Introduction
The modern world markets require companies to use unique approaches to be competitive. Due to globalization, successful organizations realize that massive collaboration among various players and suppliers is necessary to achieve the expected results. Steel manufacturing is one of the most competitive industries. This research paper will explore three major companies in this sphere: Nucor Corporation, ArcelorMittal, and Baowu. Compared to the other two companies, the Nucor Corporation needs to diversify its production to be more competitive and improve its presence in the global steel industry.
The Importance of Diversification and Other Companies
Notably, Nucor Corporation has concentrated its making on a narrow range. It has three dimensions: steel products, steel mills, and raw production (Hartmann et al., 2020). For example, when comparing Chinese Baowu with Chinese Baowu, which has many product types, it is difficult for Nucor to be competitive, even if it has a qualitative production. Because of globalization, companies try to diversify their products while collaborating with partners worldwide (Li, 2020). Chinese’s ArcelorMittal is the opposite company to Nucor, not only because it is the largest steel company worldwide but also due to its wide range of products.
Remarkably, this company controls the entire production chain and is more independent and competitive (Hartmann et al., 2020). According to Li (2020), “ArcelorMittal’s becoming the world’s best steel company is inseparable from its strong technological innovation system” (p. 199). Nucor Corporation should invest in innovations that act in two ways. First, they will speed up the company’s presence in the world market of steel by collaborating with various players. Second, it should diversify its production, adding new offerings for the customers. Considering the company’s potential, it is helpful to apply
Conclusion
In conclusion, it is necessary to highlight the significant competition among major steel producers. However, suitable investments will bring the company to leaders and allow it to diversify its production. Specifically, the example is ArcelorMittal, which implemented valuable investments in its innovations. Another Chinese company, Baowu, has the potential to grow and act worldwide because of its wide range of production. Therefore, Nucor Corporation should follow this recommendation to improve the accessibility of its steel in the United States and beyond.
References
Hartmann, F., Kraus, K., Nilsson, G., Anthony, R., & Govindarajan, V. (2020). Management control systems.McGraw-Hill Education.
Li, X. (2020). The road map of China’s steel industry: Reduction, innovation and transformation. Springer Nature Singapore.
Scott, G. (2023). Porter’s 5 forces explained and how to use the model. Investopedia. Web.