BUS 599 Assignment #4 - HRM Issues Diversification Strategies - Nucor Corporation
1: Until 1960 the steel industry was using conventional oxygen fueled furnaces and had to make steel in large factories that was a huge barrier to entry, the electric arc furnace allowed smaller companies to make low end parts these big ones couldn’t and in the 1980’s thin slab casting had allowed these smaller companies to compete on par with larger companies in making higher end steel products.
Nucor was one of the first companies to proactively adopt thin slab casting to keep its costs of labor and capital down to out produce the larger bulkier competition who were stuck with conventional furnaces. By 2005 the use of scrap metal casting using arc furnaces is what the company did to keep competitive in the global market with only Russia and few developing countries staying with conventional casting technology.
The market was price driven throughout and the company with the lowest price but highest quality would always win out. From their conception to the present NUCOR was an active purchaser of dying competitors and would not stop till it had 18 plants which it upgraded with arc furnace technology to grow fiercely in this cut throat market using technological innovation and active acquisition aggressively as possible.
2: NUCOR distinguished itself