Industry Analysis

What is ICA?
ICA (Ingenieros Civiles Asociados) is a construction
company based in Mexico infrastructure and operations and in other countries in
Latin America.
ICA is involved in projects such as road construction, hydroelectric plants,
ports and airports, metro systems, refineries, industrial plants and homes.
Bernardo Quintana Arrioja founded it in 1947. Its headquarters is located in
Mexico City. The current president is Bernardo Quintana Isaac and its executive
director is Alonso Quintana Kawage.
This company has made construction and engineering in 21 countries.
Porters Five Forces Analysis
1.1 Threat of new entrants
Currently to enter this industry is very easy in Mexico. It is "easy"
sadly, for people who often have contacts with senior government of
Mexico; but in general, entry is difficult because of the large
requirements demanded by this sector to have a structured company.
In principle it should be a great investment for these businesses. a
great team of experts is required in the subject. In this case they would
be for example based industrial engineers, civil engineers, architects,
etc. It requires large
licenses for both
company officials and
the company as such.
Entry barriers linked
to the financial capacity
of the new companies
its very high.
Theres some
disadvantage in terms of
production costs in a
new company, due to the
difficulty of applying
technology, have
qualified personnel and
processes. There is also a decline in sales and work visas. New
strategies for collaboration between companies to participate in the
market are required.
In conclusion, after analysis, the threat is very low for this sector.
1.2 Threat of substitutes

The threat is low. Substitutes only occur in the building subsector.

ICA is already established in the sector, but have to incur higher costs
to differentiate their products and thus minimize or neutralize the threat
of substitutes.
1.3 Bargaining power of buyers
Is high.
The underlying determinants are given by the concentration and size
of buyers; the costs associated with change; rivalry and competition
among buyers in the same sector; the buyer's ability to integrate
vertically down; product differentiation and the relationship between the
cost of the product and the final cost.
When ICA clients are public, it is high. This is because due to the
impact on the allocation of future projects that the government, for
example, publish a national system. In addition, the contractual
relationship and responsibility for it can establish a good project and that
really pleases them to the committee responsible for these agreements.
Benefits that may give you the government, in some cases, in the case
of ICA may become difficult, even more so, when at the moment ICA is
in various "scandals" because projects with senior officials, such is the
example of the first lady, Angelica Rivera.
When customers are private to ICA, it really is very low as there is
little scope of projects.
1.4 Bargaining power of suppliers
Some of the determining factors is the concentration and size of
existing suppliers in the sector; associated costs for changing supplier;
the supplier's ability to vertically integrate backwards or regressive form;
competition or rivalry between suppliers; the product cost to total cost
and product differentiation.
So, the bargaining power of suppliers for ICA its low. This, because
the availability of building materials and inputs is of various companies,
really there are too many providers in this sector.
The ease of switching suppliers is very good because any provider
can offer the same services and products other offers.
There is a high level of providers in this sector so subcontracts are
high.
Providers do not have capacity to supply a single component so
cheapest on the market
1.5 Industry rivalry
The basic factors that determine the rivalry between competitors in
the same sector, are given by the concentration of these; the diversity;
how fast the market grows; differentiation of products; existing barriers
from the industrial sector and the changing conditions of the sector and
the economy.
The current market situation in the sector reflects competition
between companies very similar to the size and the structure production
(high level of outsourcing).

In Mexico there are few large companies, which absorb large volume
of business and against which they cannot compete, intervene (due to
the crisis) in the SME market.
Companies compete for compliance deadlines, quality built project,
applied technology, etc.
Whereby companies should worry ICA would be: CICSA, from Grupo
Carso, IDEAL, GMD (Grupo Mexicano de Desarrollo), Promotora
Ambiental and Promotora y Operadora de Infraestructura S.A.

Bibliography:

https://es.wikipedia.org/wiki/Empresas_ICA

http://www.forbes.com.mx/las-20-constructoras-mas-fuertesen-america-latina/
http://inventario-constructoras.blogspot.mx/2012/11/empresasica-df-homex-sinaloa-casas-geo.html
http://www.economia.com.mx/sector_construccion_e_infraestr
uctura.htm
https://es.wikipedia.org/wiki/Anlisis_Porter_de_las_cinco_fuer
zas#.28F3.29_Amenaza_de_nuevos_competidores_entrantes