Description
SWOT ANALYSIS OF FOMENTO DE CONSTRUCCIONES Y CONTRATAS

Fomento de Construcciones y Contratas

Parent Company

Fomento de Construcciones y Contratas, S.A.

Category

Construction Services

Sector

Real Estate and Construction

Tagline/ Slogan

Services for urban communities

USP

World leader in environmental services and infrastructure

STP

Segment

Real estate and construction services

Infrastructure services, environmental services, and renewable energy services. Predominantly Spain; also present in the UK, Central and Target Group Eastern Europe and the US

Positioned as a company that strives to provide services to the urban Positioning communities in the geographies in which it operates

SWOT Analysis

1. Broad portfolio enhances customer base - Apart from construction, FCC is also involved in solid waste collection and disposal, streetcleaning, water supply, maintenance of drinking and waste water treatment plants, cement manufacture etc 2. Strong order backlog shows a good market position for the company 3. 90,000+ people are with the organisation making it a strong workforce Strength 4. It is one of the largest real estate companies in Spain

1. Geographic concentration - highly dependent on the European market for its revenues. 2. Poor financial performance - FCC’s revenues declined at a Weakness compounded annual change rate is a concern

1. Divestments likely to help in improving profitability - FCC entered into an agreement to sell its properties 2. Installation of digital newsstands - Cemusa, a subsidiary of FCC, Opportunity specializing in the design, manufacture, installation and maintenance of urban furniture, installed the world's first digital newsstands. First

mover advantage in selling the advertising space and thus increase its visibility 3. Global expansion by international tie-ups and partnerships

1. The US and European construction markets continue to remain sluggish 2. Environmental regulations - There are increasing demands to use non-hazardous substances in construction and cement manufacturing including non-lead based paints, recyclable plastics and metals treated with non-carcinogenic chemicals. 3. Economic fluctuations and recession can affect operations and raw Threats material costs

Competition

1. ACS, Actividades de Construcción y Servicios, S.A. 2. Ferrovial, S.A. Competitors 3. Dragados, S.A.



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