Nucor - Competative Strategy

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EXECUTIVE SUMMARY Nucor is a very strong company referring to the strengths of internal environment. On the external environment, current government protection on import quota gives Nucor some security. Furthermore Nucor is market leader in innovative mini mill and scrap steel recycling thus having a competitive advantage in this segment. However the greatest strength lies within Nucor; its egalitarian organisational culture that gives Nucor the employees’ undivided loyalty. However in order to generate greater revenue for its stakeholders and employees, Nucor should take a planned approach in formulating its future growth and business strategy. Nucor should use it is current strength in cost leadership to its maximum potential and enhance its strategic positioning via differentiation of processes used in its products manufacturing. This differentiation rights must be patented to avoid imitation thus giving Nucor the sustainable competitive advantage. For Nucor’s continuous growth in the mature steel industry heavily depends on making successful acquisitions, mergers and strategic alliances. Therefore Nucor should rely on the Mckinsey growth pyramid to ensure that decisions made will help Nucor to compete with mega steel makers. Nucor is matured firm, thus in order to give Nucor a fresh breath in business, diversification into new products and new market is essential. Nucor should move from the red-ocean to blue-ocean to scallop the firms growth cycle. INTRODUCTION Nucor’s humble beginning started in 1897 as Oldsmobile by Ransom E. Olds producing automobile. Nucor’s history in brief is showing transformation from Oldsmobile to Nucor as it is known today is highlighted in Appendix 1. History shows the company faced major changes in term of ownerships, business directions and core business activities. In early days, it was producing automobiles and

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