Corporate Strategy

STEEL INDUSTRY CASE

[pic]

← General features of the business environment and key issues in the case
Positive aspects of the environment

Steel remains still the symbol of the industrial revolution in the spirit of people and thus is still very popular. It is the metal more used in the world.

Steel is a general-purpose metal which enables him to be employed in many sectors such as: public equipment (rails, indication), chemical industry, pharmaceutical and nuclear (tanks, engines, pipings), agro-alimentary (conditioning and storage), building (reinforcements, frames, ironwork, and hardware), means of transport (car, aeronautics, railway, and aerospace), medical (instruments and apparatuses), and component mechanics (screws and bolts, springs, cables, bearings, gears). Steels are also very present in intended products at the general public (movable, kitchen utensils, and electric household appliances)

The infrastructures of the refineries and the liquefied natural gas trains are almost made of steel what makes this alloy an essential metal. Steel is also a metal which can be recycled and inexpensive and thus very much used by the sector of the packing, it is also very resistant to the shocks, which is interesting for the sector of the shipyards.

The fast development of the lines at high speed in the years 1980 increased the request of the sector and consequently of steel. This strong demand was reinforced by the economic boom of the 30 glorious ones. Some mergers such as Arcelor have made it possible to become the world leader in flat products and special steels.

Lastly, the Chinese market contributes enormously to the development of the demand for steel in the world and it is it which partly determined the price level.

Negatives aspects

Through this document, it is not only positive aspects of the merger between the two steel giants Arcelor and Mittal. Indeed, we subsequently analyze the negative aspects of