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Nucor Corporation is constantly faced with obstacles and competition to overcome. This steel-making company whose name was formally adopted in 1972, has since been on a journey to join the ranks of the worlds leading steel companies. Although this is a highly profitable industry with a U.S. market of $94.9 billion, it is highly competitive and presents many bariers to entry. Three elements of competition in this particular industry include, 1.) Technology 2) Changes in cost and efficiencies and 3) globalization
Advances in technology can dramatically alter an industry's landscape, making it possible to produce products at lower costs and opening up whole new industry frontiers. The management at Nucor believed they could use new technology to their advantage and make bolts as cheaply as foreign producers. The traditional integrated steel mills were outdated and inefficient compared to new electric minimills. Nucor embraced this new technology to produce steel. They became known for constructing state-of-the-art facilities at the lowest possible costs and for investing aggressively in plant modernization and efficiency improvements. New technology enabled minimills to triple their output in the 1990's. The new technology of twin shell electric arc furnaces helped minimills increase production, lower costs, and take additional market shares. Nucor's use of advanced, efficient technologies enabled it to stay afloat when other companies could not. This use of technology also enables Nucor to lower many of the costs of maintaining environmental standards. With technological improvements to the plants and the production process, steel compa ...