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P17 fTo : Nucor Management From : A Case Study Review: Strategic Competition of Nucor Corporation 1.0 Executive Summary The purpose of this case study is to address the strategic issues of Nucor Corporation (Nucor) in the American steel industry.
Why did Nucor want to minimise its dependence on steel?
In 1967 60% of revenue dollar which Nuclear earned was spent on buying steel and it was clear why Iverson wanted to minimise the dependence on steel. It is a volatile commodity and sudden price slumps could have created havocs in the firm. Minimills were inexpensive to build, operate and were energy efficient, they could operate on scrap alone.
What was the government loan to Nucor for?
For Nucor: US government had loan a billion dollars to 9 mills to keep the steel industry competitive. recently in 2001, 25% of domestic steel companies were bankrupt, and half of the US steel companies had to fold.
Who are the main competitors of Nucor Steel?
If a company can get its hands on a new technology that allows it to underprice its competitors then it has a big advantage in the steel industry. Nucor’s main rivals in the steel industry are AK Steel Holding Corporation, Mittal Steel Company, and U. S. Steel.
Last Update: Oct 2021
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