Nucor Steel : Competitive Analysis

First, the economy in the United State was affected after 9/11 especially New York and Virginia. The stock markets and financial

Growth in troubled steel industry. How to sustain Nucor’s earnings growth in the industry, which has many marginal competitors and production overcapacity.

There are many competitive forces that are affecting Nucor Corporation. Some of the primary ones are the market size, number of rivals, and pace of technological change.

Nucor has been facing many industry challenges including the overall development of the industry. They are competing with foreign firms on cost and efficiency. Nucor has a low cost strategy because as they say their product is not necessarily very attractive. It does not have attractive or unique selling features other than its cost. The commodity of steel is in a very competitive market. Nucor understands that innovation and productivity are going to be key factors to keep their buyers satisfied with their prices. Nucor is facing many challenges with a growing world market and many of their competitors merging in order to create stronger more dominate

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.

The second accident at the "Timken Steel Faircrest plant" company which a is an employee fall down more than 40 feet which led to several broken bones because of just a small mistake. The problem is when he made a maintenance on a crane he wasn't ware Certified safety harness which it could safe his live from the risk. I used to do a maintenance on more than one cran and my company doesn't allow me to go without waring a Certified safety harness because they have to keep all the employees a way from all the risk and even if they didn't told me to ware it, I will not go up to the cran without it, do the fact that no one knows what will happen and even if I am good at this job, I have to work safely. I agree that this company should teach all

The United States is considered to be the world’s largest national economy. The United States have proven time and time again that its economy is one that should be modeled after by showcasing a proven track record. Although its economy is considered the largest, it has had its problems such as the Great Depression and the Recession that have taken placed recently beginning in 2007 lasting until mid 2009. Both of these economic down turns are similar in nature which has caused many to feel negative effects,

Not all of the United States’ economic weakness was caused by the 9/11 terrorist attacks but, it was greatly accelerated by the United States’ response to it (hÉochaidh). After the 9/11 attacks happened, the United States had to spend millions of dollars repairing buildings that were destroyed during the attacks and changing policies to better protect the people of the United States. The 9/11 attacks impacted the United States’ economy by causing the United States to repair buildings that were damaged by the hijacked planes, go to war in an attempt to dismantle al-Qaeda, and improve their security policies to better protect the people of the United States.

This report discusses the challenges that The Nucor Corporation faces during this era of social and economic climate change. Using Porter's Five Forces Analysis and Four Generic Strategies, we will assess the steel industry standards as it relates to the strategies implemented by the Nucor Corporation. We will also assess what Nucor’s strengths and weaknesses are, and if they will be able to continue

Nucor Corporation is made up of 11,500 teammates whose goal is to "Take Care of Our Customers." We are accomplishing this by being the safest, highest quality, lowest cost, most productive and most profitable steel and steel products company in the world. We are committed to doing this while being cultural and environmental stewards in our communities where we live and work. We are succeeding by working together.

Previously, you read about the industry analysis of the beer, wine and liquor industry and the five forces that affect a firm’s ability to serve consumers and turn a profit. Next, successful companies must recognize and respond to the major forces affecting our macro environment, for example; stock market decline, increase in unemployment and global warming. Companies must now consider several external environmental forces while running their business, in particular, demographics, economics, social, natural, technological and political.

Another recommendation that I have for Nucor is instead of buying existing plant capacity, make new plants elsewhere or form a joint venture with a supplier to help save money. (Exhibit 3) This would decrease cost of supplies so they would have the extra money to build elsewhere or build a ne plant. By using the SWOT analysis (Exhibit 1) it let me break up Nucor into different parts to see what their strengths and weaknesses are. Nucor is solid with technology and treating the employees correct but the weaknesses that affect Nucor are more market based with some internal problems. Nucor has products for many different industries including automotive and housing. This can cause issues for Nucor if those industries take a fall, which they have over the last 5 years. It’s a good idea to be in these industries but Nucor has to realize what can happen to sales and revenues when one or both of those industries take a fall. Nucor has been expanding more in the United States, recently just building a plant in Louisiana (Exhibit 5). This plant will be a 750 million dollar purchase and will be a mill for pig iron. Nucor is expanding all over the United States but needs more presence internationally plan and simple. Nucor is a solid company with shareholder equity increasing each year; they have a solid stock in the NASDAQ market and continue to be a healthy steel company. They can and will

Until 2009, Nucor operated in an industry which experienced significant output declines during recent decades. The U.S. steel industry was operating at capacity levels of less than 50 percent and had lost more than 50,000 jobs since 2000. Growth of the Chinese steel industry posed a serious threat for domestic steel producers (Scott, 2009). Since that time, however, the U.S. steel industry has picked up momentum in response to soaring demand by the automobile and construction industries. Steel is the preferred material by the construction industry because of its performance, strength, reliability and versatility. In addition to construction, the automobile, energy and container industries have all been responsible for increasing steel consumption (Market Research.com, 2011).

Over the years Nucor emerged as a market leader in the American steel producing industry due to its sustainable growth strategies and incorporation of sophisticated technologies that enables the company to grow exponential and become a market leader by offering high quality steel products at lower costs. The company backed its growth strategies by massive integration in the American market. However, this growth strategy proved to be predominant in capturing the American market thus ignoring the potential competitive threats that could come from foreign steel producers. This included both steel producers integrating with American minimills and foreign producers who used America as a lucrative export market and dumped their products.

Nucor has created a company that is both internally and externally fit to the environment. The firm responds well to the driving forces of the industry and has opted to take a low-cost strategy with the relentless pursuit of innovation and strong employee productivity in order to combat the issues of the steel industry. In 2000, Nucor decided to expand its operations by acquiring new firms and new factories while continuing with its low-cost operations. The competitive strategy of Nucor has helped it become one of the leading manufacturers of steel and steel products in the United States.