Case 4

Using the information contained in the case, conduct a five-forces summary of the U.S. Steel assiduity. What conclusion can you d stark(a) from this? 1. The risk of main course by authorization competitors: High a. Capital Requirement: Steel industry is a capital intensive business. b. Economies of scale: Research and information expenses and better bargaining originator while sourcing raw materials. It may be noted that those steel companies, which are coordinated, have their suffer mines for key raw materials such as iron ore and ember and this protects them for the potential threat for new entrants to a significant extent. c. governance Policy: Regulatory clearances and other issues are most of the major problems for new entrants. d. Product differentiation: Steel has very little barriers in terms of product differentiation as it doesnt fall into the luxury or specialty goods and thus does not have any substantial price difference. 1. The intensity of aspiration among established companies within an industry: High e. The steel industry is actually global in terms of competition with large producing countries wish China significantly influencing global prices through aggressive exports. 2. dicker power of suppliers: High f.

The bargaining power of suppliers is low for the fully integrated steel plants as they have their own mines of key raw material like iron ore coal for example 3. Bargaining power of Buyers: Mixed g. Some of the major steel consumption sectors like automobiles, oil color & gas, shipping, consumer durables and power generation enjoy high school bargaining power and get favorable deals. 4. Threat of substitutes: Low h. Plastics and composites mystify a threat to steel in one of its biggest markets - self-propelling manufacture. For the automobile industry, the other material at present with the potential to upstage steel is aluminum. Steel has already been replaced in some large volume... If you want to get a full essay, identify it on our website: Orderessay

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