FOREIGN MARKETS ENTRY MODELS FOR CONSTRUCTION COMPANIES
Abstract
This article is dedicated to the research of the process of internationalization at the microeconomic level and development strategies of the companies in terms of globalization of markets. The particularity of the construction industry in conjunction with other economic sectors is defined, focusing on the characteristics of consumer demand and supply, duration, return on investment, social significance. Preconditions, factors and features of the internationalization of construction industry are reviewed and identified. The relevance of the two-stage decision making model of entering foreign markets is underlined, resource-marketing assessment of such decision is made and on this basis the relevant financial and economic efficiency calculations are performed. The motivational mechanisms of trading, export and investment strategies, as well as forms of entering foreign markets by construction corporations are analyzed. The special attention is given to the research of creation processes of international strategic alliances, their competitive advantages when entering the foreign markets, the most effective organizational models, including issues regarding effective interaction of construction companies and contracting organizations. The measures and level of internationalization of the European Union construction market are evaluated, highlighting international and domestic groups and alliances among 20 biggest European construction companies. The structural and geographical particularity of international business activity of European construction MNC’s is shown.
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