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Nucor

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-295275-371475Nucor Corporation Competing against Low-Cost Steel Imports 110000110000Nucor Corporation Competing against Low-Cost Steel Imports 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. As mentioned in the case the main problem is the excess of steel in the steel market. Right now foreign steel is being dumped in the US. This results that supply exceeds demand which results off course in decreases of profit for many steel companies. This gives a lot of pressure to the companies and most of them are not able to survive the pressure and …show more content…

The reasons are the following: Because of globalization all the markets are open and easier to enter for companies all over the world. This increases the entrance of foreign competitors like Chine, Italy, South Korea etc. Another factor are the energy and raw material costs that effect the profit of a company. Not to forget that the economy itself is really unstable. Last but not least the government regulation and laws that can increase the prices of the products as well. We believe that they should expand. Nucor is self-reliant and has a good strategy which made the company the second largest producer in the US. They should expand to global market to be able to increase their market share. They can go to markets such as Russia, China or Brazil, since they are dumping into the US market. However they should evaluate the Porter five forces before making any decisions since these markets are really competitive. What type of strategy has Nucor followed? Which of the five generic strategies discussed in Chapter 5 is Nucor employing? Is there any reason to believe that Nucor has achieved a sustainable competitive advantage over many of its steel industry rivals? If so, what type of competitive advantage does Nucor enjoy? The core strategy of Nucor is that of cost leadership via the use of technology. Through innovation and the use of high quality technology to process their steel, Nucor was able to achieve this cost advantage.

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