Nucor is the second largest steel producer in the United States and most profitable in the world with over 4.5 billion in sales annually. Nucor in the world's largest recycler, recycling over 10 million tons of scrap steel annually. Nucor descended from auto manufacturer Ransom E. Olds, who founded Oldsmobile. The company evolved into the Nuclear Corporation of America, which was involved in the nuclear instrument and electronics business in the 50's and early 60's. Over the next five years, Valley Sheet Metal, Vulcraft Corporation and U.S. Semi-conductor Products joined the Nuclear Corporation. After suffering several money-losing years, in 1964 F. Kenneth Iverson was installed as president. Management then decided to integrate backwards into steel making, and in 1972 they adopted the name Nucor. Since then Nucor has established itself as a leader in the steel industry through efficiency and innovation. It now employs more than 7,000 people worldwide and has experienced tremendous growth under its new CEO Daniel R. DiMicco. .
SWOT Analysis.
Strengths.
Low Cost Producer.
Employee/Managerial Relations.
Leading Innovator.
Low Debt Load.
Overall industry leader.
Weaknesses .
Dependency on scrap metal and energy supply prices .
Slow Growth in Foreign Markets.
Opportunities.
Forecasted increase in cash on hand.
Growth through acquisitions.
Gain market share from older and slower competitors nationwide .
Continue vertical integration of the company.
Threats.
Expiration of Patents and Tariffs .
Competitors imitating innovation .
Problem.
Low profitability cause by decrease in sales and sales price.
Industry Evaluation.
The industry as a whole is classified into the GICS (Global Industry Classification Standards) sector of Materials. Nucor's sub industry is classified simply as the steel industry. This sub industry operates under the confines of an oligopolistic market structure. Leading corporations in competition with Nucor include: U.