Marketing for Vulcraft occurs on a national level, and competition centers on delivery and price. The cold finish bar division is used to make machine shafts and precision parts. The company competes on price in this segment, as well, and currently has approximately 16 percent of the market. The company has a good cost structure which gives it favorable pricing capabilities in the market.
Nucor's four remaining divisions are responsible for approximately seven percent (combined) of the company's sales for the most recent year. Most of these divisions are operated effectively and efficiently, with the result that they are able to use competitive pricing in the market to ensure market share. Besides selling to the external market, these divisions provide an internal market for Nucor steel products, thus contributing to the success of the Nucor minimills.
The strengths that Nucor possesses are its position in the industry, its financial health, and a strong management team. These are the factors that have made it possible for the company not merely to survive, but to thrive in its highly competitive market, and they are factors which form a strong foundation for facing the future.
To this point, Nucor has operated with very little formal structure, which has been a successful strategy during the years where the mini-mill market itself was growing. There is no formal business plan agenda in place, nor does the company have an overriding business plan that is public knowledge. Information about the company's performance is shared openly with employees, and employees are encouraged to provide solutions to problems they face, but the strategic direction of the company is largely left to Iverson and, more recently, to his assistant, Aycock. While this strategy has served the company well to this point, it poses a possible weakness as the industry and Nucor enter a more competitive stage with competition coming from overseas as ...
The Nucor Company Profile and Its Success. (1969, December 31). In LotsofEssays.com. Retrieved 07:45, March 04, 2015, from http://www.collegetermpapers.com/viewpaper/1304254167.html