Essay: Problems Associated with Nucor Corp
The other problem associated with Nucor Corp is the changes in the technology. The technological advancement resulted to changes in the production facilities; however, Nucor Corp did less to invest in capital investment that made its competitors take advantage of the situation. The other competitors made advantage of the technology and used this to maintain their market share through the pricing strategies. For Nucor Corp to overcome this problem, it has to adopt the technologies being employed by its competitors and compete at a common ground. The firm, Nucor Corp, needs to invest many capital resources to enable the firm to invest in the latest most efficient technology that will enable it to compete effectively in the steel and steel products industry.
Great competitor from competitors in US and other economies made the profits for the Nucor Corp to shrink. Consolidation, merging and other initiatives made the competitors to emerge with time. Nucor Corp expanded through merging and acquisitions. The competitors mainly got at a competitive advantage through consolidation. For Nucor Corp to overcome this, it needed to fully focus on its production plants and management. The management, which employs a decentralized organization structure and decide to cut down some of operations and remain with the most profitable operations. By focusing one the production of two or three steel products, the firm can eventually spend less in its operations that will be more efficient and more profitable. By stopping the less efficient operations, the firm profit margin will increase and the firm’s profits will shoot up even during the times of economic crunches.