The US Steel Industry *

            

Details


Case Code : CLIBE062
Publication date : 2005
Subject : Business Environment
Industry : Steel
Length : 04 Pages

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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The caselet traces the development in the US steel industry over the years. It examines the impact of the two World Wars on the US steel market and looks at how cheap foreign imports of steel have affected the US domestic steel industry. The caselet discusses the potential demand for steel products in the years to come

Issues:

Historical changes in the US steel industry.
How the US Steel Corporation came into existence
Impact of two World Wars on the US Steel Corporation
Intensive global competition and its impact on the US domestic steel industry
Consolidation in the US steel industry

Introduction

The US steel industry has been in existence since the late 19th century. A number of players and instability were the characteristic features of the US steel market during that time.

But the market grew consolidated and only a few major players like Federal Steel Company, American Steel & Wire Co., National Tube Company, American Tin Plate Co., American Steel Hoop Co., and American Sheet Steel Co. remained in the market by the 1900s.

However, the consolidation failed to provide stability to the industry. The newly formed organizations often fell out over production and pricing decisions...

Questions for Discussion:

1. The US steel industry rose to prominence during World War II and operated at 98 percent of its capacity. Briefly discuss the factors that led to the downturn of the US steel industry after the 1950s.
2. Discuss the market forces that are acting as determinants of competition in the US steel industry with the help of Porter's industry analysis.

Key words:
US steel industry, Federal Steel Company, American Steel & Wire Co., National Tube Company, American Tin Plate Co., American Steel Hoop Co., American Sheet Steel Co., U.S. Steel Corporation (US Steel), 'Gary dinners', First World War, National Industrial Recovery Act, World War II, International Steel Group (ISG), economies of scale, bankruptcy, oligopoly





* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.