Nucor Competitive Strategy

NUCOR COMPETITIVE STRATEGY ANALYSIS CONTENTS

1. Case Profile
2. Situational Analysis
2.1 General External Environment (PESTLE model) 2.1.1 Political/Legal 2.1.2 Economic 2.1.3 Sociocultural 2.1.4 Technological 2.1.5 Environmental 2.1.6 Demographic 2.1.7 Global 2.1 Industry Analysis (Porter 5 Forces) 2.2.1 Threat of new entrants 2.2.2 Bargaining power of suppliers 2.2.3 Bargaining power of buyers 2.2.4 Threat of substitute products 2.2.5 Intensity of rivalry

2.3 Competitive Environment Analysis 2.3.1 Future objectives 2.3.2 Current strategy 2.3.3 Assumptions 2.3.4 Capabilities

3. Strategic Analysis 3.1 Strategies
3.1.1 Operational level
3.1.2 Business level
3.1.3 Competitive level 3.1.4 Corporate level

4. Core Competencies
4.1 Tangible resources
4.2 Intangible resources
4.3 Capabilities

5. Value Chain
6. Sustainable Competitive Advantage
7. Performance Appraisal

8. SWOT Analysis 8.1 Strengths 8.2 Weaknesses
8.3 Opportunities
8.4 Threats

9. Strategy Formulation and Implementation 9.1 New Initiatives to Sustain Growth APPENDIX 1: Top-30 producers by International Iron & Steel Institute
APPENDIX 2: Top Competitors Key Measures: NUCOR
APPENDIX 3: FIVE-YEAR FINANCIAL REVIEW FOR NUCOR (2002-2006)

Case Study Analysis: NUCOR

1. Case Profile Nucor Corp., the U.S largest mini-mill operator1 and largest steel manufacturer by tons produced2, continues to lead the industry in efficiency, technological innovation, profitability and delivery of high quality products at low cost structure, after a record of more than 16 years of rapid growth in a declining industry3. And with a strong relationship with its workers without unionization, Nucor’s employees claimed to be the industry’s

References: 3. Johnson, G. & Scholes, K. (2005) Exploring Corporate Strategy: Text and Cases, Prentice Hall, London 4 5. John H. Sheridan, 1996 “New Era – Or Breather?” Industry Week, 5 February, pp 49 6 7. Bryan Berry, (1996) “World Steel: Competing Strategies in Metallics, Melting, and Casting,” Iron Age New Steel, 12(4), April, pp 74. 8. Bryan Berry, (1996) “World Steel: Competing Strategies in Metallics, Melting, and Casting,” Iron Age New Steel, 12(4), April, pp 76. 9. Bryan Berry, (1996) “World Steel: Competing Strategies in Metallics, Melting, and Casting,” Iron Age New Steel, 12(4), April, pp 76. 14. Ted Kuster (1995) “How Nucor Crawfordsville Works,” Iron Age New Steel, 11(12), December, pp 36-47 15 17. Barney, J.B. (1997) Gaining and Sustaining Competitive Advantage, Wesley Publishing, Addison 18 19. Prahalad, C.K. and Hamel G (1990) The Core Competence of the Corporation, Harvard Business Review, Mar, 1979 APPENDIX 1: Top-30 producers by International Iron & Steel Institute