.
M) Seminars and conferences.
N) Pricing policies.
O) Bids (posed in newspapers or in the internet).
P) Expansion policies (buying other entities).
Q) Employment ads.
R) Television and newspaper interviews.
The public relations department should also track all available information in many ways, such as:
A) Talking to vendors, consultants, customers and others who deals with the company in the same area to see if it is likely for a new rival to float on the surface.B) The presence of competition is a good thing for entrepreneurs, as it drives the prices down. Rivalry between contractors, force them to hire expertise cost estimators, to be able to compete without the fear of loss.
By the time, companies keep a record for bidding results, and build a data about rival's prices and their way of project's estimation.
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