Nucor Analysis

In: Business and Management

Submitted By toffarel
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The history of Nucor is replenished with lots of successful stories. The company has well and consistently accomplished their cleverly generated strategy. However, the steel industry is changing and Nucor need to take some actions to prosper and hold on in the future. This report will be analyzing Nucor’s current positions, its competitive advantages, etc. What are the things that Nucor already has to continue its success and what does it need more to adapt to the change of the industry?
Nucor’s current position
PEST Analysis 1. Political * US government protects domestic steel industry by the anti-dumping tariff and quotas. 2. Economic * Steel is one of the most important raw materials for most industry, especially construction and automotive. * Steel consumption positively relates to economy. * The economy and exchange rate of US dollar can be vital since Nucor’s main operations and markets are in the US. 3. Social * Steel production seems to be unfriendly to environment and dangerous to worker. 4. Technology * Technology is the most important factors for producers to compete.
SWOT Analysis 1. Strength * 1st mini-mill technology * Very good leader * Very innovative in steel and joists * Computerized inventory management system * Lean organization * Good organization cultures 2. Weakness * Locations are concentrated in the US 3. Opportunity * New technological advancement * Stay competitive * The licensing rights to the next plants * International ventures * Protection of import quotas can compete with Japanese imports 4. Threat * Global financial meltdown in 2001 * The rise of scrap metal price * Worldwide competition increased * Environmental concerns * Decline in car production

Five Forces Analysis 1.…...

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