Nucor SWOT Analysis
Has a strong leadership team at all levels.
Workforce is highly motivated, productive, and flexible. •
Technology = Innovation and technology has been the integral strength for Nucor Co. They are always into searching for new mediums and technology in the production side. The major benefit that they get from it is the amount of resources that they save and the improved efficiency levels. (McLean, 2009) •
Continuing Innovations = Nucor has plants with low pollution levels. The ability for Nucor to use this to its advantage allows them to be more competitive with the market by substantially lowering their production cost. It also allows them to be environmentally friendly, a huge worldwide concern these days. Nucor is always moving and always improving its business cycle through the use of continuing innovation. (McLean, 2009) •
One of the largest steel producers and recyclers in the United States. •
Highly automated plants requiring fewer man-hours than competitors. (Nicholson, 2010) •
Close relationships with major customers.
Location: Congregated itself in US = All of the 14 plants Nucor are located within different states in the US. The major problem that arises due to this is that Nucor cannot effectively cater to international markets as compared to its competitors who have plants worldwide. Distribution and shipping costs are very high in the steel industry and shipping it to overseas countries is a lot difficult and expensive for Nucor. Nucor needs to re-position itself in the market to effectively compete with its competitors. (McLean, 2009) •
Somewhat susceptible to swings in market demand (price) for scrap steel. (Nicholson, 2010) •
Does not give deals on quantities purchased. Nucor’s most significant weakness lies with its domestic market. With the US market being Nucor’s primary customer base, Nucor is not able to offset losses because of a diversified location worldwide. (McLean, 2009)...
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