Group 09 Nucor
Group 09 Nucor
Submitted By
Ankur Bhagat-06
Deepika Chainani-13
Jitesh Jain-21
Shatakshi Tripathi-48
Varun Bhargava-61
Vignesh C-63
Advantages
First
Narrow
Low
Flatter
Calculated
product
Mini
mover
organization-Faster
product
Mill-Used
risk
in
location
differentiation
adopting
and
lineElectric
special
(Specific
Proximity
Innovative
Communication
furnace
focus
and
Products)
less
to
ontechnology
customer
to
competition
Stakeholders
melt scrap
with the
initially
into
(Employees,
company
steel
Custom
- a sustainable competitive
advantage?
First Steel
Flat
Ease
Same
Capturing
Smaller
Nucor
Mover
indisadvantage
has
production:
Size
has
the
well
advantage
ofthe
Lions
established
Plants
share
Number
of
Share:
(.8-1
reheating
of 50%
capital
MT)
Automobile
of Rollers
in
ofthe
comparison
the
(Plant,
slabs
US
required
and
Steel
before
appliance
with
is
Market
four
rolling
usual
compared
sector
as
3MT
inisthe
for
poss
to
ac
ina
Uncertainties Involved
May
Strategic Decision
To
Operational Decision
Dealing
Tactical Decision
Nucor decided to focus on the low price market of flatsheets but they would also have to focus on the high
end market if they plan to expand.
They would require relationship-based marketing to
sell their high end products in which they had no prior
experience since they always followed the cost
leadership strategy.
Starting the thin slab project along with the existing JV
with Yamato Kogyo would result in incurring capital
expenditures of $100 million, $250 million and $60
million or more in the years 1987,1988 and 1989
respectively. This cost of funding was substantial
which Nucor might not be able to handle.