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Bethlehem Steel Case Study

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The company that I’ve chosen to introduce into the discussion is Bethlehem Steel. Never heard of this company? Bethlehem Steel had a rich history in building the United States, its tenure spanned over one-hundred years; “it was the nation’s number one supplier of steel to the domestic construction industry, as well as a major supplier for the railroad and automotive companies” (Bethlehem Steel Corporation - Company Profile, n.d.). The company survived The Great Depression, retooling and expanding the core business into the other metal industry sector operations. The World Wars helped position the company financially and increased its government construction contracts.
The Industrial Organization (IO) theory states that the company or “the firm must adapt to the influences in its industry to survive and prosper” (Parnell, 2008, pg. 7). The overall performance of the total industry directly affects the company ability to succeed. Bethlehem Steel thrived as the United States steel industry grew and expanded its marketplace by exporting. But in mid-ninety, the steel imports exceeded the exports. As cheaper steel products were imported, the United States steel industry failed to adapt, so the government implemented a series of tariffs …show more content…

It appears that Bethlehem Steel did a SWOT analysis of domestic and foreign markets and competitor, but was unable to fully recover from the dumping of cheap steel onto the U.S. market. It had scaled back its foreign market dependence, but misunderstood its competitor’s business plan to dominate the market. They even petitioned the U.S. Courts for help to shield the industry from foreign competitors through tariffs (Bethlehem Steel Corporation - Company Profile,

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