Nucor case Term Paper Example | Topics and Well Written Essays - 1000 words

Nucor case - Term Paper ExampleWith improving economies growth is anticipate to boost desire for many to purchase the overlap in the medium term.Steel producers and mini-mill companies are placed in the midst of a very competitive environment in both domestic and worldwide scale, which adversely affects their profitability. This argument among stainmakers is to capture a significant portion of the firebrand market in timid of the fact that, the global supply of steel far exceeds the demand for steel products (Thompson 207). The first competitive military postures impacting steelmakers is the force to drive down the profitability of steel industry, steelmakers are primarily affected by the abundant steel supply versus demand, which depresses the market price of steel as a commodity.Competition among steelmakers is to lower product prices in order to capture a significant portion of potential customers. Secondly steel producers are adversely impacted by the entry of foreign pl ayers into the domestic steel market that are able to return of lower labor costs in the country. The influx of cheap imports from foreign steelmakers stiffens the existing price competition among rival steel producers hence lowering prices of steel imports dragging down steel market prices. Lastly, steel producers are more vulnerable to the increasing cost of raw materials. This rising cost of materials has led to extend in the cost of production making it difficult for them to be price competitive. The difficult in product differentiation in the steel commodity market makes it necessary for min-mills to be able to compete with their rivals base on price, that is pricing and market niche (Hitt, Ireland & Hoskisson 33).The driving forces in the steel industry the technology growth which is a change in the steel making technology has revolutionized the worlds steel industry. The use up of COREX technology in the production of steel has increased profit and its environmental