COMPETITIVENESS AND COMPETITIVE STRATEGIES OF LOCAL ARCHITECTURAL FIRMS IN SINGAPORE

Abstract

Local architectural firms compete not only against other local firms, but against foreign architectural firms as well. Local architectural firms receive additional competition from a variety of other professionals in the industry, whose services are sought primarily because architects in general are unable to provide these services in the first place. Unless local architectural firms diversify the range of their expertise, or differentiate to improve innovation in their services, they can win neither over other professionals, nor with foreign architectural talent within the local industry. Hence there is a need for local architectural firms to implement competitive strategies to attain competitive edge and a sustained growth over rivals. The competitiveness of the local architectural industry is gauged through Porter’s Five Competitive Forces Model. These five competitive forces are: Threat of Entry of New Competitors, Pressure of Substitute Services, Bargaining Power of Buyer, Bargaining Power of Supplier, and Intensity of Rivalry within the industry. Competitive strategies adopted by architectural firms were researched, and implementation of such strategies by local architectural firms was examined. Thus current competitive strategies adopted by architectural consultants in Singapore were established. The study revealed that architectural consultancy industry in Singapore is not highly competitive. Threat of new entrants and rivalry among existing firms are low. Absence of substitute services in the local industry leaves clients with little bargaining power. Architects do possess high bargaining power, yet firms adopt competitive strategies conscientiously and consider them important for their businesses.