nucor case :: essays research papers

Nucor Corporation is continuously faced with obstacles and disceptation to overcome. This steel-making company whose name was formally adopted in 1972, has since been on a journey to join the ranks of the worlds leading steel companies. Although this is a senior highly fat manufacture with a U.S. market of $94.9 billion, it is highly competitive and presents many bariers to entry. tierce elements of competition in this particular industry include, 1.) Technology 2) Changes in exist and efficiencies and 3) globalizationAdvances in engineering can dramatically alter an industrys landscape, making it possible to produce products at lower bell and opening up whole new industry frontiers. The management at Nucor believed they could use new technology to their advantage and make bolts as stingily as foreign producers. The traditional integrated steel grinds were out-of-date and inefficient compared to new galvanic minimills. Nucor embraced this new technology to produce steel. They became know for constructing state-of-the-art facilities at the lowest possible costs and for investing acutely in plant modernization and efficiency improvements. New technology enabled minimills to three their output in the 1990s. The new technology of twin shell electric arc furnaces helped minimills increase drudgery, lower costs, and take additional market shares. Nucors use of advanced, efficient technologies enabled it to stay afloat when other companies could not. This use of technology also enables Nucor to lower many of the costs of maintaining environmental standards. With technological improvements to the plants and the achievement process, steel companies can better compete with each other. Because in that respect is no real differentiation between products in the steel industry, companies will digest to rely on technological innovation to profit in this industry. As stated above, there is no real differentiation in products in this industry. Therefore steel companies have to be able to produce high quality products at low cost to compete. By improving production efficiencies and cost management, they will be a more profitable company. Nucor constantly spent money researching new ways to improve the production processes and backing up with the emerging markets. Nucor was known for constructing state-of-the-art facilities at the lowest cost and investing in plant modernizing and efficiency. At the Darlington plant the manger there developed a system where less time and less metropolis investment were required. This helped keep the fuel usage down and this was the only mill in the United States that was doing this.