Question

What are the primary competitive forces impacting U.S. steel producers in general and the producers like Nucor that make new steel products via recycling scrap steel in particular? Please do a five-forces analysis to support your answer.

Answer 1

Answer:

Five forces explanations are given below

Explanation:

1) Rivalry among Steel Producers (Firece Competitive force)  :  Due to high competition in the US market, most of the steel producers have mastered the technique to provide the steels to the customers at best prices. In market like steel, customer is more careful about the delivery and price of the product. Nucor is using updated recycling technologies which enable it to offer wider range of products to its customer at lowest price.

2 ) Competition from Substitutes (moderate Strong competitive force) : Products like aluminium, plastics and other materials can be used as substitutes of Steel products.

3) Threat of Entry (moderate Strong competitive force) : Due to high competition in Steel market, new companies are reluctant to enter already saturated market. but the companies like Nucor who used latest art of technologies are acquiring existing less successful steel producer to expand its operation and turn these companies into strong contenders.

4) Bargaining Power of Supplier (moderate competitive force) : the Suppliers of Steel Scrape are may be moderate competitive force. Usually prices of Steels scrape of Steel products are depend on its supply and demand in the market and individual supplier may not be big factor to influence the prices.

5) Bargaining Power of Customers (moderate weak competitive force) :  Moderate weak force exist when the demand for steel products are high and vice versa. The steel producers may provide some good discounts to those customer who are buying the steels in bulk when the demand for the steel products is low. But sometime due to high demand of steel, the good customers may be negated and they may compromise on lower or minimal discounts.

     

Answer 2

Answer:

Explanation:

The steel business in US is perhaps the biggest maker on the planet after China and Japan. The business has many Steel Giants including Carpenter Tech, Nucor, Steel Dynamics, and U.S Steel and so on. The significant powers influencing the serious market can be investigated utilizing the five power model gave by Porter. Doormen five power model is utilized to investigate the opposition and comprehend the business parts, alongside different variables influencing it. The significant powers are as given beneath:

•Threat of new entrants

• Threat of substitutes

• Bargaining power of customers

• Bargaining power of suppliers

• Industry rivalry

When all is said in done, the US Steel industry have following examples and patterns:

• High expense of changing to substitutes

• Low substitutes

• Very high industry contention

• Slow pace of innovation development to help the business

• Very high number of faithful clients

Concentrating more on Nucor, they are a Steel mammoth who got unmistakable by the utilization of discard scrap material. They have changed the manner in which the world ganders at the piece metal utilization. They offer some benefit added items with high intrigue to the customers with astounding vertical reconciliation, economies of scale and high utilization of innovation. Because of the client centered methodology, they can give numerous advantages to the end clients as well. The principle achievement factors for Nucor are steady advancement, cost decrease strategies and high limit use.

The five powers models can be examined as follows:

Threat of new entrants

• High capital speculations would be expected to arrangement another plant and arrangement a productive store network

• Advanced advances are required to arrangement plants to concentrate on reused materials and scraps

• There is high exchanging cost for clients as well, so new contestants would set aside some effort to pick up piece of the pie

Threat of substitutes

• Since the items given by Nucor are profoundly spent significant time in nature, there are no to not many choices for the item

• For a settled client store network, it is hard for clients to switch between item options

Bargaining power of customers

• There are not many high volume providers of scraps, so haggling power is high

Bargaining power of suppliers

• There are no significant contender for Nucor, so dealing intensity of client is extremely low

• There are no prompt exchanges and substitute to clients will in general stick with same production network.

Industry rivalry

• There are not many contender who can give a similar item blend as Nucor

• Government controls numerous guidelines to guarantee all steel mammoths have equivalent noticeable quality in the market

• Exit obstructions are high because of high venture costs