Nucor Steel Case overview: This case study is based on how a steel company grows up to be a profitable institution even today. Nucor Corporation has a very remarkable capacity to produce a lot of steel and has been ranked as the 11th largest steel corporation. Nucor used to be a very small company which built such an evolutionary enterprise that led the world in to a new age of manufacturing steel with cast-off crumbs of steel. Up to the period of the year 2000 Nucor continued its course of action by expanding its steel product base. In the year 2000 Nucor were the largest steel manufacturers in the United States. There sales had a great boost in the year of 2000, they stayed their course and made additional plants and acquired other dissolving …show more content…
Currently Nucor is running two fastener plants and the production is of carbon and alloy steel hex, screw bolts, finished hex nuts etc. Nucor with the help of one of its subsidiary began installation and distribution of steel as well. Nucor also started to manufacture the wide flange, steel beam, pilings and heavy structural steel products adding more to its line of products. The usage of structural products was in the building of bridges, buildings and over passes. They also started producing steel plates that were sold to manufacturers of heavy ships and barges …show more content…
Nucor had used a lot of horizontal scopes to strengthen their profitability. They have used their bargaining power and enhanced flexibility along with dynamic capabilities that has helped them increase their profitability. Nucor management has used the backward integration in their value chain management. By applying the backward integration Nucor achieved the economies of scale and managed to beat the suppliers with production efficiency. This helped Nucor to reduce the supplier power, reduce its input operational costs, assurance of material availability and protection of their stance as a manufacturer. Nucor has also used the concept of joint venture in order to penetrate the foreign markets. Nucor may be known for its offensive competitor’s attacks. The company had a challenging quality product to sell. They leap frogged on occasions when their product lines were enhancing. They kept innovating in their product lines.