Introduction
Nucor was named Nuclear Corporation of America, until 1964, F. Kenneth Iverson as CEO
and president of the company decided to exit the nuclear instrument and electronics
business and get into the steel joist business. Nucor used the economic downtown to grow,
and by 2000 it is the seconded-largest steel producer in the US.
External Environment- Five forces for sports brand industry
Threat of the new entrants- Low
In order to start a new business in steel industry is not that easy, it will need the support
from a lot of aspects, such as technology, the raw material resources, and equipment.
Therefore, the threats of the new entrants are relevantly low.
Rivalry- High
It is a very captivity industry; there are not just the competitors from US, also from other
countries, such as China, Japan, India, Russia, and South Korea. Nucor was the world’s
11th largest producers in 2010.
Potential substitutes- Low
There are no better substitutes better than steel, while using for constriction. There may be
some different kind of steel but steel is necessary for today’s buildings or bridges, and so
on.
Bargaining Power of suppliers- Low
Nucor’s bargaining power of suppliers are low because merge/ acquisition the plants and
manufactures, or joint ventures with other foreign partners. There are not many companies
the suppliers can sell to.
Bargaining Power of buyer- medium
This is a very competitive industry, Nucor has their own good quality with latest
technology products, but there are not that much different from Nucor to other steel
