The US Steel Industry in 2004: Still in Need of Protection?
|
|
ICMR HOME | Case Studies Collection
Case Details:
Case Code : ECON006
Case Length : 20 Pages
Period : 2001 - 2004
Pub Date : 2004
Teaching Note :Not Available
Organization : Steel
Industry : -
Countries : USA
To download The US Steel Industry in 2004: Still in Need of Protection? case study (Case Code:
ECON006) click on the button below, and select the case from the list of available cases:
Price:
For delivery in electronic format: Rs. 600;
For delivery through courier (within India): Rs. 600 + Rs. 25 for Shipping &
Handling Charges
»
Economics
Case Studies
» Case Studies Collection
» ICMR Home
» Short Cases Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Case Studies by Area
» Case Studies by Industry
» Case Studies by Company 
Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Chat with us
Please leave your feedback
|
|
<< Previous
Early History
|
The US steel industry has been in existence since the
late 19th century. At that time, competition in the industry was intense
and at times destructive. Production and prices of steel were decided by
loosely knit agreements, but these agreements collapsed very frequently.
Thus, the need for greater stability to control production and prices
was felt. Between 1898-1900, the industry consolidated and only a few
large companies such as 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. |
|
Andrew Carnegie,2 and
John Pierpont (J.P.) Morgan3
played a dominant role in the formation of these companies. However, the
consolidation failed to provide stability to the industry.
|
|
The newly formed organizations often fell out over
production and pricing decisions. These fights affected the
organizations adversely. Steel producers came to realize that
cooperation was more profitable than competition, and so in 1901, with
the help of J.P. Morgan, they decided to form a giant steel company -
the U.S. Steel Corporation (US Steel).4
In the first year of its operations, US. Steel controlled around 65% of
the United States'steel capacity.5
Though the stated motive of the creation of US Steel was to form a
completely integrated steel company6,
and to develop export trade, analysts believed that the main motive was
to monopolize the industry. |
In fact, soon after its formation, US Steel acquired
properties like coking coal and iron ore mines (essential raw materials for
steel) that would give it a dominant position in the industry...
The US Steel Industry in 2004: Still in Need of Protection?
- Next Page>>
|
|
