Scribd
Upload
9 views2 pages

Nucor Steel: Innovation and Market Dynamics

Nucor, a successful U.S. steel manufacturer for 35 years, has a market share of around 21 million and is known for its innovative environmental culture. The company is considering commercializing thin slab technology to significantly reduce production costs. The U.S. steel market is characterized by low threats from substitutes and new entrants, high bargaining power of consumers and suppliers, and various driving forces including economic, social, political, technological, and environmental factors.

Uploaded by

Shashank Tripathi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
9 views2 pages

Nucor Steel: Innovation and Market Dynamics

Nucor, a successful U.S. steel manufacturer for 35 years, has a market share of around 21 million and is known for its innovative environmental culture. The company is considering commercializing thin slab technology to significantly reduce production costs. The U.S. steel market is characterized by low threats from substitutes and new entrants, high bargaining power of consumers and suppliers, and various driving forces including economic, social, political, technological, and environmental factors.

Uploaded by

Shashank Tripathi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Nucor was been a successful steel manufacturer in the U.

S form past 35 years and has a market share of around 21


million. It was found with the name of Car Company but after a series of acquisitions, it was named a NUCOR in
1972. The company is open to innovation having its unique environmental culture and the organizational structure
had help it to survive even when the whole steel industry was facing a decline. The company is considering
commercializing thin slab technology- and innovation that will reduce the production cost of flat iron sheets by 50
percent.

US Steel Market:

In 1986, 90 million tones was the domestic consumption where as for integrated steel makers was having the
capacity of 107 million tons of making steel. The types of products they manufacturer are metal sheet, wires, semi
finished products, metal bars, etc. In the same year, the sheet market was looking for the distributors, construction,
automobile industry, dealers can say a new market outlet.

Low threat of substitute product: threat of substitute product is very low as:

1. increase in steel demand and also steel products.


2. Well established market and its size
3. There are Major players already available
4. Domestic & international customers

Threat of new entrance: There is a very low threat of new entrance as:

1. It’s a mature industry


2. Well established companies
3. Consolidation of firms in the country and exit of major companies

High bargaining power of consumers:

1. Capatalize on cost leadership


2. Capitalize on quality, consistency and variety of products

High bargaining power of suppliers:

1. Allowing big level of suppliers


2. Competition makes the price low
3. Lower shipping cost

The forces which are driving this industry:

1. Economical : Competition in US market


2. Social : Numbers of green movements, which creates the pressure from environment forcecs
3. Political : Pressure on steel manufacturers as increase in demand for steel
4. Technological: Variety of products, Uniform consistency and quality
5. Environmental : Pressure to have environment clean process also some groups are fighting for the same

You might also like