Why Nucor Is Made Up Of More Than The Most Profitable Steel

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Nucor takes a simple approach to succeeding in the industry of steel. At its mini mills, Nucor produces hot- and cold-rolled steel, steel joists, and metal buildings. It has the capability to produce more than 26 million tons of steel a year. Being one of North America’s largest recycler of scrap metal, it produces steel by melting scrap in electric arc furnaces. Most products are sold to steel service centers, manufactures, and fabricators. Subsidiary Harris Steel fabricates rebar for highways and bridges and other construction projects. Its David J. Joseph Company unit processes and broken metals, pig iron, hot briquetted iron, and direct reduced iron. In 2014 Nucor recycled 19 million tons of scrap steel. Their mission is as follows:…show more content…
Bargaining power of buyers is increased and bargaining power of suppliers is increased. Increased supplier bargaining power leads to increased prices of suppliers. The threat of new entrants is lowered in the industry environment. The have attained great success in cost control by using business process automation to automate processes in order to contain costs. More keys to their success are organizational behavior, technology and processes in order fulfillment, distribution and production, and carefully chosen as joint ventures. Nucor is an industry leader in innovation and minimization of pollution and production cost. They have a calculated risk taking culture, lean management, standard and poor mentioned that Nucor is the only company which is indisputably healthy. They have more bargaining power and larger contracts. On the other hand, they have a high dependence on the US domestic market and limited diversification and no worldwide presence. They could enter the Asia-Europe market through joint ventures. They could use horizontal integrations or acquisitions to improve market position and vertical integration with the nuclear plants to enable the low- cost energy to produce steel products. They should watch out for rising raw material and labor cost, threats from Chinese and other foreign players entering US markets and the demand declining in US real estate post sub-prime crisis. The driving forces that are present are

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