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Bethlehem steel : Nation's Second Largest Integrated Steel Producer

Bethlehem competes in the major mill segment of the steel market, a segment which is composed of Bethlehem, British Steel, Inland Steel, LTV and USX (formerly U.S. Steel) (Morrison & Hoffman, 1995, p. 2). There are significant barriers to new entrants to this market because of the large capital investment required. Products are sold in the industrial market, to automobile manufacturer and manufacturers of railroad cars as well as construction companies and appliance makers. Major mills compete with mini-mills, such as Nucor, in some cases.

Bethlehem's steel products are distributed through its own sales organization in North America, and through authorized agents in other countries. In addition to selling directly to customers, Bethlehem also sells to service centers, distributors, processors and converters.

The company breaks its operations into two segments: basic steel operation and steel related operations. Basic steel operations include steel mill products while steel related operations manufactures and fabricates iron and steel products for the metals, electric power generation and nuclear industries.

Although the company has used an acquisition strategy in the past to enter new markets and to bolster its presence in existing markets, there are no current plans for acquisitions at this time. The company's current financial position would make it difficult to accomplish any acquisitions, and the company is refocusing its efforts on returning to its core business. With the dedication of resources that this requires, any additional acquisitions would likely not receive the attention and support that would be necessary for their success. However, the company should keep a watchful eye on the market and competitors as well as on synergistic opportunities which may be present and which would complement the company's core offerings. Adding a minimill to the company mix, for example, would be a strong addition to the curr...

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Bethlehem steel : Nation's Second Largest Integrated Steel Producer. (1969, December 31). In LotsofEssays.com. Retrieved 02:09, November 01, 2014, from http://www.collegetermpapers.com/viewpaper/1304097160.html
 
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