APPENDIX T – SWOT ANALYSIS

Source: A-team analysis

Rivalry determinants ü There are a few companies that have major share of the market ü The existing firms will fight hard in order to survive because they cannot easily transfer their resources elsewhere ü There is a big brand loyalty, as well as the good political relations of the owners of the company

The likelihood of new entry ü The costs of entry are high ü Firms who have experience and reputation in the industry have major advantages ü The major client in the industry is the government, consequently, the loyalty to the existing companies is very high

APPENDIX U – FIVE FORCES ANALYSIS

Competitive rivalry within an Industry

The power of buyers ü Although, the increase of Private and PPP clients is planned the main customers remain the same: the Federal State Agencies and Regional authorities, so they are very important for the company ü The customers have relatively high flexibility to switch to other major companies in the industry, so Mostotrest must provide high quality service at a good price ü The customers have high negotiating power

The power of suppliers ü Mostotrest has its own production facilities and can provide approximately 40% of all its construction materials needs. ü In fact there are many companies with which Mostotrest successfully cooperates. ü Switching to another supplier is relatively difficult, because mainly all materials are coming from Russian companies and consequently are more reliable, e.g. suitable for Russian weather conditions

Source: A-team analysis