Nucor was the first company to use "mini-mills" to focus on their manufacturing of steel. Mini-mills are small, electric powered mills that melt down scrap metal to produce steel . Nucor also began concentrating on the production of sheet Nucor was the first to demonstrate that the mini-mills could be used to produce the flat-rolled steel. The purpose of the cost leadership strategy is to continuously improve the efficiency of the production and distribution of a product. Offering lower costs and maintaining a competitive advantage can achieve a higher profit. Tight cast, managerial controls, and products that are easy to manufacture and distribute are required in order to obtain cost leadership. Nucor achieved its position of being one of the largest steel producers by focusing on the manufacturing segment of using mini-mills in the production of their steel. This process enables Nucor to save on costly labor, raw materials, and the machinery necessary to produce steel from iron ore. With this process, Nucor is able to offer its prices lower than those of other organizations in the same industry. Nucor was able to expand sales from the mini-mills by keeping costs below those of its competitors, both in the United States and internationally. Nucor is consistently looking for ways to lower customer's costs while still managing to broaden its market. Focus is concentrating on serving one special market or customer group. The objective is to serve its needs better than anyone else. Nucor focuses organizational resources and expertise on the production of steel. .
Nucor has high exit barriers. Nucor has operating facilities in 14 states. Products produced are: carbon and alloy steel in bars, beams, sheet, and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; metal building systems; and light gauge steel framing . They also have many fixed costs.