Strategies for developing countries to expand their shares in the global construction market: Phase-based SWOT and AAA analyses of Korea

Korea's level of competitiveness in the global construction market has significantly improved over the years; from being an underdeveloped country in the 1960s, Korea is currently one of the top ten countries in terms of revenue in the global construction market. In general, an international construction business entails various risks and requires advanced financing and managerial and technical ability to become competitive. Therefore, it is challenging for developing countries to expand their share in the global construction market. In this regard, the case of the Korean international construction business (KICB) may serve as a benchmark for other countries aspiring to enter or reinforce their status in the global construction market. To this end, the strategies to achieve and maintain competitiveness need to be analyzed chronologically rather than focusing only on a particular period, especially the current status. This paper details the history of KICB, showing its evolution over the past 40years, divided into four major phases that correspond with significant events. Moreover, the important aspects for securing competitive advantage in the market are clarified using four sets of strength, weakness, opportunity, and threat (SWOT) analyses. In addition, the strategic evolution over the four major phases is explored by introducing the adaptation, aggregation, and arbitrage (AAA) framework. The research findings indicate that the strategies adopted by KICB for achieving competitiveness included presenting a memorable performance in a primary country of a particular region (adaptation) during the initial phase, achieving economies of scale in a few regions during the development phase (aggregation), developing international specialization during the depression phase (arbitrage), and adapting to receive orders in a severely competitive market while coping with the local industry protection policy during the resurrection phase (adaptation).