Nucor - Porters 5 Forces - 2126 Words

NUCOR AT A CROSSROADS CASE ANALYSIS NUCOR’S SUSTAINED PERFORMANCE RECORD PORTER’S 5 FORCES ANALYSIS †¢ Supplier Power: With the eventual exit of integrated steel companies from buying scrap, the options available with suppliers to sell, reduced. Nucor started several small plants that were close to suppliers customers, thereby reducing transportation costs. Also, the sites chosen had inexpensive electricity. Their employee-centric policies resulted in them having lowest attrition levels a steady supply of new employees. Thus the supplier power was moderate-low. †¢ Buyer Power: Although Nucor employed the latest technology competitive prices, with imported steel available, the buyers had more options to choose from.†¦show more content†¦Ã¢â‚¬ ¢ Values / Culture Review: Employee focus was the hallmark of Nucor. They encouraged risk taking, creativity innovation. Their policies didn’t allow for much differentiation between different cadres. Their flat structure had decentralized decision making, they provided employees a sense of belonging / ownership with the organization. The all-cash incentives were regularly doled out were directly performance linked – quality quantity-wise. Their strong employee-bonding started right from the time the plant was constructed, till retirement. They didn’t believe in firing during lean times, would rather cut back on working hours, than fire people. The end result was that they not only had a highly productive, motivated, experienced non-unionized work force, but thei r employee turnover was much below the industry average they had many people willing to work for them. Their high human capital was a clear differentiator advantage over the competition in the steel industry. Thus, Nucor’s approach of controlled growth, focus on technology innovation, high employee productivity coupled with a dedicated workforce, decentralized quick decision making, have resulted in a sustained growth success of Nucor. For sustainability in the future, Nucor will have to continue to focus on technology innovation as it has been its point of differentiation among its competitors. TETRA-THREAT FRAMEWORK FOR SUSTAINABILITY ANALYSIS:Show MoreRelatedNucor Corporation: Market Survey and SWOT Analysis1592 Words   |  6 Pages Nucor Steel Industry Overview Globally, the U. S. steel industry is one of the largest as measured both by production as well as consumption. In 2010, the U.S. was third in global crude steel production with almost 6 percent share (Market Research.com, 2011). Until 2009, Nucor operated in an industry which experienced significant output declines during recent decades. 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