1. Industry Economic Features: what are the industry’s dominant economic features?
2. Industry Competitive Forces: what causes the competitive industry structure and business environment to change?
3. Industry KSF’s: what are the key success factors for future competitive success?
In order to highlight the industry’s dominant economic features, it can be claimed that it is highly essential to analyze the competitive environment of that particular industry. Apart from this, it is also important to highlight the market size of that industry in terms of total revenue and annual sales revenue. Consequently, the growth rate of an industry is also helping to determine or evaluate the expansion of that industry in the operating field. In this regard, it can be claimed that Nucor Corporation is one of the largest steel manufacturers among the American organizations. Apart from this, in order to identify the growth rate and expansion of the organization it is revealed that the organization had maximized its revenue level up to $21,105,141 in the year 2014. In this context, in order to highlight the scope of competitive rivalry it can be also claimed that the organization faces high competitive rivalry from the domestic market as well as from the global market.
Instead of that Nucor had witnessed approximately 11% growth in terms of sales volume during the year 2014. Moreover, in order to identify the life cycle of the organization, it is also notified that Nucor had positioned itself as a matured phase in the life cycle of the industry, which signifies its future growth (Nucor Corporation, 2014).
Simultaneously, through identifying the number of operating organization in the steel industry, it is revealed that the competitive rivalry of that particular industry is very high. In this context, it can be claimed that a maximum level of a rivalry has strengthened the position of the organization within the industry. On the other hand, through analyzing the degree of product differentiation it is revealed that Nucor had positioned its image as a low-cost steel producer, whereas in terms of product range and technologically the organization had positioned its image as a most efficient within the industry. Moreover, innovative approach and advanced research and development team had assisted the organization to hold superior position within the industry, which signifies harsh market barriers for a new player within the industry (Nucor Corporation, 2014).
On the other hand, in order to identify the customer strength of that particular industry, it is revealed that the organization had operated its business operation with wide range of customers within the US market as well as in the international market. In this context, it can be argued that Nucor had not only concentrated on new steel manufacturing, rather the organization had also worked on scrap steel production with aim of ensuring the presence of variety of steel products in the operating marketplace. Additionally, it can be claimed that as an advanced steel manufacturing organization, Nucor had ensured its strong position within the steel industry and it witnessed promising growth due to the experience of producing innovative steel products (Nucor Corporation, 2011).
Based on the above discussion, it can be claimed that these are the dominant economic features of Nucor within the steel industry, which has ensured rapid growth of the organization within the industry.
In order to analyze the industry competitive forces in terms of competitive structure and changes of business environment, it is highly essential to incorporate the Porter’s Five Forces model, which is recognized as a one of the most powerful management tools for identifying and analyzing the profitability and attractiveness of an industry (Porter, 2008). The industry competitive forces have been discussed below:
To identify the bargaining power of suppliers of the Nucor, it is revealed that the bargaining power of suppliers is moderate, or it can be also referred as a low. In this regard, rationally it can be argued that Nucor has a very strong command over its suppliers. On the other hand, mostly Nucor purchase vast amount of scrap metal for manufacturing its steel products. Moreover, the overall capacity of buying material is increasing every year (Hartnett & Ketellapper, 2011).
Similarly, in order to identify the bargaining power of customers, it is witnessed that the large number of buyers of steel product are relied on Nucor product due to their consistency and low-cost based products. Simultaneously, Nucor has acquired the majority of the steel market in The US. Thus, it can be claimed that the bargaining power of customers in case Nucor is low (Hartnett & Ketellapper, 2011).
In order to highlight the threat of a new player in the market, it can be asserted that the initial investment as well the capital expenditure is very high than that of other industries. Apart from this, it is very difficult for a new player to capture the market rapidly. Thus, it can be argued that the threat of a new player is low (Hartnett & Ketellapper, 2011).
Simultaneously, in order to identify the threat of substitute product it can be claimed that several steel manufactures are producing various kind of new product with more advanced features, which signifies the steel market of Nucor is highly competitive. Thus, it can be claimed that the threat of substitute product is very high (Hartnett & Ketellapper, 2011).
In order to identify the competitive position of Nucor within the industry, it is revealed that larger numbers of steel manufactures are producing almost similar kind of product with same features, which signifies the steel market of Nucor is highly competitive. In this context, it is also revealed that Nucor has a competitive advantage for its cost-effective products. Apart from this, the organization can also produce steel quicker than that of the integrated steel manufacturers. Thus, it can be argued that Nucor has medium competitive rivalry within the industry (Hartnett & Ketellapper, 2011).
Based on the above discussion, it can be claimed through concentrating on the above-stated aspects it is possible to identify the competitive structure and business environment of Nucor within the steel industry.
In order to identify the key success factors of the Nucor for future competitive success, it can be argued that there are certain factors, which may lead the organization towards better future growth. Those are discussed below:
Product attribute is one of the essential aspects, through which an organization can create its own recognition within the industry. In this regard, it can be claimed that technological advancement and scientifically based research and development may assist Nucor to gain the competitive advantage in future. Moreover, skilled and trained workforce can enhance operationally and manufacturing efficiency for Nucor within the steel industry, which may lead the organization towards gaining product attributes in an effective manner (Global Intelligent alliance, 2004).
To enhance the competency within the steel industry, Nucor should concentrate on quality control expertise related aspects for ensuring the quality of the products. Apart from this, through establishing a strong distribution network, Nucor can also enhance the level of competency within the steel industry. Moreover, it can be claimed that better customer service will also enhance the future growth prosperity of the organization (McGraw-Hill Higher Education, 2007).
Similarly, in order to ensure competitive capability, Nucor should emphasize towards its quality of products as well as its consistent services. In this context, more specifically it can be argued that through concentrating on developing new product and by fulfilling the needs and expectations of the consumers, Nucor can effectively maintain its competitive capabilities. Furthermore, the organization has to maintain its competitive pricing strategy for gaining the superior competitive advantage (McGraw-Hill Higher Education, 2007).
In order to ensure market achievements, Nucor should pay close attention towards the risk related aspects the industry, which can be regarded as a sound strategy for ensuring the market achievements. Apart from this, it can be argued that the organization must pay attention towards its strategists for ensuring predetermined goal. Moreover, Nucor should act distinctively better and faster than that of its rivals while making strategic decisions. Additionally, through concentrating on these strategic approaches, Nucor may gain sustainable competitive advantage within the industry (Global Intelligent alliance, 2004).
Based on the above discussion, it can be claimed that these are the key success factors (KSFs), which can ensure future competitive success for Nucor within the industry.
Reference List
Global Intelligent alliance (2004). Key success factors of competitive intelligence. GIA White Paper, 1-15.
Hartnett, N., & Ketellapper, M. (2011). Nucor steel. Retrieved 1 July 2015, from https://leeds-faculty.colorado.edu/madigan/4820/Presentations%202011/Nucor%20NUE%202011%20Ketellapper%20Hartnick%20Report.pdf
McGraw-Hill Higher Education (2007). Crafting and strategy execution. Retrieved 1 July 2015, from https://highered.mheducation.com/sites/0072969431/student_view0/chapters3/key_points.html
Nucor Corporation (2014). 2014 annual report. Retrieved 1 July 2015, from file:///C:/Users/USER/Downloads/80768%20NUC%202014%20Annual%20Report_R1_Final_LR.PDF
Nucor.com (2015). Form 10-K. Retrieved 1 July 2015, from https://www.nucor.com/investor/sec/html/?id=8762796
Porter, M. E. (2008). The five competitive forces that shapes strategy. Harvard Business Review, 1-18.
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