Competitive Strategy

COMPETITIVE STRATEGY

2007

Executive Summary

Nucor is industry 's steel growth leader in the U .S . In 2002 , the groups funds accounted for 10 of all U .S . mutual fund assets and attracted 38 billion in net inflows . With a field force of 10 ,000 , over 60 percent of assets were held by retail consumers , the rest by institutions on behalf of their employee pension plans . It has the lowest average expense ratio and offered one of the highest-quality product lines at the lowest possible cost with an inclination towards the

technology side

The Nucor brand enjoyed a good reputation in the market despite extremely low advertising spending and no large-scale sales force with a motto to emphasize its long-term investment philosophy rather than the recent performance of its best funds

In early 2003 , however , Nucor reorganized to improve its customer management , consolidating disparate marketing resources and elevating the marketing function . Nucor had also commissioned a major client segmentation study to help identify potential new segments and devise new approaches to market more effectively to existing Nucor customers In response to industry trends and research such as tie investor-demand study it organized its activities into four client-service areas - full-service institutional , investment-only institutional , core retail and high-net-worth retail

The structural focus on Projects too was revamped and the whole marketing strategy was given a re-look to align to the present day mutual fund industry . Nucor wanted to be the supplier for each and every one of their client . Steel firms advised for a percentage of wrap fee from clients for services , benefiting both the company and the firms . International expansion seemed to be a better opportunity the gain is huge even by getting a small market share . Management of effective advertising techniques was in the desk by outsourcing to key players to get the realistic goals . The decisions arrived was evaluated in a regular manner so that remedial measures and corrective actions were taken

SITUATIONAL ANALYSIS

External Factors

Environmental Analysis : Strategic analysis is concerned with the structuring of the relationship between a business and its environment Disciplined approach is emphasized . resulting in functional improvement in quality and processes . The environment in which business operates has a greater influence on their successes or failures . Political ideology and political stability strongly influence the pace and direction of the economic growth . It contributes to the economic environment which is conducive to Nucor to grow in the situation Nevertheless , the deteorating standards in politics , increasing corruption and the criminal nexus are creating hurdles for business in certain areas . It is important to understand the forces of external environment the way they influence this linkage . The external environment in the Nucor is dynamic and changing holds both opportunities and threats for the organizations . The factors in the environment affect the attractiveness or risk levels of various investments of the organizations or the investors The macro environment in which Nucor operates broadly consists of the economic environment political and legal environment and the socio cultural aspects...