Friday, March 22, 2019
nucor case :: essays research papers
Nucor Corporation is constantly faced with obstacles and disceptation to overcome. This leaf blade-making federation whose name was formally adopted in 1972, has since been on a transit to join the ranks of the worlds leading steel companies. Although this is a highly profitable attention with a U.S. market of $94.9 billion, it is highly competitive and presents many bariers to entry. Three elements of competition in this particular industry include, 1.) Technology 2) Changes in cost and efficiencies and 3) globalizationAdvances in technology can dramatically alter an industrys landscape, making it possible to produce products at lower costs and open up whole new industry frontiers. The management at Nucor believed they could phthisis new technology to their advantage and make bolts as cheaply as foreign producers. The traditional integrated steel mills were outdated and uneffective compared to new electric minimills. Nucor embraced this new technology to produce steel. The y became known for constructing state of the art facilities at the lowest possible costs and for invest aggressively in plant modernization and efficiency improvements. New technology enabled minimills to triple their proceeds in the 1990s. The new technology of twin shell electric bowknot furnaces helped minimills increase production, lower costs, and take additional market shares. Nucors substance abuse of advanced, efficient technologies enabled it to stay afloat when other companies could not. This use of technology likewise enables Nucor to lower many of the costs of maintaining environmental standards. With technological improvements to the plants and the production process, steel companies can better compete with each other. Because there is no historical differentiation between products in the steel industry, companies will have to deposit on technological innovation to profit in this industry. As verbalise above, there is no real differentiation in products in this industry. whence steel companies have to be able to produce high timbre products at low cost to compete. By improving production efficiencies and cost management, they will be a more profitable company. Nucor constantly spent money researching new ways to improve the production processes and keep up with the emerging markets. Nucor was known for constructing state-of-the-art facilities at the lowest cost and investing in plant modernizing and efficiency. At the Darlington plant the manger there create a system where less time and less capital enthronization were required. This helped keep the fuel usage down and this was the only mill in the United States that was doing this.