Barrier to Entry B2B Markets: Russian Underground Construction Industry - Dissertation Example

Environmental sustainability is found to be the most prominent advantage of underground construction. . ion, and difficult in starting the mining process, but critical analysis and detailed planning are important to ward off the probable difficulties associated with underground construction. Production management and introduction of new technologies and investment in the latest equipment and machines were found crucial on the part of construction companies to ensure a competitive edge over their competitors.

Barriers to the underground construction industry include the need to outsource high capital, employ advanced technologies, and secure government licenses. These make it harder for new, particularly small entrants to penetrate into the industry knowing that the large companies have a wider chance to explore advertising, and acquire equipment, wages, and research and development. Responding to the changes associated with the existence of these barriers was found as an important move among companies in the underground construction industry.

These changes primarily include sophistication of construction techniques, appropriate use of planning, implementation, evaluation, and control. The Russian government was found not a remarkable barrier to potential entrants, but the set standards by the government authorities could front probable risk factors prior to successful entry. Due to the shortage of skilled workers in the underground construction industry, there is a necessity to outsource human resources and employ foreign partners, but one substantial move to ensure productivity and competitive edge is to allow manpower to undergo refresher courses and advanced training to keep them abreast of the new technologies and processes employed in the industry.

Underground construction companies also found that innovation and invention are also important considerations to stay at the level of competitive advantage.

To initiate collusion in order to defeat competition was found not prominent in Russia’s business of underground construction because there is always a space for new companies in this industry.