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1 2005

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Searching process modeling of international construction market segments

Juodis A., Siskina A., Stalioraitis P.

Foundations of Civil and Environmental Engineering

2005

No. 6

71-83

The development of globalisation processes has influenced all the countries of the world and all areas of human activity. In terms of globalisation, there is increasing international cooperation between companies and development of construction markets become more rapid. This stimulates competition between contractors and forces them to review their operation strategies. Taking the decision upon entering markets abroad it is necessary to estimate and evaluate important factors and criteria. The problem issue of this work is as follows: how to choose the right market segment in construction industry? This paper presents a new methodology developed for implementation and execution of formalized market search and target segment identification process. The target markets are identified according to the multiple criteria decision-making methodology (Game theory and models for selection of the definite alternative solution based on the highest efficiency). The work was focused on the analysis of construction markets in 3 countries: Germany, Lithuania and Russia (Kaliningrad region), which differ in many demographic, economic and political terms. Such situation provides possibilities for more effective capacity utilization in construction industry. Choosing the right way of entering a host country market and selecting the target market segment benefits the company in financial and legal aspects.