3. World Steel Industry – Top Ten
8
4
7
1
Ukraine
Germany
45.8 mT
38.6 mT
Russia
68.5 mT
China
502 mT
2
10
Japan
118.7 mT
Italy
30.6 mT
USA
91.4 mT
S. Korea
53.6 mT
6
3
5
Brazil
33.7 mT
9
Global crude steel Production: 1326.5 million tonnes (mT)
Source: IISI
5. Introduction Of Tata steel
Tata Steel Limited (formerly Tata Iron and Steel
Company Limited (TISCO) is
an Indian multinational steel-making company
Headquarter is in Mumbai, Maharashtra, India, and a
subsidiary of the Tata Group. It was the 5thth largest steel
producing company in the world in 2012, with an
annual crude steel capacity of 55 million tonnes, and the
largest private-sector steel company in India.
6. Tata Steel has operating in 26 countries, including
Australia, China, India, the Netherlands, Singapore,
Thailand and the United Kingdom, and employs around
80,500 people. Its largest plant is located
in Jamshedpur, Jharkhand.
In 2007 Tata Steel acquired the UK-based steel maker
Corus which was the largest international acquisition by
an Indian company till that date.
7. Case Introduction
Indian iron industry and Tata steel two major producers of a
wide Flange Beams.
Tata steel is larger than Indian Iron Industry for production
capacity on the particular product is concerned and Tata steel
is major competitor of Indian iron industry.
Tata steel rolls full range of wide flange from 6 inches to 36
inches Indian iron industry entered this field about 15 years
ago
8. Case Facts
1]Product :-
The wide Flange Beams produced by various competitors are almost
identical and consumer buying situation based on the standard
specifications, size range.
14 inches there is no competitors to Tata steel and Indian Iron Industry
above 24 inches Tata steel have no competitors.
2]Customers :-
All the steel companies sell beams their own sales force and Beams is
customer called as the structural Fabricator.
Structural Fabricator company will sell competitive bid basis .
3]Innovation :-
Indian Iron Industry will developed a new production techniques. This
techniques offered two advantages
1) It would enable Indian Iron Industry some of the excess plate capacity .
2) Larger size of wide flange beams be offered.
9. SWOT ANALYSIS OF INDIAN Iron
INDUSTRY
STRENGTHS
•Abundant [Huge] resources of
iron ore
•Low cost and efficient labour
force
•Strong managerial capability
•Strongly globalised industry and
emerging global competitiveness
•Modern new plants & modernized
old plants
•Strong RD in production process
WEAKNESSES
•High cost of energy
•Higher duties and taxes
•Infrastructure
•Labour laws
•Dependence on imports for
steel manufacturing equipments
& technology
10. SWOT ANALYSIS OF INDIAN Iron
INDUSTRY
OPPORTUNITIES
• Huge Infrastructure demand
• Rapid urbanization
• Increasing demand for
consumer durables
• Increasing interest of foreign
steel producers in India
THREATS
• Slow growth in infrastructure
development
• Market fluctuations and
China’s export possibilities
• Global economic slow down
11. Questions & Answer
1) What went wrong at the customer’s end for which
the customer did not take interest in the new line of
(III) product ?
Tata steel is good brand name in the market and it is
larger than the Indian Iron Industry tata steel produce
the quality of product and there is no competitors to tata
steel it manufacture 24 inches beams .
Indian Iron Industry is developed a new production
beams up to 60 inches depth and 30 inches width but the
industry will not give any advertising so customer not
get the any information of the new product so they don’t
purchase the new beams of Indian Iron Industry new
line of the Product
12. Indian Iron Industry don’t know how to beat the
competitors and industry not make any marketing strategies
to increasing sales.
Indian Iron Industry is not understanding the consumer
purchase situation that is main drawback
2) If you were the marketing head of Indian Iron Industry
what corrective measures will you take to improve the
situation ?
We can improve 30 inches wide Flange Beams because Tata
produced above 24 inches beams they have no competitor so we
developed that 30 inches beams for good quality and give the
effective advertising thereby customer come to know the
product.
Indian Iron Industry is old industry it have a good name so we
can improve 30 inches beams and use the pricing strategies that
very help full to new product and we can understand the
customer buying situation that is also help to industry.
