Nucor Corporation

Nucor Corporation - factors Nucor has established a raw...

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Ryan Alexander Nucor Corporation Steel manufacturing is an old business, but is currently facing the fast changes associated with new technologies and the rise of globalization. The cyclical economic effect in the industry has proved challenging for many steel businesses. The company’s philosophy of decentralized structure in the 1960’s and 1970’s was imperative, but has since required change due to current international challenges. Nucor’s issue is that they need to expand their company internationally to maintain their market share. Economies of scale and capital requirements are the greatest barriers in the steel industry. Product differentiation is also a major barrier to entry. Steel is not sold on its overall difference. The steel industry is more competitive through price competition. Buyers pose arguably the greatest threat. Price competition stems from buyers having low switching costs and low product differentiation. Buyers have the power to negotiate down a deal to their terms due to these
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Unformatted text preview: factors. Nucor has established a raw materials strategy to control directly and indirectly through joint ventures with various partners, the production of 6,000,000 to 7,000,000 tons per year of high quality metals for consumption at its steel mills. A strong technology base enables Nucor Company to reduce its operating costs and compete effectively in the market. They need to continue to grow technologically to be able to differentiate their product line so that they can compete on a basis of cost and product differentiation. Nucor Corporation has many different competencies that allow them to hold a strong position in the steel industry. The company has very good industry position and positive financial results for the past 40 years. Because they are in such a mature industry, they need to continue to grow their product line and continue to progress forward so that they do not lose market share over the next few years....
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Nucor Corporation - factors Nucor has established a raw...

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