Profitability Analysis of Steel 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

Tata Steel was established in Jamshedpur in 1907, under the supervision of Jamsetji N. Tata, is today a global business enterprise having services and products in more than 150 countries and have employees spread across five continents, and they are world’s second-most geographically diversified steel producer. Tata Steel is among the top global steel companies in the world. Sustainability is one of the important aspects of the culture of Tata Steel. The founder of Tata group, JN Tata’s belief that “the community is not just another stakeholder in business, but the very purpose of our organization’s existence.” In the span of few years, Tata Steel company has taken the top position in the world of industry in many aspects and has been recognized as a top leader in many

To be successful in the steel industry a company must be very innovative and able to differentiate their products from the next guy. Steel is steel and it is not important as to how it is packaged or how it looks but whether it serves the customer’s needs. In order to be successful production must be efficient, delivery must be on time, and innovation is the key.

Tata Communications is a global company with its roots in the emerging markets. Headquartered in Mumbai and Singapore, it has more than 8,000 employees across 38 countries. The $3.2 billion company is listed on the Bombay Stock Exchange and the National Stock Exchange of India and is the flagship telecoms arm of the $103.3 billion Tata Group.

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.

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 first advantages of going international for Tata is to achieve benefits of economies of scale; Tata has more than 100 operating companies in seven main business groups doing business in 80 countries: chemicals, information systems and communications, consumer products, energy, engineering, materials, and services. Its two largest businesses are Tata Steel and Tata Motors. Its Tata Tea, which owns the valued Tetley brand, also is one of the largest tea producers in the world. It ranked 6 on the

2. How else could Tata Motors compete with ford, Honda, Toyota, and other rivals? Could Tata Motors focus on competing as a parts supplier instead?

Tata companies include: Airlines, Automotive, Consumer goods, Chemicals, Defence & aerospace, Electrical distribution, Engineering services, Financial services, Healthcare, Information technology, Locomotives, Steel, Telecommunication and Real estate.

Steel industry derives demand from important sectors like aviation, infrastructure, engineering, automobile, construction, pipes and tubes etc. The steel sector in India enjoys the advantages of domestic availability of raw materials and cheap labour. .

In terms of tonnage, it is the third largest steel producer in India. The company manufactures and sells sponge iron, mild steel slabs, ferro chrome, iron ore, mild steel, structural, hot rolled plates and coils and coal based sponge iron plant.

Along in the opportunities, it is stated that the price of steel is increasing at high levels because of the disequilibrium in international markets. Through that, it implies that export of steel could be profitable. Along with the threats, it is stated that the steel industry is a very risky business where there are high price fluctuation that can lead to many losses for the producers. The major threats for local steel producers are those competitions coming from India and

This Assignment will develop your skills in industry analysis. This must be done as individual work, so you must not discuss the case with anyone else before completing the Assignment. Please use the following questions to structure your answer:

Economic With business practices all over the world , Tata Motors concentrates on global economies while focusing on individual markets within countries. In recent years Tata Motors has experienced high growth since 2004. They have created joint ventures with 5 countries across the

In 1907, Jamsetji Tata, an industrialist, established Indians biggest and first steel plant. At the same time it was Asia’s initial private sector steel company. The reason of Tata Steel’s establishing was that Jamsetji had the idea of developing an iron and steel industry in his own country.