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Client procurement procedures
Strukton has several large clients. Some 20% of Strukton’s revenue is earned on the Dutch rail market. This can be qualified as a monopsomy. The volume of work generated by the main client on this market (ProRail) has declined in
recent years. ProRail has implicitly adapted its procurement policy. In practice, quality and reliability now weigh considerably less than price and new market entrants are supported in their attempts to operate in this technically and logistically complex market.
As the market leader, Strukton is suffering from the consequences of this policy. To remain competitive, Strukton will have to rescale its organisational size and also lower its quality proposition and execution in the Netherlands.
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