Nucor Corporation in 2001: Pursuing Growth in a Troubled Steel Industry

1908 WordsJul 2, 20058 Pages
Nucor Corporation in 2001: Pursuing Growth in a Troubled Steel Industry Table of Contents Introduction 3 Nucor's History 3 Current Strategy and Future Expectation 4 Analysis and evaluation 4 Dominant Economic Characteristics of the Steel Industry Environment 4 Competition analysis in the Steel Industry 5 SWOT Analysis 6 Recommendations 9 Introduction Nucor's History Nucor Corporation is the second-largest steel producer in the United States and has had net sales of $4.6 billion in 2000. Nucor recycles approximately 10 million tons of scrap steel. It operates in 9 states and produces carbon and alloy steel in bars, beams, sheet, and plate; steel joists and joist girders; steel deck; cold finished steel; steel…show more content…
Figure 1: Porter's Five-Forces Model of Competition SWOT Analysis Strengths · Nucor is the second-largest producer of steel in the U.S. It enjoys the brand name advantages, and has well established relations with the suppliers and the buyers. · Nucor is very good at identifying cost cutting opportunity. It has always kept the cost low, maintaining a very high quality. It integrated backwards and started producing steel to reduce the material cost for joists. Nucor plants have always been situated near the markets they serve. · Nucor had always been aggressive pursuit of Innovation and technical excellence in technology. It has monitored the R&D activities around the world and has reviewed it for possible adoption. In the U.S., it has been the first to adopt the electric arc furnace and continuous strip casting technologies. · Nucor is known for constructing state-of-the-art facilities at the lowest costs. When Nucor introduced the minimills the average cost of capital was $135 per ton of capacity, almost one-tenth of the cost of the competitors. It has the most modern mills in the U.S. equipped with the latest technology. · Nucor has a stripped down, no non-sense thrifty organization under a very strong corporate leadership. It has a very lean corporate staff and simple corporate facilities. There are no corporate perquisites. The organization is decentralized and each division is autonomous. · It has a very strong employee

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