Strengths, Weaknesses, Opportunities, and Threats: Case Study of Consulting Firms in Shenzhen, China
Publication: Journal of Construction Engineering and Management
Volume 135, Issue 7
Abstract
After China became a member of the World Trade Organization, Chinese architectural, engineering, and project management consulting firms faced competition from not only their domestic competitors but also from foreign firms. As most Chinese consulting firms are used to operating under a protected setting, they may face difficulties competing in the globalized environment. This research involves a strengths, weaknesses, opportunities, and threats (SWOT) analysis of Chinese consulting firms based in Shenzhen; investigates how they respond to opportunities and threats; and recommends how foreign firms can respond to Chinese consulting firms’ SWOT. The case study research design is adopted. Using semistructured interview questions, face-to-face interviews were conducted with 23 Chinese consulting firms based in Shenzhen. Foreign firms’ responses are investigated through a case study of a U.S.-based consulting firm operating in China. The SWOT analysis reveals that Chinese consulting firms are lagging behind foreign firms in design and technical capability; experience in international projects; general and project management ability; and financial capacity. Industry practitioners from outside China who are contemplating entering the Chinese market can leverage on Chinese firms’ strengths by forming joint ventures with them. Foreign industry practitioners can take advantage of Chinese firms’ weaknesses by offering superior products and services which would improve their competitive advantage.
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Acknowledgments
Ms. Shallene S. Y. Lim’s assistance in collecting data for the case study of the U.S. headquartered firm is acknowledged with thanks.
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Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 135 • Issue 7 • July 2009
Pages: 628 - 636
Copyright
© 2009 ASCE.
History
Received: Feb 11, 2008
Accepted: Dec 22, 2008
Published online: Apr 30, 2009
Published in print: Jul 2009
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