Businessmodel of Kiewit Corporation

Customer Segments

Kiewit has a mass market business model, with no significant differentiation between customer segments. The company completes construction and engineering projects for firms of all industries and sizes.

Value Proposition

Kiewit offers three primary value propositions: accessibility, risk reduction, and brand/status.

The company creates accessibility by providing a wide variety of options. It has significant experience completing projects in a broad range of areas, particularly building, mining, oil/gas/chemical, power, transportation, and water/wastewater.

The company reduces risk by maintaining high quality standards. It created a formal quality program through which it does the following:

• Creates work plans that describe the means and methods of performing its work. Pre-activity meetings com­municate how its work plans fulfill contract, design, and client requirements.
• Identifies and immediately reports quality issues as they occur. If there is an issue, root cause analysis is performed to elimi­nate the causes of quality issues and prevent future occurrence.

• Ensures that supervisors and craftsmen continuously check work as it is performed by direct reports, ensuring that it is built “right the first time.” The company has established a strong brand due to its success. It is one of the largest construction and engineering firms in the U.S. It is a *Fortune *300 company and generated revenues of over $9 billion in 2015. It claims to have virtually unlimited bonding capacity and to be one of the few construction firms able to compete for billion-dollar mega-projects. Lastly, it has won a number of honors, including the following:

• Recognition as one of America’s Best Large Employers by Forbes
• Recognition as one of the World’s Most Admired Companies by Fortune
• Recognition as one of the Top Companies for Leaders by AON Hewitt
• Recognition as one of the Most Attractive Employers for Engineering Students by Universum
• A Better Business Bureau Integrity Award
• Consistent ranking among the top five of the Engineering News-RecordTop 400 Contractors ### Channels

Kiewit’s main channel is its direct sales team. The company promotes its offering through its website, social media pages, and participation in trade shows and conferences.

Customer Relationships

Kiewit’s customer relationship is primarily of a dedicated personal assistance nature. The company works closely with clients as it completes their construction and engineering projects. Almost all projects are staffed by one or more owners of the firm.

Key Activities

Kiewit’s business model entails providing construction and engineering services for its clients.

Key Partners

Kiewit’s key partners are the suppliers that provide it with the materials and equipment it needs to carry out its construction and engineering projects.

Key Resources

Kiewit’s main resources are its human resources, who include the engineers and construction workers that deliver its services to customers. The company also depends heavily on capital expenditures such as its equipment.

Cost Structure

Kiewit has a value-driven structure, aiming to provide a premium proposition through significant personal service and regular service enhancements. Its biggest cost driver is likely cost of services, a variable expense. Other major drivers are in the areas of customer support and administration, both fixed costs

Revenue Streams

Kiewit has one revenue stream: revenues it generates from the sales of its services to its customers. The sales typically occur through the signing of short- and long-term contracts.