Nucor Case Study Questions

Companies in Canada, South Korea and Taiwan were guilty only of dumping, while the government of Belgium, Italy and South Africa also gave their steel producers unfair subsidies effectively to lowered prices. For example Nucor innovate new production process and other domestic companies had imitated that process and cut their cost and became more price competitive.

Price competitiveness: Due to dumping, the competition of local market increase which lead the price more competitive. Since imports had grown to 90% of this market as U. So the foreign companies easily sell their steel in U. but the integrated domestic companies produced wide range of steels using a process that started with iron ore processed in blast furnaces, because of high cost they has difficulty competing with imported steel , usually from Japan and had lost market share due to foreign import. S steel producers were facing higher energy prices, weakening demand by customer industries, increasingly tough environmental rules and a changing cost structure among producers. S Senate decisively shut off an attempt to restrict imports of foreign steel, despite the complaints of U.

Government policy is not a huge threat of entry on the domestic level, but at the international level the barriers become much larger.

Well established relationships by larger steel manufacturers with government allows for easy establishment of contracts in a foreign territory.

-Nucor's origins are with auto manufacturer Ransom E.

Olds, who founded Oldsmobile and then Reo Motor Cars.

Since then Nucor has established itself as a leader in the steel industry through efficiency and innovation.

It now employs more than 7,000 people worldwide and has experienced tremendous growth under its new CEO Daniel R. SWOT Analysis Strengths • Low Cost Producer • Employee/Managerial Relations Leading Innovator • Low Debt Load • Overall industry leader Weaknesses Dependency on scrap metal Company Profile - Nucor Corporation is the largest steel producer in the United States and had net sales of .3 billion in 2004.

Since most steel manufacturers must be globally competitive to maintain profits government policy is a threatening entry barrier.

Bargaining Power of Suppliers: Strong The supply of raw materials can have a positive or negative effect on a cost strategy.

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