Nucor Corporation is one of the largest steel producers in United States and also is the largest

recycler of steel scraps. The company is regarded as the low-cost steel producer in United States
and one of the most efficient in operations and technically innovative steel producers in the
world. It is also one of the survivors in the industry opposed to low-cost steel imports from
around the world. Nucors success factors constitute of strategies like strong acquisitions,
commercialization of innovative technologies, low cost production with efficiency and global
growth via joint ventures. Its workforce compensation practices that increase output, low cost
culture, innovative technology, strong marketing and environment friendly production processes
have enabled it to compete in the fierce competition not only from domestic producers but also
from outside producers.
The competition is intense in the steel industry as price is rising for steel scraps and iron ore. In
the economic depression it puts more pressure on Nucors profitability and sustainable growth.
The demand in real estate sector has gone down largely and the demand for automotive parts also
has gone down. Again foreign dumping is a big issue in the industry as it is directly hurting
Nucor in its market share and profit margin. Finally, aggressive rivals are becoming proficient in
cost cutting like Nucor Corporation. All together Nucor is in a place where it can easily lose its
market share and profit margin if it fails to respond properly in the fierce competition.
The company should continue to make more acquisitions as it played a vital role in its core
strategic competencies. The management practices and the strong financial backup always
helped it to make the acquisitions easier. Nucor should continue vigorous research to come up
with innovative technologies like Castrip which is a breakthrough in the industry. Environmental
issues are big concern now a days and Nucor should continue come up with more environment
friendly process to make steel as it has given them a good reputation in the industry. Finally
Nucor requires the perfect strategic leadership like before as that will guide them to achieve high
profitability and sustainable growth in the long run.