Question

Does Nucor have a source of sustainable competitive advantage? If so, what is it? Justify your answer using the criteria for a resource or capability to be a source of SCA and the criteria for inimitability. If not, how do you explain why competitors have not been able to duplicate Nucor’s resources and achieve the same level of performance?

Answer 1

Solutions: -

About Nucor: -

Nucor is the north America’s most diversified steel product company focused on building partnerships around to build future projects with its highly technical workforce and the wonderful culture. This company started in 1905. The early name was Nuclear corporation of America and later in 1971 becomes Nucor to focus itself in steel production. From then being listed into the NSE to the largest producer of North America and named into the part of fortune 200 companies, the Nucor is growing every year and making other competitors harder to catch them up.

Sustainable Competitive Advantage: -

Yes, Nucor have a source of sustainable competitive advantage. Nucor Competitive advantage is to be a leader in steel Technical Expertise and highly trained professionals.

By adopting newer technology Nucor able to serve its customers via its ability to produce steel products by recycling not only it saves money but the environment as well.

Nucor Sustainable competitive Advantages is its technology, ability to produce different products keeping the cost low and its highly technical workforce. It has achieved all of these via the strategically adding up new capabilities, technology, facility by acquisitions, Joint Ventures and Visionary leaderships.

Nucor is moving really fast. It is addition capabilities by opening new types mill like mini mill, Sheet mill, plate mill, bar mill and the acquisition to expand its technology and business in allied of steel production and product manufacturing.

Few acquisitions are

Gallatin Steel – A flat rolled mill, Skyline Steel – Piling and Distribution, Harris Steel- Rebar Fabrication Market, Connecticut Steel, Fort Harvard Steel, Marion Steel, Trico Steel, Birmingham Steel, Auburn Steel and many more

It has also joint venture with Mitsui & Co. to create products for automotive and consumer goods market.

New Technology Like DRI (Direct Reduce Iron)

Castrip Technology (Casting and Rolling Process)

Added further wings to its technology expertise and make it outstanding producer of technology.

Criteria for inimitability: - From making recycled steel from the scape to adopting DRI Technology makes Nucor the strong contender of the most loved steel company in north America. Their vision and mission are to be in the hearts of buyers and suppliers by offering the valued services and the product ranges. It is really hard of its competitors to match this because of its ever-expanding strategic moves for further expansion into the steel industry.

Nucor unmatched performance: - Since its inceptions it is growing its presence and offerings year by year. Competitors are becoming the part of Nucor large group the key is the strong partnership with clients, Profitable Business & technology advancements.

Resource or Capability to be source of SCA: - Technology, Multiple locations facilities, Range of products and unmatched customer service.

Why competitors are not being able duplicate the same success like Nucor does: - Competitors are moving slow as compared to the Nucor. Its strategic moves are so fast that its hard to imitate by its competitors.