Incorporating Competitive Strategy in Pricing Strategy

Question: Discuss about a Incorporating Competitive Strategy in Pricing Strategy? Answer: Issues that Nucor management needs to address Whether to focus on consistent expansion on the companys steel manufacturing capacity. Even if so, determination of balance between generation of additional acquisitions versus establishment of new plants Whether to invest additional resources with the focus to develop low cost substitutes of scrap steel ( This is an effective way to combat the dependence of company on scrap steel and companys vulnerability to the rising prices of scrap steel. Whether to maintain a consistent focus on the steel market in US or to expand in international market ( To address the threat posed by thriving volume of low-priced foreign imports on the core US market of Nucor. 2. Recommendations to Dan DiMicco To pursue low cost leadership strategy consistently to compete the rivals in steel industry Should continue to seek out profitable opportunities and expand via interesting acquisitions in order to expand the production capacity of company In order to deal with the threat of low cost foreign imports, two primary ways is recommended. They are: Consistent aggressiveness to seek out and implement measures to lower the cost of manufacturing steel products in company Attempt to persuade the US government to protect the steel companies of US from the unfair competitive prices through import quotas and tariffs on steel products of aberrant companies or nations. Expansion to foreign market by Nucor would be risky, unless the company develops cost advantages over its rivals. Hence, it is recommended to exploit the ample opportunities to grow in US market. References Cressman Jr, G. E. (2012). Incorporating Competitive Strategy in Pricing Strategy.Visionary Pricing: Reflections and Advances in Honor of Dan Nimer,19, 81. Xuan, V. N. (2013). Knowledge Management in Changing World-Case Study at American Companies and Lessons for National Economics University, Vietnam.Asian Journal of Humanities and Social Studies,1(5).