Scotsman's Competitive Advantage: A Case Study

Carnegie backed away from bidding for ship armor plate because of the lack of large profitability under the represented agreement. The Scotsman’s pacifism dovetailed nicely with his opinion that the profits were too low in ship plating until 1889. Due to the lack of plating, the battleships New York and Maine suffered delays. Any opportunity that came along for Navy Secretary Benjamin Tracy went to Carnegie to rethink his involvement with the Navy. Carnegie was still continually looking for the best arrangement for his company. In 1890, Tracy threatened to purchase steel from the British, forcing Carnegie to build a new plate near Homestead, Pennsylvania and win three new battleship contracts.
Although, American ships still lagged behind the