Nucor Corporation

These driving forces very easily impact the steel industry’s competitive structure in a bad way. These driving forces make it very difficult for steel companies to compete in this industry.

I believe that the steel market is a very attractive market for the players that are already competing. I would not recommend new companies to try to integrate themselves in this market without substantial capital and very advanced technology. Globally steel demand is rising every year and companies are still vigorously competing for the extra market share. All firms are continuing to expand evolve and grow which means that profit are also very high in the steel market. The do have some protection issues even in

What are the primary competitive forces impacting U.S. steel producers in general and the producers like Nucor that make new steel products via recycling scrap steel in particular? Please do a five-forces analysis to support your answer.

You have been chosen by a local business enterprise group to write a case study

According to the GDC how to write a case study should include six main points with given elaboration.

Complete a case study of ABC Corporation (your instructor will assign the specific company for the case study at the beginning of Module/Week 3) in the case section of the text (e.g. Case Number 1).

This report discusses the challenges that The Nucor Corporation faces during this era of social and economic climate change. Using Porter's Five Forces Analysis and Four Generic Strategies, we will assess the steel industry standards as it relates to the strategies implemented by the Nucor Corporation. We will also assess what Nucor’s strengths and weaknesses are, and if they will be able to continue

U.S. Steel and other steel companies for decades, relied on the tried and true strategies of vertical integration and price control (Hoerr, 1988). In the 1960’s, foreign competition from developing countries like South Korea, Taiwan and Brazil entered the market "with low material and labor costs, modern equipment, and the support of government policies" (Hoerr, 1988, p. 99). Because of lower costs and concern over supply created by constant threat of strike, many

Nucor Corporation is made up of 11,500 teammates whose goal is to "Take Care of Our Customers." We are accomplishing this by being the safest, highest quality, lowest cost, most productive and most profitable steel and steel products company in the world. We are committed to doing this while being cultural and environmental stewards in our communities where we live and work. We are succeeding by working together.

Major competitors in the U.S. steel industry include Nucor Corp., ArcelorMittal USA Inc., and United States Steel Corp. Major international players include Tata Steel Limited, Jindal Steel and Power Ltd., and Steel Authority of India Ltd.

Over the years Nucor emerged as a market leader in the American steel producing industry due to its sustainable growth strategies and incorporation of sophisticated technologies that enables the company to grow exponential and become a market leader by offering high quality steel products at lower costs. The company backed its growth strategies by massive integration in the American market. However, this growth strategy proved to be predominant in capturing the American market thus ignoring the potential competitive threats that could come from foreign steel producers. This included both steel producers integrating with American minimills and foreign producers who used America as a lucrative export market and dumped their products.

Nucor has created a company that is both internally and externally fit to the environment. The firm responds well to the driving forces of the industry and has opted to take a low-cost strategy with the relentless pursuit of innovation and strong employee productivity in order to combat the issues of the steel industry. In 2000, Nucor decided to expand its operations by acquiring new firms and new factories while continuing with its low-cost operations. The competitive strategy of Nucor has helped it become one of the leading manufacturers of steel and steel products in the United States.

So, from my perspective, these are the main trends in the strategic environment that have influenced steel company profits over the past few years. Nevertheless, the fact that most steel companies operate largely within their national or regional markets, adapting their strategies only to them, was, obviously, the primary aspect that contributed for the worsening of the situation.

The Porters model is built upon the assumption that strategy development is significantly influenced by the external environment. The Porters five forces are the threat of new entrants, the intensity of rivalry, the threat of substitutes, bargaining power of buyers and the bargaining power of suppliers (Magretta, 2012). The threat of new entrants in the motorcycle industry is moderate due to the moderate industry growth and high entry barriers. The industry is based on moderated economies of scale, moderate switching costs and the high cost of developing and promoting brands. The high barriers to entry are due to the required high initial capital and high fixed costs to set-up the provider and production facilities. The overall threat of new entrants in this industry is moderate.

According to Michael Porter, “Every industry has an underlying structure, or a set of fundamental economic and technical characteristics, that give rise to these competitive forces” (Porter 1998:23). The forces mentioned above are: industry rivalry, threat of new entrants, threat of substitute products, bargaining power of suppliers and bargaining power of buyers. Additionally, Porter mentioned that: “Knowledge of these underlying sources of competitive pressure provides the groundwork for a strategic agenda or action” (Porter 1998:22).