Nucor competitive strategy
Technological advancement: Though Nucor use high tech equipments in its plants but in some sectors it needs adoption of new technologies. Maintaining market leadership position 6.
Joseph Company recently, which was its primary supplier. Wernerfelt, B. Nucor can also open a dump yard where domestic household customers can dump the waste scrap steel.
Nucor organizational structure
This is one of the fastest growing steal companies in America and one of the lowest cost producers of steel products in Joist were low margin steel product compared to top end product like steel plate. Global collaborations had become the norm. So to balance these high fixed costs and earn profit, they need to sell their products in bulk. Salesperson demonstrations and account tracking would be required. In supplier power was boosted because of increased demand for scrap from the emerging economies, largely from China, as a result Nucor experienced a sharp increase in input cost of raw material scrap as demand for raw material shot up in China due to increased construction activity. C Nucor achieves the cost advantage through innovations and using better technology to process their steel. It is a highly competitive market with high exit barriers since assets are specialized, increase of mini-mill competitors taking on production of steel sheets and other steel products, stagnant demand, many global competitors, commodity-like products that minimizes switching costs and customer loyalty and excess capacity
Its divisions varied from consulting to chemicals and instrument manufacturing. Brazil or Africa.
There are many steel companies, but with overall demand going down, suppliers have less power than before, but suppliers also have the flexibility of going with any steel manufacturer they want. Joseph Company to have a better network domestically to reach customers.
Nucor swot analysis 2018
So they can do more mergers and joint ventures to increase their production capacity and reduce the cost of production. Higher cost of scrap metal due to limited supply has forced mini-mill to more costly materials like iron carbide. While some mini-mill competitors follow a differentiation strategy, most follow a cost leadership strategy, though not very successfully. Customers doing this achieve substantial reductions in cost and can work with Nucor to sync production schedules. Porter, M. Opportunities: Nucor could continue innovating with the Hismelt technology, or the liquid iron project. Downstream diversification 3. Such a strategy could then justify many options from a forward integration, which could expand steel processing to strip-casting with other companies, or a vertical integration strategy between the mills and metal service centers internal or outsourced to allow quicker delivery. Thus they will be able to come out of the consequence of low cost provider strategy. The industry became a source of employment, symbolizes American economic power and pride during good times and symbolizes economic decline and source of shame when foreign companies took over market shares5. John H. In , The Nucor Foundation was established to support children of workers. Therefore, Nucor has assured that it becomes a cost leader through the use of advanced technologies in steel manufacturing.
So it will be easy for them to take differentiation strategy and come up with differentiated, high quality product for which the customers will be willing to pay high price. The company had four layers of management and responsibility was pushed to the lowest level possible.
Nucor ventured into traditional bastions of integrated steelmakers sheet steel, stainless steelnot constrained by the mini-mill format.
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