According to the changing scenario, what are the action should larger companies such as ArcelorMittal and TaTa to take it in the steel industry.
First of all, according to the World Steel Association in 2008, the top 5 players in steel the industry were:ArcelorMittal, Nippon, Baosteel, POSCO, Hebei Steel Group. And steel prices have had a steady rise helping many companies like Fosun in China to move up in the list from fifteenth to sixth position. Reports clam that it had revenue of $5.7 billion last year. Price of steel has increased over the last year by 35 % and is currently at $ 230 per tonne (Michael Sainsbury, 2010). Many steelmakers in Europe and U.S are investing more in the industry indicating a possible increase in profitability (Alex MacDonald & Alexander Kolyandr, 2010).
So according to the upper information, ArcelorMittal one of the biggest company in steel industry should increased the investing in the steel industry. It is could be more of an opportunity for ArcelorMittal in the sense that having the biggest resources in their hand they may be able to easily attract buyers. ArcelorMittal has modern technology which is a major attractive feature to potential buyers. For the high substitutes, it pose a certain amount of threat. But it also holds an opportunity for the industry to research and develop more and more uses for steel and also make advancements in the production processes. As it is technology has enabled steel to be manufactured more thinly than ever before. Experiments in alloy compositions have resulted in more products and discovery of their applications.
For the Tata, the Climate change is one of the most important issues that faces the steel industry in the 21st century. Steel fulfills a unique place in our lives and is essential for sustainable development. It is also key to infrastructure, energy delivery, transportation, housing, construction and consumer goods. All major steel producing countries are engaged in the...