Strategic planning for competitive advantage in construction

This paper outlines the developments in strategic planning exemplified by the works of Porter (1979, 1985, 1990) and others. After describing the emerging concepts and techniques, it is observed that these have been applied by enterprises in other sectors of the economy in pursuit of competitive advantage. Such applications are taking place at the level of parts of an enterprise's operations and at the overall corporate level. This is contrasted with the situation in construction where strategic planning at any level is less widespread, although it is becoming more common. Several reasons are identified as hindrances to strategic planning in construction. The current and historical situation with regard to planning in construction is described. The ways in which strategic planning can be applied by construction enterprises are outlined. In conclusion, it is observed that Porter's new concepts of strategic planning have relevance to, and considerable scope for application in, construction enterprises. It is suggested that the changing nature of the task of the construction industry and the dynamism of its operating environment imply that the strategic planning techniques put forward by Porter are vital for the survival and progress of construction enterprises of all types.