Nucor Case Study Essay

Words: 1304
Pages: 6

NUCOR (25 Points)
1. List and elaborate some strategic issues facing NUCOR?
Nucor has been facing many industry challenges including the overall development of the industry. They are competing with foreign firms on cost and efficiency. Nucor has a low cost strategy because as they say their product is not necessarily very attractive. It does not have attractive or unique selling features other than its cost. The commodity of steel is in a very competitive market. Nucor understands that innovation and productivity are going to be key factors to keep their buyers satisfied with their prices. Nucor is facing many challenges with a growing world market and many of their competitors merging in order to create stronger more dominate
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Be specific in distinguishing NUCOR’s resources from its capabilities as done on Page 71 of the Text (Under the subheading “Identifying Competitively Important Resources and Capabilities”).
Nucor has many resources. They have 22 physical plants that are each in charge of their own operations eliminating the needs form more buildings. They are continuing to expand plants, which will be acquiring new resources. The also have $1.9 billion dollar as of 2007. These are just the large tangible assets that Nucor has. Some of the intangible assets are the company’s goodwill, reputation and brand. The reputation of Nucor is that they can provide competitive price and always have on-time deliveries. This reputation becomes as asset when customers choose Nucor over competitors even if their prices are comparable. The Nucor Brand is an interesting asset because although steel is not necessarily branded the company’s reputation helps them create a brand that customers appreciate. Nucor has many capabilities, they are ahead in the field on innovation which means that they have technology and skilled workers that are invaluable. The knowledge that this company has gained through trial and errors puts them one step ahead of their competition. Their management and incentives strategies would also be considered capabilities because these are the principles that help them to make use of their resources to become the most successful company in the steel industry.